Issue #2 of Leading Economic Change from the Nova Scotia Association of Regional Development Authorities.

1. Energy & Sustainability
Leading Economic Change Number 2, December 2011
Why Worry About Energy?
Political leaders around the world are worried about Hubbert’s Peak
energy for economic, political, and environmental In 1956, geophysicist M. King Hubbert successfully
reasons. predicted that the continental US would reach
peak oil production in the early 1970s.His models
We know that the global economy is intricately tied to also predict that global oil production could peak
the price of oil. Our economies are incredibly sensitive by 2016, and then enter a terminal decline.
to fluctuations in oil supply and demand. And we may
be quickly approaching peak oil production.
Meanwhile, much of the world’s oil production takes enjoyed has now become a significant challenge for
place in politically unstable regions. This has raised electricity consumers (and for large industrial users
significant concerns about energy security and energy in particular). Importing coal is one of the biggest
dependence. leaks of wealth from our economy.
And let’s not forget about what some have called “the The economic, political and environmental realities
greatest political challenge of our time”: scientists have are pushing all developed economies to find new
presented irrefutable evidence that fossil fuel emissions energy solutions. And the most progressive
have been changing our climate. jurisdictions are converting these challenges into
opportunities for economic development.
In Nova Scotia, we have been addicted to a particularly
“dirty” fuel for generations. Currently, nearly all our Today, we are finally getting off the roller-coaster
energy (80%) is produced by burning coal. This of fossil fuel prices that drive the cost of
dependence is remnant of the days when we produced electricity, with clean energy becoming the
all the coal we needed. But we now import about 87% linchpin for a new era of regional progress.
of our coal. And in the past six years, global coal prices - Premier Darrell Dexter
have risen 75%. Whatever cost advantage we once State of the Province, Dec. 7, 2011
NSARDA is the link between the Nova Scotia RDAs, providing support and collective strength.
Since 1999, the Association has helped the Nova Scotia RDAs in improving the economy of
communities across Nova Scotia. For more information about NSARDA and the Nova Scotia
RDAs please visit www.nsarda.ca.
Leading Economic Change: A Discussion Paper Series from NSARDA

2. What are the Economic What Role Can Community Economic
Opportunities? Developers Play?
Nova Scotia already understands the economic Researchers at Acadia University have begun looking at
opportunities of energy production. The Sable Offshore how to create a thriving renewable energy industry in
Energy Project has yielded billions in tax royalties. With Nova Scotia. Such an industry would not only meet our
Deep Panuke now under development, geologists Province’s goal of 40% renewable energy by 2020, it
believe we still have significant untapped reserves. But would also provide world-class exportable expertise.
to-date, low market prices have been restraining off-
shore development, and Nova Scotia is now one of To achieve our renewable energy goals, we will require:
many jurisdictions examining the prospect of hydraulic significant capital investment, local suppliers, an
fracturing for on-shore shale gases. engaged research community, skilled tradespeople, and
a diversity of knowledge workers.
Like many developed economies, Nova Scotia is getting
serious about renewable energy. We already have According to Dr. Mark Jacobson (Stanford) and Dr. Mark
experience with wind development, and have been Delluchi (U.C. Davis), the barriers to renewable energy
exporting our related expertise in “community development are not technological or economic - they
economic development investment funds.” are social and political.
We are also preparing to tap into marine energy This is why community engagement will be critical.
sources. Four large-scale tidal power devices will be Community Economic Developers can lead the creation
tested near Parrsboro, and the potential for smaller of these new industries by facilitating local
scale development is being explored in Digby County. collaboration. We can help our businesses and
communities identify their energy opportunities, and
Meanwhile, some Nova Scotia companies have been then transition from the high costs of imported coal to
exploring a new financing option for sustainability the sustainability of renewables.
projects. Environment Canada can issue a “carbon
offset credit” to organizations that reduce or remove Ryan MacNeil, EcD, is Principal of Ryan MacNeil & Co., a company
the equivalent of one tonne of CO2 emissions. These that helps development leaders & organizations become focused
credits can be sold to other organizations that are and effective. Reach him at ryan@ryanmacneil.com.
looking to reduce their carbon footprints. In 2008, the
Thank you to Dr. Shelley MacDougall (of Acadia University and the
global carbon market was estimated at $139 billion. Fundy Energy Research Network) for background material.
Who is working on it?
Nova Scotia’s Regional Development Authorities (RDAs) have been engaged in
energy and sustainability projects for over a decade. The Guysborough County
Regional Development Authority was instrumental in supporting both the Sable
and Deep Panuke Projects. They are currently facilitating local wind develop-
-ment through the provincial “Community-Based Feed-in Tarriff” (COMFIT) program.
The Department of Energy is leading the development of the province's energy resources. In 2009, the
Department published Nova Scotia’s Energy Strategy. This was followed by a Renewable Electricity Plan in 2010.
In 2009, the Atlantic Canada Opportunities Agency published an overview of the region’s energy sector. The
Agency’s Atlantic Energy Gateway initiative is now helping to facilitate development of the renewable energy
sector, and is led by the ACOA Energy Team/Atlantic Canada Energy Office.
Leading Economic Change: A Discussion Paper Series from NSARDA