Canadian sustainability market slanted for growth
by Canadian Manufacturing Daily Staff
Report by Verdantix says Canadian market will grow to $3.7 billion by 2014
LONDON‑The Canadian sustainable business market will grow to $3.7 billion by 2014, according to a new report from Verdantix.
An analysis of 163 firms with revenues of at least $750 million shows the Canadian sustainable business market will exceed $2.8 billion in 2012, $3.2 billion in 2013 and hit $3.7 billion by 2014.
The Canadian market will expand at a compound annual rate of 12 per cent between 2009 and 2014, but the pace of growth is being help back by uncertain federal energy and climate policies, says Verdantix analyst and report author James Beresford.
“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,” he says.
Key findings of the report include:
- Canadian Sustainable Business Market will experience 12 per cent CAGR from 2009-2014. Sustainability spend will increase by 12 per cent in 2011 compared to 2010. This trend will continue with a year-on-year increase of 13 per cent in 2012 accelerating to growth of 14 per cent in 2013. Over the 2009 to 2014 period the compound annual growth rate (CAGR) will be 12 per cent 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 five per cent to 27 per cent over the 2009 to 2014 period. Spend on smart grid development and implementation will grow at a 27 per cent CAGR to reach $142 million in 2014. For on-site renewable energy the CAGR is 25 per cent and energy and carbon data management 19 per cent.
- Emission-intensive industries dominate sustainable business spend. In 2011, nearly 40 per cent 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 per cent, and basic resources will increase spend by 12 per cent. By contrast, growth rates for Banks and Insurance firms will reach just 8 per cent over the 2009-2014 period.