Greenpeace: Renewables could make tar sands defunct

Greenpeace has attempted to map out a viable alternative to Canada's controversial plans to expand its tar sand projects, arguing that oil production from tar sands will be unnecessary by 2030 if the country accelerates the rollout of renewable energy technologies.

The document, called Energy [R]evolution: a sustainable energy outlook for Canada, predicts one quarter of Canada's primary energy demand could be met by renewable resources within 10 years, rising to three quarters by 2050. Switching away from fossil fuels could also save Canadians CA$5.3bn (£3.3bn) on their energy bills over the next 40 years, according to the environmental group's research.

"The market for the dirty oil of the tar sands could be eliminated through a global scenario of investments in public transit, more efficient vehicles and a rapid shift to electric vehicles that would reduce the world's demand for oil by 25 per cent by 2030 and 66 per cent by 2050," the organisation added.

It also suggested that the renewables sector would create about 77,000 jobs in Canada by 2030.

In addition, the report warned that Canada was in danger of handing a competitive edge to its southern neighbour. It noted that the US federal government is investing eight times more per person in renewable energy, energy efficiency and public transit compared to the federal government of Canada. " The gap is even larger when it comes to investment in green energy," it added. "In 2009, there was a 14:1 per capita ratio between the US and Canada for investments in renewable energy and this ratio is set to climb to nearly 18:1 in 2010."

The report calls for Canada to be more proactive in the creation and execution of a national energy strategy, which it said had been effectively sidelined following the political and oil industry fallout over the country's abortive National Energy Policy of the 1980s.

It comes as pressure continues to mount on the Canadian government to scale back its plans for the oil sands after growing numbers of US firms signed up to a boycott on fuel produced from the carbon-intensive tar fields.

According to recent reports in the Canadian press, a number of high-profile brands, including Walgreens, Gap, Timberland, Levi Strauss and Whole Foods, have switched fuel suppliers to ensure they are no longer using oil produced from the tar sands.

A group of ethical investors, led by the Co-operative Group, has similarly boycotted companies working on tar sands exploitation and is increasing pressure on other investors to do likewise.