AB Executive Council FOI Climate Change Plan Economic Impact
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Page2
f
you wish to request a review, please provide the Office of the Information and Privacy
Commissioner OIPC) with the following information:
1. A copy of this letter.
2
A copy of your original request form that you sent to Executive Council.
3. A completed OIPC Request for Review Form.
Sincerely,
Sandra
L
Boyl
FOIP Coordinator
Executive
Council
Enclosure
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Cabinet
and
Treasury Board confidences
22 1) The
head ofa
public body must refuse to disclose to an applicant information
that
would reveal the
substance
of
deliberations of
the
Executive Council or any
of
ts
committees or
of
he Treasury
Board
or
any of
its commillees, including any advice, recommendations, policy considerations or drnfi legislation or regulations
submillcd or prepared for submission to the Executive Council or any of
ts
committees or to the Treasury
Board
or any orits commillees.
2}
Subsection
I) does
not
apply to
a) information in a record that has been in existence for 15 years or mare,
b) information in a record of a decision
made
by the Executive Council or any a fits committees
on
an
appeal
under nn Act,
or
c) information
in
a record
the purpose of which is to
present
background facts
to
the
Executive
Council
or
any
of ts commillees or to the Treasury Board or any of ts committees for consideration in making a
decision
if
i)
the
decision has
been made
public,
ii) the decision has been implemented,or
iii) years or
more
have passed since the decision wns
made
or considered.
t99 l ~ : F 1 1 1 s21
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Advice
from
officials
24 1) The head
o
a public body may refuse
to
disclose
information
to
an
applicant i
he
disclosure could
reasonably be expected
to
reveal
a} advice, proposals, recommendations, analyses or policy options developed by or foro public body or a
memberofthc
Executive Council,
b) consultations or deliberations involving
i) officers or employees o a public
body,
ii) a member o he Executive Council, or
iii) the staff o a member orthe Executive Council,
c) positions, plans, procedures, criteria or instructions developed
for
the purpose
o
contractual or other
negotiations by or on behalfo he Government o Alberto or a public body, or considerations that relate
to those negotiations,
d) plans relating
to
the
management o
personnel or
the
administration
o
a
public body
that
have not yet
been
implemented,
c)
the
contentS o droll legislation, regulations and orders o members o he Executive Council or
the
Lieutenant Governor in Council,
f) the contents o
agendas or
minutes o meetings
i)
orthe governing body
o nn agency,
board, commission, corporation, office or other body
that is
designated
as
a public body in the regulations, or
ii) o a committee o a governing bDdy referred
to
in subclause i},
g) informotion, including the proposed plans, policies or projects o a public body,the disclosure o which
could reasonably be expected to result in disclosure o a pending policy or budgetary decision,
or
h) the
contentS
o
a
formal
research or
audit
report that
in
the
opinion
o
he head
o
he
public
body
is
incomplete
unless no progress h s been made on the report for at least 3
years.
2) This section does not apply
to
information that
a) has been in existence for
5
years or
more,
b)
is
a statement
o t
he reasons
for
a decision
that is
made
in
the exercise o a discretionary power or
an
adjudicative function,
c) is the resuh o product or environmental testing carried out by or for a public body, that is complete or
on
which
no progress hilS been made for
at
least 3 years,
unless
the testing was
done
i) for a fee
as
a service to a person other
than
a public body, or
ii)
for the purpose
o
developing methods
o
esting or testing products for possible purchase,
d)
is
a statistical survey,
e) is the result ofbackground research o a scientific or technical
nature
undertaken in connection with the
formulation o
a policy proposal, that
is
complete or on
which no progress
has
been
made
for
atleast3
years,
f) is
an
instruction or guideline issued to the officers or
employees
o n public body, or
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g) is
a
substantive rule or statement
o
policy that
has
been
adopted by public body for the
purpose
o
interpreting n Act or regulation
or 11dministering
a
program
or
activity o he
public
body.
(2.1) The head o a public body must refuse to disclose to
an
applicant
II)
a record relating to n audit by the Chief Internal Auditor o Alberta that is created by or for the Chief
Internal
Auditor
o
Alberta.
or
(b) information
that
would reveal information
about
n
audit
by
the Chief Internal Auditor
o Alberta.
(2.2) Subsection (2.1) docs not11pply to n record
or information
described in that
subsection
a)
i
IS years or
more
has elapsed since the audit to which the record or information relates was complcll:d,
or
(b) if the audit to which the record or
inform11tion
relates was discontinued or
i
no progress has been
made
on the udit
for
5 years
or
more.
3) In this section, audit
means
n financial or other formal and systematic examination or
review
o o
program, portion o
a prosram or
activity.
RSA
2000 cf.25 s24,2006
c:l7 s
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t
overnment
xception Sheet
o p
File Number: 2015-G-0143
Disposition
FOIP
Page
Release
Partial
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Release
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FOIP Request 2015-G-0143
Minister s Message
Climate change
is
one
of
the
greatest challenges
to
ever face
our
planet,
our
society and
our
economy.
24 1
)(a,b,c)(Advice from Officials)
Alberta's new government is committed to a stronger approach to protecting
our
environment and
growing a prosperous and sustainable economy for the well-being of Albertans today and for
generations to come.
We recently updated the province's expiring carbon regulations, as
an
immediate first step in getting
serious about
our
climate change responsibilities.
Even
more importantly, we appointed Dr. Andrew
Leach
to chair an Expert Advisory Panel on climate change. The Panel will
be
responsible for reviewing
our
current suite
of
policies, consulting
with
Albertans on
their
views about climate change and
providing government
with
advice on a comprehensive set of permanent measures to reduce emissions
as Alberta transitions toward a lower-carbon economy.
24(1 )(a,b,c)(Advice from Officials)
24(1 )(a,b,c)(Advice from Officials)
Climate change is a complex challenge and Alberta is ready for a fresh start.
We invite you to share your view
with
us.
24(1 )(a,b,c)(Advice from Officials)
Shannon Phillips
inister of Environment and Parks
July 2015
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FOIP Request 2015-G-0143
ab
l of
on
t nts
Page
numbers
will
be
added
once
formatting is
finalized
Minister s Message
24(1 )(a,b,c)(Advice from Offic1als)
Alberta s Challenge
Alberta s Vision
Alberta s Emission Profile
Multi-sector Policies
il and
Gas
Electricity
Transportation
Buildings
and
Houses
ther Industrial Emitters, Manufacturing and Construction
Agriculture, Forestry
and
Waste
Ambition Scenarios
Next Steps
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FOlP Request #2015-G-0143
24(1 )(a,b,c)(Advice from Officials)
Climate change is real and i t is having a tangible effect, globally, nationally and locally.
The effects
of
climate
change are wide-reaching and scientific evidence
overwhelmingly
suggests
that,
without
significant action on a global scale,
the
consequences will be severe.
Effects
of
Climate Change
The rate
of
observed changes
in
the
world s
climate since
the
1950s is unprecedented. The
concentrations
of
greenhouse gases in
the
atmosphere
have increased, leading
to
a
warming
atmosphere; diminishing
snow and
ice in
many
regions;
warming
oceans and rising sea levels; and
increasing
extreme weather
events.
The evidence is clear. (this section will be converted to a sidebar
or
other graphic treatment)
Since 1900,
the global
average surface
temperature
has increased
by
about 0.8
•c
(1.4 "F). This
has been accompanied by warming of
the
ocean, a rise in sea level, a strong decline
in
Arctic sea
ice, and
many other
associated climate effects.
