1. Acting on energy and climate change
2. Protecting our water
3. Protecting our natural areas
4. Reducing waste and preventing pollution
5. Growing a sustainable, prosperous economy
6. Fostering a green and healthy society
7. Greening the provincial government

The link between environmental sustainability and economic growth is at the forefront of strategies in a number of communities and companies across Canada and around the world.

Between 1998 and 2001, British Petroleum (BP) reduced its greenhouse gas emissions by nearly one-fifth. The company achieved this by integrating emissions caps into managers' performance targets and developing an internal carbon trading system that focused on making the lowest cost reductions first.

Artist’s drawing of Wuskwatim Generating Station Project, to be built on the Burntwood River, about 45 km southwest of Thompson.

BP spent approximately $20 million to implement its reduction strategy but in the process realized almost $650 million in financial savings within just three years. Executives say they are confident there is at least another $650 million in value to be realized from the next step in reduction efforts.

Manitoba's mining, manufacturing and other major industrial firms have led the way in reducing emissions. Manitoba firms such as Tembec have reduced their greenhouse gas emissions by about 70% in recent years by changing from coal and natural gas to clean electricity and biofuels, increasing efficiency in their operations and altering harvesting practices. Hudson Bay Mining and Smelting is another example of a Manitoba company improving its processses, resulting in reducing emission by more than 110,000 tonnes annually.

In Canada, the energy used by the commercial sector accounts for about 13% of total energy demand and about the same amount of greenhouse gas emissions from secondary energy use. In commercial buildings, more than half the energy used is for space heating. Dozens of Winnipeg's major commercial and institutional facilities have significantly reduced their greenhouse gas emissions by using renewable energy from geothermal heat pumps while boosting energy efficiency, including Investors Group, Shindico, Smith-Carter and the Canadian Mennonite College. Many smaller communities have also turned to geothermal technology to heat and cool their arenas, schools and other public facilities.

In Manitoba, residential heating and cooling needs are generally met by either natural gas or electricity. However, there is a more energy efficient option - geothermal heat pumps. They are one of the most environmentally beneficial heating systems available and offer homeowners the opportunity to significantly reduce heating costs. Manitoba Hydro has launched the Geothermal Heat Pump Program to make this renewable energy technology more accessible to Manitoba homeowners.

Manitoba has become a leader in earth energy systems in a very short time - creating a new industry full of opportunities as well as offering savings to both homeowners and commercial building owners. New business growth is an area we all want to promote. When we do this in an environmentally sustainable way, we maximize the benefits from these economic activities. Today, Manitoba Hydro actively works on economic development in Manitoba's manufacturing, information technology and biotechnology sectors. For example, Manitoba Hydro worked with biotechnology companies that were expanding their plants to ensure their expansions were as energy efficient as possible.

Hydropowering the Economy

Ninety-seven percent of Manitoba's electricity is generated from hydropower. In the 1960s, hydro development provided abundant energy to Manitobans but also led to flooding and hardship for northern First Nations communities.

Today, there is a new era of co-operation between Manitoba Hydro and First Nations. All new developments are undertaken in partnership with First Nation people and have been redesigned to ensure little or no flooding occurs. For example, the next hydro project in Manitoba is known as Wuskwatim. It will be a more than $1 billion investment generating 200 megawatts of electricity and will be completed as a one-third partnership with the Aboriginal community. The design of this project results in a flooding projection of less than one-half a square kilometre of land - about the size of Winnipeg's Polo Park shopping centre. This compares to 900 square kilometres of flooding for projects elsewhere in the country. In addition, the Wuskwatim project includes training, jobs and an equity partnership with the local community.

Through a focus on partnerships and the environment, real long-term economic development growth and wealth creation can take place. This new approach focuses on training and skills development and includes a $60 million investment from the federal and provincial governments.

Of the 5,000 megawatts of clean hydropower that has been developed in Manitoba, there are still approximately another 5,000 megawatts that could be developed without the negative environmental and social impacts of the 1960s and '70s.

In coming years, future power sales to neighbouring jurisdictions currently dependent on fossil fuels like coal and natural gas could trigger the development of two new generating stations - Keeyask and Conawapa. These generating stations would proceed under partnership arrangements with local First Nations and could trigger $5 billion to $10 billion in new investment while generating 75,000 person-years of employment. Potential opportunities also exist to bring more renewable energy online as new transmission capacity and the national east-west grid is expanded.

Future hydro development could be good news on many fronts:

• First Nations will benefit from long-term income potential and local employment.
• The environment will benefit from new generating stations that have minimal negative impacts.
• Industry in neighbouring provinces (ex: Ontario) will benefit from a source of clean, secure and renewable power.
• Manitoba businesses and employees will benefit from major capital investments and new economic opportunities that will be generated by hydro development.

