Climate Policy & Economic Prosperity

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Climate Policy & Economic Prosperity: Can we have our cake and eat it too? Thank you to our Sponsors: David B. Layzell, PhD, FRSC. Professor and Director, Canadian Energy Systems Analysis Research (CESAR) Initiative, Univ. of Calgary. [email protected] 403 220-5161 www.cesarnet.ca Canadian Academy of Engineers - AGM Calgary - June 18, 2018 James Meadowcroft, PhD. Professor & CRC in Governance for Sustainable Dev’t, Dept Political Science & School of Public Policy & Admin., Carleton University, Ottawa, ON [email protected] 613 520-2600 X 2214 CRC IN GOVERNANCE FOR SUSTAINABLE DEVELOPMENT

Transcript of Climate Policy & Economic Prosperity

Page 1: Climate Policy & Economic Prosperity

ClimatePolicy&EconomicProsperity:Canwehaveourcakeandeatittoo?

Thankyoutoour

Sponsors:

DavidB.Layzell,PhD,FRSC.ProfessorandDirector,CanadianEnergySystemsAnalysisResearch(CESAR)Initiative,[email protected]

CanadianAcademyofEngineers-AGMCalgary-June18,2018

JamesMeadowcroft,PhD.Professor&CRCinGovernanceforSustainableDev’t,DeptPoliticalScience&SchoolofPublicPolicy&Admin.,CarletonUniversity,Ottawa,[email protected]

CRCINGOVERNANCEFORSUSTAINABLEDEVELOPMENT

Page 2: Climate Policy & Economic Prosperity

Canada’sClimateChangeChallenge

Energy–Transportation

1990 2010 20300

200

400

600

800

GHGEmission

s(M

tCO2e/yr)

Year 2040

Energy–Stationary

Energy–Fugitive

205020202000

Ind.proc.&prod.Use

Agriculture

Agriculture Waste

ModifiedfromECCC2018(Draft)NationalInventoryReport

EnergySystems(81%)

2009Copenhagen1997Kyoto

Commitment

2015ParisCommitments

FailedFailed

ThisrequiresTRANSFORMATIVE-EVENDISRUPTIVE-SYSTEMSCHANGE

Canadianswanttoachievethiswhile:! Enhancingeconomicprosperity;

! GrowingtheCdnpopulation.

Page 3: Climate Policy & Economic Prosperity

" Usefultools,buttheyarenotcapableofachievingthe2015Paristargets;

HowtoAchieveSystemsChange?

CURRENTCLIMATEPOLICYTOOLS:#  CarbonPricing#  Regulations#  Incentives

…Forasignificantproportionofthepopulation,theclimatechangethreatisnotasufficientlycompellingreasontomaketransformative,systems-levelchanges.

WHY?

Page 4: Climate Policy & Economic Prosperity

WeLiveinaTimeofTransformative/DisruptiveChange

SpreadofP

rodu

ctsintoUSHou

seho

lds

FromCoxandAlm,2016.OnwardandUpward.O’NeilCentreforGlobalMarkets&Freedom,SMU

Notincludedhere:" Media" Retail" Music"  Images/printing" Telecommunications

" Movies" Books" Banking

Howcantheforcesoftransformative/disruptivechangebeharnessedtoaddresssocietalobjectives(includingGHGs)?

Page 5: Climate Policy & Economic Prosperity

Outline

1.   TheTransitionsPathwaysInitiative:#  DirectingDisruption:Anewevidence-basedapproachto

climatepolicymaking

2.   TransportationasanExample

3.   Conclusions4.   Discussion

Page 6: Climate Policy & Economic Prosperity

TheTransitionsPathwaysInitiative

0

200

400

600

800Canada’s 2015 GHG Emissions

Fossil Fuel Industries

Supply Chain

Personal Mobility

Energy Using Ind.

Buildings

Bio-systems

Electricity Generation

MtC

O2e/yr

722 $

Data

Compile&assessdataon:•  flowsofenergy&materials;

•  GHGs,•  Socio-economics;•  Demanddrivers;•  Etc…

Problems

Disruptors

•  Whatworks?•  Whatdoesn’t?•  Why?

Identifytechnology,businessmodel&socialinnovationscapableofaddressingproblems.

Vision

…forhowdisruptiveinnovationscouldbestaddressthe‘problems’

Pathways

Howtoget‘there’from‘here’?

ScenarioModels

ModeltheproposedPathway(s)toensuretheyare‘Credible,Compelling&Capable’

EXPERT&STAKEHOLDERINTERACTION

Page 7: Climate Policy & Economic Prosperity

PATHWAYSmustbe:1.   CREDIBLE

" Technically,economically,socially

2.   COMPELLING" Desirablebykey

stakeholders

EXISTINGSYSTEM

NEWSYSTEMPATHWAY

3.CAPABLEofachievingthetarget.

PATHWAY:Thetiming&magnitudeofspecifictechnology,infrastructure&behaviourchangesneededtomovefromonesystemtoanother.

