Acid Rain Still Killing Lakes
as appeared in Semi-Annual Report, June 1999
In the 1980's, acid rain became widely recognized as a serious problem that was slowly destroying lakes and forests, particularly in the northeastern regions of Canada and the US. Acid rain is caused mainly by sulphur dioxide and nitrogen oxides, which are produced by industry, electric utilities, transportation and other forms of fuel combustion. These gases also contribute to climate changes and smog, which causes health problems and fatalities in urban areas.
In 1991, the US and Canada signed a deal requiring industries and public utilities to cut sulphur dioxide emissions by 40% by 2010. The good news is that both countries are meeting or ahead of their targets in cutting emissions. However, even at these rates, sulphate levels remain a threat to the ecosystem. Two thirds of the 200 lakes in a recent study had either shown no improvement since the 1980's or had actually deteriorated. It is estimated that emissions need to be cut a further 75% to adequately protect our lakes.
Your Clean Environment Mutual Funds are well represented by companies whose products help alleviate this problem. For example, Calpine Corporation uses state of the art geothermal and natural gas-fired plants to provide energy to its customers at significantly lower costs than coal-fired alternatives, while eliminating (in the case of geothermal) or reducing (in the case of natural gas) gaseous emissions. Stillwater Mining Company is the only primary producer of platinum and palladium in the western hemisphere. These metals are key components of catalytic converters, which cut down harmful vehicle exhausts. Ballard Power Systems Inc. has developed zero-emission proton exchange membrane fuel cells, which will help society move to emission-free forms of transportation in the coming decade. As well, companies such as Optus Natural Gas Distribution Income Fund (residential natural gas delivery for heating systems) and CFM Majestic Inc. (natural gas fireplaces and stoves) help reduce emissions from less efficient coal and wood burning alternatives. We invest in companies such as these not just because they provide environmentally beneficial products and services, but also because we believe they are very well positioned to deliver strong, profitable growth.