Much of this warming
has occurred
in the
last
four
decades. 24(1)(a,b,c}(Advlce from Offic1als)
. From: Climate Change:
Evidence and Causes- An overview from the Royal Society and the US National Academy
of Sciences
Human
influence
on the climate system is clear, and recent anthropogenic emissions of
greenhouse gases
are the
highest in history. Recent climate changes have had widespread
impacts on
human
and natural systems. From: Intergovernmental Panel on Climate Change {IPCC)
Fifth Assessment
Report-
Synthesis Repore
Although c limate change can be caused by both natural processes and human activities, the
recent warming
has been largely attributed to
human
activity,
primarily the
release
of
carbon
dioxide and
other
greenhouse gases
to the
atmosphere. These gases enhance the insulating
properties
of the atmosphere,
reducing
heat
loss,
thereby warming the
planet. Continued
emission of these gases is
the
primary cause for concern about climate change now
and
into
the
immediate future.
Particularly important is
the
emission
of
carbon dioxide , which is released
through the
combustion
of
carbon-based fossil fuels. In Canada, over 80% oftotal national
greenhouse gas emissions are associated
with the production
or
consumption of
fossil fuels
for
energy purposes. From: Canada's Action
on
Climate Change
3
1
ht tps:U royalsocletx.oaJpollr;.ylpro ects/ cl ate-evldence-causes/
l IPCC . 2014
Climate Change 2014
: Syn1hesis Report. Contribution of Working
Groups
I, II
and
Ill to 1he Fif1h Assessment
Report
of the
lntergovemmental Panel
on Climate
Change [CoreWn
ling
Team , R.K. Pachauriand L.A. Meyer(eds )] .
IPCC
,
Geneva, w i t z e ~ n d 151 pp
s http:l/www.cllmatechange.gc.ca/default.asp?lang;En n:FZDBlFBE·l
EC Page
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24(1 )(a,b,c)(Advice from Officials)
Alberta's 24 1 )(a,b,c)(Advice from OfficiqiN intended to help inform a comprehensive action plan on
climate ch
an
ge. This discussion paper lays
the
foundation
for
these
important
conversations
with
Albertans. •t sets out the challenges we face, presents considerations and opt ions for action, and offers
crucial questions that Albertans
will
have the
opportunity
to explore.
Create an
arrow
graphic here,
to
show
the
progression from Climate Change Conversations ->
report
from panel to
Minister
·> in ternationa l consul tation (COP21} -> action plan
on
climate change
An Expert Advisory Panel
will
guide the Climate Change Conversations and
inform
the development of a
new
action plan. The panel's report
will
consider environmental, social and economic factors, and
ensure that interactions between related policies, such
as
Alberta's Royalty Review, are carefully
understood. New commitments
will
require realistic plans to achieve them.
24 1 ){a,b,c)(Advice from Officials)
Members
of Alber ta's Expert Advisory Panel on Climate Change
insert
pi tures
and brief bios
o
panel members)
We
want
to hear your thoughts on
what
Alberta's goals should be and how they can be
achieved. Action
to
reduce greenhouse gas emissions goes
far
beyond the most talked-about
industries. All Albertans
must
be part of
the
solution, and we look forward to hearing
about
ways Albertans can reduce emissions in
their
day-to-day lives, about new technologies and the
opportunities for success they bring, and
about how
the province can retain a
true
Alberta
advantage in a lower-carbon future .
We
will
learn from Alberta's citizens, labour, industry, communities,
other
jurisdictions,
scientists, economists, experts in a variety of emerging and already
prominent
industries, and
tradi tiona l knowledge shared by Indigenous Peoples
to
provide
the
government
with
a set of
options
to inform
a
new
action plan on climate change."
ndrew
Leach Expert Advisory Panel Chair
Get Involved
24(1 )(a,b,c)(Advice from Officials)
Visit:
http://www.in
sertwebsitehere.ab.ca
for
more
information,
to
learn more about the
consultation process and oppor tunities to attend public consultations, or
to
take the online survey.
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Alberta s Challenge
Alber ta's challenge
is
to define
the
province
as
a leader in a world
that is
taking action on climate
change.
Alberta's economy is fueled by natural resources. Energy product ion in the province has grown
significantly, and
with that
growth has come increased greenhouse gas emissions.
Insert a chart
of
Alberta s historical emissions with th different sectors (stacked wedges).
24 1 ) ~ . b , c ) A d v i c e
from Officials)
Any ambit ious climate change policy wi ll necessarily affect Alberta's energy industries, but these
industries cannot be the only focus. The day-toAday lives
of
Albertans are also significant contributors to
greenhouse gas emissions. Just
as
the scientific evidence for of
the
severity of climate change is
overwhelming, the economic evidence is equally clear policies applied as broadly
as
possible, and with
comparable stringency, across
the
economy will yield
the
most cost-effective path to reduced emissions.
Alberta's policies must address emissions
from
all
sources
oil and gas, electricity, transportation,
buildings and homes, industry, construction, manufacturing, agriculture, forestry and waste.
Canada's Targets
The world is joining together to face the global challenge of climate
change.
In December 2015, the United Nations will host
the
Conference of the
Parties in Paris, France. The goal ofthis conference is to create a
binding treaty that will commit all nations to significantly reducing their
greenhouse gas emissions.
In advance of the United Nations Conference of
the
Parties,
the
Government
of
Canada has released its target for emission reductions.
The Government of Canada has proposed a commitment to reducing
greenhouse gas emissions to 30%
below
2005 levels, or to 524
megatonnes, by 2030.
Mt
=megatonne =one
million tonnes
=carbon dioxide
e
=carbon dioxide
equivalent=
greenhouse
gas
emissions converted
using the global warming
potentia s for each
greenhouse gas
Greenhouse Gas =GHG =
prim ary greenhouse gases
in the atmosphere are
water vapour, carbon
dioxide, methane, nitrous
oxide and ozone.
4
Regulatory reporting results under the Specified
Gas
Emitters Regulation, excluding the Nexen Long Lake in-situ
facility
with
integrated upgrader.
5
Environment Canada, Nat ional Inventory Report 1990-2013.
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This target builds on the federal government 's existing
commitment
to reduce emissions to 17% below
2005 levels by 2020.
Meeting
these targets will require the support of all provinces and ter ritories.
24(1 }(a,b,c)(Advice from Officials)
Insert a graphic showing Canada's rising emissions, Including
the
2020 and 2030 targets
and
the
gap between
the two.
currentl y accounts for approximately
37% of
Canada's total
emissions, or
67
megatonnes, and this number
is
growing. In the most
recent Environment Canada projection, Alberta emissions were projected
to
grow
to
287Mt by 2020,
up to
39% of Canada's total.
Without a meaningful contribution from Alberta, Canada
will not
meet its
targets.
As
the province has already experienced, the reputational impact
of these outcomes
is
likely
to
fall disproportionately on Alberta.
Reducing emissions in
Alberta
w ll be a complex challenge, but globally
credible climate change policies are essential to securing Alberta s
future
as a prosperous energy economy in a global marketplace.
Energy is
the
driving force of Alberta's economy, accounting for about 30%
of
the province's GOP
directly, and energy influences demand in most
other
sectors of the economy. The value of Alberta's
energy products comes
from
trade. Alberta exports approximately
75%
of ts crude
oil
and
bitumen
and
SO
of ts natural gas. The ability to export these energy products is crucial to capturing their fair market
value. Alberta's energy economy depends on its ability
to
reach and sell its resources
to
markets in
North America and around the world.
24(1 )(a,b,c)(Adv1ce from Officials)
As nations around the world
join the fight against climate change, demand
is
growing
for
cleaner forms of energy. International and
domestic resistance
to
energy infrastructure projects, including pipelines, highlights
the
increasing
importance of environmental performance to customers and regulators alike.
In
the
absence of strong climate change policies, Alberta's energy production has increasingly come
under the
microscope, drawing domestic and internationa l concern. Alberta's resources have become
symbolic
to
many of the challenge of climate change.
But it's
not
just
about
pipelines and protests. Global policies are increasingly
putting more
m s s o n s
intensive energy sources at a disadvantage. The European Union's Fuel Qual ity Directive requires a
reduction in the greenhouse
gas
intensity of fuels used in vehicles by
6
by 2020, and California's
lo w
Carbon Fuel Standard calls
for
a reduction
of at
least 10% by 2020.
Each
of these imposes
implicit or
explicit penalties on higher emissions sources
of
oil and will reduce the value of resources here in
Alberta
i he
province's action on emission reduction does
not
improve.
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Albertans, Canadians and the world are demanding a greener product. A lower-carbon Alberta energy
industry can help meet
that
demand, allowing the province's economy to thrive for generations to
come.
Meeting the
Challenge
The world is demanding less emissions-intensive energy products.
Canada h s set
n
aggressive target for significant emissions reductions.
Alberta must move toward a greener future, with strong commitments and a globally credible
climate change action plan.
Alberta s Vision
Alberta's vision
is
for a healthy and prosperous province
that
is a leader in environmental stewardship
and enjoys sustained economic growth, steady
job
creation and a great quality
of
life.
This vision belongs to all Albertans and all Albertans will play a role in achieving it.
The province's new approach to climate change will provide a framework for Alberta to:
• make a significant and meaningful contribut ion to Canada's greenhouse g s reduction
commitments and contribute to the global effort to mitigate climate change;
• ensure
the
resiliency
of
its energy economy in a lower-carbon world;
• acknowledge
the
interactions and coordinate with other related policy initiatives, including the
royalty review, land-use plans, infrastructure planning and investment in innovation;
• provide open and transparent monitor ing and regular reporting to Albertans on progress toward
emissions reductions;
• foster partnerships with municipalities, provinces, the federal government and First Nation and
Metis
communities; and
• ensure Albertans are engaged and part
of
the solution.
Alberta's
new government
is
committed
to
creating an action plan
on
climate change
that will
define Alberta's emission reduction targets and lay
out
the steps to achieve them
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Alberta s Emissions Profile
24(1 )(a,b,c)(Advice from Officials)
Multi sector Policies
Alberta's emissions come from all sectors across the economy,
as
well
as
the day to day lives of
Albertans. Alberta may choose to adopt a single, economy-wide policy
or
set of policies as the basis for
its approach to climate change. These could include emissions prices or regulatory approaches.
Economy-wide Emissions Profile: 267
t
total greenhouse gas emissions in 2013
14%
or
33
t
emissions growth since 2005
37 - percentage of Canada's emissions in 2013
66 tonnes-
per capita emissions in
2013, the 2 d
highest in Canada
RI Sidentlal/
commercial
"'
~ n u f /
2013 Alberta GreenhouseGil Emission•
267 Mt
COZ eq
Total
W
t
Agriculture
- ~ I 7%
1
"0
illrdsrm
t.....,.IDtJI I Isobbllno<l from heAlbmaGHG RoporlnJPn>,...,.. Al l Dthordlla
and tcbl l emlosiot l
sf 1990 201.S l l t l c n l
~ ~ • p o r t
Cu
rrent
S
tate:
This chart provides a sense of Alberta's
emissions and where they come from.
Insert chart showing Alberta's emission
projection growth
EC
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Economy Wide Policy Approaches
These approaches could be applied to
the
economy as a whole, as
part
of a suite of policies, or to specific sectors of
the
economy.
Carbon
pricing-
Carbon prici ng is a catch-all
term
for
a set
of
policies which establish a price
for
greenhouse
gas
emissions. Economic
research suggests that carbon pricing, when applied broadly across emissions in the economy, allows
for
the most cost-effective
(lowest cost per tonne) emissions reductions. This does not
imply
that carbon prices are necessarily
more
effective at reducing
emissions
than
regulations- whatever policy tool is chosen,
the
stringency with which that tool
is
applied will determine the
emissions reductions achieved.
A price on carbon provides a financial incenti ve
for
emitters
to
reduce their emissions. This can spur
the
adoption of technology,
efficiency and conservation, and provides emitt ers
with
flexibility to reduce emissions in a way that best suits their individual
processes, abilities and circumstances.
The following are approaches to carbon pricing that have been employed in various jurisdictions:
Carbon Tax System- A tax
is
levied based on a set price per tonne of emissions. A carbon tax has the benefit of providing
certainty
in
terms
of
cost. One tonne= a set price, i.e. $20/t onne. Companies (and citizens
in
many cases) have
the
choice
to pay the tax or to avoid emissions. However, there is no certainty in
the
environmenta l outcome, as one could simply
choose to pay the tax instead of reducing emissions. The price of the carbon tax can be adjusted over time to achieve
desired environmental outcomes,
but
this reduces cost certainty.
The most common ly cited carbon tax regime is that implemented in British Columbia, where combustion emissions face a
price
of
$30 per tonne across the province. Revenue from the tax is used to finance government expenditures,
after
a
reduction in corporate and personal income taxes. Many European nations, notably Sweden, have long relied on carbon
taxation
as
a means of both generating revenue and reducing emissions.
Cap and Trade System- A limit or cap
on
total emissions from regulated emitters is set, allowing the trans fer of emissions
allowances or permits between regulated emitters. If
one
company exceeds
their
mandate emissions and another
decreases their emissions below the 'cap', t hey can trade with each other to even
out
their emissions. A cap and trade
system has an environmental outcome that is certain (based on the cap). However, the cost
of
emitting depends on the
demand for permits relative to
the
cap
(or
supply).
Many
cap and trade systems introduce price controls (i.e. price ceilings
and/or floors) to provide more certainty on the economic Impacts
of
the policy,
but
this reduces emissions certainty.
The
most
commonly cited cap-and-trade regime
for
greenhouse gases is that imposed in the European Union but,
more
recently, a cap-and-trade program has been implemented by Ontari o and Quebec,
with
a set a floor price and price ceiling
in
an effort
to manage cost uncertainty . The most recent auction price in May 2015 was US$12.39 (about $15/tonne).
Importantly,
in
addition
to
covering large emitter s,
the
cap·and·trade program
in
Quebec also impacts consumers, since
fuel and natural
gas
distributors are required to purchase emissions permits for the eventual combustion emissions of the
fuel they sell. Cap·and·trade programs also formed the centerpiece of legislation to combat acid rain in North America.