DefiningPathways

Page 8: Climate Policy & Economic Prosperity

TheTransitionsPathwaysInitiative

0

200

400

600

800Canada’s 2015 GHG Emissions

Fossil Fuel Industries

Supply Chain

Personal Mobility

Energy Using Ind.

Buildings

Bio-systems

Electricity Generation

MtC

O2e/yr

722 $

Data

Compile&assessdataon:•  flowsofenergy&materials;

•  GHGs,•  Socio-economics;•  Demanddrivers;•  Etc…

EXPERT&STAKEHOLDERINTERACTION

Problems

Disruptors

•  Whatworks?•  Whatdoesn’t?•  Why?

Identifytechnology,businessmodel&socialinnovationscapableofaddressingproblems.

Vision

…forhowdisruptiveinnovationscouldbestaddressthe‘problems’

Pathways

Howtoget‘there’from‘here’?

ScenarioModels

ModeltheproposedPathway(s)toensuretheyare‘Credible,Compelling&Capable’

“Wecannotpredictthefuture,butwecaninventit.”DennisGabor,NobelPrize(Physics)(1971)

Products

AdvicetoDecisionMakers

Interveneinsocietaldebate(reports,briefings,convening,media)

SpinoutConsortia(ideallyindustryled)

Identifyinnovationpriorities

Page 9: Climate Policy & Economic Prosperity

Insteadoffocusingnarrowlyon:

ClimateChange…Expandthescopetoaddress:

SystemsChange…

…Policyandinvestmentdecisionscanbeusedtoencourage,discourage,nudgeorotherwise‘directdisruptiveforces’toachievesocietalobjectives:

"  GHGreductions

"  EconomicProsperity

"  Improvedhealthoutcomes

"  QualityofLife

"  …

TheTransitionsPathwaysInitiative

Page 10: Climate Policy & Economic Prosperity

Outline

1.   TheTransitionsPathwaysInitiative:#  DirectingDisruption:Anewevidence-basedapproachto

climatepolicymaking

2.   TransportationasanExample

3.   Conclusions4.   Discussion

Page 11: Climate Policy & Economic Prosperity

TransportationasanExample

0

200

400

600

800Canada’s 2015 GHG Emissions

Fossil Fuel Industries

Supply Chain

Personal Mobility

Energy Using Ind.

Buildings

Bio-systems

Electricity Generation

MtC

O2e/yr

722 $

WHY?" ~24%ofCanada’sGHGemissions;" Createsdemandforoil:%  Contributesanother~23%ofCdnGHGs(incl.exports);%  Transportationfuels=73%ofeachbarrelofoil;%  Albertaoilprovidesfuelsequivalentto9XABdemand.

" Definesurbanform(esp.Sprawl);" 100+yearoldecosystempoisedfordisruptive

change.

Transportationisthecritical‘Linchpin’inCanada’sGHGmanagementstrategy:

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"  Accidents(est.@$62B/yrin2007)"  Congestion(~4700per-yrslost/wkday)"  Airpollution(est.@$36B/yrin2007)"  GHGEmissions(WtW~225MtCO2e/yr)

"  Valueformoney(persLDVcost$13.8K/ABfamily/yr,butusedonly~4%oftime)

"  Parking(4+spaces/veh,est.$46B/yr)"  UrbanSprawl

"  Labourshortage/costs(i.e.truckdrivers)"  Loadfactor/truckuserate" Maintenance/operationalcosts

ALL

PERSONAL

MOBILITY

FREIGHT

PROBLEMSINTRANSPORTATION

TECH

NOLO

GIES "  Autonomousvehicles

"  Carsharing"  Electricvehicles"  Bigdata/Digitalconnectivity"  Faster/cheapercomputers"  AI/robotics/drones

BUSINESS

MODELS

"  MobilityasaService"  PhysicalInternet"  Consolidationofcarriers

SOCIAL "  Generationalvalues

"  Environmentalconcerns"  Governmentpolicies

DISRUPTIVEINNOVATIONS

Data

Problems

Disruptors

Vision

TransitionPathways

ScenarioModels

Page 13: Climate Policy & Economic Prosperity

"  Accidents(est.@$62B/yrin2007)"  Congestion(~4700per-yrslost/wkday)"  Airpollution(est.@$36B/yrin2007)"  GHGEmissions(WtW~225MtCO2e/yr)

"  Valueformoney(persLDVcost$13.8K/ABfamily/yr,butusedonly~4%oftime)

"  Parking(4+spaces/veh,est.$46B/yr)"  UrbanSprawl

"  LabourShortage(I.e.truckdrivers)"  Loadfactor/Truckuserate" Maintenance/Operationalcosts

ALL

PERSONAL

MOBILITY

FREIGHT

PROBLEMSINTRANSPORTATION

TECH

NOLO

GIES "  Autonomousvehicles

"  Carsharing"  Electricvehicles"  Bigdata/Digitalconnectivity"  Faster/cheapercomputers"  AI/robotics/drones

BUSINESS

MODELS

"  MobilityasaService"  PhysicalInternet"  Consolidationofcarriers

SOCIAL "  Generationalvalues

"  Environmentalconcerns"  Governmentpolicies

DISRUPTIVEINNOVATIONS

Data

Problems

Disruptors

Vision

TransitionPathways

ScenarioModels

BuildingVisio

nsfor

Credible,Com

pelling&Cap

ablePathwa

ys

" Manypossible

pathwaystha

t–ifdeploye

dstrategicall

y–shouldbe

abletomitigate

climatechange,

improvehealth

outcomesand

enhanceeco

nomicprosperity;

"  Ideally,the

morepromisingv

isionswillbe

backedbyco

mpanies,

environmentalg

roups,found

ations,inves

tors&gover

nments.

