Canada Funds Green Research
June 20, 2007

The Canadian province of Ontario announced Tuesday the creation of a $650 million (Canadian) automotive industry-specific fund to help spur investments in environmentally friendly cars and car parts.

Ontario’s efforts are significant for a number of reasons:
· the global race is on to become the Motor City of the future in terms of green autos;
· Ontario has as much or more auto manufacturing as the neighboring state of Michigan, headquarters to the Big Three, and recognizes ensuring its future, which clearly is green, is paramount to keeping its auto industry and its jobs;
· the Canadian government’s approach is in stark contrast to that of the U.S., using the carrot vs. the stick approach to prod automakers to go green;
· the approach has the buy-in of the powerful Canadian Auto Workers union.

CAW president Buzz Hargrove said Tuesday, "The amount is significant, but more important to me is the direction it's going in... it's a big relief to see that somebody at least understands this industry, and tries to strengthen it while reducing greenhouse gases."

The funds announced Tuesday are in addition to the successful Automotive Investment Strategy fund, which helped generate $6.5 billion (Canadian) in new auto industry investment in Ontario over the past four years on an initial government outlay of $470 (Canadian) million.

Ontario Premier Dalton McGuinty, in announcing the new money, said he would work to reform the laws that prevent the sale of low-speed electric vehicles in the province. He is being lobbied to do so by Ontario-based manufacturer ZENN and former U.S. vice president Al Gore. ZENN sells its vehicles throughout the U.S. The availability of such vehicles in Ontario could potentially help Canada achieve its goals toward greenhouse gas emissions.

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