Economic activity and environmental changes are closely intertwined. Looking ahead, there are many ways in which Canadian citizens may pay a price for the effects of climate change. A recent report released by the Bank of Canada in May 2019 acknowledged that Climate Change poses a threat to Canada’s economy and financial system. As one very clear example, the Canadian economy is heavily reliant on natural resources, comprising almost 50% of exports (Natural Resources Canada, 2019) and so the future of Canada’s export economy is heavily defined by the natural environment. Canada’s economy and job market will look very different due to the changing climate and national efforts to mitigate it. Many jobs that are central to our economy now may be obsolete in 10 years, and new jobs and careers are emerging by the day. Therefore, it is important for educators to consider how best to prepare students to work and live in a world that has felt the effects of climate change and shifted in many ways because of it.

Regional Variation in Economic Impact

A recurring theme throughout this guide is the variation that exists across such a diverse country like Canada, and the same can be said for prediction of economic impact. Some of the differences that may emerge across the country are: large cities will feel the effects of poor air quality and rising temperatures more heavily due to the large population, leading to an increasing health care costs treating associated illnesses (Paying the Price, Economic Impacts of Climate Change for Canada); the timber supply in Western Canada will be impacted significantly by issues such as pests and forest fires, costing the Canadian economy upwards of $2 billion dollars per year; and coastal regions will feel the impact most heavily in terms of rebuilding infrastructure to adapt to erosion, flooding and rising sea levels. Mitigating threats to these coastal communities will cost the country a huge amount in capital investment to prevent large scale damage. For instance, the estimated cost of setting up protective measures along the Vancouver coast is $9.5 million (Global News). Alternatively, looking at projected losses for two distinct locations in Canada, according to the Insurance Bureau of Canada in 2015, Halifax’s projected losses due to ice storms and extreme wind events is $18 million by the year 2040, whereas Mississauga projects an annual loss of $9 million because of ice storms. 

Insurance

Infrastructure damage due to extreme weather events could contribute to an increase in insurance premiums. Over the past five years, insurance premiums have risen 20-25%, in large part due to flooding and water levels rising, according to the head of Intact Centre on Climate Change Adaptation at the University of Waterloo . According to Peter Janson a principal lecturer at the London School of Business and Finance and a specialist in sustainable business development, “The insurance industry is expected to be most affected, as they have to pay for the damage occurring in other sectors.”

Food costs

In Canada, extreme weather events and unexpected weather changes are driving food costs higher. According to Simon Somogyi, a lead researcher from the University of Guelph, "Canadian farmers will face challenges in the future dealing with unpredictable crop yields, heat-wave livestock threats, pasture availability, and pest and disease outbreaks". For instance, e-coli outbreaks in Romaine lettuce are likely connected to a warming climate. Many of these extreme weather events can be attributed directly to climate change. 

Consumption

The earth’s resources are being used and consumed at a faster rate than possible to replenish. In large part, this has to do with overconsumption but also the linear nature of our economy. A linear economy exists when the raw materials that were used to make a product are thrown out at the end of its use, and thus become waste. On the other hand, a circular economy recycles and re-introduces used materials back into production, and materials/services are produced with sustainability, longevity, and repairability in mind. 

In Canada, goods and services are consumed without considering the environmental impact. For instance, according to a recent report by Second Harvest, 58% of all food produced in Canada is thrown away. Additionally, according to Elisa Tonda (Head of the Consumption and Production Unit at the UN Environment Programme) fast fashion and irresponsible purchasing of clothing are a large contributor to the climate crisis; apparel and footwear industries account for more than 8% of global climate impacts.

The Future of Careers in Climate Change: The Green Economy & Climate Opportunities

The environmental impacts of climate change have a direct effect on the working world. Many jobs that rely on ecosystem services, and therefore also on sustainable environmental management (e.g. farming, fishing, forestry, air and water purification, soil fertilization etc.) are immediately threatened by climate change as it deteriorates these natural ecosystems and processes. As well, the rising temperatures are increasing the risks and hazards associated with labour-intensive work. These risks being felt in many sectors of work can be contrasted with a progressive shift to a green economy in many other sectors around the world. Green industries have grown exponentially over the past decades, and according to an InfoDev report in 2014,
green industries have evolved from “a niche 1970s environmental aspiration into a competitive force motivating many of the world’s most progressive business planners and boardroom strategists”.  

According to National Geographic, the top eleven growing green jobs include: urban growers, water quality technicians, clean car engineers, recyclers, natural scientists (measuring and monitoring our impacts on the world around us), green builders (including those using ecologically friendly materials), solar cell technicians, green design professionals, wave energy production workers, wind energy workers, and biofuel jobs (increasing, constructing, and producing renewable fuel). In many ways, it is productive and beneficial for students to conceptualize economic changes in the context of the many emerging careers and climate opportunities that accompany these changes. Throughout the upcoming years, there will be an increasing demand for skilled professionals in not only the green jobs mentioned by National Geographic, but also in sectors like urban planning, health care, architecture and information technology just to name a few. By educating and informing students on the subject of green careers, green energy and the green economy, possibly sparking interest in these fields students will enter the workforce more prepared and more capable of being successful in an economy and workforce that will likely look very different from how it does now. 

Climate change is a current reality, but the future remains to be determined by the actions that we take now to stop the impacts from intensifying. The current economic impacts exist and are a part of a much larger interconnected story involving the environment, health, cultural dimensions, infrastructure etc. There is an inevitable level of uncertainty that accompanies any climate forecasting; however, there are concrete adaptation measures that can help prevent job losses and negative effects on workers and income.  Governments and citizens can contribute to economic protection measures against climate change by investing in infrastructure, the conservation of treatment water, reforestation, moving to a new energy future (renewables) and skills development to help displaced workers transition to relevant, growing professions.