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Environmental Industries

Revenues derived from environment-related activities reached $15.8 billion in 2002, representing 54% of the total revenues reported by firms that made up Canada’s environment industry. Accounting for 44% of total environmental revenues, environmental services slightly surpassed the environmental goods category which accounted for 42% of total environmental revenues. Environment-related construction projects made up the remaining share 14% of the total environmental revenues. Most of the environmental services revenues originated from the waste services category ($5.1 billion), accounting for 72% of total environmental services revenues. The “other” goods category posted the top environmental goods revenues in 2002 ($3.6 billion), owing mainly to recyclable materials sales by the Wholesale Trade industry. This category accounted for 55% of total environmental goods revenues.

Canadian environmental businesses also earned $364 million in revenues from the sales of technologies to reduce greenhouse gas emissions. Fuel cells and alternative fuel technologies revenues accounted for 32% of this total ($118 million) while sales of solar and wind energy systems and equipment reached $112 million during the same year. Four industry groups led Canada’s environment industry: Wholesale Trade (29%); Waste Management and Remediation Services (24%); Construction (11%) and Engineering Services (7%). Businesses in Ontario and Quebec were the biggest earners of revenues from environment-related activities. Ontario’s environmental revenues were $6.9 billion in 2002 and those of Quebec were estimated at $3.1 billion. Other top performers during the period were firms in Alberta ($2.3 billion) and British Columbia ($1.9 billion).

Small and medium-sized establishments continued to dominate the Canadian environment industry. In particular, small establishments made up 93% of all establishments in the industry during the period and earned 54% of total environment industry revenues in 2002 ($8.5 billion). Export markets represented the source of 9% of environmental revenues in 2002. Total environmental export revenues reached $1.4 billion. Exports of environmental goods and services related to waste management and remediation made up 29% of this total ($405 million), followed by goods and services related to the water and air categories ($343 million and $212 million, respectively).

Providing environmental export revenues of $1.1 billion, the United States remained the biggest export market for Canada’s environment industry, followed by Europe ($121 million) and Asia ($113 million). Total employment of businesses that reported environment-related activities reached 159,720 in 2002. This total includes all workers who performed environmental and non-environmental activities.

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