Environmental expenditures by businesses

Canadian companies have substantially increased their spending to protect the environment according to the most recent Survey of Environmental Protection Expenditures. Spending reached $6.8 billion in 2002, a 24% increase over expenditures in 2000. Much of the increase resulted from responses to new environmental regulations and industry's effort to reduce air emissions such as greenhouse gases (GHG). While expanded survey coverage of the oil and gas extraction industry in 2002 was also partially responsible, other industries still experienced a 22% spending increase on environmental protection over 2000 levels.

Capital expenditures to protect the environment increased 35% to $2.9 billion in 2002. Approximately $5 from every $100 that businesses spent on capital projects was made for the purpose of protecting the environment.

Much of the increase in capital expenditures was as a result of investments in pollution prevention equipment (processes that eliminate or prevent the creation of pollution in the production cycle), which grew to $1.4 billion in 2002. The other major area of capital expenditures was in pollution abatement and control systems and equipment ($0.9 billion). These treat pollution and wastes after they have been created (also known as end-of-pipe).

The greatest increase in capital spending from 2000 to 2002 occurred in the petroleum and coal products industry. Firms invested in refinery upgrades in order to meet new sulphur reduction regulations, which came into effect in July 2002.

The electric power generation, transmission and distribution industry also reported a large increase in capital spending in 2002. These expenditures occurred as utility companies invested in alternative energy facilities (e.g., wind power, substitution to less carbon-intensive fuels) and in systems and equipment to reduce air emissions.

In 2002, businesses were asked to report their expenditures made for systems and equipment that directly or indirectly reduced GHG emissions (including fugitive and vented emissions). Overall, businesses in the 16 industry groups surveyed spent $1.1 billion in 2002 on environmental processes or technologies that resulted in the reduction of GHG emissions. The oil and gas extraction industry spent almost $245 million to reduce GHG emissions, followed by the pulp, paper and paperboard mills industry at $242 million.

Just over 40% of the systems and equipment purchased to reduce GHG emissions by businesses were supplied by Canadian manufacturers.

Tables from this data release are now available upon request. A report containing more detailed 2002 data will be released in this fall.

The 2002 Survey of Environmental Protection Expenditures covered capital and operating expenditures made by businesses to comply with environmental regulations, conventions or voluntary agreements. The survey also collected information on environmental management practices and the use of environmental processes and technologies to prevent, abate or control pollution.

Definitions, data sources and methods: survey number 1903.

For more information, to obtain tables, or to enquire about the concepts, methods and data quality of this release, contact the information officer (613-951-0297; environ@statcan.gc.ca), Environment Accounts and Statistics Division.