Today in Kamloops I had the pleasure of giving a keynote presentation at the 2018 Annual General Meeting of the BC Chamber of Commerce.

I took the opportunity to outline our vision for a thriving, diverse 21^st century economy that builds upon our strategic strengths.

Below I reproduce the text of my speech.

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Text of Speech

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Introduction

Thank you for inviting me to “the River City” to speak not only about some of the work we’ve been doing over the past year, but also about our vision of economic prosperity for BC.

It’s been almost exactly one year since we signed our confidence and supply agreement with the BC NDP, signalling our commitment to supporting them in a minority government.

It’s somewhat ironic that it’s also been almost exactly one year since the publication of your breakfast keynote speaker (Adam Kahane’s) book Collaborating with the Enemy: How to Work with People You Don’t Agree with or Like or Trust — a book I bought and read last summer.

The last year seems like a year on fast-forward.
The minority government produced by the election – the first in 65 years in BC – led to the BC Greens playing a role we’ve never before played in BC politics.

It provided us an opportunity to champion key aspects of our economic platform in our agreement with the NDP.

To be successful in the 21st century economy, we need to capitalize on our strategic strengths and position ourselves to be leaders in the new economy. Achieving this has been the focus of our efforts in BC’s minority government.

As many of you know, before running for office in 2013 I was a climate scientist at the University of Victoria for 25 years.

Year after year, my students would ask me why so little progress was being made to reduce greenhouse gas emissions given that the science on climate change was so clear.

I told them that if they didn’t like the decisions politicians were making, they should consider finding someone to run or consider running themselves.

In 2012, as I watched the dismantling of Gordon Campbell’s legacy of positioning BC as a leader in the new economy, I realized I had to take my own advice. So, what motivated me to get into politics is fundamentally the same thing that I’m sure motivates a lot of you to do what you do.

I believe we have a responsibility to the next generation.

I believe in British Columbia and want to contribute to building the brightest possible future for our province.

If we want to secure a bright future for BC, we will do ourselves no favours by doubling down on the economy of the last century.

Instead, we must take stock of global trends – climate change, technological innovation, the rise of the knowledge economy – and point ourselves in a clear direction of where we want to go.

This year, the auditor general confirmed BC will miss our legislated 2020 greenhouse gas reduction targets.

Without a plan we will almost certainly miss our recently legislated 2030 targets as well.

Last year, wildfires, which the scientific community agrees will become more extensive, cost our province $750 million. Communities in BC are still recovering from flooding. The effects of global warming are not in some distant future – they are here now. And they will get far worse.

In this context, it’s not acceptable to continue to ignore our greenhouse gas reduction targets, and to continue to expand the fossil fuel infrastructure of the last century thereby pushing our targets further out of reach.

And this isn’t just an environmental issue – It’s critical from a business perspective as well.

The cost of failing to reduce greenhouse emissions will be profound for all sectors of our economy, both here in BC and around the world.

The world is coming together to find innovative solutions to the energy challenges arising from the transition to the low carbon economy. Globally countries like Saudi Arabia, China and Germany are investing billions in alternative energy production to position themselves as leaders of tomorrow.

There are opportunities to be had from transitioning to the low carbon economy, but they will flow to those who lead, not to those who follow.

Climate/LNG

Global investment trends are being driven by the world’s shared Paris commitments, predicated on the fact that keeping global warming under 2 degrees Celsius is far more cost-effective than dealing with the effects of a temperature rise above that level.

In the next two decades, renewable energy sources like wind and solar will comprise almost three-quarters of the US$10.2 trillion in new global investment in power generating technology.

The cost of solar is already on par with coal in Germany, the U.S., Australia, Spain and Italy, and will reach parity in China, India, Mexico, the U.K. and Brazil in 2021, if not sooner.

This shift presents a significant opportunity for B.C.’s economy. Our province is well poised to bolster its leadership in the cleantech sector – Vancouver alone is home to a quarter of Canada’s cleantech companies. And we can thank the leadership of Gordon Campbell for bringing this to fruition.

In 2016, B.C. cleantech generated approximately 13,900 jobs with an average salary of $84,000. We have a strong competitive advantage in the building blocks required to foster a knowledge-based economy.

Natural gas – royalty credits

Despite the new opportunities we’re presented with, in BC today, our government is continuing to pursue the dream of exporting LNG, and is perpetuating a natural gas giveaway.

We have seen massively decreasing revenues to BC from gas extraction.

