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March 21, 2010 ![]()
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Home > GHG Inventory > Archive NATIONAL INVENTORY REPORT: GREENHOUSE GAS SOURCES AND SINKS IN CANADA, 1990-2006ANNEX 10: Provincial/Territorial Analysis
The following discussion describes long-term (1990-2006) and short-term (2005-2006) changes in GHG emissions for each of the provinces and territories in Canada. Owing to data limitations--specifically confidentiality--there are a number of caveats associated with the data and analysis. While the national inventory of GHG emissions is developed utilizing national, provincial, and territorial information and data, the information used to develop the national estimates relies on survey and sampling data81 that, while statistically valid and nationally representative, may not represent every discrete and small source within a province or territory. Therefore the following analysis, while reflecting an accurate national picture, may differ slightly from a more bottom-up, precise regional inventory. Nevertheless, the trends in emissions from each region are considered representative of the actual emission trends in each region. The discussion for each province and territory includes a general overview of its economy and emission trends, with emphasis on population, GDP, energy supply and general economic structure, which all affect trends in GHG emissions. Long-term and recent changes in GHG emissions are identified on the basis of the 10 sectors that have shown the greatest absolute increase and decrease in emissions for that province or territory over the period in question. As such, the figures are not meant to explicitly show the greatest contributors to provincial and territorial GHG emissions although in some cases the categories with largest absolute changes may also contribute most to the total. The reader will also note that that provincial or territorial emission estimates in a particular sector or subsector are often kept confidential, due to the small number of facilities. All emission references are from the 1990-2006 national GHG inventory and are given in units of CO2 equivalent unless otherwise stated. All energy quantities, GDP, heating degree day (HDD), and cooling degree day (CDD) values originate from Statistics Canada (2008)82. All values provided within these graphs are presented in kilotonnes CO2 equivalent. Figure A10-1 and Figure A10-2 present provincial and territorial contributions to total Canadian GHG emissions in 1990 and 2006, respectively. On a per capita basis, the average GHG emissions for Canada increased by 3.2% from 21.4 t/person in 1990 to 22.1 t/person in 2006. Figure A10-1: Provincial GHG Contributions - 1990 (592 Mt)
Figure A10-2: Provincial GHG Contributions - 2006 (721 Mt)
A10.1 Newfoundland and LabradorTable A10-1: Trends in GHG Emissions and GHG Intensity, Newfoundland and Labrador Newfoundland and Labrador is home to 1.6% of the population and generated approximately 1.3% ($14.1 billion) of Canada’s total GDP. The provincial economy is primarily resource-based, with major operations in the Mining, Oil & Gas, Forestry & Fisheries sectors. Over time, the economy has shifted from a Forestry & Fisheries to an Oil & Gas basis. The Oil & Gas Sector has been an important part of the provincial economy since 1997, when the Hibernia oil field first became operational. Since that time, additional offshore oil projects have been developed in the White Rose and Terra Nova fields. Mining has always been an integral part of the economy with extraction focused on iron ore, and most recently nickel from the Voisey’s Bay project which began production of concentrate in 2005. High raw metal prices have meant a significant increase in mineral exploration in the province, with expenditures reaching almost $98 million in 2006, the highest level ever recorded (NL Dept. of Finance, 2007). Offshore oil and gas projects and mining operations have also resulted in the growth in manufacturing, construction and labour markets that respond to the demand created by these sectors. In recent years, however, the combined Forestry & Fisheries industries have been negatively affected by higher fuel costs, lower commodity prices and a strengthening Canadian dollar. The continued decrease in North American newsprint demand in 2006, in combination with other economic factors, resulted in the closure of the Stephenville mill in 2005, leaving only two mills in operation in the province (Newfoundland and Labrador Dept. of Finance 2007). Newfoundland and Labrador have significant hydroelectric resources. Newfoundland and Labrador Hydro has an installed generating capacity of 7289 MW, which is the fourth largest installed capacity of all utility companies in Canada (NL Hydro 2007). A small amount of electricity (66 MW) is purchased from non-utility generating sources. The majority of the electricity generated (79% in 2006) is exported. In 