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Information on Greenhouse Gas Sources and Sinks

November 22, 2009



Home > GHG Inventory > Archive

NATIONAL INVENTORY REPORT, 1990-2005: GREENHOUSE GAS SOURCES AND SINKS IN CANADA

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EXECUTIVE SUMMARY

ES.1 Greenhouse Gas Inventories and Climate Change

The United Nations Framework Convention on Climate Change (UNFCCC)--Article 4(1)(a), Article 12(1)(a), and Decision 3/CP.5--requires Annex I Parties to submit an annual greenhouse gas (GHG) inventory report using UNFCCC reporting guidelines. The year 2007 marks the production of Canada's 13th National Inventory Report (NIR). It is also the third inventory since the Kyoto Protocol to the UNFCCC, which Canada ratified in 2002, came into force. Underpinning the UNFCCC is the national GHG inventory, composed of the NIR and Common Reporting Format (CRF) tables. It is the key tool for monitoring and reporting on emissions from sources and removals by sinks and, with respect to the Kyoto Protocol, is the ultimate measure for assessing compliance with the national emissions target.

Guidelines under the UNFCCC have a number of implications on reporting and review requirements. Annex I countries are expected to estimate GHG emissions by sources and removals by sinks using agreed-upon methodologies, as outlined in the Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories (IPCC/OECD/IEA, 1997), Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories (IPCC, 2000), and Good Practice Guidance for Land Use, Land-Use Change and Forestry (IPCC, 2003). As a result, the UNFCCC now requires that countries identify, quantify, and reduce uncertainty of estimates as much as practicable. This will result in a process of continuous evaluation and improvement of methods, models, and documentation to ensure that internationally agreed upon standards are met. These activities are designed to ensure that all sources and sinks, and therefore all emission reductions and enhancements of removals, are properly accounted for.

The national inventory system includes all institutional, legal, and procedural arrangements made within a Party for estimating emissions and removals of GHGs according to the above methodologies, as well as for reporting and archiving the inventory information. This requires that a number of key inventory planning, preparation, and management functions be performed. The current report provides a short discussion (in Chapter 1) on the system that Canada has developed. A full description of the national system in accordance with guidelines under Article 5.1 of the Protocol has been included, among other things, in Canada's initial report, submitted to the UNFCCC earlier this year. In that report, Canada also provided a calculation of its assigned amount (emission target) under Article 7.4. The initial report, along with the inventory submitted in 2006, will be subjected to a full review by the UNFCCC in the fall of 2007.

This year's GHG inventory incorporates further improvements in the estimation methodologies, including the results of a study on fugitive emissions from the non-conventional oil extraction industry. New vehicle data and emission factors have been incorporated into the transportation model, and revised estimation methods have been utilized in the Waste Sector. In developing the estimates, quality assurance/quality control (QA/QC) procedures continue to be used to formally ensure and document the quality of the estimates. A new Quality Management group has been established, a full QC plan has been developed, and archiving and documenting procedures have been improved.

The current report includes an inventory of anthropogenic (human-induced) emissions by sources, and removals by sinks, of the six main GHGs not controlled by the Montreal Protocol. This Executive Summary highlights some of the latest developments in the inventory, discusses underlying trends in the emissions, provides some international context, and presents national and provincial/territorial emissions for the period 1990-2005. Chapter 1, the Introduction, provides an overview of the most recent climate and GHG concentration trends, as well as Canada's legal, institutional, and procedural arrangements for producing the inventory (i.e. the national inventory system), a brief description of estimation methodologies and QA/QC procedures, and explanations of major changes to this year's inventory and assessments of completeness and uncertainty. Chapter 2 provides an in-depth analysis of Canada's GHG emission trends in accordance with the UNFCCC reporting guidelines. Chapters 3-8 provide descriptions and additional analysis for each broad emission and removal category according to UNFCCC CRF requirements. Chapter 9 presents a summary of recalculations and planned improvements. Annexes 1-7 provide a key category analysis, detailed explanations of estimation methodologies, a comparison of the sectoral approach (SA) and reference approach (RA), a more complete description of QA/QC procedures, completeness assessments, and a discussion of inventory uncertainty. Summary tables of GHG emissions tabulated by jurisdiction, sector, and gas are presented in annexes 8 and 11. Annexes 9 and 10 present additional details on the GHG intensity of electricity generation and trend analyses by province/territory, respectively. Emission factors are provided in Annex 12, and a description of rounding procedures is found in Annex 13. Finally, brief summary tables of emissions of ozone and aerosol precursors are provided in Annex 14.

