Thank you very much, Mr. Chair and committee members.
I'm delighted to have an opportunity to speak to you today about a subject which I am very passionate about, and so is the team at SDTC.
I would like to draw your attention to the materials we've handed out. We'll address this from the perspective of an entity that has truly integrated all elements of sustainable development into its decision-making.
We were created by the Government of Canada through an act of Parliament. We essentially build clean technologies. We help to ensure that they make it out to market, for it is only in the marketplace that the environmental returns occur. We have responsibility for two funds; both of them are complementary, and as I said, help to take these technologies and companies to the marketplace.
If you direct your attention to slide 3, you'll see that we've been able to engage different companies and technologies across the entire country. You can see that they are able to contribute to our economy, whether that be in urban locations or rural communities.
There's a different emphasis in clusters of capacity. In British Columbia, you tend to see a focus on different kinds of power generation. There's energy exploration, not surprisingly, in Alberta, and waste management in Quebec. Given Ontario's vast industrial base, we see clean technology solutions for increasing efficiency in the utilization of energy, whether that be for industry, commercial buildings, or the retail sector.
Moving on, and perhaps picking up on Mr. Sawyer's comments, you have to see economic returns from these companies. We have been able to build companies that have shown about $400 million in revenues in 2012 and have created 7,000 jobs.
This is just 22 of the 245 companies that are in our portfolio. We are tracking their results specifically. We actually interview them. These are not made-up numbers. You can see that by 2015 we anticipate over $5 billion in revenues and about 24,000 jobs created, and there will be more to come.
If you look at the environmental impacts under climate change, we are reporting an impact of between 7 and 17 megatonnes by 2015 from the entire portfolio. I'd like to draw your attention to the care we take in how we report these. These numbers are essentially reduced to accommodate risk factors by between 80% and 94%. This is a significant impact, but by indicating a range we're being very careful. It's a powerful indicator of what we need to do to move forward.
If you look at the next slide on clean air, these emissions are really.... The benefits are largely captured in smog areas where there is a density of both urban living and also transportation. We've looked at the impact on the smog airsheds and how the avoided health costs can be measured as a result of implementing these technologies. You can see that for 81 of our portfolio companies in the transportation and power generation sectors, we anticipate about $1.5 billion of avoided health-related costs by 2025.
I will move to an area where in fact SDTC has shown leadership in trying to quantify the impacts on soil and water. Those are very difficult, depending on your watershed, the kind of chemical you're avoiding, or whether it's water conservation. What you're seeing is roughly $60 million in avoided health costs by 2025 that are linked to these.
If we talk about what we're going to do internationally, clearly the markets in Canada are limited and our GHG impacts are global, so we are moving toward trying to increase Canada's share of the global clean tech market. That is going to increase significantly. By 2020, if we double our share of the market—currently it's 1%—we will be able to generate some $60 billion in revenues and 126,000 jobs.
Looking at the examples of companies that can deliver those so it's not just a wish list, you've got some compound annual growth and revenue statistics for some of our companies which show that Canada is building globally competitive companies.
Where we are working in specific sectors, looking at the slide with the heading “Helping to “Green" Oil and Gas”, you will see we have taken two views. One is around improving the efficacy of the extraction of both oil and gas using different kinds of technologies that reduce the use of water and the use of energy. We have a number of examples which have shown that these areas of opportunity are realistic. The other area we look at is pipelining and whether we can make sure we are detecting potential flaws before there are failures and therefore direct the company to effectively manage the safety of the pipelines and fix them as needed. That work is also very successful.
There was some discussion around buildings. The next slide talks about a very broad portfolio we have of energy efficiency technologies, whether it be dimmable fluorescent ballasts, or ice storage for load balancing and energy reduction—a lot of lighting technologies take up about 20% of a commercial building's energy usage—and then control systems as well.
Moving to the transportation sector, which is one of the largest polluters for Canada but also important globally, SDTC has a portfolio that treats the vehicles as a system. We're looking at advanced materials, light-weighting—for every 10 % in weight reduction, there's a 7% reduction in fuel use—and also fuel cells and advanced batteries that can work for hybrid vehicles.
Quickly touching on providing solutions in regulated industries, I think SDTC is a primary example of how we can work with the regulated companies to find solutions which they may adopt so that in time they are able to respond effectively to those regulations, and that they bring about the intended results.
We do this in a wide range of areas, not surprisingly, working extensively with the power utilities, waste management, the oil and gas sector, and looking at clean water regulations. We are a backup, if you like, in enabling to act for the various regulatory policies the government is putting forward.
How do we ensure that we are working across the government? Slide 15 shows you the kinds of things we're doing to ensure there is linkage and continuity. We've partnered with Export Development Canada to ensure that we have a way of reaching out to those global markets by identifying great companies. EDC has provided analysis of the great markets we can tackle and also supports policies and instruments to manage risk for those companies going into the global markets.
We work a lot with NRCan on the green mining initiative, for example. We work a lot with them. We work with Environment Canada on their environmental technology verification initiative. We interface with NRC IRAP to ensure there is continuity in the ecosystem for clean tech development. We fed a number of SDTC companies to the Canadian innovation commercialization program under Public Works to ensure that those companies get an opportunity to be adopted by the government. We work, again not surprisingly, with DFAIT on their clean-tech advisory board to ensure we're putting our best foot forward in international markets. There's significant collaboration across the federal family.
Moving out into the provinces, SDTC has been involved in the design and development of a number of provincial funds. We're working directly on due diligence sharing and shared investments in British Columbia, Alberta, Ontario, Quebec, and Nova Scotia. These provincial partnerships have provided an additional $132 million of provincial money into the SDTC portfolio companies.
Moving out to the international arena, I would add that the fast-track funds that have been put forward by this government, for example to International Finance Corporation, we have been working with them to ensure Canadian company access.
Thank you.