Page 14: Climate Policy & Economic Prosperity

PersonalMobility FreightTransport&theElectricalGrid

Data

Problems

Disruptors

Vision

TransitionPathways

ScenarioModels

BatteryElectricVehicles

ConnectedVehicles

AutonomousVehicles

SharedVehicles

Mobility-as-a-Service(MaaS)

AhighlevelviewofCESAR’svisionsfortransformingtransportationinawaythatenhanceseconomicprosperitywhileaddressingclimatechange:

Page 15: Climate Policy & Economic Prosperity

Historical(from1990)databyprovinceintegratedintoacoherentenergysystemsexploratorysimulationmodel.! Stockandflowof‘infrastructure’;! 1000’softechnologieswithenergyandmaterialflows;! Processemissions&otherbyproducts! Technology&behaviouralchoicesdefineprojectionsto2060+

Sources Harvesting Technologies Currencies

Service Technologies Services

Interconversion & Storage Technologies

Fossilfuels,Renewables

Infrastructure,andconversiontechnologies

Gasoline,diesel,electricity,hydrogen,etc

Cars,refrigerators,lights,furnaces,etc

Mobility,spaceheating,lighting,‘things’

CESARhasbeenworkingwithwhatIf?TechnologiesInc(Ottawa)tomakeourdataandthemodelopenaccess/opensourcewithinthenextyear.

Data

Problems

Disruptors

VisionTransitionPathways

ScenarioModels

CanadianEnergySystemsSimulationModel

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0

10

20

30

2000 2020 2040 2060

Milli

ons V

ehic

les

PLD Vehicles ESAC

Vehicles

Billion

km/yr

#Vehicles0

200

400

600

800

PLDVehicles

ESACVehicles

BAUScenar

ioKmTravelled

BAUScenario

1ESACreplaces6PLDvehicles

Non-commuter

Commuter

Intercity

0

0.1

0.2

0.3

0.4

0.5

2000 2020 2040 2060

MbblOil/day

OilDemand

BAUScenario

0

40

80

MtC

O2e/Year

LifecycleGHGEmissions

BAUScenario

PLDVehicles

Combustion

Upstreamoil

ESACUpstreamelectricity

Mobility-as-a-Service

Note:" ThisScenariorunwasabletoachievea~90%reductionin2005levelsofGHGemissionsby2050.

Data

Problems

Disruptors

VisionTransitionPathways

ScenarioModels

Page 17: Climate Policy & Economic Prosperity

Outline

1.   TheTransitionsPathwaysInitiative:#  DirectingDisruption:Anewevidence-basedapproachto

climatepolicymaking

2.   TransportationasanExample

3.   Conclusions4.   Discussion

Page 18: Climate Policy & Economic Prosperity

Conclusions

WHYBUILDTRANSITIONPATHWAYSFOCUSEDONSYSTEMSCHANGE?

1.   Expandsthetoolsthatcanbeusedtosupport/managethekindoftransformative/disruptivechangesneededtoaddresssocietalgoals;

2.  Potentialtoidentifycredible,compellingpathwaysthatarecapableofmeetingsocietalgoals(including,butarenotlimitedto,GHGmanagement);

3.  Providesgovernment/industrywithmetricstomeasureprogresstowardsgoal;

4.  Avoidinvestmentsin‘dead-end’pathways;

5.  ContributestotheInnovationagenda;6.  Hopefully,elevatetheclimatechangediscussionabovethepoliticallevel(toan

emergingconsensusonpositivesystemschange,ratherthan‘Ctaxes’and‘pipelines’);

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Discussion

Data

Problems

Disruptors

Vision

TransitionPathways

ScenarioModelsAdvicetoDecisionMakers

Interveneinsocietaldebate(reports,briefings,convening,media)

SpinoutConsortia(ideallyindustryled)

Identifyinnovationpriorities

EXPERT&STAKEHOLDERINTERACTION

DavidB.Layzell,PhD,FRSC.ProfessorandDirector,CanadianEnergySystemsAnalysisResearch(CESAR)Initiative,Univ.ofCalgary,Calgary,AB

[email protected]

JamesMeadowcroft,PhD

Professor&CRCinGovernanceforSustainableDev’t,DeptPoliticalScience&SchoolofPublicPolicy&Admin.,CarletonUniversity,Ottawa,[email protected]

TransitionsPathwaysInitiative