2006, provincial GHG emissions were approximately 9.4 Mt CO2 eq, or 18.4 t per person. Newfoundland and Labrador ranks fifth among per-capita GHG emitters in Canada, slightly lower than the Canadian average, reflecting its resource-based economy and vast hydroelectric capacity. Fossil Fuel Production, Oil & Natural Gas Fugitives, Mining, Electricity & Heat Generation, and Light Duty Gasoline Trucks (LDGTs) were the major GHG contributors in 2006, accounting for 53% of provincial emissions. A10.1.1 Long-Term Trends (1990-2006)Over the long term (1990-2006), Newfoundland and Labrador’s GHG emissions are virtually unchanged. Energy Sector sources were responsible for both the greatest growth and the greatest decline in emissions. Increases in emissions from sectors related to oil and gas production, namely fugitive emissions (1.1 Mt), fossil fuel production (0.5 Mt), LDGTs (0.3 Mt), off-road diesel use (0.2 Mt), and Heavy Duty Diesel Vehicles (HDDVs) (0.2 Mt) were offset by reductions in electricity and heat generation (confidential), residential heating (0.4 Mt), manufacturing industries (0.3 Mt), mining industries (confidential), and Light Duty Gasoline Vehicles (LDGV)s (0.2 Mt). The 585% increase in energy production (primary) since 1990 is a major driver behind the emissions increase, evidenced by a 132% growth at the start of the offshore operation during the 1997-1998 period and a further 72% spike between 2001 and 2002 following the ramping up of production from the Hibernia oil field. The offshore boom has also been an important contributor to provincial GDP. Over the long term, GHG intensity as a function of GDP has decreased from 0.99 Mt/$B GDP83 to 0.67 Mt/$B GDP. Decreases in long-term emissions in the Electricity and Heat Generation Sector are mainly due to fuel switching and increased hydro capacity. HDDs have decreased by almost 13% since 1990, leading to lower demand for heating fuels in the Residential Sector. The biggest reason for the decrease in emissions from the manufacturing industries is the economic difficulties being felt by the Pulp, Paper & Print Sector, including closures in recent years (Statistics Canada 2007a). Long-term emission trends in Newfoundland and Labrador are illustrated in Figure A10-3. Figure A10-3: Newfoundland and Labrador Long-Term Emission Trends, 1990-2006 A10.1.2 Short-Term Changes (2005-2006)Over the short term, provincial GHG emissions decreased by 0.6 Mt (or 6.1%), primarily as a result of a decline in emissions from the electricity and heat generation industries (confidential), off-road diesel use (0.2 Mt), and domestic aviation (0.1 Mt). These decreases helped to offset a 0.4 Mt increase in oil and natural gas fugitive emissions, which exhibited the greatest short-term increase. The short-term decrease results from a combination of lower offshore production (due to lower production at Hibernia and Terra Nova) and lower demand for energy (National Energy Board 2007). The net supply of energy (both primary and secondary production) decreased by 4.5% between 2005 and 2006, while overall final energy demand decreased by 9% over the same period. These decreases in demand may be partially explained by the completion of the construction of the White Rose offshore oil project and Voisey’s Bay mineral project, and also the closure of the Stephenville newsprint mill in late 2005. Short-term emission changes in Newfoundland and Labrador are illustrated in Figure A10-4. Figure A10-4: Newfoundland and Labrador Short-Term Emission Changes, 2005-2006 A10.2 Prince Edward IslandTable A10-2: Trends in GHG Emissions and GHG Intensity, Prince Edward Island Geographically, Prince Edward Island (P.E.I.) is Canada’s smallest province. In 2006, P.E.I. was home to 0.4% of the population while contributing 0.3% ($3.3 billion) to Canada’s total GDP. The provincial economy has important service and manufacturing sectors that support and contribute to the province’s agriculture, forestry, and aquaculture sectors. Processed food products (mainly fish, seafood and potato products) make up almost two thirds of all manufacturing shipments and have the greatest impact on provincial GDP. About 46% of the total land area of the province is classified as farmland, with agricultural activity generally dominated by potato crops and livestock. For example, the importance of the Agriculture Sector can be illustrated by reviewing GDP data over time. The combination of very dry conditions and U.S. trade restrictions in 2001 (due to potato wart) contributed to a drop of 0.2% in provincial GDP in 2001 and an almost 6% drop in GDP from the goods-producing industries (P.E.I. Dept. of the Provincial Treasury 2007). The impacts were also observed in provincial GHG emissions, which dropped by over 5% between 2000 and 2001, mainly in agricultural and off-road vehicle emissions. The majority of the electricity consumed in P.E.I. is provided by New Brunswick via underwater transmission cables. There