In the 1st of June, 2017 President Trump made good on his campaign promise to pull out from the Paris accord on climate change. This withdrawal followed an executive order signed in March that rolled back key Obama-era climate policies.  More specifically, emissions rules for power plants (known as the Clean Power Plan), limits on methane leaks, a moratorium on federal coal leasing, and the use of the social cost of carbon to guide government actions have all been rescinded.  As the second biggest polluter behind China, the U.S. played a key role in meeting the Paris goal of keeping the planet’s warming under 2 degrees Celsius.

World leaders condemned President Trump’s decision to quit Paris climate accord in a chorus of global disapproval1. So why should we be worried? First, the withdrawal increases uncertainty. Current U.S. investment in clean energy may be impacted. As Europe and China continue to invest in clean energy technologies in response to the climate change threat, the withdrawal will undoubtedly reduce the U.S.’s ability to foster clean-tech, and alternative energy innovations and industry thereby reducing its competitiveness and ability to transition to a low-carbon economy. Given the U.S. leadership in innovation, this will be a tremendous loss to not only the United States but society as a whole.  

Second, the U.S. withdrawal may also incite calls in Mexico and Canada to abandon their environmental/climate change efforts so as to remain “competitive”. In Canada, for example, the opposition party is calling on Prime Minister Trudeau to abandon its proposed price on carbon in light of the U.S. executive order.  Yes, the international context matters, but do we want to go down the same path as the U.S.?  The scientific and academic communities have spent two decades studying climate change. This research has shown that climate change is real and worsening and will have both a human toll and cost cities billions of dollars in damage every year if efforts are not undertaken.  In fact according to The New York Times, American representatives of over 30 cities, three states, more than 80 universities and over 100 businesses are preparing to submit a plan to the United Nations pledging to meet the US greenhouse gas emissions targets under the Paris climate accord despite the US withdrawal2.  

Successful business and government leaders look at the facts and project into the future. Their strategic and policy decisions are based on what they believe the world will look like tomorrow. The threat of stranded or unrecoverable coal, oil and gas reserves is real and a financial risk that many investors are seriously considering when deciding where to place their money3. Countries dependent on the fossil fuel sector need to take this risk seriously. The long-term competitiveness of these countries will depend on how they transition to a low-carbon economy.

Both Canada and Mexico have enormous clean energy resources.  Canada has a massive natural potential for the development of renewable including wind and solar resources, tidal and geothermal energy, and hydro4 while Mexico has huge wind5 and solar6potential.  With the U.S. reneging on its climate leadership, Canada and Mexico should take the baton and become the North American leaders. A new industry is being built around renewables (e.g., the electric car) and it is imperative that we participate in its development. In doing so, Mexico and Canada, their citizens, and their businesses will be better prepared for the transition to the low-carbon economy7.

Climate change is a global issue that must be addressed as a team, when one player/country falters; the others must step up for everyone to prosper.  Climate change is a long term economic reality that governments and businesses must address – we all share one planet and the planet must be protected – climate change is not only an energy security issue it is also a national and food security issue. Cooperation at all levels, from governments (federal, provincial, state, territorial, municipal), industry, non-governmental organizations, indigenous peoples and civil society is needed to move us from a state of reaction and defensiveness to a state of pro-activity and adaptability.  I end this article with a quote published in 1903 whose message is as relevant today as it was then.  Let’s not let this withdrawal stop our progress.

It is among those nations that claim to be the most civilized, those that profess to be guided by a knowledge of laws of nature, those that most glory in the advance of science, 
that we find the greatest apathy, the greatest recklessness, in continually rendering impure this all-important necessity of life…

                                                                                  Alfred Russel Wallace,
Man’s Place in the Universe, 1903

In the 1st of June, 2017 President Trump made good on his campaign promise to pull out from the Paris accord on climate change. This withdrawal followed an executive order signed in March that rolled back key Obama-era climate policies.  More specifically, emissions rules for power plants (known as the Clean Power Plan), limits on methane leaks, a moratorium on federal coal leasing, and the use of the social cost of carbon to guide government actions have all been rescinded.  As the second biggest polluter behind China, the U.S. played a key role in meeting the Paris goal of keeping the planet’s warming under 2 degrees Celsius.

World leaders condemned President Trump’s decision to quit Paris climate accord in a chorus of global disapproval1. So why should we be worried? First, the withdrawal increases uncertainty. Current U.S. investment in clean energy may be impacted. As Europe and China continue to invest in clean energy technologies in response to the climate change threat, the withdrawal will undoubtedly reduce the U.S.’s ability to foster clean-tech, and alternative energy innovations and industry thereby reducing its competitiveness and ability to transition to a low-carbon economy. Given the U.S. leadership in innovation, this will be a tremendous loss to not only the United States but society as a whole.  

Second, the U.S. withdrawal may also incite calls in Mexico and Canada to abandon their environmental/climate change efforts so as to remain “competitive”. In Canada, for example, the opposition party is calling on Prime Minister Trudeau to abandon its proposed price on carbon in light of the U.S. executive order.  Yes, the international context matters, but do we want to go down the same path as the U.S.?  The scientific and academic communities have spent two decades studying climate change. This research has shown that climate change is real and worsening and will have both a human toll and cost cities billions of dollars in damage every year if efforts are not undertaken.  In fact according to The New York Times, American representatives of over 30 cities, three states, more than 80 universities and over 100 businesses are preparing to submit a plan to the United Nations pledging to meet the US greenhouse gas emissions targets under the Paris climate accord despite the US withdrawal2.  

Successful business and government leaders look at the facts and project into the future. Their strategic and policy decisions are based on what they believe the world will look like tomorrow. The threat of stranded or unrecoverable coal, oil and gas reserves is real and a financial risk that many investors are seriously considering when deciding where to place their money3. Countries dependent on the fossil fuel sector need to take this risk seriously. The long-term competitiveness of these countries will depend on how they transition to a low-carbon economy.

Both Canada and Mexico have enormous clean energy resources.  Canada has a massive natural potential for the development of renewable including wind and solar resources, tidal and geothermal energy, and hydro4 while Mexico has huge wind5 and solar6potential.  With the U.S. reneging on its climate leadership, Canada and Mexico should take the baton and become the North American leaders. A new industry is being built around renewables (e.g., the electric car) and it is imperative that we participate in its development. In doing so, Mexico and Canada, their citizens, and their businesses will be better prepared for the transition to the low-carbon economy7.

Climate change is a global issue that must be addressed as a team, when one player/country falters; the others must step up for everyone to prosper.  Climate change is a long term economic reality that governments and businesses must address – we all share one planet and the planet must be protected – climate change is not only an energy security issue it is also a national and food security issue. Cooperation at all levels, from governments (federal, provincial, state, territorial, municipal), industry, non-governmental organizations, indigenous peoples and civil society is needed to move us from a state of reaction and defensiveness to a state of pro-activity and adaptability.  I end this article with a quote published in 1903 whose message is as relevant today as it was then.  Let’s not let this withdrawal stop our progress.

It is among those nations that claim to be the most civilized, those that profess to be guided by a knowledge of laws of nature, those that most glory in the advance of science, 
that we find the greatest apathy, the greatest recklessness, in continually rendering impure this all-important necessity of life…

                                                                                  Alfred Russel Wallace,
Man’s Place in the Universe, 1903