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ES.1.1 Developing Canada's National Greenhouse Gas Inventory

On behalf of the Government of Canada, Environment Canada develops and publishes Canada's GHG inventory annually. The GHGs for which emissions and removals have been estimated in the national inventory are:

  1. carbon dioxide (CO2);
  2. methane (CH4);
  3. nitrous oxide (N2O);
  4. sulphur hexafluoride (SF6);
  5. perfluorocarbons (PFCs); and
  6. hydrofluorocarbons (HFCs).

The inventory reporting format is based on international reporting methods agreed to by the Parties to the UNFCCC, using the procedures of the Intergovernmental Panel on Climate Change (IPCC) (see above). The inventory uses an internationally agreed upon reporting format that groups emissions into the following six sectors: Energy; Industrial Processes; Solvent and Other Product Use; Agriculture; Land Use, Land-Use Change and Forestry (LULUCF); and Waste. Each of these sectors is further subdivided within the inventory and follows, as closely as possible, the UNFCCC category and subsector divisions.1 Detailed descriptions of the methodologies used to estimate the sector emissions and removals and their respective trends are provided in chapters 3 through 8 and annexes 2 and 3. In keeping with UNFCCC reporting requirements for Annex I Parties, this report also contains information on the ozone precursors nitrogen oxides (NOx), carbon monoxide (CO), and non-methane volatile organic compounds (NMVOCs), as well as on sulphur dioxide (SO2).

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ES.2 Summary of National Trends in Greenhouse Gas Emissions and Removals

In 2005, Canadians contributed about 747 megatonnes of CO2 equivalent2 (Mt CO2 eq)3 of GHGs to the atmosphere (Figure S-1), which is the same level as that4 recorded for the year 2004. This followed a year of relatively modest growth in emissions, such that the overall trend from 2003 is flat. Canada's economic GHG intensity--the amount of GHGs emitted per unit of economic activity--was 6% lower in 2005 than in 2004. Since 1990, emissions have increased by about 25%.

Figure S-1: Canadian GHG Emission Trend and Kyoto Target
Figure S-1: Canadian GHG Emission Trend and Kyoto Target

Click to enlarge

Table S-1 depicts Canada's total GHG emissions from 1990 to 2005, along with several primary indicators: gross domestic product (GDP), population, energy use, energy production, and energy export. From the table, it is evident that the 25% increase in GHG emissions during the 15-year period outpaced increases in population (which totalled 16.5%) and approximately equalled the increase in energy use (which was 23%). However, the growth in total emissions was well short of the 53% growth in GDP between 1990 and 2005 (Informetrica Ltd., 2006).

Table S-1: Canada's GHG Emissions and Accompanying Variables, 1990-2005

Click here to view Table S-1

The result is that economic GHG intensity has decreased by a total of 18% over the period, an average of 1.2% per year. More goods were manufactured, more commercial activity occurred, and more travel took place per unit of GHG emissions. These trends are summarized graphically in Figure S-2. The indexed curves clearly show that GHG emissions per energy used remained static over the period, while economic GHG intensity decreased. This is to some extent related to energy efficiency improvements that have taken place in the Canadian economy since 1990 (NRCan, 2005).

Figure S-2: Trends in GHG Emissions per Capita and per Unit GDP, 1990-2005
Figure S-2: Trends in GHG Emissions per Capita and per Unit GDP, 1990-2005

Click to enlarge

Another trend worth noting is the much larger growth in energy production compared with energy use between 1990 and 2005. This is a consequence of Canada's large fossil fuel resources and an economy geared to take advantage of them, with increasing quantities of energy being delivered to the international market. The resultant sharp growth in energy exports over the period has had a significant impact on the emission trend. (See Section ES.4.1 for more details.)

