This presentation looks at climate change including carbon taxation and/or carbon pricing. The presentation discusses the need to have a balance between economic and environmental policies as it relates to climate change

1. PAUL YOUNG, CPA, CGA
APRIL 24, 2017
Case Study – Carbon Tax and
Carbon Pricing – Clean Tech
Investment – April 2017

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• Academia
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3.  This presentation discusses clean technology in Canada. The presentation will look at
the market for clean technology and issues facing Canada transforming to low carbon
economy.
Description

4.  GDP Analysis
 Cleantech Market Canada
 Carbon less economy
 Cleantech products
 Cleantech environmental impact
 Cleantech VC/Canada
 Cleantech Subsidies USA
Agenda

5. Companies developing technologies to cut carbon emissions are in line for an opportunity
worth up to $120 billion, as the federal government kicks off a carbon pricing program aimed
at cutting greenhouse gas emissions.
This is according to a report by Boston-based research and advisory firm Lux Research.
Prime Minister Justin Trudeau has mandated that all 10 provinces implement a carbon pricing
scheme by 2018, with a minimum of $10 per metric tonne (MT) and steadily increasing to $50
per MT in 2022. By 2030, our government seeks to cut emissions by 28 per cent, to 524 million
MT of CO2 equivalent.
• Money would have to flow to clean technology investment
• Clean technology relies on raw material, fabrication, delivery and installation
• Consumers will pay 6-8% more for goods and services
• CO2 is not a pollutant, but the building block for life
• Many government are using carbon tax and/or pricing to plug their fiscal gap between taxation
and program spending
Canadian Manufacturing – April 24 2017

6. Carbon Tax Market
California’s carbon market hasn’t
worked as envisioned at any point
during its relatively short life, but at
this point it’s not an exaggeration to
say it’s downright broken. It has so
many problems that it becomes
necessary to unpack them all in order
to see the mess in all its glory, so let’s
start with the biggest one of all: the
price of carbon permits in the system
just aren’t high enough. Bloomberg
reports:

7. GDP Analysis
Source – Stats Canada

8. Canada Clean Tech Market
Key Programs
• SDTC
• Trade/FIPA
• Provincial Funds
for Clean
Technology
Market Size /Clean
Technology
• $44B
Market Growth
• 10% or about
$4.4B/year
• Technology evolving
(storage, microgrids,
solar, advance
materials, etc)
Downsize Risk
• Ability to commercialize
• Projects have to be profitable without Government Grants
• Access to raw materials
• Access to skills / Training
• Trade/FIPA Agreements
• The requirement for Carbon (mining to installation)

9.  You need substitute material for carbon based material, i.e. coal, metals, plastics, wood,
etc.
 You cannot transformed an economy overnight
Transforming to carbon-less economy

10. Clean Tech examples

11.  Refining
 Lithium
 Vanadium
 Rare Metals
 Assembling
 Fabrication
 Assembling
 Raw Materials
 Lithium
 Vanadium
 Rare Metals
 Aluminum
 Nickel
 Copper
Environmental Impact of Clean Technology

12. Venture Capital Issues

13. United States Subsidies for Clean Technology

14.  https://qz.com/794542/air-pollution-map-by-country-fine-particulate-matter/
Air Quality
How many of these countries
are OPEC?
How many of these countries
are using coal as their chief
source power?
How many of these countries
are emerging economies?

15.  It takes time to move ideas from incubation to market (Testing)
 Canada is small market as such raising capital is very difficult compare to countries like
United States that have a large venture capital market
 Cleantech requires extraction, refining, fabrication, delivery and installation
 Cleantech is not truly clean tech until it is installed. You can not harness wind, solar or
methane without turbines, panels, storage and delivery systems
 Businesses need to be viable without subsidies. In the 1990s there was a big push for
ethanol. The problem is once you removed the subsidies ethanol as not profitable
 Climate change is overrated. You can put 30+ climate change specialist in a room and get
30+ different answers. More information can be found by searching the internet or google.
Here is one example - https://www.youtube.com/watch?v=5Smhn1gL6Xg&t=595s
 CO2 is foundation for life on this planet. Plants need CO2 for their development cycle.
Summary / Cleantech