Is green just a dream?

It’s difficult to argue against the green energy movement. Who doesn’t want to improve the environment and create a cleaner, healthier tomorrow for future generations?

The green energy movement promises cleaner technologies that don’t generate toxic waste or consume finite natural resources. And for the manufacturing sector, particularly in Ontario with its local content requirement rule for green energy investments, it represents a new emerging manufacturing market. It holds the promise of more jobs and growth opportunities for companies looking to diversify away from automotive and aerospace.

Canada is not the only country jumping on the green bandwagon. The US, the European Union and China are examples of other global regions that have made commitments to renewable energy.

In his State of the Union Address in January this year, US President Barack Obama called for 80 per cent of US energy to come from clean sources—wind, solar, nuclear, clean coal and natural gas—by 2035. In September 2010, Germany adopted an energy policy that set out targets and measures for sustainable energy supply through to 2050. By 2010, at least 18 per cent of that country’s total energy consumption should be covered by renewable energy sources. By 2030, that percentage goes up to 30 per cent and then 60 per cent by 2050. In January 2011, French President Nicolas Sarkozy confirmed his country’s plans to invest $13.5 billion in 600 turbines off the country’s Atlantic coast. Britain and countries in Scandinavia have also earmarked billions of dollars for new offshore wind projects. China is the big player here. In a study by the Pew Charitable Trusts released on March 29, 2011, it noted China invested a record US $54.4 billion in wind, solar and other green projects in 2010, a 39 per cent increase from a year earlier.

The question for manufacturers though is, what comes next? What happens when these emerging markets reach a saturation point, if they’re allowed to? Will powerful lobby groups for traditional energy sources thwart attempts to move to greener energy sources thereby limiting opportunities for manufacturers wanting to diversify into new markets?

For the record, I think there is opportunity for manufacturers in this emerging green energy sector. The important question manufacturers need to ask themselves is: are they being short-sighted by focusing attention on markets with relatively short saturation points? Wind turbines and solar panels for example, aren’t like cars or appliances that break down after five to seven years or are replaced for newer, modern designs; they typically last 20 to 25 years.

There may be opportunity in the maintenance and parts supply area, but that won’t be able to sustain a healthy manufacturing base.

The green movement is essential to the long-term health of any economy, but such a movement needs to move beyond the energy markets and apply to all areas of life. When green designs become standard in everything we build, perhaps then we can more securely put our manufacturing future into greener hands.