Changes from the Previous NIR

As a result of changes and improvements to the inventory, Canada's 1990-2004 GHG estimates have been revised since last year's report. A new study on emissions from the non-conventional oil extraction industry and updates to the transportation emission model have both affected the Energy Sector's GHG estimates. In addition, Statistics Canada's underlying energy data for 2004 were updated, primarily affecting the estimates for electricity emissions. New survey data on the amount of waste landfilled and updated parameters have been incorporated into the estimation model for emissions from landfills, leading to revised GHG estimates for the Waste Sector. Finally, refinements have been incorporated into the agricultural emission estimates. Taken together, these changes are the primary contributors to the revised national GHG estimates.

As a result, total GHG emissions (without LULUCF) previously reported for 1990 have been revised downward from 599 to 596 Mt, whereas those for 2004 have been revised downward from 758 Mt to 747 Mt. The overall impact of these changes is that emission growth over the period 1990-2004, previously reported to be 26.6%, is now estimated to be 25.4%.

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ES.3 Emission and Removal Estimates and Trends

ES.3.1 2005 Emissions and Removals

Table S-2 details Canada's emissions and removals for 2005. On an individual GHG basis, CO2 contributed 78% of the total emissions, while CH4 accounted for 15%. N2O accounted for 6% of the emissions, while PFCs, SF6, and HFCs constituted the remainder.

Table S-2: Canada's GHG Emissions by Gas and Sector, 2005

Click here to view Table S-2

Approximately 73% of total GHG emissions in 2005 resulted from the combustion of fossil fuels. Another 9% were from fugitive sources, with the result that almost 82% of emissions were from the Energy Sector. A sectoral breakdown of Canada's total emissions for 2005 is shown in Figure S-3.

Figure S-3: Sectoral Breakdown of Canada's GHG Emissions, 2005
Figure S-3: Sectoral Breakdown of Canada's GHG Emissions, 2005

As per reporting requirements, the LULUCF Sector estimates are not included in the national totals. This sector displays net overall removals of 17 Mt for 2005. This would, if included, reduce the total Canadian GHG emissions by 2%.

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ES.3.2 Sector Trends

ES.3.2.1 Short-Term Changes

Table S-3 outlines Canada's GHG emissions and removals, by sector, between 1990 and 2005. As indicated above, emissions in both 2004 and 2005 are estimated at about 747 Mt, which represents a slight increase from 2003 levels. Overall, the long-term trend indicates that emissions in 2005 were 25.3% above the revised 1990 total of 596 Mt.

Table S-3: Canada's GHG Emissions by Sector, 1990-2005

Click here to view Table S-3

Changes from 2003 to 2005

Since 2003, growth in GHG emissions has been quite minor (about 2 Mt, or only 0.3%). Although there were some large increases in certain areas (notably Transportation and, to a smaller extent, the Agriculture Sector), these were offset by a significant decline in Electricity and Heat Generation. In addition, there was an uncharacteristically small emission increase from the Fossil Fuel Industries and a decline in the Residential and Commercial & Institutional subsectors.

Between 2003 and 2005, despite increasing electricity demand, GHG emissions from Electricity and Heat Generation decreased by over 6 Mt due to a reduction in emissions from coal-fired generation, brought on by an increase in nuclear electricity and hydroelectricity production. The return to service of a number of nuclear units in Ontario had the greatest impact on reducing the use of coal-fired electricity generation during this period. The decrease in GHG emissions from coal was further enhanced by fuel switching in a number of regions, which resulted in natural gas-based generation, offsetting other fossil fuels with higher emission intensity.

The fossil fuel industries,5 consisting of oil, gas, and coal production, refining, and transmission, showed a rather small (0.5% or 0.75 Mt) growth between 2003 and 2005. During the period, average oil and gas production increased by only 1.2% annually. The slowing of natural gas production has been due primarily to declines in production in the Athabasca basin in Alberta, the largest gas-producing area in Canada (Nyboer and Tu, 2007). The decline in crude oil production can be linked to incidents that occurred in the oil sands industry. Between 2004 and 2005, several planned and unplanned plant outages at major oil sands production facilities (including one due to a fire) lowered synthetic crude output.