Hybrid
System -Alberta s existing Specified Gas Emitters Regulation for large
emitters
is an example of a hybrid system: it
is part tax, part cap and trade and
part
regulatory. The regulation requires facilities
that
emit 100,000 tonnes
of
Oze or
more per year to reduce their emissions intensit y by 12% below a historical baseline. This reduction requirement will
increase to 15% in 2016 and to 20% in 2017. Facilities that reduce emissions below
their target
are able to generate
emissions performance credits, which are tradable or may be banked for use
in future
years. Facilities that are unable to
meet their annual intensity target may comply through
the use of
traded credits; by purchasing emissions offsets,
effectively outsou rcing emissions reductions to
other,
non·regulated sectors; or
they
may pay into a technology fund at a
set price per tonne
of
carbon dioxide. Many hybrid systems are possible, and are
not
necessarily more
or
less stringent
than a cap·and·trade or carbon tax system.
Regulatory Approaches - There is awide range
of
regulatory approaches,
but the
classical definit ion would be one in which the
government regulates the adoption of he best economically feasible technology, or performance equivalent to that technology.
Regulations can also be in the form
of
outright bans
or
restrictions on use,
or
requirements
to
use, part icular technologies
or
classes
of product.
In Canada, the federal government
has
regulated that coal-fired power plants must,
at
the end
of
their lifespans, either be shut down
or be retrofitted to perform
at
emissions intensity rough ly equivalent to that of a natural·gas-fired power plant. Other examples
of
regulatory approaches are vehicle emissions regulations and,
in
some jurisdictions, requirements
for
a minimum share
of
renewable
electricit y generation. Environmental regulations have also strictly limited Incandescent light bulbs, certain pesticides and ozone
depleting chloronuorocarbons
CFCs).
Building codes also set requirements for energy efficiency and insulation for buildings and
houses.
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Discussion Questions
1.
Given Canada's emission reduction
targets
30% below
2005
levels by 2030- what does a
successful climate change approach l ook like
for
Alberta?
How
should we measure success?
2.
What
is an appropriate price on carbon? What opportunities and challenges would exis t in
Alberta under
different
carbon pricing models? Should all emitters face a price on carbon?
3.
Should Alberta apply the same emission reduction policy/standards to the entire economy or
have sector specific policies? Should Alberta focus on the sectors
with
the
most
emissions? Or
emissions growth?
4.
What
opportun ities could exist
for
Alberta
as it
moves toward a lower-carbon economy?
5. How can Alberta families and business be supported through this transition?
What
will be the
specific needs
of
individual sectors, municipalities, populations, etc.?
6. Emission reduction policies can be regressive, imposing a higher relative cost on low-income
families. How
can
we best mitigate these costs for lower-income Albertans?
7.
How
can all Albertans be involved in this process?
What
tools, incentives, etc. could encourage
Albertans to take part? Is a broad-based policy enough
or
should more tools
be
used?
Oil and Gas
(for each of
these
sections, we will insert a small graphic showing the sector s slice of the emissions pie chart
from the last section
and
a chart showing
- -- -
emissions growth in
the sector
Sourte: canacb Uixth NaUonal Repo rt on Climate Chanae
Greenhouse gas emissions
from the
oil and
l O
gas sector are the largest itnd fastest growing
source of
emissions in Alberta. They are also
the fastest growing source of emissions in
Canada growth largely driven by the
expansion
of
oil sands development.
Emissions Profile: In 2013 the oi l, gas and
refining sector
emitted
122 megatonnes of
C02e, representing
just
over 46%
of
provincial emissions.
160
~
140
:
0
uuo
I a>
60
40
20
2005 2010 2015 2020 2025
2030
•
Od
gnds s f t u
• Oi sands mlnlrt
• Bitumen
u w d ~ g
- ConventiOnal
Crude Oil
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Alberta's oil production is forecasted to grow from 2.9 million barrels per day {2013 production) (will
update to 2014 numbers) to nearly 4 million barrels before 2020. (Source: Alberta Energy Regulator ST98:
Albert a's Energy Reserves & Supply/Demand Outlook Insert
C PP
numbers)
Current State: Under the Specified
Gas
Reporting Regulation,
emissions reductions are currently required at facilities that
emit 100,000 tonnes
or
more of carbon dioxide equivalent per
year.
In 2014, 103 facilities were captured by
the
regulation, which
represent approximately
45% of
provincial emissions. Facilities
that
emit more than 50,000 tonnes or more of C02e per year
must report their emissions annually. In 2013, 147 facilities in
Alberta were captured by this regulation, accounting for
XXV
of oil and
gas
sector emissions.
Quick Facts: Oil sands development is the main driver
of
emissions growth in the province. Production from facilities
using drilled wells, known
as
the 'in-s itu' sub-sector, is the
fastest growing source of greenhouse gas emissions in Alberta
and Canada.
World ank Global as Flaring
Reduction Partnership
Alberta is part of the orld Bank's
Global
Gas
Flaring Reduction
P<lrtnership, which ensures
Alberta's best practices and
regulatory approach on flaring
m<magement are shared with the
world. Under Alberta's current
system, more than 95 of solution
gas, which is produced during oil
produc tion, is conserved.
Neighbouring provinces
of
Saskatchewan and British Columbia
have modelled
their
approach
to
solution gas conservation after
Alberta's approach.
Almost all emissions f rom the
in
situ oil sands sector are associated with burning natural gas to produce
steam for injection into the wells. For mining operations, the emissions are pr imari ly from producing
hot water for extraction, mine fleet vehicles, fugit ive emissions from mine faces and tailings ponds. For
upgraders, the majority of emissions are associated with fuel combustion for process heat and industrial
process emissions.
There are several emissions sources within the
oil and
gas
sector that Alberta could target through
enhanced climate policies:
• oil sands {48
of
sector emissions),
• natural
gas
exploration, production, processing, transportation and distribution {31 of sector
emissions),
• conventional oil {15 of sector emissions),
• refineries {4
of
sector emissions),
• transportation, including transmission and distr ibution (2
of
sector emissions).
Fugitives (including venting, flaring, oil,
gas,
conventional and unconventional oil and gas exploration,
production, transportation and distribution) make up 30 of the above emissions. This represents a
significant opportunity for reductions,
as
methane is a key component of these emissions and has high
global warming impacts.
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Spotlight on Innovation: Emissions from combustion of natural
gas
to produce heat
or
electricity
represent more than 75% of emissions from the oil sands sector. Many existing facilities are exploring
solvent co-injection,
as
well
as
optimized drill ing and steaming techniques. These approaches have
begun to show significant improvements in emissions intensity and water intensity
as
a result.
Venting, flaring and fugitive emissions are associated
with
oil and gas production and processing.
Venting is
the
controlled release
of
natural
gas
to the atmosphere without burning. Flaring and venting
most often occur
where
there is a lack of facilities to otherwise capture the natural gas .
Flaring is the burning
of
natural gas where
it s
produced along with oil (known as associated gas in
the
industry), during natural
gas
production or in maintenance
or
emergency circumstances requi ring a
release of pressure by removing the gas.
Fugitive emissions are unintentional leaks
from
equipment
or
pipelines.
Discussion Questions
1.
How
can
Alberta's oil and
gas
sector compete in a world
that is
moving
toward
less carbon
intensive energy?
2.
How can
we speed the development of
new
technology and innovation?
3.
Where are the greatest opportunities for reducing greenhouse gas emissions in the oil sands? In
conventional oil and gas production, including venting and flaring?
4. How can Alberta increase the amount
of
value-added to energy products in the province
(through refining, upgrading and petrochemicals) while at the same time decreasing emissions?
le tri y
(Insert a small graphic showing the sector's slice
of
the emissions pie chart from
the
last section and a
ch rt
showing emissions growth
n the
sector)
Electricity is an important part of
he
day-to-day lives
of
Albertans whether it is turning on a light or
powering
the
province's schools, hospitals and industrial sector.
Emissions Profile: Electricity generation is
the
second largest source
of
emissions in Alberta, responsible
for
17 ,
or46 megatonnes of the province's greenhouse gas emissions in 2013
6
•
Coal-fired generation
represented 85%
of otal
emissions
from
the electricity sector
7
•
6
Based
on adual coal emissions from SGER
and
SGRR
Internal
estimates for natural gas generation
and
total provincial
emissions from
1990-2013 Nalionallnventol')'
Report
page
60
.
7
Estimate based on Specified Gas
Reporting
Regulation data Specified Gas
Emitters
Regulation
Data
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Current
State: Alberta has a deregulated, energy-only wholesale electricity market. This means that
electricity production is undertaken by private companies who are not guaranteed a rate of return on
their capital investments as they would be in a regulated system. They sell power at market prices
determined through supply and demand. This differentiates
Alberta
from
some
other
urisdictions where provincial
utilities produce electricity for domestic consumption. Any
suggestions for changes to Alberta policies must reflect this
distinction.
24(1)(a,b,c)(Advice from Officials)
For coal-fired electricity generation, the federal
government has put in place a regulation that will
require generators to reduce their emi
ss
ions to 'clean as
gas' (420 kilograms of carbon dioxide equivalent per
megawatt
hour)
when they
reach roughly 45 to 50 years
of operation.
Canada's Reduction
of
Carbon Dioxide Emissions from
Ontar io
From 2003 to 2014, Ontario phased out
all
of 1ts l f i r e d electncity,
1
eplacing this
elertncity
gene1ation with nuclear, natural
gas, b1ornass, hydro, wind, and solar. They
implemented a Feed-m-Tariff policy m
2009, which subsidizes prices for
renewable electricity produced and fed
into the electricity r,nd.
C liforni
In 2002, Culifornia implemented a
Renewuble Portfolio Standard
with
the
eo
a of
hilving
33%
renewable energy
capacity by 2020. The program has
reduced emissions and water use, and
has
creatPd jobs in the renewable energy
sector.
Coal-fired Generation
of
Electricity Regulations require approximate ly
60% of
Alberta's coal-fired
generating capacity to meet the 'clean as gas' standard
or
retire by 2030.
Alberta's Electricity Emissions Management Framework
manages pollutants other than
GHGs
(nitrogen oxides,
sulphur dioxide, particulate
matter
and mercury)
that
will have implications for half
of
all existing coal uni ts by
2020. This will also likely ind irectl y yield some
greenhouse gas reductions.
The existing Micro-generation Regulation enables
Blomus
other
5
Generation Capacity In Alberta as of May 2015]
Albertans
to
generate their own alternative or renewable electricity (e.g. rooftop solar panels) by
simplifying
the
process to connect to the electric ity grid. Alberta has approximately
1,200
micro
generation sites,
with
a combined capacity of nearly 9 megawatts (less than 0.1% of total generation
capacity).
Quick Facts:
Many
of
Alberta's existing coal-fired plants are nearing
the
end
of
their
design
or
lifespan
based on the provincial air quality management requirements and
the
federal greenhouse gas
standards. This provides an opportunity to
achieve significant emissions reductions by replacing coal
with greener sources
of
generation.
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Renewable Energy is obtained
from
resources that can be naturally replenished, including wind, solar,
hydro, biomass and geothermal. Alberta has a significant potential for increased renewable energy
development across the province.
Many
renewable energy sources, like wind and solar, are considered
intermittent-
sometimes the
wind
doesn't blow and the sun
doesn t
shine. These need
to
be backed
up
by generation
from
sources that
are available at all times, like hydro-electric ity and natural gas. To encourage the production of more
renewable electricity, government could finance, subsidize or regulate renewable energy production or
use tools such
as
carbon pricing to facilitate additional renewable electricity capacity.
As of
May
2015, renewable energy sources accounted
for
17% of Alberta's installed electric generation
capacity. In terms
of
actual electricity generation, however, renewable energy only accounted
for
roughly
9
of
total
generation in 2014. (should
use
stats from the same year)
Cogeneration is
the
combined production of heat and electricity
from
a single combustion process at or
close
to
the point of use. It has
grown
to roughly 30% of Alberta's total capacity today. Cogeneration is
more
energy efficient than separate electricity and heat product ion and many energy developers expect
to
employ some degree of on-site generation in the future. Alberta's
oil
sands industry is the main
developer of cogeneration in the province.
Spotlight on Innovation: In an effort to increase the understanding and involvement of First Nations in
measures to mitigate cl imate change, the Assembly
of
First Nations has undertaken a process to
identify
the opportunities that
exist-
or can be made available-
to
deploy renewable energy and energy
efficiency technologies in First Nation communities. Many First Nations communities are in remote
locations with electricity provided
by
diesel generators, representing a significant
opportunity
for
improvements in
air
and greenhouse gas emissions, and cost reductions through deployment of custom
renewable energy solutions.
Canada's first commercial
wind
farm was built in Alberta in 1993. The
farm
is now owned by TransAita
and is located in Cowley Ridge in Southern Alberta. Alberta ranks third in Canada with an installed wind
energy capacity
of
1,471
MW,
and Alberta's electricity production
from
wind power has increased by
85 from 2010 to 2014
8
•
Alberta Innovates- Energy and Environmental Solutions
has
invested in a solar photovoltaic research
project
with
the University of Alberta
to
develop thin, nanotechnology-based solar cells that can be
sprayed, rolled onto a surface
or
even woven into fabric, making them cheaper
to
manufacture and
potentia lly making solar energy accessible
to
everyone.
9
•
AESO
20 14 Annual Market Stausucs Rcpon
• AI EES
Annual
Rcpon 2014-2015
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Feed-in Tariff FIT): A feed-in tariff sets a long-term, contrac ted price typically 20-years) based on the cost of
producing renewable energy plus a reasonable
rate
of return. This
is
similar to
the
way long-term power
purchase agreements {PPAs) are signed
in
regulated market s. However,
FITs are
typically set up as standing
offers for anyone who Is able to invest in a project, although they may also be offered only for a limited
number
of
projects. Best practices
see
FIT
prices regularly reviewed for
new
projects as technology costs
decline.
FITs
can be applied to large-scale wind farms or to smaller sources like roof-top solar panels.
Green
Power
Call: Rather
than
sett ing a fixed price for renewable power,
some
jurisdictions have opted for a
method
similar
to
an auction, calling for propo nents
of
renewable
energy
projects
to id
their
power
into
the
system, and then offering long term contracts
at
the bid prices to the most cost-effective sources of power.
Such a system is most applicable to large-scale projects, and provides greater certainty over the quantity and
location of generated power. The auction provides incentives which should yield the most cost-effective
renewable power available.
Tax Credits or Subsidies: Rather than fixing a selling price for renewable electricity, these policies may reward
producers via tax credits or direct payments t oward capital costs or for generation over and above market
prices. For example, producers in the United States benefi t from a production tax credit PTC) for renewable
power, while Canada
has
previously enacted policies which provide renewable
power
producers with a per·
unit paymen t directly from the government e.g. ecoEnergy
for
renewable power). Tax subsidies
can
also
come in the form of accelerated capital cost depreciation rather than credits tied to generation.