Bioproducts

Bioproducts will form an important part of Manitoba's approach to address climate change, sustainable industrial development and to stimulate markets for agricultural and forest products. Bio-based products and processes represent an upcoming industrial revolution that will see chemicals, materials and fuels derived from trees and crops. These new fuels will supplement and, in some cases, replace fossil fuels like coal, oil and natural gas. Positive steps have already been taken towards major expansion of ethanol and biodiesel production - like the new ethanol plant in Minnedosa and the upcoming mandate for 10% ethanol in most gasoline pumps.

A strong bioproducts strategy must also include a broad approach for all annual renewable industrial crops that may provide green and clean feedstock to supply a number of industries. A vibrant bioproducts sector will attract and grow companies that can take advantage of Manitoba's renewable resources while providing jobs and helping expand the rural economy.

We will build on this by: working with the public and private sectors to develop a framework to ensure Manitoba is able to fully capture the opportunities that the new bioeconomy promises.

Geothermal Industry

To date, more than 4,000 ground source heat pump (GSHP) units have been installed in Manitoba - generating annual sales of over $25 million. This has led to the development of new industry opportunities including new training and development - 56% of all GHSP installers are now trained in Manitoba.

The initial phase of Winnipeg's Waverly West housing development includes plans for the installation of GSHPs for up to 2,300 single and multi-family housing units.

We will build on this by:

• promoting geothermal development in Waverly West as an economical and sustainable alternative to natural gas
• creating a project partnership between Manitoba, Canada, Manitoba Hydro and public and private land developers to undertake comprehensive geothermal development
• piloting a heat pump leasing program to help foster a market acceptance of geothermal technology and aligning this and related clean energy initiatives with Manitoba's and Canada's Kyoto commitments

Manitoba Aboriginal Energy Efficiency Initiative

Manitoba is committed to working with the province's 62 First Nations to address the critical issues and opportunities related to energy consumption and climate change. To this end, we are piloting with the Island Lake First Nations communities on the east side of Lake Winnipeg to introduce an energy efficiency and housing retrofit program. This project will substantially reduce energy use and lower bills for over 1,400 households. It will also reduce carbon dioxide emissions by cutting oil and propane use. The reduction in oil and propane use will also mean less fuel will be required to truck these commodities into the communities.

This project will serve as a template for community-based programs with other participating First Nations. It will reduce fossil fuel use, lower energy bills, increase skills and provide new jobs. It will also foster economic development in Aboriginal communities and offer First Nations new opportunities to benefit from a Manitoba industry that generated $50 million during the past three years.

Low Income Energy Efficiency Initiative

An aggressive new project to reduce the energy burden for large numbers of low-income households in Manitoba - the Low Income Energy Efficiency Initiative (LIEEI) - will be led by Manitoba Hydro's Power Smart program in partnership with local communities and the EnerGuide for Houses program. LIEEI will retrofit almost 12,000 public and private buildings occupied by low-income families to significantly reduce their natural gas and other energy bills, reduce greenhouse gas emissions and enhance local employment opportunities. Other benefits of the program include increased disposable income for low-income families, job training and local employment opportunities and greater financial security for low-income families during periods of uncertain energy costs.

Hydrogen Strategy

Hydrogen is the ultimate fuel of the future. It is both clean and available and does not require energy imports. Hydrogen is important to Manitoba as a future energy opportunity. Manitoba's abundant hydroelectric resources provide the province with a natural advantage for the production of clean hydrogen. With the lowest electricity prices in North America, Manitoba will be the first jurisdiction on the continent where hydrogen can be produced economically via electrolysis. Developing hydrogen use will require a variety of new technologies, products and services such as fuel cell buses and hydrogen refueling stations. This will also mean economic opportunities for Manitoba companies and new, high technology jobs.

In 2003, Manitoba released its hydrogen development strategy that outlines a hydrogen vision which positions the province for the future. The government has also worked on hydrogen development in partnership with private sector companies like New Flyer and Kraus Global.

We will build on this by: establishing a Hydrogen Centre of Expertise to pursue the opportunities and address many of the technical challenges that still remain with hydrogen technology - the centre will focus on research and commercialization including ongoing collaboration with the world class facilities at Whiteshell Laboratories in Pinawa.

Wind Power

The St-Léon wind farm project demonstrates the significant private industry potential in wind power development. The completed project will represent $200 million in private investment that has supported the development of a 99 megawatt wind farm. This is just the first step toward more large-scale projects that will represent significant local development and provide income for rural municipalities and rural land owners.

We will build on this by:

• committing to 1,000 megawatts of wind development in Manitoba over the next decade which will grow wind power in the province to 10 times the size of the St-Léon project - representing a private investment potential of $2 billion
• providing significant community development and local ownership opportunities, including with small wind projects where farmers and others can sell small-scale wind power back into the energy grid

Fishing Industry

Manitoba's 100,000 lakes cover approximately 17% or 101,600 square kilometres of the province's land mass. Across the province, our lakes, rivers, streams and marshes are home to important fish habitat.