On average, Canadian homes and businesses required lower energy quantities for space heating in the winters of 2005 and 2004 compared with the winter of 2003 due to milder temperatures. In 2005, heating degree-days (HDDs),6 an indicator of the necessity for space heating due to the severity of cold weather, were down 5% compared with 2003 on a national basis. This fact likely had an impact on fossil fuel consumption, specifically in the Residential and Commercial & Institutional subsectors, where emissions declined by a total of 4.4 Mt in the 2-year period.

Changes from 2004 to 2005

While there were very small increases in most sectors between 2004 and 2005 (Energy, Waste, and Agriculture), the overall change was close to zero owing mainly to reduced emissions from both the Chemical Industry and Metal Production subsectors of the Industrial Processes Sector.

Energy Sector emissions showed a minimal increase (of about 1 Mt). Electricity and Heat Generation showed a minimal increase, which is partially the result of ongoing efforts in Ontario to close that province's coal generation plants (Nyboer et al., 2006).

In the Transportation subsector, emissions from heavy-duty diesel vehicles (HDDVs, e.g. large transport trucks) increased approximately 1.6 Mt between 2004 and 2005, continuing the long- term trend that has been occurring since 1990.

On average, Canadian homes and businesses required lower energy quantities for space heating in the winter of 2005 compared with the winter of 2004 due to milder temperatures. In 2005, the number of HDDs was down 2.8% on a national basis compared with 2004. This affected the Residential category, where emissions declined by 1 Mt from 2004.

GHG emissions from the Industrial Processes Sector decreased by over 2 Mt between 2004 and 2005. Reductions were observed primarily in the Chemical Industry subsector and Iron and Steel Production. Varying drivers for these decreases were noted, including reduced output due to maintenance and workforce issues. The fall in Chemical Industry emissions includes a 0.5 Mt reduction from Canada's only adipic acid producer, due to the improved utilization of its N2O abatement system.

Emissions from the Agriculture Sector grew by 0.3 Mt (0.6%) between 2004 and 2005 as a result of an increase in beef cattle population (2.4%) being offset by a decrease in synthetic nitrogen fertilizer consumption (6.7%).

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ES.3.2.2 Long-Term Trends

Although the long-term (1990-2005) sectoral emission trends showed both declines and increases, the increases were well ahead of the declines, for a net growth of 151 Mt, or 25%. The largest portion of the growth is observed in the Energy Sector, where the Energy Industries (fossil fuel industries plus Electricity and Heat Generation), Road Transportation, Commercial & Institutional, and Mining categories made the greatest contributions.

The activities of the Energy Industries' fossil fuel industries include both combustion sources (Fossil Fuel Industries and Pipelines) and fugitive sources (Coal Mining and Oil and Natural Gas).7 The fossil fuel industries registered a net increase of about 48 Mt of GHG emissions from 1990 to 2005 (48% growth). These emissions are related to coal mining and the production, transmission, processing, refining, and distribution of all oil and gas products.

By 2005, total production of crude oil and natural gas showed a 65% increase over 1990 levels (see Section ES.4.1). Elevated demand in both Canada and the United States drove these trends, with the export market growing by far the most rapidly (see Section ES.4.1). Although increasing demand provides a portion of the explanation for the emission trend, it does not paint the complete picture.

Since well before 1990, easily removable reserves of conventional crude have been falling. Thus, energy consumption per unit of conventional oil produced has been increasing (Neitzert et al., 1999). In fact, between 1990 and 2000, the energy requirements per barrel of conventional light/medium oil extracted nearly doubled (Nyboer and Tu, 2006). At the same time, highly energy- and GHG-intensive8 synthetic oil production (i.e. from oil sands) has become increasingly competitive with conventional oil extraction. These trends then also contribute significantly to the rapidly rising emission increases in the oil and gas industry over the 1990- 2005 period.

