A Climate Change Plan for the Purposes of the Kyoto Protocol Implementation Act – 2007

| TOC | Previous |

Annex 2 -- Provincial and Territorial Actions on Climate Change

Programs and Incentives Funded under the Federal Trust Fund for Clean Air and Climate Change

British Columbia -- funding of $199.3 million will support projects, such as providing clean electricity to remote rural areas, extracting energy from sawmill scrap and wood infested with pine beetles, development of a "hydrogen highway" and new geothermal and bioenergy projects.

Yukon -- funding of $5 million will support the installation of a third hydro turbine at the Aishihik hydro electric plant to reduce the territory's dependence on diesel generated electricity.

Alberta -- funding of $155.9 million will support projects, such as the development of a carbon capture and storage system, the development of clean coal technology and a project to convert municipal waste into energy.

Saskatchewan -- funding of $44.4 million will go towards continuing development of near zero CO₂ emission electrical generation projects, improving energy efficiency and conservation, developing renewable and alternative energy sources, and continuing efforts in CO₂ capture and storage through the International Test Centre for Carbon Dioxide Capture.

Manitoba -- funding of $53.8 million will support projects to expand the province's low-income energy efficiency program, support the creation of new biodiesel plants in rural Manitoba, further develop solar power and bio-gas, and invest in an East-West power grid with Ontario.

Northwest Territories -- funding of $5 million will support energy conservation and efficiency projects, alternative and emerging technologies, as well as the development of hydro-electric resources.

Ontario -- funding of $586.2 million will support the development of an East-West power grid with Manitoba, allowing for the importation of clean hydroelectric power, and the phasing out of the remaining coal fired generating stations, which could result in emissions reductions of up to 30 Mt.

Quebec -- funding of $349.9 million will support projects such as new technologies in the trucking sector, ethanol production, geothermal energy, research in carbon sequestration, gas capture from landfill sites, and waste treatment and energy recovery from agricultural biomass.

Nunavut -- funding of $5 million will support enhanced energy conservation, and projects that promote efficiency and diversity of the energy system in a move towards alternative and emerging technologies.

New Brunswick -- funding of $34 million will support projects, such as developing renewable fuels such as cellulosic ethanol and biodiesel, capturing landfill gas to produce energy, examining the use of clean coal technology and expanding and enhancing energy efficiency programs in residential, forestry and commercial sectors.

Nova Scotia -- funding of $42.5 million will support the conversion of the Capital Health Authority's heating plants to burn natural gas, a tidal power plant project and the establishment of the Nova Scotia Municipal Climate and Clean Air Fund to allow municipalities to take on their own projects to reduce harmful emissions.

Prince Edward Island -- funding of $15 million will support several renewable energy projects, such as investment in technology development, uses in homes and government buildings, and a hydrogen fuelling station for the P.E.I. Wind-Hydrogen Village.

Newfoundland and Labrador -- funding of $23 million will support projects such as making public buildings more energy efficient, improving waste management, and promoting environmentally friendly innovation in rural and remote areas.

Regulations and Economic Instruments

Provincial and territorial governments also have many tools at their disposal to better control industrial emissions and are supporting their policies and programs with a mix of regulatory tools and economic instruments. Examples of these include:

• Alberta's Climate Change and Emissions Management Amendment Act and its associated Specified Gas Emitters Regulation compel companies emitting more than 100,000 tonnes of greenhouse gas a year to reduce their emissions intensity by 12%. Compliance with this regulation is flexible in that companies unable to reduce emissions intensity have two other options:
  1. Contributing to a new Alberta-based fund that will invest in technology to reduce greenhouse gas emissions in the province. Companies taking this option will pay $15 per tonne for every tonne above the 12% target.
  2. Investing in outside projects that reduce -- or offset -- emissions on their behalf. Projects must be Alberta-based and be verified by a third party.
• Quebec has developed a new fee on hydrocarbons, which will be imposed on greenhouse gas emitting companies in the energy sector. The plan is based entirely on the "polluter pays principle" and the Government, to ensure funding for the plan, is willing to impose new fees rather than use existing funding. The Government of Quebec has requested that the costs not be passed on to consumers. Royalties from this fee, estimated at $200 million a year, will be set aside in a Green Fund that will be used to finance its climate change plan. The actual amount of the royalty varies according to the emissions produced by each fuel.

