In his latest blog we hear from Josh Hendry, Principal Consultant at the Anthesis Group, as he reflects on the journey two months on since the Government of Canada announced a national price on carbon. 

In early October we wrote about how the Government of Canada had just announced a move towards a national price on carbon. At that time, 2 of the 10 provinces had carbon pricing programs in place and another 2 had plans for rolling them out in 2017.  However, since that announcement a lot has indeed happened.  Here is a quick summary of what has happened since the announcement:

OK.  That last one hasn’t quite happened yet, but the amount the conversation has evolved in two months is impressive. We have seen the progression of that conversation first hand through two webinars on the topic that span the same time period.

During our first webinar in the week following the initial announcement there was still a general ‘wait and see’ tone of most discussions.  That tone was partially based on the push back from several provinces, but also a result of some public backlash for companies that came out in favour of the announcement. So it was clear many companies were still sorting out what it could really mean for them.

 Fast forward to November 30^th and we had the pleasure of presenting a webinar for the Canadian Chamber of Commerce members on what the carbon price means for business and how they can work to gain a competitive advantage from addressing it.  While there is still uncertainty on exactly what the national program will look like, the discussion, as witnessed on that webinar, has clearly taken on a new tone, one now focused on how to start actively preparing for the rollout in 2018.  While the sample size is small, that tone does seem to match what we are hearing in other discussions with clients and also seeing through statements like the Smart Prosperity Initiative.  That more proactive approach makes sense. We could spend months speculating on how exactly the carbon price might impact us both in business and at home, but that does little to prepare us for the reality that the business world has recognized that action is needed – and that it can actually save and even make you money if you do it right.

As we discussed on our most recent webinar there are a few key ways that addressing your company’s carbon footprint can make you more competitive. Competitive advantage typically refers to being able to deliver the same value at a reduced cost (for you or the customer or both) or being able to charge a premium based on differentiating your product or service from your competitors.  That same thinking applies to the carbon price discussion in the following ways:

Cost of compliance – By minimizing your carbon footprint you reduce your exposure to the carbon price and the benefit of that grows as the price phases in with higher costs per tonne each year.

Decreased Material / Production Costs – Working with your supply chain to reduce their carbon footprint or choosing lower carbon options for key materials or services similarly reduces your cost of doing business.  Improving energy efficiency or switching to lower carbon options for fuel, or other production needs, has the same effect.

Increased Value/ Unique Offerings – A key objective of a carbon price is to drive or shift society toward low carbon options therefore creating a market for companies and products which can offer those solutions.  As with any unique offering, being a first mover or early adopter provides a chance to capture a share of that new market.

Increase innovation / collaboration – We have seen in other markets that the response to these types of regulations is often to find innovative ways to partner with suppliers/peers to drive down overall costs or to find new solutions that become economically viable with a price on carbon.

So let’s continue the evolution of this national conversation and find productive ways to take advantage of the opportunities it presents. Fill out the form below to sign up for a 30-minute consultation with our Canadian team to explore how you can start or refine your business strategy (which now must include carbon management if you operate in Canada).

*Update: Since publication of this blog the Canadian Government announced the signing of the Pan-Canadian Framework on Clean Growth and Climate Change.  We will provide insight into that framework in a forthcoming blog post.

Would your business be interested in a free 30-minute consultation? Get in touch below: