Perhaps the most important baseline in an economy is energy use. Energy is what makes the global economy go around. Without energy, the transportation, commercial and manufacturing sectors would have a very hard time functioning, and the global economy would face serious challenges.

At the same time, the way we run our global economy - on the dominant source known as fossil fuels - can’t continue forever.

While fossil fuels have helped to make our society more prosperous, the fact is these fuels have raised environmental concerns, specifically the spewing of carbon emissions that have raised the earth’s CO2 levels to around 389-391 parts per million (ppm), far above the 350 ppm that many scientists consider the highest safe level, in terms of keeping global temperatures in check.

The challenges of climate change are immense, as it affects everyone. However, an even bigger concern is the ongoing case of global poverty and emerging economies.

Through the spread of information technology, many countries that were undeveloped are now developing rapidly, including Brazil, India and China.

However, much of the world still remains in deep poverty, from parts of Africa to our northern Canadian communities.

The challenges that the world faces in the future were clearly laid out in a report by the United States Energy Information Administration (EIA), who pointed out that by 2035, global energy consumption will increase by 50 per cent, with developing nations such as India and China leading the way in energy usage.

Now that we have talked about the puzzle relating to the global economy, its relationship to the environment and energy use, how do we move forward?

Given the potential risks of climate change, how do we maintain the balance of economic growth without hurting our planet?

While stopping economic growth may be one way to solve many of our environmental problems, it would hardly be feasible.

Instead of trying to use less energy, what we need to start looking at is a serious plan to create more energy.

Yes, more energy.

We need more energy to create more jobs, build better transportation and improve manufacturing sectors.

However, rather then drilling holes in the ground in Alaska, or ripping up the Alberta oil sands, we need to look at energy policy differently.

Governments need to create solid energy efficiency policies that will get more energy bang for their buck, including promoting smart grids, hybrid cars and fuel efficiency standards.

That’s one part of it.

The other part of the equation is to start using mechanisms that will promote more clean energy use. Financial incentives would certainly encourage the use of alternative energies, and allow new industries to blossom. 

The clean industry sector has been a rock in the economy in recent years.

A United Nations report from this year said the sector has been a bright spot in these uncertain times. The EIA report says renewable fuels will grow at an annual rate of 2.7 per cent per year through 2035.

These industries (wind, solar, biofuels) can develop the energy needed to sustain a world whose population is at 7 billion, and a global economy that will need more energy than ever to keep going; best of all, they can do so while not damaging the planet.

What’s even more promising is the idea that these clean technologies can leapfrog fossil fuel energy in developing countries - as seen in Brazil, India, and China - to keep their economic competitiveness going.

It is this prospect that gives hope not only to developing countries, but also to First Nations communities in northern Canada, who still lack the sufficient modern infrastructure to be sustainable.

Adam Johnston recently completed his BA in Economics and Rhetoric, Writing & Communications at the University of Winnipeg. He works as a financial and commodities journalist in Winnipeg, and contributes as a clean tech writer for www.cleantechnica.com.

Published in Volume 66, Number 8 of The Uniter (October 19, 2011)