Energy and Conservation Initiatives

The core of most efforts to address climate change and ensure the long term sustainability of economies is often linked to energy policies. Most provinces and territories have recently updated or are currently updating their energy plans and many have already announced numerous initiatives designed to improve energy efficiency and promote conservation in homes, businesses and institutions.

• In February 2007, British Columbia released its Energy Plan and committed the province to be self-sufficient in electricity by 2016. The Energy Plan also committed to the following:
  • All new electricity generation projects developed in BC must have zero net greenhouse gas emissions, including zero net emissions for coal-fired generation;
  • All exiting thermal power negation must reach zero net greenhouse gas emissions by 2016;
  • Measures to ensure that 50 percent of BC Hydro's incremental resource needs are acquired through conservation by 2020;
  • New energy efficiency standards for buildings will be determined and implemented by 2010;
  • A new $25-million Innovative Clean Energy Fund will encourage the development of clean energy and energy efficient technologies in the electricity, alternative energy, transportation and oil and gas sectors; and
  • The Government of British Columbia in its 2007 Speech from the Throne also committed to reducing greenhouse gas emissions from the oil and gas sector to 2000 levels by 2016.
    
• By 2008, 3.5% of Alberta's total electricity will be generated from renewable and alternative sources, primarily wind and biomass. Furthermore, the Alberta Government announced that a Renewable Energy and Energy Efficiency Revolving Fund will be created. The goal of the Fund is to achieve a 25% reduction in energy consumption from fossil fuels through the use of energy efficiency measures and an increase in the use of renewable energy within a five-year period.
  
• In its 2007 Energy and Climate Change Plan, Saskatchewan indicated that it would ensure that all of SaskPower's new and replacement electricity generation facilities were either emissions-free or fully offset by emission credits. The province also committed to develop a conservation program to reduce SaskPower's electricity load by 300 megawatts by 2017.
  
• Manitoba launched its Clean Energy Transfer Initiative (CETI) to promote enhancements to the East-West power grid that would facilitate the sale of hydro power to other jurisdictions. In its 2005 Speech from the Throne, Manitoba committed $3 billion over 10 years to CETI. In its 2007 Budget, Manitoba announced a call for proposals to develop 300 megawatts (MW) of wind power and introduced a new 10% Green Energy Manufacturing Tax Credit to encourage manufacturing of machinery and equipment used to produce renewable energy. Finally, the province announced a new energy saving target of 842 MW by 2017.
  
• Ontario remains committed to closing down its remaining coal fired power plants by 2014. This initiative will have substantive climate change implications and could result in some 30 megatonnes of greenhouse gas reductions, as well as significant reductions in toxic pollutants (e.g. mercury) and substances that cause smog and acid precipitation.
  
• Ontario has also issued contracts for almost 1,400 MW of renewable energy and introduced a Standard Offer Program for small renewable generators. In the longer-term, Ontario has set targets that will double the installed capacity of renewable energy sources to 15,700 MW by 2025. Ontario has also set targets to achieve. 6,300 MW of electricity demand reduction through conservation by 2025. Of this, 2,700 MW of savings are to be realized by 2010.
  
• Quebec has committed to the development of 4,000 MW of wind power by 2015, preventing 2.9 Mt of greenhouse gas emissions per year. Beyond 2015, Quebec will ensure that for any additional hydroelectric capacity added, wind energy equal to the equivalent of at least 10% of that capacity will also be developed.
  
• New Brunswick has adopted a standard that requires 10% of electricity sales to come from renewable resources by 2016. In response to this standard, NB Power announced an expression of interest to provide 400 MW of renewable electricity generation.
  
• Nova Scotia announced that it wants to increase the renewable power production from wind, solar, tidal and biomass sources to almost 18.5% of Nova Scotia's total energy production by 2013.
  
• Prince Edward Island has set a target of producing 30% of the province's total energy needs from local, renewable resources by 2016 including: electricity, transportation and home heating fuels. P.E.I. has also adopted the goal of having a 15% renewable portfolio standard by 2010.
  
• With the release of the new energy plan and greenhouse gas strategy, the Government of the Northwest Territories announced a total investment of $6 million to be spent on a number of projects including the development of hydro resources, energy conservation programs, alternative energy projects, and an Energy Efficiency Financing Program to support energy-saving investments made by residents in their homes, appliances and vehicles.
  