Electricity and Heat Generation, representing the other portion of the Energy Industries, also saw large increases in emissions. Rising demand for electricity, coupled with the increasing use of fossil fuels in the generation mix, drove GHG emissions up 33 Mt between 1990 and 2005. Comparatively, in 2005, electricity demand was approximately 128 terawatt-hours (TWh) above the 1990 level. Although this increased demand was supplied in part by greater hydroelectricity and nuclear generation, fossil fuel generation rose even more. By 2005, hydropower's share of the generation mix had fallen from 63% to 60%, while fossil fuels' share had risen from 22% to 25%, worsening the average GHG intensity of production. The end result was that from 1990 to 2005, generation rose 28% while GHG emissions increased 35%, about 1.25 times the generation increase.

Of note in these trends is that the GHG emissions associated with coal-fired electricity generation, which had been increasing since the mid-1990s, have begun to decrease since peaking between 2000 and 2002. As indicated in the shorter-term trends, this is due to the return to service of a number of nuclear units and a commitment to reduced coal-fired electricity generation in Ontario, as well as fuel switching to natural gas in a number of regions of the country. Increases in interprovincial and international trade have also played a role. Although having minimal effect in the pre-2005 period, non-hydro renewable energy sources are predicted to have an impact on emission reductions post-2005. The reason for this is that the installed capacity of wind power in Canada has begun to rise rapidly. Nevertheless, fuel and generation costs are likely to continue to play a major role in determining whether coal-fired generation and the associated GHG emissions will be reduced further in the future.

Emissions from Road Transportation rose by 34 Mt (33%) between 1990 and 2005. Of particular interest in this subsector is a 23 Mt increase in emissions from Light-Duty Gasoline Trucks (LDGTs). This was partially offset by 6 and 1.5 Mt emission reductions from gasoline-fuelled cars (Light-Duty Gasoline Vehicles, or LDGVs) and alternatively fuelled cars (Propane & Natural Gas Vehicles).

The primary source of this net trend of rising emissions is the increase in the number of passenger-kilometres travelled (more people drove further) (NRCan, 2005). However, it was the passenger-kilometres driven by light trucks that increased, while those driven by cars decreased. Contributing to this trend was the fact that the number of light trucks on the road doubled between 1990 and 2005, while the number of automobiles declined slightly. Since light trucks have higher emissions per kilometre than automobiles, the rising popularity of sport utility vehicles (SUVs) and pickups worsened the emission impact of increasing numbers of people driving further.

Research suggests9 that, over the period, about 10% of the emission increase from automobiles and light trucks can be attributed purely to the shift in the type of private vehicles being driven. Perhaps of greater interest is the overall trend towards towards increasing horsepower for all classes of passenger vehicles, which has negated the rather substantial efficiency improvements made in power plants.

Emissions from HDDVs (large freight trucks) rose by about 18 Mt between 1990 and 2005, an 84% increase. Spurred on by free trade and the deregulation of the trucking industry, the amount of freight shipped grew rapidly over the period. In addition, the quantity shipped by truck (as opposed to other modes of transport, such as rail) increased as a result of customer requirements for just-in-time delivery and cross-border freight (NRCan, 2005).

The Commercial & Institutional category displayed an 11 Mt (43%) increase in GHG emissions between 1990 and 2005. Driving this trend was a 25.5% increase in the floor space of commercial and institutional buildings (e.g. offices, schools, stores, and government edifices) between 1990 and 2005, a result of Canada's growing economy over the period (Informetrica Ltd., 2006). Energy demand in commercial buildings is also influenced by weather. In terms of HDDs, 2005 was 5% colder than 1990, so this contributed to the emission growth; however, its impact was considerably less than that of increased floor space.

Mining showed a large increase in emissions between 1990 and 2005--9.4 Mt (about 152%).

Another sector that contributed, although to a lesser extent than Energy, to the longer-term growth in GHG emissions is Agriculture. This sector showed an 11 Mt increase (24%) between 1990 and 2005, resulting primarily from the expansion of the beef cattle, swine, and poultry industries, as well as an increase in synthetic nitrogen fertilizer consumption.

In addition to the already-mentioned reduction in emissions from automobiles, three subsectors, all within the Industrial Processes Sector, contributed towards counteracting 1990-2005 emission growth--Adipic Acid Production (Chemical Industry), Aluminium Production, and SF6 Used in Magnesium Smelters and Casters (both constituents of Metal Production).

