The government of Canada has announced the end of the ecoENERGY home retrofit program, effective immediately, citing fiscal constraints. The popular program (which was previously matched by the Ontario government) helped homeowners cover part of the cost of energy efficiency retrofits such as a more efficient furnace or improved insulation.
As part of my statutory role in reviewing conservation initiatives in Ontario, I have previously reviewed the results of the home retrofit program. In its first three years, the program raised awareness of conservation among homeowners, with more than 150 000 Ontario households undertaking at least one energy efficiency action through the program and reducing their energy bills. Most retrofits led to a reduced use of natural gas for space heating, therefore the program also had an impact in reducing greenhouse gas emissions. However, I did note that the bulk of Ontario’s buildings had yet to be retrofitted (the program had reached only 4% of Ontario’s housing stock), and that the Ontario government’s lack of analysis as to the benefits of the program made it vulnerable to cancellation.
While disappointing, the federal government’s action is not surprising given the hints of restraint from Ottawa and Queen’s Park: a daily shock doctrine to prime taxpayers for release of the governments’ spring budgets. The Ontario government had already withdrawn its contribution to the home retrofit program, as well as cancelling energy conservation programs in other sectors. In this time of fiscal deficits, there will be pressure for further cuts, despite the very small percentage of public spending devoted to the environment (for example, the combined budgets of the Ministries of the Environment and Natural Resources accounted for less than 1% of Ontario’s budget in 2010/11). The former Ministry of Energy and Infrastructure also accounted for less than 1% of the Budget (and a fair portion of this was money spent on infrastructure as opposed to energy programs).
I expect more environmental programs to come under threat in the near future, regardless of the long-term consequences. As I have said previously, at some stage we will reach a tipping point. Beyond this threshold, we will lose meaningful policy and program capacity in these ministries for the sake of spending reductions that can really have no substantive impact on the deficit.