In Manitoba, fishing is valued for both its recreational and commercial benefits. For over 100 years, Manitobans have been commercially harvesting fish. The majority of production comes from Lake Winnipeg and Lake Manitoba but several smaller lakes in southern and northern Manitoba are also fished. Since almost all of the commercial production is sold outside of Canada, the $30 million in annual sales represents a significant contribution to Manitoba's economy.

A healthy fish habitat provides sustainable benefits to the commercial fishing industry as well as sport and domestic fishing throughout the province.

Over the past decade, significant work has been completed to prevent the loss of healthy fish habitat. In addition, Manitoba is focusing on enhancing and rehabilitating areas with lost or degraded habitat.

One such program - Manitoba Fisheries Enhancement Initiative - has contributed funding for the enhancement, restoration and creation of fish habitat in Manitoba. Under this program, revenue generated through a portion of fish sport and commercial licence sales is used to fund projects that address lake aeration, fish passage, rearing and spawning enhancement, stream rehabilitation and population management as well as educational and promotional materials.

Growing Opportunities in Agriculture

Manitoba's agriculture sector is diverse and dynamic, contributing billions of dollars each year and 62,000 jobs to Manitoba's economy. In fact, one in every nine Manitobans is employed in the agricultural industry.

There is a strong future in this growing sector that contributes significantly to the social and economic well-being of Manitoba. Manitoba's $3 billion agribusiness sector is projected to double in size in the next 10 years. For example, Manitoba pork exports have tripled in the past five years to 30,000 tonnes. This has been accomplished by meeting the specific needs of foreign markets in Europe, Latin America, Asia-Pacific and the Middle East. Our potato industry is also worth $350 million in exports. In addition, local farmers are diversifying to meet global needs with specialty crops - like hemp, of which Manitoba is by far the largest producer in North America - and exotic products such as ostrich and wild boar.

The increasing role of technology in food production and processing, advancements in food products with nutraceutical and health benefits and new product developments are changing the way agricultural operations are run. Emerging opportunities in value-added industries are also opening doors to a widening range of income streams.

A sustainable agricultural environment involves preserving and enhancing the province's natural resources including soil, water and air as well as native flora and fauna. The long-term well-being of farm families and rural communities will require an integrated environmental, social and economic approach to agriculture.

New areas of growth include the agri-energy sector. In Manitoba, locally developed farm-to-energy opportunities are providing economic prosperity, making improvements to our environment and meeting the increasing demand for renewable energy.

When it displaces a fossil fuel like gasoline or diesel, ethanol produced from renewable sources and some waste products reduces net greenhouse gas emissions. For example, ethanol produced by Mohawk in Minnedosa has 40% fewer greenhouse gas emissions than an equivalent amount of gasoline. Economically, the sales value of Manitoba's new ethanol and biodiesel industries is expected to surpass $100 million annually and reduce imports of fossil fuels by a comparable amount.

In addition to the environmental benefits, producing and consuming ethanol has a number of economic benefits for Manitoba:

• reducing gasoline imports
• stabilizing agricultural income
• creating alternative markets for agricultural products
• stimulating sustainable economic development and job creation in rural areas

Ecotourism

Ecotourism is a growing and thriving portion of Manitoba's multimillion-dollar tourism industry. From viewing polar bears in Churchill to canoeing on world class wilderness rivers, to walking one of the province's thousands of excellent trails, Manitoba has a tremendous wealth of ecotourist experiences and a huge potential for growth. Manitoba is a leader in promoting initiatives like sustainable sport fishing through the Master Angler Awards program, resulting in an approximately 90% catch-and-release rate. This helps preserve and protect our fisheries. In 2004, over 11,000 people applied to be Master Anglers and this year saw two new fish species added to the program. Our Watchable Wildlife program, in partnership with groups such as the Manitoba Naturalists Society and Ducks Unlimited, ensures we are developing and promoting a myriad of sustainable wildlife viewing opportunities for Manitobans and visitors alike.

And of course, Churchill is our world-renowned ecotourism destination, generating $23 million in economic activity annually.

We will build on this by:

• growing the Aboriginal tourism sector including implementing our Aboriginal Tourism Strategy over the next three years to focus efforts on the development of the industry across the province
• working with communities on the east side of Lake Winnipeg to develop sustainable nature-based tourism experiences in this unique pre-Cambrian shield and boreal forest region, which promises unmatched wilderness sport and wildlife-viewing opportunities - including pursuing UNESCO world heritage site designation for the Atikaki Provincial Wilderness Park area
• aggressively promoting Manitoba as a world class ecotourism destination across Canada and internationally