Carbon-Green Split Creating Issues In Canada
There’s no disputing the fact that going green is the only way to ensure a sustainable future. at the same time, it’s also true that many Canadian regions and communities derive their livelihoods from the oil and gas sector. All of which is slowly leading to a complete economic split in regions such as Ontario and Alberta.
While it’s true that recently announced new federal incentives offering rewards for low-carbon investments as part of Canada’s economic recovery play to offer much in the way of critical relief, the fact that the country’s private energy sector is as it is already embattled in a financially painful investment transitional process cannot be ignored.
But all things considered, and certainly significant in terms of it being worth noting, those pushing for an ongoing fully-functional fossil fuel-based economy on which places like Alberta heavily depend for so many aspects of daily life, no longer find their agenda’s to be aligned with the over-arching well-being of Canada’s centres of industry and finance – and especially so in Ontario.
The Mark Of Disparity
It’s a situation that has positioned Ontario’s provincial government at a point of variation, and one that can no longer be ignored as if it does not actually exist or make any difference this way or that. It is clear from research conducted by several notable universities and research departments that unlike Alberta, Ontario’s financial and industrial success depends largely on a rapid move toward a low-carbon way of living and doing business.
The result of such a transitional process has been that of some of the country’s biggest and best respected retirement funds, pension schemes, and banking sectors having almost unwittingly been acting against their own best interests – and against the best interests of their clients and members.
Exxon Mobil The Living Example
A top tell reflecting this disparity has been Exxon Mobil leaving the Dow Jones index, says Ryan Riordan, who is a specialist financial advisor and researcher, and an associate professor of finance at Queen’s University in Ontario.
After Exxon Mobil spent nearly 100 years trending at the top of the exclusive U.S. industrial giants list it suddenly got kicked off that list in September. This after market capitalization plummeted from US$340 billion to US$160 billion in a matter of only five years.
And what has happened with Exxon Mobil is only the very top of the iceberg, says Riordan. Tech companies quite frankly don’t require carbon to function. Or in other words, Canada’s highest soaring market cap does not require carbon in order to survive or function.