Renewable Portfolio Standard RPS):
An RPS
is a regulation that can apply to electricity suppliers or retailers
that
requires a minimum amount
or
share
of
renewable ene rgy by a specified date. RPS mechanisms can vary
depending on which renewables qualify,
but
typically include wind, solar, biomass, geo thermal energy and
at
least run-of-river hydro. This is the most common policy mechanism in the
U.S.
where 29 states have
these
regulations in place, and t hey drive investment in generating assets which they may not have absent the
constraint. RPSs typically include a trad ing mechanism to allow for flexibility in meeting the regulation, which
may or may not enable trading across political borders.
Carbon Offsets: Some jurisdictions, including Alberta, allow renewable ene rgy projects to be credited for the
implied reductio n in greenhouse gas emissions
that
their gener ation provides. These credits, once certified,
can then be sold to those looking to offset, either for regulatory reasons or on a voluntary basis, their
emissions. Offsets may be traded over long distances
or
may
be
restricted
to
a local market. Offsets are
typically only certified for projects that are deemed to be additional to the business-as-usual case they
would not have occurred In the absence of the offset credit itself- and have a protocol to determine this
eligibility. The value of the offset can depend on demand compared to the cost of otherwise complying with
emissions regulations, the availability of supply
and
on a ceiling price.
Renewable Energy Credits REC): The environmental attributes of renewable energy can be de-coupled from
the energy Itself and sold as a separate product. The REC can be sold into a voluntary market such as a
passenger wishing to offset his or her airplane emissions, or their home electricity use, for example). Some
jurisdictions allow utilities to use renewable energy credits to comply with renewable portfolio standards,
and this has created a market in renewable energy credits. A firm generating renewable power may sell
electricity at home, but sell the renewable energy credit tied to
that
electricity to a firm in a distant market.
In these cases, the emissions reduction occurring as a result of that renewable energy project should not be
double counted by parties or jurisdictions.
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ransportation
(Insert a small graphic showing
the
sector's slice of
the
emissions pie chart from
the
last section and a chart
showing emissions growth
n
the
sector)
Everyone knows that cars and trucks produce
emissions
tailpipes are a visible reminder
of
transportation's contributions to greenhouse gas. In the life cycle
of
a barrel
of
oil, most emissions occur
when the oil is used by cars and trucks.
Emissions Profile: Transportation was responsible
for
16 , or
44
megatonnes of Alberta's greenhouse
gas emissions in
2013.
Emissions from the transportation sector have steadily increased in Alberta since
1990.
Current State: Alberta's transporta tion sector includes:
• passenger vehicles and public transit,
• freight trucks and rail, and
• off-road vehicles.
Alberta s Renewable Fuels Standard
requires commercial fuel
British Columbia
The Renewilble and Low
Carbon Fuel Requirements
Regulation
will
reduce
the
c ~ r b o n intensity
of
transport<Jtion fuels by
10 by 2020.
producers to blend renewable products into
their
fuels - an average of 5 renewable alcohol in
gasoline and
2
renewable diesel in diesel fuel sold in Alberta. All renewable fuels must emit at
least
25
fewer greenhouse gas emissions than the fossil fuel they're replacing.
Effective January 1,
2004,
Canada's
On-Road Vehicle and Engine Emission Regulations
introduced
more
stringent national emission standards
for
on-road vehicles and engines and a
new
regulatory
framework under
the
Canadian Environmental Protection Act,
999
(CEPA
1999)
10•
The Regulations
align Canadian emission standards with those
of
the U.
S. EPA for
light-duty passenger vehicles, light
duty trucks (such
as
vans, pickup t rucks and sport
utility
vehicles), heavy-duty vehicles (such
as
1
http://www .ec.gc.ca/lcpe-cepa/default.asp?lang=En&n•DASSB8Bl·l&wsdoc=9Q6E23B8·041E-91F9·E2E8·82090DCC1524
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heavy trucks and buses), and motorcycles and will result in significant emission reductions from the
fleet
of
on-road vehicles
in
Canada
11
•
The lberta Fuel Tax
ct
is a direct tax on consumers
for the
purchase
of
all unmarked fuel in
Alberta. This includes gasoline, diesel and propane, except where the fuel
is
delivered and
consumed outside Alberta. The current tax is $0.13/litre for all grades of gasoline.
Quick Facts: In Alberta, there were 1.16 vehicles per licenced driver in 2013.
While much
of
the transportation sector
has
become more fuel-efficient over time the growing number
of
vehicles in the province has offset many
of
the eff iciency gains. Between 2004 and 2014 in Alberta,
the number of
vehicles (registered in all classes)
has
risen by 44%.
12
Promotion
of
public trans it in urban areas, encouraging car-pooling and urban design techniques
that
minimize vehicle use and promote alternative transportation can be employed by
to
reduce emissions.
Vehicles release ai r pollutants such
as particulate matter, oxides
of
nitrogen and volatile organic
compounds and contribute to photochemical smog.
Spotlight on Innovation: In October 2014, Ferus Natural Gas Fuels opened the first commercial liquefied
natural gas fueling station in Canada. Natural gas
is
a lower-emissions alternative fuel to diesel and
gasoline. Located in Elmworth, Alberta,
65
km north
of
Grande Prairie,
it
is located
to
serve British
Columbia and Alberta oil and gas activities in
the
region. Currently, the facility can produce
up
to 50,000
gallons per day
of LNG
and has capacity to expand up to 250,000 gallons per day
of LNG.
13
Active transportation includes to any form
of
human-powered transportation- walking, cycling, using a
wheelchair, in-line skating or skateboarding. Active transportation could mean walking to a store or to
the
bus
stop, or riding a bike to school or work.
Clean Vehicle Technology includes hybrid, electric, natural
gas
and hydrogen fuel cell vehicles.
11
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D41E
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1
'
ht t
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-mem;lll itotv
-b-Hommlnlonlm :-tbe-(lnt•mmb m -lna-fac
lllt
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J
canada/
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Buildings and Houses
(Insert a small graphic showing
the
sector s slice of the emissions pie chart from the last section and a chart
showing emissions growth In the sector)
Climate change is a global challenge,
but
many
of the
solutions
can
be found close
to
home. When
i t
comes to buildings and houses, energy efficiency and conseiVation have
an
important role to play.
Emissions Profile: Emissions from Alberta homes and buildings were 21 megatonnes
of COze
in 2013.
This represents approximately
8%
of Alberta s
2013
emissions.
Current State: Alberta s building sector includes: (will include
breakdown
of
emissions,
i f
possible, by square footage)
• residential buildings- single attached and single
detached houses, apartments and mobile homes;
• commercial buildings - a broader spectrum
of
building
types, including wholesale trade, retail trade,
transportat ion and warehousing, information and
cultural industries, offices, social assistance, arts,
entertainment and recreation, accommodation and
food seiVices, and
other
seiVices; and
• institut ional buildings municipal government,
universities, hospitals and schools.
anitoba
Aki Energy, an Aboriginal social
enterprise, is helping local First
Nations communities establish
energy efficiency solutions in their
homes. y installing geothermal
systems and
retrofitting
homes, Aki
Energy is helping to create green
jobs and
to
reduce heating and
cooling bills of homes. Through
Manitoba Hydro s Pay-As-You-Save
financing program, the costs of
retrofits
are paid back out of bill
savings
over
20 years, allowing
homeowners to avoid up -front
costs.