are two generating stations on the island; however, these are kept in standby mode in case of transmission problems from the mainland (Maritime Electric). The Atlantic Wind Test Site was established on the island in the 1980s, and a 13.56-MW wind farm was established by the PEI Energy Corporation (PEIEC) between 2001 and 2004. The wind farm supplies approximately 0.5% of the electricity demand in the province and the government plans to meet at least 15% of its electricity needs from renewable energy by 2010 (P.E.I. Dept. of the Provincial Treasury 2007). In 2007, the province quintupled its installed wind capacity with an additional 58.8 MW of projects (CanWEA 2008a). In 2006, provincial GHG emissions were estimated at 2.1 Mt CO2 eq, or 14.9 t per person. The province ranks ninth in terms of per capita emissions for 2006, reflecting its service-based economy and external electricity sources. The key contributors in 2006 to provincial emissions were Road Transportation (0.6 Mt), Agricultural Soils (0.3 Mt), Residential (0.2 Mt) and the Commercial & Institutional Sector (0.2 Mt). A10.2.1 Long-Term Trends (1990-2006)Provincial emissions increased by 91 kt (4.7%) between 1990 and 2006. The increase was due to an overall increase in road transport-related emissions, specifically a 115% increase (131 kt) in LDGT emissions (including sport utility vehicles (SUVs), vans and pickups) and a 103% increase (62 kt) from off-road sources (gasoline, diesel and pipelines). Emissions from manufacturing industries also increased by over 150% (82 kt). Most of these increases were offset by decreases from the Residential Sector (150 kt), and Electricity and Heat Generation Sector (confidential). Long-term road transportation emission increases can be attributed to the general shift from gasoline automobiles to SUVs, vans and pickups. Increases in manufacturing industry emissions are the result of the growth of fish processing, fabricated metal manufacturing and the aerospace industries, with provincial GDP growing by 51.5% since 1990. The 39% decrease in residential emissions is mainly due to lower heating demands with HDDs having decreased by 12.4% since 1990. Increase efficiency and a shift in home heating fuels has also helped to reduce GHGs from this sector. The net supply of energy has grown by 15.6%, while energy demand has increased by 18.9%. The installation and operation of wind farms on the island, combined with enhanced interconnections with the New Brunswick power grid, has helped to reduce GHGs from the Electricity and Heat Generation Sector (NB Power Group, 2007). Lower usage of the generating stations on the island has been the main reason for lower GHG emissions over the long term, and these emissions would be expected to decrease further assuming the provincial government’s plan to increase renewable energy generation comes true. Long-term emission trends in Prince Edward Island are illustrated in Figure A10-5. Figure A10-5: Prince Edward Island Long-Term Emission Trends, 1990-2006 A10.2.2 Short-Term Changes (2005-2006)Overall, GHG emissions in P.E.I. decreased by 4.9% between 2005 and 2006. This slight decrease was primarily due to decreases in the Residential, Commercial & Institutional sectors, and agricultural soil emissions. There were small increases in emissions from LDGTs and HDDVs, although their contribution to the total was very small. Decreased fuel consumption for heating purposes is the biggest reason for lower GHG emissions from the Residential and Commercial & Institutional sectors. Over the short term, HDDs decreased by 10%, indicating a much warmer winter and less fuel consumption. Lower emissions from agricultural soils resulted from a lower consumption of synthetic nitrogen fertilizers that may be related to low market prices for potatoes. Short-term emission changes in Prince Edward Island are illustrated in Figure A10-6. Figure A10-6: Prince Edward Island Short-Term Emission Changes, 2005-2006 A10.3 Nova ScotiaIn 2006, Nova Scotia generated 19.6 Mt (3.0%) of Canada’s total GHG emissions (Table A10-3). Nova Scotians represent 2.9% of the population and contributed 2.2% to the national GDP in 2006. The provincial economy has slowly been moving away from resource-based industries such as fishing, mining and industry to the services sector. This shift reinforces Nova Scotia’s long-established position as the principal private-sector service centre for Atlantic Canada and the centre for regional public administration and defence. Table A10-3: Trends in GHG Emissions and GHG Intensity, Nova Scotia The Manufacturing and Construction sectors have been the main contributors to the Goods- producing Sector, while Mining and Offshore Oil & Gas Exploration is also growing in importance. Coal mining has a long history in Nova Scotia, although the majority of the province’s coal mines were shut down by 2001 (Nova Scotia Dept. of Finance 2006, 2007). Offshore oil and gas extraction has been a part of the