Industry Intelligence

Alberta's environmental industry has historically had its foundations in the thriving oil and gas industry. Today, the environmental sector includes almost 1,330 companies, employing 26,000 Albertans and generating more than $3.5 billion in revenues. The sector has a well-earned international reputation for excellence in water treatment, waste management and the development of climate change solutions.

Alberta's environmental industry is structured differently than the global environmental industry, with approximately 50% of companies involved with soil remediation, 20% with water treatment and 10% with air and climate change technologies.

Alberta's Environment Sector - by the numbers...

Number of Environmental Companies (2004): 1,330
Number of Albertans Employed (2004): 26,000
Annual Total Environmental Revenues (2006): $3.5 billion

Sources: Government of Alberta, Statistics Canada

Environmental solutions

Alberta’s environmental sector provides effective solutions to environmental needs. Some of these solutions include pollution prevention, conservation programs, soil and groundwater reclamation, water and wastewater treatment, air quality management, monitoring and analytical services, waste management, and emergency response.

Growth in the environmental sector

The environmental industry in Alberta has experienced substantial growth over the past decade resulting in a nearly 50% increase in employment over the past 10 years. A recent study estimated that the number of employees performing environmental activities within all companies (including environmental departments in large corporations) could potentially be in the range of 55,000 to 65,000.

Environmental protection expenditures by businesses

Canada's oil and gas extraction industry spent $2.8 billion to protect the environment in 2006, more than any other industry.

The industry's expenditures accounted for nearly one-third of the $8.6 billion outlay by businesses operating in Canada for both operating expenses and capital investment in environmental protection. This amount represents all expenditures made in response to environmental regulations, conventions and voluntary agreements.

Industry spending on waste management and sewerage services and pollution abatement and control activities represented almost half of the overall total.

These results followed a long-standing trend in which the largest share of environmental protection expenditures was made to deal with pollutants after they were created.

Alberta businesses spent the most to protect the environment

Provincially, Alberta businesses invested the most in facilities and equipment to protect the environment, again surpassing Ontario, the largest spender up until 2002.

Capital investment by businesses in Alberta for environmental protection amounted to nearly $1.9 billion in 2006, almost half (49%) of the capital expenditures nationally. Ontario businesses reported $827 million in capital expenditures, followed by those in Quebec ($371 million).

In terms of operating expenses for environmental protection, establishments in Ontario reported spending almost $1.6 billion, the largest amount. Alberta businesses were a close second with operating expenses of just over $1.3 billion.

Alberta's lead position in capital spending on environmental protection was due mainly to high expenditures by the oil and gas extraction industry. In 2006, $4 of every $100 invested by oil and gas extraction went to environmental protection. Put in perspective, for every $100 invested by the oil and gas extraction industry, $4 was invested in environmental protection.

Capital investments by Canadian oil and gas producers, most of which operate in Alberta, totalled over $1.7 billion in 2006. This investment occurred in areas such as pollution abatement and control, waste management, pollution prevention, and reclamation and decommissioning.

The oil and gas extraction industry also reported the highest operating expenses ($1.1 billion). This amount went mainly for reclamation and decommissioning, waste management and sewerage services and pollution abatement and control processes.

Industry spending to improve energy efficiency

Industry spent nearly $2.0 billion in 2006 on technologies that improve energy efficiency or reduce the use of fossil fuels.

Compared with industry spending on environmental protection, this amount represents a broader set of expenditures. This reflects a motivation by industry to adopt energy-related environmental technologies that exceed responses to environmental regulations, conventions or voluntary agreements.

The oil and gas extraction industry led the way with expenditures of $495.4 million on alternative energy and energy reduction technologies. Most of this amount, $472.9 million, was directed at capital projects.

The electric power generation, transmission and distribution industry spent a similar amount. However, it directed less to capital projects ($155.4 million) and more to operating expenses ($337.8 million).

Presentations – Government of Alberta

Presentations – Government of Canada

Studies

  • Environmental Products and Services Sector - State of the Industry 2005 (Available upon request)
  • Roadmap Assessment Reports on Soil Remediation, Water Technologies and Climate Change Mitigation (Available upon request)

Resources

Date Updated: Nov 24, 2008
RDP-1160