While output increased at the sole adipic acid production plant in Canada, the installation of an emission abatement system in 1997 resulted in significant reductions of N2O emissions. Despite being temporarily off-line in 2004, this system reduced GHG emissions by 8 Mt (75%) over the 1990-2005 period.

In the aluminium industry (which emits both CO2 and PFCs), PFC emissions were reduced as a result of better control of anode events in smelters by increasing use of electronic monitoring and automated emission controls. As a result, between 1990 and 2005, total GHG process emissions from the aluminium industry decreased by 1.4 Mt (15%), while primary aluminium production increased by more than 80% (Ayotte, Ouellet, Sylvain, and VanHoutte, 2006-2007).

Although it does not contribute to national totals, it is of interest to consider the trends in the LULUCF Sector. The net flux, calculated as the sum of CO2 emissions and removals and non- CO2 emissions, displays high interannual variability over the reporting period. In fact, there is no discernible trend, with the flux ranging from net emissions of 150 Mt (in 1995) to net removals of 150 Mt (in 1992). The sector registered a net removal of 120 Mt in 1990 and 17 Mt in 2005. The interannual swings are primarily a consequence of the large and variable impact of emissions from wildfires in the managed forests, which are inventoried under the LULUCF Sector.

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ES.4 Other Information

ES.4.1 Emissions Associated with the Export of Oil and Natural Gas

Canada is rich in fossil fuel resources, and the associated industry contributes significantly to the economy. A much greater quantity of Canada's oil and gas production is sold internationally now than in the past.

Growth in oil and gas exports, almost all to the United States, contributed significantly to emission growth10 between 1990 and 2005. In this period, oil exports grew by 148% to 3723 petajoules (PJ)11 (almost three times the rate of growth of oil production) (Table S-4), while exports of natural gas increased 165% to 4066 PJ (almost twice the rate of growth of natural gas production) (Table S-5). Furthermore, the sum total of oil and gas energy exports increased by 156% over the same period (Table S-6).

Table S-4: Crude Oil: Production, Export, and GHG Emission Trends, 1990-2005
Crude Oil Trends 1990 1995 2000 2003 2004 2005
Domestic Production (PJ) 3562 4170 4669 5427 5648 5548
Growth Since 1990 N/A 17% 31% 52% 59% 56%
Energy Imported (PJ) 1200 1319 2042 2028 2090 2072
Growth Since 1990 N/A 9.9% 70.2% 68.9% 74.1% 72.6%
Energy Exported (PJ) 1503 2436 3222 3605 3810 3723
Growth Since 1990 N/A 62% 114% 140% 153% 148%
Apparent Domestic Consumption (PJ) 3259 3053 3489 3850 3928 3897
Growth Since 1990 N/A -6.3% 7.0% 18.1% 20.5% 19.6%
Emissions Associated with Gross Exports (Mt CO2 eq) 13.9 24.5 32.3 36.6 38.8 37.9
Growth Since 1990 N/A 76.3% 132.6% 163.1% 179.4% 172.4%
Emissions Associated with Net Exports1 (Mt CO2 eq) 8.8 17.8 16.8 21.3 22.8 22.0
Growth Since 1990 N/A 102% 91% 142% 159% 150%

Notes:

1. "Net exports" recognizes that a country producing fossil fuels for export to Canada has emissions associated with that production and offsets those emissions in Canada associated with our production for export.