provincial economy since the early 1990s with the Cohasset-Panuke Project, Canada’s first offshore production project in 1992. Production from this project ceased in 1999 but was followed by the Sable Offshore Energy Project (SOEP), which first began producing gas in 1999. The scope and scale of the SOEP had a significant impact on the province’s economy as complementary industries supported the project through goods and services. Expansion of the SOEP is currently underway as is the development of the Deep Panuke project (CNSOPB 2007). Electricity for the province is supplied by wind, hydro, coal, natural gas, oil and tidal power. In fact, Nova Scotia is the site of the Western Hemisphere’s only tidal power plant. The Annapolis power plant has been operational since 1984 and continues to provide power due to the tidal action of the Bay of Fundy (Nova Scotia Power, undated). In 2006, provincial GHG emissions were estimated at 19.6 Mt CO2 eq, or 21.0 t per person. Nova Scotia ranks fourth in terms of per capita emissions for 2006, and is very close to the Canadian average of 22.1 t per person. Electricity & Heat Generation is the largest contributor to provincial emissions, with Road Transportation, Commercial & Institutional, Residential, and Fossil Fuel Production sectors also contributing significantly to the total. These sectors combined accounted for 81% of provincial emissions. A10.3.1 Long-Term Trends (1990-2006)Overall, GHG emissions increased by 0.6 Mt (3.3%) between 1990 and 2006. The greatest contributors to this increase were the Electricity and Heat Generation Sector (confidential), Commercial & Institutional Sector (1.0 Mt), LDGTs (0.7 Mt), and HDDVs (0.4 Mt). Decreases over the long term were led by fugitive emissions from coal mining (1.2 Mt), residential (1.1 Mt), LDGVs (0.3 Mt), and manufacturing industries (0.3 Mt). Long-term emissions growth in the Road Transportation Sector is led by a switch to SUVs, vans and pickups from gasoline vehicles, and an increase in HDDVs. Growth in HDDV emissions can be linked to the expansion of the fossil fuel and manufacturing industries, as these vehicles are generally used in operations, and to move both finished goods and raw materials. Fugitive emissions from coal mining have not all been eliminated, but are slowly being replaced with those from the oil and gas industry, as the primary energy production source in this province shifts from coal to petroleum. Primary energy production has increased over the long term by 45.8%, due to the development of the SOEP (CNSOPB 2007). A decrease in long-term residential emissions can be attributed to an 8.7% decrease in HDDs, and fuel switching for home heating purposes. The decrease in emissions from the manufacturing industries, on the other hand, has more to do with economic difficulties in the Pulp, Paper & Print Sector than fuel switching (Nova Scotia Dept. of Finance 2007). Long-term emission trends in Nova Scotia are illustrated in Figure A10-7. Figure A10-7: Nova Scotia Long-Term Emission Trends, 1990-2006 A10.3.2 Short-Term Changes (2005-2006)Between 2005 and 2006, total GHG emissions in Nova Scotia decreased by 2.1 Mt (or 9.7%), primarily as a result of decreased emissions from Electricity & Heat Generation (confidential), Off-road Diesel Transportation (0.3 Mt), and Domestic Marine (0.3 Mt). Over the same period, road transportation emissions, led by HDDVs and LDGTs increased by 0.1 Mt. The short-term decrease in electricity and heat generation emissions are the result of a combination of factors. Petroleum coke supply issues in 2005 meant that Nova Scotia Power (NSP) had to switch to a higher CO2 intensity fuel until supplies were re-established. This had the effect of increasing GHG emissions while generation stayed fairly close to 2003 and 2004 levels. In 2006, however, a long labour dispute at a pulp and paper mill in the province reduced demand significantly and thus peak generation needs. Between 2005 and 2006, generation decreased by almost 8%, while hydraulic conditions were excellent (Emera 2007). As a result, a major consumer of base load power was essentially removed from the power equation and, when combined with excellent hydroelectric conditions and a lower demand for peak power generated by oil-fired stations, resulted in a significant reduction in GHGs from this sector over the short term. Decreased domestic marine and off-road transportation may be the result of a decrease in activity. The final decommissioning of the Cohasset Offshore Oil Project was completed in 2005, which may have played a role in higher consumption in 2005 compared to 2006. Short-term emission changes in Nova Scotia are illustrated in Figure A10-8. Figure A10-8: Nova Scotia Short-Term Emission Changes, 2005-2006 A10.4 New BrunswickIn 2006, New Brunswick contributed 17.9 Mt (2.9%) to Canada’s total GHG emissions (Table A10-4), which represents an increase of 12.9% since 1990. New Brunswick’s GDP contribution