• Several provinces have also committed to updating and amending their building codes to improve energy efficiency standards for new building construction and renovation.
  
• Ontario, Saskatchewan, New Brunswick, Manitoba, Nova Scotia and the Northwest Territories have all established home retrofit programs, similar to the federal ecoENERGY Retrofit for home energy retrofits that improve the energy efficiency of homes. Several provincial crown corporations, specifically Hydro companies, also offer similar programs that promote energy efficiency and conservation.
  
• Several provinces have also established home retrofit programs specifically designed to help low income individuals make home energy retrofits that increase energy efficiency.

Transportation and Biofuels Initiatives

The demand for transportation is determined by the need to move people and goods. As the size of the population, the economy and trade grow, so too does the demand for transportation. Reducing emissions from transportation present a complex set of policy choices. Much effort has focused on improving vehicle technology, changing the content of fuels, or developing alternative fuels. Efforts are also being made to change the design of the transportation system, to influence transportation behaviour and to reduce fuel demand. The following are examples of such efforts undertaken by provincial governments.

• In its 2007 Speech from the Throne, British Columbia announced that it will set new tailpipe emissions standards for all new vehicles sold in B.C. to be phased in between 2009 and 2016. The measure is expected to reduce carbon dioxide emissions from automobiles in the province by 30% by 2016. Quebec, Nova Scotia and New Brunswick have also signaled their intention to adopt emission standards for motor vehicles similar to those set by the State of California.
  
• In 2006, British Columbia committed $10 million to the first phase of the development of the Hydrogen Highway. Additional funding from the trust fund for clean air and climate change is also intended to contribute towards this initiative. B.C. will also require a 10% reduction in the carbon content in fuels by 2020.
  
• In its 2007 Energy and Climate Change Plan, Saskatchewan indicated that it will work with industry to develop E-85 Corridors (road corridors where fuel containing 85% ethanol is available to drivers) in the province and encourage all provinces and the federal government to create an E-85 Corridor across Canada. The province said it will also work with industry to increase the percentage of biofuels in Saskatchewan gasoline and diesel fuel to 7.5% and will develop a 1.4 billion litre biofuels industry.
  
• In 2003, Manitoba passed legislation mandating the use of 10% ethanol in gasoline. The legislation will take effect when there is a sufficient supply of locally produced ethanol. The province currently provides tax exemptions for both ethanol and biodiesel and has launched a program to encourage community based production facilities.
  
• Both Ontario and British Columbia continue to deliver their provincial vehicle emission testing programs, known respectively as "Drive Clean" and "AirCare".
  
• For Ontario, new regulations that came into effect January 1, 2007 require an average of 5% ethanol in gasoline sold in the province. Quebec, while favoring cellulosic ethanol, aims at insuring 5% ethanol content in gasoline by 2012. New Brunswick has also indicated that it would work in co-operation with the federal government to support the use of biofuels with the goal of achieving the 5% ethanol content in gasoline.
  
• Ontario has announced the establishment of a $650 million fund to help the auto industry become a leader in producing more environmentally friendly cars.
  
• In its 2006-12 action plan on climate change, Quebec indicated that it would require mandatory use of speed limiting devices on all trucks to cap speeds at 105 km/h to reduce fuel usage and greenhouse gas emissions and to improve road safety. In its 2007 climate change plan, New Brunswick indicated that it will partner with Quebec and the trucking industry to implement a strategy for limiting truck speeds at 105 km/h. Most recently, Ontario also announced that it intends to mandate the use of speed limiters on trucks to cap speeds at 105 km/h.
  
• Several provinces also provide rebates for the purchase or lease of fuel-efficient alternative energy vehicles. Ontario and British Columbia currently provide up to $2,000 dollars for individuals who purchase or lease vehicles powered by alternative fuels and hybrids, whereas Quebec, Manitoba and Prince Edward Island provide rebates of up to $1,000, $2,000 and $3,000 dollars respectively for the purchase or lease of hybrid electric vehicles only. In its 2007 Climate Change Plan, New Brunswick signaled its intention to also implement an incentive program for vehicles.
  

| TOC | Previous |