What the data shows is quite shocking – while gas production has gone from 25 billion cubic metres in 2001 to over 50 billion cubic meters in 2016/17, royalty and land lease revenues to the BC government have gone in the opposite direction, from a record $2.4 billion in 2008/09 down to only $139 million in 2015.

This is partly due to the fact that the B.C. government provides hundreds of millions of dollars every year to subsidize horizontal drilling in the northeast of our province, through the deep-well royalty credit program.

The deep well royalty credit program was originally meant to offset the cost of deep well drilling.

It was later extended to apply to horizontal drilling as well. Now both are common practice, so much so that companies have amassed more credits than they can spend.

The companies earn these credits by drilling qualified wells, and when the wells start to produce gas, the companies apply the credits to reduce or even eliminate provincial royalties that they normally pay on this public resource.

In recent years, the participating companies have amassed credits faster than they can spend them. The balance in their deep-drilling account has increased from $752 million in 2012 to an accumulated $3.2 billion today.

Not only are we not getting paid for this public resource, we are literally paying companies to take it from us.

In 2009, B.C. collected $1.3 billion in natural gas royalties. Last year, we collected a mere $152 million. Measured as a share of the value of oil and gas production in B.C., royalties collected by government has fallen from 44 percent in 2008 to just 4 percent last year.

In 2009, BC earned $39.90 in royalties for every 1000 cubic metres of natural gas. In 2017 it was $2.95.

This is a dismal return on the resources that are being extracted from our province. We are giving away more gas for less money while barrelling past our climate commitments. That’s race for the bottom economics at its finest.

Opportunity/innovation

The future of economic prosperity in BC lies in harnessing our innate potential for innovation and bringing new, more efficient technologies to bear in the resource sector.

BC will never compete in digging dirt out of the ground with jurisdictions that don’t internalize the same social and environmental externalities that we value.

We will excel through being smarter, more efficient, & cleaner.

This means that we not only export the dirt, but we also export the knowledge, technology and value added products associated with resource extraction.

A great example is Vancouver-based MineSense’s technology that saves mines between $20 million to $200 million per site, while also reducing electricity and water consumption by 20 to 25 per cent and tailings by up to 40 per cent.

Through MineSense’s innovation, B.C.’s economy grows by creating the technology that enables others to make this same transition.

Efficiency also means ensuring B.C. is getting the maximum value for our resources. The last two provincial budgets reported job losses in forestry, fisheries, mining and oil and gas.

My caucus and I hear a common theme from resource businesses, industry groups and local governments — the economic value of B.C.’s natural resources does not remain in our communities.

It’s profoundly ironic that many believe that doubling down on the approach of the BC Liberals is somehow good for the resource sector when in fact, the job losses, downturn in the resource sector, and economic troubles in rural BC have occurred precisely under the watch of the BC Liberals over the last six to eight years.

In forestry, sawmills close as raw log exports persist. In fisheries, quotas become concentrated in the hands of a few companies, pricing young fishers out of the market.

Seafood caught in Canadian waters is shipped to Asia, where it is processed, and then shipped back here to be sold.

The Trans Mountain Pipeline expansion seeks to export diluted bitumen, which must be refined abroad before it can be of any use to consumers.

Every time we ship a raw commodity overseas, we forgo opportunities to create well-paying jobs and grow our economy.

There is no need for this — B.C. has a highly educated workforce, a strong entrepreneurial spirit, and world-class research institutions.

Our high school students are consistently top ranked — with the OECD noting that BC is one of the smartest academic jurisdictions in the world. Our high quality of life and beautiful natural environment attract some of the best and brightest from around the globe.

In every corner of the province, innovative British Columbians are using these strengths to generate economic prosperity. After the Midway Mill closed in 2007, the town raised capital to invest in a technological overhaul and reinvigorate the mill.

At the Wood Innovation and Design Centre in Prince George, students learn how to bring design, technology and forestry products together to develop innovative high-performance wood products.

The centre was built using value-added wood products from Structurlam, a highly innovative Penticton-based company whose products have been used in award-winning buildings all over the world.

To get a fair value for our resources that deliver maximum benefits to our communities, we need to get smarter and more strategic when it comes to embracing innovation.

Government’s role

Government should be doing more to support these initiatives and create fertile ground for a sustainable, resilient, and diverse economy.

In our Confidence and Supply Agreement with the NDP, we included two key pieces from our 21st century economy platform to help us seize economic opportunities in the emerging economy.

The first piece is the Emerging Economy Task Force.

We proposed the Emerging Economy Task Force to enable government to adapt and respond to changes on the horizon.

We need to modernize government so that it is considerably more responsive to technological innovation.