N/A = not available

Table S-5: Natural Gas: Production, Export, and GHG Emission Trends, 1990-2005
Natural Gas Trends 1990 1995 2000 2003 2004 2005
Domestic Production (PJ) 4184 6129 7060 7064 7096 7250
Growth Since 1990 N/A 46.5% 68.8% 68.8% 69.6% 73.3%
Energy Imported (PJ) 24 26 62 370 415 375
Growth Since 1990 N/A 6.0% 155.2% 1426.8% 1613.3% 1448.7%
Energy Exported (PJ) 1537 3011 3846 3876 4022 4066
Growth Since 1990 N/A 95.9% 150.2% 152.2% 161.6% 164.5%
Apparent Domestic Consumption (PJ) 2671 3144 3276 3557 3489 3558
Growth Since 1990 N/A 17.7% 22.7% 33.2% 30.6% 33.2%
Emissions Associated with Gross Exports (Mt CO2 eq) 13.9 26.5 33.1 33.4 34.6 34.9
Growth Since 1990 N/A 74.8% 122.3% 124.1% 132.9% 135.6%
Emissions Associated with Net Exports1 (Mt CO2 eq) 12.7 25.1 31.1 25.6 25.9 27.0
Growth Since 1990 N/A 97.6% 144.5% 101.2% 104.1% 112.9%

Notes:

1. "Net exports" recognizes that a country producing fossil fuels for export to Canada has emissions associated with that production and offsets those emissions in Canada associated with our production for export.

N/A = not available

Table S-6: Combined Crude Oil and Natural Gas: Production, Export, and GHG Emission Trends, 1990-2005
Crude Oil & Natural Gas Trends 1990 1995 2000 2003 2004 2005
Domestic Production (PJ) 7746 10299 11729 12491 12744 12798
Growth Since 1990 N/A 33.0% 51.4% 61.3% 64.5% 65.2%
Energy Imported (PJ) 1224 1345 2104 2397 2505 2447
Growth Since 1990 N/A 9.9% 71.9% 95.8% 104.6% 99.8%
Energy Exported (PJ) 3040 5447 7069 7482 7833 7789
Growth Since 1990 N/A 79.2% 132.5% 146.1% 157.6% 156.2%
Apparent Domestic Consumption (PJ) 5930 6197 6765 7407 7416 7456
Growth Since 1990 N/A 4.5% 14.1% 24.9% 25.1% 25.7%
Emissions Associated with Gross Exports (Mt CO2 eq) 27.8 51.0 65.4 69.9 73.4 72.8
Growth Since 1990 N/A 83.5% 135.4% 151.5% 164.1% 161.9%
Emissions Associated with Net Exports1 (Mt CO2 eq) 21.5 42.9 47.9 46.8 48.7 49.1
Growth Since 1990 N/A 99.5% 122.8% 117.7% 126.5% 128.2%

Notes:

1. "Net exports" recognizes that a country producing fossil fuels for export to Canada has emissions associated with that production and offsets those emissions in Canada associated with our production for export.

N/A = not available

The total emissions associated with the production, processing, and transmission of all oil and gas destined for export were about 73 Mt in 2005, up 162% from 1990 (Table S-6).

Although Canadian fuel exports have risen dramatically, it is also interesting to note that imports, too, have risen rapidly. For instance, 73% more oil was imported in 2005 than in 2004. Clearly, the market has developed so that a considerable portion of the growth in exports has been offset by a growth in imports. Increases in the Canadian use of fuels are balanced between these large changes in exports, imports, and production, such that the growth in the domestic consumption of oil and gas between 1990 and 2005 has been a more moderate 26% (Table S-6).12

It should be noted that natural gas exports have not shown much increase since 2000. It has been forecasted that since the reserves in Canada's largest natural gas reservoir (the Western Sedimentary Basin) are reaching their limit, the country's natural gas production will not increase significantly in the future (Nyboer and Tu, 2006). As a result, gas exports may show very little growth from this point on.

Net Export Emissions

As stated in the text, the Canadian use of fuels is balanced between exports, imports, and production (in Table S-6, Apparent Domestic Consumption is Domestic Production plus Energy Imported minus Energy Exported). Since the production of oil and gas for export results in greater emissions than would result from the import of fuels produced elsewhere, it is clear that any emission reduction from a lowering of production exports would be tempered by an accompanying decrease in the amount of fuel being imported. The concept of "net export emissions" approximates this effect. The portion of emissions from all oil and gas production, processing, and transmission activities that is attributable to net exports rose from about 22 Mt in 1990 to 49 Mt in 2005 (a 128% increase; Table S-6).*

*Absolute emissions attributable to net exports are rough approximations. The long-term trends are considered to be more accurate.