Quick Facts: Energy efficiency improvements
can
be one
of
the most cost-effective ways to improve the
affordability, and reduce
the
environmental impact,
of
energy consumption. Policies including carbon
prices and government subsidies can make these improvements more attractive.
Examples of energy efficiency upgrades to homes and buildings include: high efficiency appliances, such
as
fridges and washing machines; high efficiency furnaces and hot water heaters; and
LED
and compact
fluorescent lighting.
There are many benefits
from
adopting energy efficiency and conseiVation, beyond reducing
greenhouse gas emissions.
For example:
• Reducing energy use saves families, consumers and building owners money, which can
then
be used
in other parts
ofthe
economy.
• Municipalities benefit from lower energy costs and can reinvest those savings
into
enhanced
programs
for their
citizens.
• A shift toward greener building standards and energy efficiency updates to existing buildings could
provide good construction and maintenance jobs for Albertans.
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Spotlight
on
Innovation:
With
funding support
from
Alberta s Climate Change and Emissions
Management Corporation, ATCO
Gas
is helping to offset the cost
of
ncorporating Combined Heat and
Power technology in commercial and institutional buildings. This form of energy uses natural
gas
to
accomplish
two
jobs- provide electricity and heat- reducing greenhouse gas emissions and lowering
energy costs
for
consumers
4
•
The first LEED Gold greenhouse in Canada
Is
located in Brooks, Alberta. This Alberta Infrastructure and
Agriculture research facility is powered by 100% green power.
15
Discussion Questions
1. How
can
Alberta transition to a greener bui lding stock?
2.
How can Alberta make energy efficiency more prominent in housing decisions? In rental
housing?
3. What opportunities are there
for
all levels
of
government facilities
to
be more energy
efficient?
4.
How
can
the province support lower-income Albertans with the upfront capital costs involved
with improving energy efficiency in their homes?
5. How can Alberta leverage skilled trades and labour to help advance energy efficiency in
Alberta homes and buildings?
6.
What are the current barriers to adopting energy efficiency
in
homes and buildings?
Technology, availability, contractors, costs, rental housing, etc.?
Other Industrial Emitters nufacturing and o struction
(Insert a small graphic showing the sector s slice of the emissions pie chart from the last section and a chart
showing emissions growth In the sector)
Alberta has many industrial sectors with large facilities, including: production
of
cement and
other
minerals, chemical production, coal mining (metallurgical and thermal), fertilizers, forest products,
metals, and landfills. These industries generally produce products for export, so prices are determined
by global markets. The industry may not be able to transfer costs imposed in Alberta to their consumers.
Emissions Profile The balance
of
Alberta s industrial sector (i.e. excluding electrici ty and oil and gas)
accounted
for7 ,
or 19 megatonnes of Alberta s
total
emissions in
2013.
Manufacturing and
construction accounted of 5 of Alberta s emissions in 2103.
a•
http:f/ccemc.ca/project/comblned· heat-and-power-for·commerclal·and-lnstltutlonal·bulldings/llsthash.
hShrSD29
.dpuf
1
5
Alberta
Focus,
Sprmg
2015
, Alberta Chaplcr of he Canad1an Association
of
Green Builders,
ht p.Jiissuu .
com/sabmagaT.inc/docsfdumat
qlbcna fotus sprmg
20
IS
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Current
State: Alberta's Specified Gas mitters Regulation applies to large
emitters
within this sector.
Given
the
diversity
of
this sector, there are a variety
of
other regulations that affect
different
players.
Quick Facts: Many of these industries represent an important part
of
Alberta's supply chain and support
the
province's growing economy
with
links
to
oil and gas, forestry, agriculture and electrici ty production.
Coal mining produces
raw
product
for
electricity
or
steel production, while mineral, chemical, cement
and fertilizer manufacturing adds value to Alberta's produced resources in the form
of
petrochemicals,
polyethylene and resins, agricul ture additives, concrete products and more.
Alberta 's Industrial Heartland is home to 43%
of
Canada's basic chemical manufacturing, including:
• petroleum refining and upgrading:
• ethylene and styrene production:
• natural gas fractionation and processing:
• fertili zer product ion and metal refining; and
• other petrochemical and specialty products.
Percentage
of
domestic vs exports
Spotlight on Innovation: In 2008 and 2012, Orica Canada Inc. installed dedicated secondary catalysts
to
drastically reduce the emissions
of
nitrous oxide
a
potent greenhouse
gas
with a global warming
potential 98 times that
of
C02) from
the
Nitric Acid Production Facility near
Carse
land, Alberta. Since
adding the secondary catalysts,
the
facility's emissions have been reduced by about 500,000 tonnes of
C02e per year.
Agriculture Forestry and W
te
(Insert a small graphic showing the sector's slice of
the
emissions pie chart from the last section and a char t
showing emissions
growth
In
the
sector)
Agriculture and forestry are
important
parts
of
Alberta's economy. Together with waste, these sectors
can help Alberta reduce, remove and replace (by displacing fossil fuels) creenhouse gas emissions, using
biological sources
of
energy and land management.
Emissions Profile: In Alberta, agriculture makes up 7%
of
provincial emissions and forest ry (including
pulp and paper) accounts
for
1 . Waste accounts
for
1 of Alberta's emissions.
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Emissions
from
soil management practices, including irrigation, ti lling and application of fertilizer and
manure, account for more than half of Alberta's agricultural emissions.
Current State: Emission reductions in this sector are currently driven volun tarily through the ability to
generate and sell carbon offset credits.
To date agricultural, forestry and waste-based carbon offset protocols have been a major source of
greenhouse gas reductions. Carbon offsets are one
tool
to drive behavioural practice changes.
Collectively, 12Mt of carbon offset projects have been certified and used for compliance by facilities in
this sector under the Specified Gas Emitters Regulation. The potential
to
generate emissions offset
credits acts
as
a form of carbon price, providing a financial incentive
to
reduce emissions in order to
qualify to obtain and sell the credits.
Alberta is in
the
process
of
re-evaluating offset calculations in
this
sector following a
report
by Alberta's
Auditor
General. (need
to
verify)
Carbon Offsets generated by projett and by year
Project type
2
00
7
2008
2009 2010
2011
Tillage
11M 35
914 726 1 576 0
n
1 511 248 2 331 940
Forestry
421..0
43
Harvest
. .
Practices
Biomass 30 000 276 520 345 325 424 049 107 309
Blofuel
. .
15 278 30 000 6 845
Landfill
Gas 305 550 38 980 316 169 179 683
.
Aerobic
136 196 28 823 189 649 90 380
Composting
.
Anaerobic
Wastewater
-
treatement
296 650 105 034
199 024
Total 448 985 1 659 7S6 2 398 845 2 604 515 2 982 014
Quick Facts:The United Nations recognizes agriculture and
forestry
as
emissions sources
as
well
as
opportunities for
emission sequestration. Alberta's managed forest ry and
agricultural land makeup _
_
of he province and provide an
opportunity
for
emission reductions.
Globally, agriculture is the third largest
contributor
to
global
emissions by sector, following burning fossil fuels for
power
and
heat, and transportation.