In one example, six years since ride hailing attempted to enter our market, Vancouver is still stuck with fewer options than every other major city in North America. This shouldn’t be the case.

The role of the Emerging Economy Task Force is to look to the future, identify emerging trends and advise government on how to maintain our competitiveness and achieve prosperity amidst these changes.

The second item from our platform that we integrated into CASA is the Innovation Commission (now Innovate BC) as well as the appointment of an Innovation Commissioner.

The innovation commissioner was proposed to be an advocate and ambassador on behalf of the B.C. technology sector in Ottawa and abroad, to enable B.C. companies to more easily tap into existing federal programs and build key strategic relationships.

I’m confident that both of these initiatives will bolster key sectors of our economy as we go forward.

We should be using our strategic advantage as a destination of choice to attract industry to BC in highly mobile sectors, like tech, that have difficulty retaining employees in a competitive marketplace.

We should be using our boundless renewable energy resources to attract industry, including the manufacturing sector, that wants to brand itself as sustainable over its entire business cycle, just like Washington and Oregon have done.

We should be setting up seed funding mechanisms to allow the BC-based creative economy sector to leverage venture capital from other jurisdictions to our province.

Too often the only leveraging that is done is the shutting down of BC-based offices and opening of offices in the Silicon Valley.

We should fundamentally change the mandate of BC Hydro. BC Hydro should no longer be the builder of new power capacity.

Rather, it should be the broker of power deals, transmitter of electricity, and leveller of power load through improving British Columbia power storage capacity. Let industry risk their capital, not taxpayer capital, and let the market respond to demands for cheap power.

Similarly, by steadily increasing emissions pricing, we can send a signal to the market that incentivizes innovation and the transition to a low carbon economy. The funding could be transferred to municipalities across the province so that they might have the resources to deal with their aging infrastructure and growing transportation barriers.

Yes, we should be investing in trade skills, as described, for example, under the B.C. jobs plan. But we should also be investing further in education for 21st century industries like biotech, high tech and cleantech. It’s critical that we bring the typically urban-based tech and rural-based resource sectors together.

Natural gas has an important role to play.

But, we should use it to build our domestic market and explore options around using it to power local transport. BC businesses such as Westport Innovations and Vedder Transport have already positioned British Columbia as an innovative global leader in this area.

The digital technology supercluster provides another example of exactly the type of innovation government should be doing everything it can to support. The supercluster is estimated to generate up to 15,000 jobs and $15 billion in economic activity in the coming decade.

It offers an opportunity to bring together the private sector, our post-secondary institutions and government to solve problems and accelerate innovation in key sectors in our province, like health care, forestry and manufacturing.

The companies involved in the supercluster are diverse, innovative and deeply committed to seeing success in British Columbia, and their initiative will help B.C. be more competitive as we respond to changing global trends, and help us get a better return for our resources.

Benefit companies

Finally, I’d like to speak today to a recent initiative our office has undertaken, to have benefit company legislation passed in BC.

This legislation would support companies that choose to integrate economic sustainability and social responsibility into their business mandate, by enabling them to incorporate as benefit companies in BC.

By incorporating as benefit companies, businesses would achieve greater certainty for their directors and investors about their goals and mandate, enabling them to attract capital investment while staying true to their mission as they scale.

Benefit companies are critical because they recognize that in today’s new economy — with triple-bottom-line reporting, providing a workplace where you actually create an environment that is conducive to attracting and retaining employees in a very progressive manner — these are the types of companies that are attracting the millennial generation.

This legislation is an opportunity for B.C. to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

I am hopeful that government will support this legislation and that we will be the first jurisdiction in Canada to have benefit companies.

Conclusion

We will not solve the challenges of the 21st century by chasing 20th century solutions. In the shadows of the massive challenges that we face, our province needs a new direction.

But we can turn these challenges into opportunities if we have a forward-looking vision, an evidence-based approach to policy and political leadership that thinks beyond a four-year election cycle.

Most importantly, I believe that we must reject politically motivated attempts to pit the environment against the economy. Doing so will only short-change resource-dependent communities by justifying the race-to-the bottom economics of raw commodity exports.
Instead, we need a new direction that offers a realistic and achievable vision grounded in hope and real change.

A new direction that places the interests of the people of British Columbia first and foremost in decision-making. And it’s not only today’s British Columbians that we must think about, it’s also the next generation who are not part of today’s decision-making process.

I am truly excited about the prospects that lie ahead in this minority government. British Columbia has so much to offer and we can and shall be a leader in the new economy.
Thank you all again for having me here today to speak with you.

I look forward to more conversations to come.