Over the next 15 years an anticipated $379 billion US will be invested by energy companies in Alberta's oilsands. An impressive figure, but a report released today reveals this investment could prove more economically, environmentally and socially rewarding if diverted to other opportunities.
The report, co-authored by the WWF-UK and the Co-operative entitled, Opportunity Cost of the Tar Sands, seeks to find out how far investments in the oil sands could go in other areas. They took the $379 billion and ran the numbers to see how many renewable energy mega-projects could be funded or how close those dollars could get us to meeting the UN's Millenium Development Goals.
Indeed, Canada is falling behind in terms of investments in alternative, clean energy sources. The U.S., for instance, set aside $98 billion for environmental and sustainable energy projects in last year's economic stimulus package, outspending Canada 14:1. And a report we wrote, Greening the Grid, paves a path for how Alberta could move from 70 per cent coal to 70 per cent renewable energy in just 20 years. It all comes down to where you put your money.
Opportunity Cost of the Tar Sands demonstrates that for the same price as developing the oil sands, you could fund a Europe-wide shift to electric vehicles or prevent the health-related deaths of four million children. It's hard to imagine the difference in outcome.
Here in Alberta, we like to measure how much prosperity the oilsands have brought to the province and the entire country. Rarely though, do we think about what we could achieve if Albertans or oilsands investors were able to spend the money on anything else? What sort of vision for the future do you have?
Simon Dyer is the deputy executive director of the Pembina Institute. He is based in Edmonton.
