Canadian Sustainable Business Spending To Top $3.7 Billion
class=”MsoNormal”>Verdantix Forecasts
Canadian Sustainable Business Spend To Grow From $2.3bn in 2010 to
$3.7bn in 2014
The Canadian sustainable business
market will grow to $3.7bn in 2014 from $2.3bn in 2010, according
to a new report from independent analyst firm
Verdantix.
Based on an analysis of 163 firms with Canadian
revenues of at least $750 million, the Verdantix report finds that
the Canadian sustainable business market will exceed $2.8bn in
2012, grow to $3.2bn in 2013 and hit $3.7bn in
2014.
Based on cross-industry research of over 1,000
Canadian corporate sustainability initiatives, the Verdantix
Critical Moments model defines sustainable business spend across 29
sustainability initiatives.
Initiatives covered include spending on energy
efficiency, carbon management, sustainability strategy, risk
management, cleantech innovation, sustainable operations, human
capital investments and industrial emission
reductions.
“While the Canadian market will expand at a
compound annual growth rate of 12% between 2009 and 2014, the pace
of growth is held back by uncertainties over federal energy and
climate policy.” commented James Beresford, Verdantix Analyst and
author of the report.
“At the moment, Canadian federal policy does not
include binding legislation to restrict emissions. The
federal government has postponed major policy decisions until the
US position becomes clearer. At a provincial level the policy
environment is fragmented. British Columbia, for example, has
implemented a form of carbon taxation and signed up to the Western
Climate Initiative. By contrast, Alberta is dominated by oil and
shale gas industries and has acted as a brake on federal policy
development.”
The
Verdantix report target=”_blank”>Canadian Sustainable Business Spending
2009-14 is based on the proprietary
Critical Moments methodology. Key findings
include:
Canadian Sustainable Business Market will
experience 12% CAGR from 2009-2014.
Sustainability spend will increase by 12% in 2011 compared to
2010. This positive trend will continue with a year-on-year
increase of 13% in 2012 accelerating to growth of 14% in 2013. Over
the 2009 to 2014 period the compound annual growth rate (CAGR) will
be 12% across all 20 industries.
Spend on smart grid and on-site renewable
energy to experience highest growth rate.
Compound annual growth rates (CAGRs) for the 29
sustainability initiatives covered by the Verdantix Critical
Moments market forecast vary from 5% to 27% over the 2009 to 2014
period. Spend on smart grid development and implementation will
grow at a 27% CAGR to reach $142million in 2014. For on-site
renewable energy the CAGR is 25% and energy and carbon data
management 19%.
Emission-intensive industries dominate
sustainable business spend. In 2011, nearly
40% of sustainable business spending is generated by the oil and
gas, utilities and basic resources industries. From 2009 to 2014,
utilities and oil and gas firms will increase spend at a compound
growth rate of 15%, and basic resources will increase spend by 12%.
By contrast, growth rates for Banks and Insurance firms will reach
just 8% over the 2009-2014
period.
“Expectations for Canadian economic growth
between 2010 and 2014 are in the 2% to 3% range. So a 12% increase
in sustainable business spending makes this an attractive market”
stated David Metcalfe, Director at Verdantix. “Beyond 2013,
we expect higher oil prices, a competitive ratchet effect on
sustainability investments and cleantech innovation to accelerate
sustainability spending.”
The Verdantix Critical Moments model is based on
analysis of market drivers including energy and climate change
policy at federal and state level, competitive dynamics within
industries, innovation diffusion, risk drivers, oil, natural gas
and electricity price forecasts, and Canadian and global GDP growth
forecasts.
The
Verdantix report “
target=”_blank”>Canadian Sustainable Business Spending
2009-14” launched today and is available to
Verdantix clients who can download the report at
.
About Verdantix - Verdantix
is the fastest-growing, independent, analyst research firm focused
on sustainable business strategies and market opportunities. For
more information visit:
target=”_blank”>www.verdantix.com
.
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