Canada imported almost three times more products used for renewable energy — mainly solar panels and wind turbines — than it exported in 2021, according to the latest fact sheet from the Canadian Energy Centre (CEC), a deficit in trade that jumped almost a third since 2015..In 2021, Canada imported solar panel products with a value of $653 million and wind turbine products with a value of $91 million. The value of the solar panels and wind turbines Canada imported was much higher than the $260 million export value for both products, according to CEC..Canada’s imports of solar panel products increased from $512 million in 2012 to $653 million in 2021, up nearly 28%. In contrast, the country’s imports of wind turbine products decreased drastically after 2014, falling to just $91 million in 2012, it added. That was still almost 100 times higher than the value of exported turbine components, at barely $1 million..The top suppliers were the usual suspects: China accounted for 48% of wind turbine imports followed by Germany at 37%. Vietnam was our largest supplier of solar panels, at 27%, followed by China at 21%..The numbers are still exceedingly small in the context of the broader economy, at barely 1% of the country’s $2 trillion GDP. .By comparison, Canada exported $116.7 billion worth of crude oil (excluding oil sands) and another $21.3 billion of refined petroleum products — more than three times the next highest category, cars and light trucks, which came in at $32.9 billion. Gold and silver mining amounted to $18.6 billion, despite record prices for both commodities..The numbers suggest a growing gap between Ottawa’s ambitious climate goals and a drive toward net zero emissions by 2050 and hard economic reality. The numbers speak for themselves..“Policy discussions about how the Canadian economy should pivot away from its most significant export product — oil and gas (which brings in billions of dollars in export revenues to Canada) — towards renewable energy products calls for a closer scrutiny. Canada’s share of global trade in renewable energy products can be an excellent barometer from which to gauge where Canada stands,” CEC said..It comes as the Biden administration puts the finishing touches on its so-called Inflation Reduction Act (IRA), which contains more than $370 billion US in green energy subsidies and tax breaks the Wall Street Journal describes as a “climate trade war” with its largest trading partners, including Canada and the European Union (EU). .Supporters Of the IRA dubbed Biden’s efforts as a ‘carrot approach’ to achieving meaningful emissions reductions across a broad swathe of the US economy; Canada has adopted the “stick.” Its main policy tool is the carbon tax which critics complain discourages investments in new technologies such as Carbon Capture, Utilization and Storage (CCUS) and unjustly punishes the oil and gas and agriculture sectors..The Alberta budget last week set aside $387 million over five years from the province’s Technology Innovation and Emissions Reduction (TIER) fund — essentially Alberta’s equivalent of the carbon tax — for CCUS projects, while a separate line item committed another $246 million over three years from the capital spending ledger for future carbon capture facilities. Ottawa has also chipped in with modest tax breaks oil industry representatives complain don’t go far enough..Despite dithering in Ottawa, European Commission President Ursula von der Leyen is meeting President Biden at the White House Friday to discuss the issue. The EU is worried the level of US incentives will siphon clean energy investment away from the bloc..“We want to achieve as much non-discriminatory treatment for EU products and companies as possible, avoiding distortions of the level playing field,” a spokesperson for the European Commission, told CNBC.
Canada imported almost three times more products used for renewable energy — mainly solar panels and wind turbines — than it exported in 2021, according to the latest fact sheet from the Canadian Energy Centre (CEC), a deficit in trade that jumped almost a third since 2015..In 2021, Canada imported solar panel products with a value of $653 million and wind turbine products with a value of $91 million. The value of the solar panels and wind turbines Canada imported was much higher than the $260 million export value for both products, according to CEC..Canada’s imports of solar panel products increased from $512 million in 2012 to $653 million in 2021, up nearly 28%. In contrast, the country’s imports of wind turbine products decreased drastically after 2014, falling to just $91 million in 2012, it added. That was still almost 100 times higher than the value of exported turbine components, at barely $1 million..The top suppliers were the usual suspects: China accounted for 48% of wind turbine imports followed by Germany at 37%. Vietnam was our largest supplier of solar panels, at 27%, followed by China at 21%..The numbers are still exceedingly small in the context of the broader economy, at barely 1% of the country’s $2 trillion GDP. .By comparison, Canada exported $116.7 billion worth of crude oil (excluding oil sands) and another $21.3 billion of refined petroleum products — more than three times the next highest category, cars and light trucks, which came in at $32.9 billion. Gold and silver mining amounted to $18.6 billion, despite record prices for both commodities..The numbers suggest a growing gap between Ottawa’s ambitious climate goals and a drive toward net zero emissions by 2050 and hard economic reality. The numbers speak for themselves..“Policy discussions about how the Canadian economy should pivot away from its most significant export product — oil and gas (which brings in billions of dollars in export revenues to Canada) — towards renewable energy products calls for a closer scrutiny. Canada’s share of global trade in renewable energy products can be an excellent barometer from which to gauge where Canada stands,” CEC said..It comes as the Biden administration puts the finishing touches on its so-called Inflation Reduction Act (IRA), which contains more than $370 billion US in green energy subsidies and tax breaks the Wall Street Journal describes as a “climate trade war” with its largest trading partners, including Canada and the European Union (EU). .Supporters Of the IRA dubbed Biden’s efforts as a ‘carrot approach’ to achieving meaningful emissions reductions across a broad swathe of the US economy; Canada has adopted the “stick.” Its main policy tool is the carbon tax which critics complain discourages investments in new technologies such as Carbon Capture, Utilization and Storage (CCUS) and unjustly punishes the oil and gas and agriculture sectors..The Alberta budget last week set aside $387 million over five years from the province’s Technology Innovation and Emissions Reduction (TIER) fund — essentially Alberta’s equivalent of the carbon tax — for CCUS projects, while a separate line item committed another $246 million over three years from the capital spending ledger for future carbon capture facilities. Ottawa has also chipped in with modest tax breaks oil industry representatives complain don’t go far enough..Despite dithering in Ottawa, European Commission President Ursula von der Leyen is meeting President Biden at the White House Friday to discuss the issue. The EU is worried the level of US incentives will siphon clean energy investment away from the bloc..“We want to achieve as much non-discriminatory treatment for EU products and companies as possible, avoiding distortions of the level playing field,” a spokesperson for the European Commission, told CNBC.