Despite
their
continuing rise, emissions
from
agriculture are
growing
at a much slower rate
than the
sector as a whole,
demonstrating
the
increasing carbon efficiency
of
agriculture.
2012
2013
2014 Total
820 964 389 109
490 973
8 148 479
-
-
421 043
25 407
85 635
117 631 1 412 076
.
18 517 70 640
.
47 416 887 798
21 921
10? 53.6 7 855 582 260
-
813 198
148 37S
64 969
936 451 678 419 682 392 12 391 177
ermany and orway
The United Nation's
ntergoVt:rnmental Panel on
Climate Ch;mge estimates that soil
carbon sequestration,
through
improved cropland and grazing land
m;magement, as well as the
restoration of degraded lands,
offers the greatest potential in
agriculture for climate change
mitigation. The UN's Food and
Agriculture Organization is working
with Germany and Norway to
create a global knowledge base
thut will identify best opportunities
to mitigate climate change through
improved farming practices.
(hit p: f www.un. ore/apps/nows/story.a s
p
?Nowsl
0=37536#.VZ6HZ89VhBc)
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Methane accounts for
just under
50% of
total
agricultural emissions, nitrous oxide for 36%, and carbon
dioxide for some 14%.
The largest source of emissions in this sector is enteric fermentation, from digestion by livestock,
predominantly beef cattle. This is also the largest source of agricultural emissions overall, cont ributing
39% of the 2011
total
Emissions generated during
the
application
of
synthetic fertilizers accounted for 13%
of
agricultural
emissions in 2011, and are the fastest growing emissions source in agriculture, having increased
by
approximately 37 since 2001.
Spotlight on Innovation: Alberta has developed an offset protocol based on applying fertilizers using
best management practices founded in the 4R Nutrient Stewardship System. This system, originating in
Canada and
now
applied international ly, encourages farmers
to
apply fertil izer products using the Right
Source at the Right Rate, Right Time and Right Place. The g r i u l t ~ n ~ rrunicipal
sewege
nd
wastewater
protocol has the potential to be impactful by reducing nitrous
oxide emissions
from
agricultural soils, which is a greenhouse
gas 298 times more potent that C02.
Canada's Agricultural Greenhouse Gases Program has
approved $20.3 million for 19 projects
that will
bring farmers,
the agriculture community and academia
together
to work
toward a common goal of advancing research, technology
• b
io
m ram
llarVMt e d ~
• Pulpmm
u e s
• Comrercial
and
induslri l
biomasswasle
Alberta Biomass Production million ton nes year)
transfer and
the
adoption of beneficial management practices
to
mitigate agricultural greenhouse gas
emissions.
Blosequestratlon:
the
capture and storage
of
carbon dioxide through biological sink processes, including
increased photosynthesis through practices such
as
reforestation, preventing deforestation, genetic
engineering, enhanced soil carbon storage in agriculture or enhanced production
of
algae.
Bloenergy: renewable energy derived from biomass, which is organic material made
from
living organisms
that
has stored sunlight in
the
form
of
chemical energy.
Biomass: includes crops, crop residue, trees,
wood
and animal residue.
It
s used
to
develop fuels like
ethanol, butanol, biodiesel, and
other
hydrocarbon fuels.
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mbition Scenarios
When creating greenhouse
gas
emission mitigation policy,
it is important to
determine the level of
ambition, informed by policy and actions, required
to
achieve set targets and commitments.
Internationally,
the
most common means
to
measure climate change performance
is
through
comparisons of emissions in
future
years
to
some base year (typically 2005
or
1990)
or to
some
hypothetical projected business-as-usual scenario.
Increased levels of ambit ion require increased stringency in policy and actions. This could include carbon
pricing, stricter standards, investments in technology or any
other
action taken to mitigate climate
change. The level
of
ambition and
the
actions and policies required
to
achieve them will be critical
considerations as Alberta transitions to a lower-carbon future.
Below,
four
potential levels
of
ambition
are defined.
National Leadership Matching: To demonstrate national collaboration, Alberta could adopt policy
that
meets
that of
the leading jurisdict ion taking action on climate change in Canada. Currently, British
Columbia's carbon tax of
$30/tonne
applies
to
about 72% of their provincial emissions, making
it
the
current national leader. (Quebec's carbon price
is
forecast
to
rise
to $60/tonne
with 80 coverage in
2030.)
National Target Equal Eff
ort:
To demonstrate national leadership, Alberta could adopt policy that, if
adopted across every jurisdict ion in
the
nation, would achieve Canada's commitment of a 30% reduction
from 2005 levels by 2030. Alberta, and all provinces and terri tories, could apply a common price and
coverage
to
demonstrate 'equal
effort'.
Based on analysis by the National Round Table on
the
Environment and the Economy, this is expected to represent $150/tonne by 2030. {Can provide
reference .}
Global Target Equal Effort: To demonstrate global leadership, Alberta could adopt a policy that, i f
adopted across
the
world, would keep global temperature increase
to
2 degrees. Suggest sidebaron 2
degree principle from
IPCC.)
That is, Alberta and all jurisdictions globally could apply a common price and
coverage to demonstrate equal
effort .
Based on International Energy Agency analysis, this
is
expected
to
represent $140/tonne by 2040.
Can
provide reference.
Deep Decarbonisation Path:
To
demonstrate global leadership and a commitment
to
eventually
eliminate all human-caused greenhouse gas emissions, Alberta could adopt a policy that aims to achieve
zero carbon emissions over
the
course of
the
century. This is based on achieving fewer than 2 tonnes of
emissions per capita per year
by
2100.
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ext Steps
Alberta s Action Plan on Climate Change
Following the
limate hange onversations
in the summer and early fall
of
2015,
advice from the
Expert Advisory Panel will
inform
Alberta s new government s action plan on climate change. Input from
the
public, labour, industry, stakeholders, First Nations and Metis communities, and
other
levels of
government wil l all be considered.
Alberta s action plan on climate change
will be
released
in the
fall
of
2015.
Future
work will
also consider
the
import nt m tter
of adaptation
to
climate change.
Partnerships
Climate change is a global challenge. Working
with
the right partners will both improve policy outcomes
and garner much bet ter external understanding
of
Alberta s new approach
to
climate change and
Alberta s new government
is
w o r k n ~ ~ to forge new relationships
across the country and around the
world th t will be invaluable in the
near term, Alberta re-evaluates
approach
to
climate change, and
over the longer term as provinces,
territories and nations
work
together to address this shared
global challenge.
emission reduction.
Alberta s future
success
in addressing emissions will
be
best
realized by strong support and partnerships within Canada and
around the world.
s
jurisdictions around the world have established
their own
approaches
to
climate change,
new
ideas, policies and strategies
have been created. Taking a global approach
to
a global
problem, Alberta wil l actively learn
from
others while sharing its
own expertise.
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Robert Mc ougall
From:
Sent:
To:
Subject
Attachments:
f
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• l I .
I ' . : . '
' • • I I I
I ; : ;
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: I I II
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l: Jo-Anne 1\acnn(iihm\ .ab.ca
FOIP Request 2015-G-0143
Jo-Anne Bacon
Friday, November 20, 2015 11:08
AM
Colleen
Kneller
At
Table Docs
from November 18 Cabinet mtg
Carbon Price.pdf; Towards Cleaner Electricity
Footprintpdf;
CC
Policy Carbon
Pricing.pdf