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ES.4.2 Provincial/Territorial Greenhouse Gas Emissions

It is important to note that Canada's GHG emissions vary from region to region. This is linked to the distribution of natural resources and heavy industry within the country. While the use of natural resources and industrial products benefits all regions of North America, emissions from their production tend to be concentrated in particular geographic regions. Thus, certain jurisdictions in Canada tend to produce more GHG emissions because of their economic and industrial structure and their relative dependence on fossil fuels for producing energy. Figure S-4 illustrates the provincial/territorial distribution of emissions for 1990 and 2005.

Figure S-4: Total Provincial/Territorial GHG Emissions, 1990 and 2005
Figure S-4: Total Provincial/Territorial GHG Emissions, 1990 and 2005

Click to enlarge

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ES.4.3 The International Context

Canada contributes about 2% of total global GHG emissions. It is one of the highest per capita emitters, largely the result of its size, climate (i.e. energy demands), and resource-based economy. In 2005, Canada emitted a little over 23 t of GHGs per capita, which represents 8% growth since 1990 (see Table S-1).

In terms of total anthropogenic GHG emissions, Canada is among the eight Annex I Parties whose emissions increased more than 20% over the 1990-2004 period,13 ranking first among the G8 nations. Canada's +25% growth (-6% Kyoto target) compares with Spain's +49% growth (-8% target14), Greece's +27% rise (-8% target14), and Japan's +6.5% increase (-6% target). Parties whose emissions decreased by 2004 include the European Union (EU), by -1% (-8% target14), the United Kingdom, by -14% (-8% target14), and Germany, by -17% (-8% target14).

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1 Minor differences exist between the UNFCCC and Canada's national inventory sector designations. These are explained in footnotes throughout this report. More details can be found in Chapters 3-8, where the methodology used in Canada's inventory is described.

2 Each of the GHGs has a unique average atmospheric lifetime over which it is an effective climate-forcing agent. The concept of global warming potential (GWP) has been introduced to equate this climate forcing for different GHGs to that of CO2. A more detailed explanation is provided in Section 1.1.5 of this document.

3 Unless explicitly stated otherwise, all emission estimates given in Mt represent emissions of GHGs in Mt CO2 eq.

4 The background, unrounded data show a 0.1% decrease between 2004 and 2005; in terms of the rounded figures presented here, however, the total is the same for both years.

5 Sum of Petroleum Refining and Upgrading, Fossil Fuel Production, Pipelines (Transportation), and Fugitives.

6 HDDs are calculated by determining the average, cross-Canada number of days below 18.0ºC and multiplying this value by the corresponding number of degrees below 18.0ºC.

7 There is also some overlap with Mining (which, as a result of categorizations by the Alberta Energy Utilities Board [AEUB] and Statistics Canada, includes a portion of oil sands production activities), but emissions from Mining are not included in this discussion of the fossil fuel industries.

8 Nyboer and Tu (2006) estimated that, per unit of output, GHG emissions from oil sands mining and upgrading are about five times greater than those from conventional light/medium crude oil production.

9 Adapted from NRCan (2005).

10 The source for all export and energy production data is Statistics Canada's Report on Energy Supply-Demand in Canada (RESD, #57-003). The 1990-1995 GHG emissions associated with net exports are taken from a report prepared for Environment Canada (McCann, 1997), while the 1996-2005 estimates were extrapolated from this report.

11 A petajoule (PJ) is a measure of the energy content of fuels.

12 Net export emissions are the Canadian emissions associated with extracting, processing, and transporting exported fuels minus the foreign emissions associated with extracting, transporting, and processing imported fuels. The emissions associated with net exports approximate the quantity of GHGs that Canada would not emit should these exports be eliminated.

13 These aggregate estimates are based on data from 39 Parties that submitted inventories to the UNFCCC in 2006 (Table 4 in UNFCCC, 2006).

14 Although this -8% target was agreed to by all European Union (EU) Parties individually under the Kyoto Protocol, these countries also have a separate agreement under the "EU Bubble." This agreement calls for each EU member to meet different targets, which were set in order to account for individual differences, so as to attain the collective EU target of -8%.

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Last updated: 2009-11-22
Last reviewed: 2009-11-22