Now is the Time For Renewable Energy

During the current global economic downturn and reduction in productivity (1), there are important opportunities to invest in renewable energies through subsidies, stimulus packages and recovery strategies. While many factors and decisions remain unknown, these tools can be used to align short-term and long-term goals despite current barriers.

At the same time, the low price of oil creates opportunities for investment in renewable energies. The total amount of federal and provincial subsidies for the oil and gas industry in Canada is in the billions (7). These subsidies are intended to make energy more affordable for the poorest and most under-served members of our country (5). So, the current severe drop in oil prices brings the opportunity to lower, remove, or redirect subsidies from fossil fuels to renewables without making oil too unaffordable for these communities, and minimizes social disruption (5, 8).

Governments also have an important opportunity to invest in renewable energies while they are planning and implementing their stimulus and recovery packages. These stimulus and recovery packages will be at a scale to shape the economy for years to come (8). Therefore, it makes sense that the short-term priorities of addressing this crisis should align with long-term priorities, such as federal and international climate goals (8). Since the last time there was a need for a stimulus package, solar and wind are now more developed technologies and are the cheapest source of electricity in almost every country (5,8). Other clean energy technologies, such as hydrogen power and carbon capture, need to be scaled up in order to bring their prices down (5). The currently low and declining interest rates make financing these larger projects more affordable (5), and it is estimated that every dollar invested in renewable energy globally would deliver a return between three and eight dollars (9). Therefore, investing in renewable energies can create the joint benefits of stimulating the economy while advancing towards climate goals.

In conclusion, despite lowered pressure to conserve oil and invest in alternative fuels when prices are low, and reductions in production of renewable energy components, there are opportunities to advance the transition to renewable energies through subsidies and stimulus and recovery packages. Investing in renewable energies can also help the government grow their assets, stimulate the economy, and reach national and international climate goals.