increased 43% between 1990 and 2006, representing 1.8% of the national total in 2006. New Brunswick is the largest of Canada’s three maritime provinces, with about 85% of the land categorized as productive forest (New Brunswick Dept. of Finance 2007). As such, the forestry industry is a major part of the provincial economy and is one of the key components of the province’s resource-based economy. The Mining and Oil & Gas sectors have also seen significant growth in recent years. Manufacturing industries, particularly those complementary to resource industries, are also important contributors to the provincial economy. Table A10-4: Trends in GHG Emissions and GHG Intensity, New Brunswick Natural gas exploration in 2000 resulted in the discovery of the McCully field near Sussex. Two wells were installed to produce natural gas for a local market in 2003, with a larger plan to supply natural gas markets in New Brunswick and New England via pipeline in later years. The impact of this development was felt throughout the local economy with supporting Manufacturing Industries and the Professional Services sectors benefiting the most. Increased interest in mineral and oil and gas exploration helped to offset the economic impact of rising energy costs and decreased demand in the Forestry and Pulp, Paper & Print subsectors. The softwood lumber dispute that flared between Canada and the United States in 2002 did not have any noticeable impact on the New Brunswick forestry industry due to the large private woodlot holdings that were exempt from the trade agreement (New Brunswick Dept. of Finance 2007). Due to limited natural hydro resources, New Brunswick has developed one of the most diverse electricity generation systems in North America, and is the site of the only nuclear power plant in Atlantic Canada. The nuclear reactor at Point Lepreau Generating Station will be undergoing refurbishment in 2008 and will have an impact on future GHG emissions. Currently the plant provides approximately 25% of the province’s power needs. Electricity is also generated from hydro, coal, oil, diesel, Orimulsion® (a bitumen-based proprietary fuel) and wind generating stations (New Brunswick Power Group 2007; Emera 2007). In 2006, provincial GHG emissions were estimated at 17.9 Mt CO2 eq, or 23.9 t per person. New Brunswick ranks third in terms of per capita emissions for 2006, slightly above the Canadian average, with emissions from the electricity and heat generation and fossil fuel industries accounting for more than 50% of total provincial GHG emissions. A10.4.1 Long-Term Trends (1990-2006)Emissions in New Brunswick grew by 2.0 Mt (12.9%) between 1990 and 2006. The fossil fuel industry was responsible for 1.4 Mt (67%) of the increase, with HDDVs (0.6 Mt) and LDGTs (0.6 Mt) also increasing over time. Growth was tempered by decreases in manufacturing industries (0.6 Mt) and residential (0.5 Mt) emissions. Saint John is home to Canada’s largest oil refinery. Long-term growth in demand for refined petroleum products is one of the major drivers and the region exports a significant amount of fuel. New Brunswick accounts for over 40% of Canada’s total petroleum refinery exports, almost all purchased by the United States (EDC 2006). Increased interest in natural gas exploration, with the development of the McCully field also play a role in long-term emissions growth. The long-term increase in HDDV emissions can partially be explained by their use to support the fossil fuel industry and the increase in the use of transport trucks to move manufactured goods and raw materials. Long-term LDGT emission increases are mainly due to consumer preferences and a switch to SUVs, vans and pickups from gasoline vehicles. The long-term decrease in emissions in the manufacturing industries is mostly due to difficulties encountered by the Pulp, Paper & Print Sector. As is the case across the country, lower demand and higher energy prices in recent years have resulted in economic difficulties and in some cases mill and plant closures (Statistics Canada 2007a). Difficulties were greatest in 2005, but improved market conditions in 2006 resulted in the reopening of two pulp and paper mills (New Brunswick Dept. of Finance 2007). Warmer winters, reflected in a 7.1% decrease in HDDs between 2006 and 1990, likely resulted in decreased emissions from the Residential Sector. Fuel switching from refined petroleum products to lower GHG-emitting natural gas has been observed over the long term, which would be expected with the development of a local supply. Long-term emission trends in New Brunswick are illustrated in Figure A10-9. Figure A10-9: New Brunswick Long-Term Emission Trends, 1990-2006 A10.4.2 Short-Term Changes (2005-2006)Over the short term, provincial emissions decreased by 3.0 Mt (14.2%). The biggest contributor to the decrease was Electricity and Heat Generation (confidential), followed by Commercial & Institutional (0.3 Mt), and Manufacturing Industries (0.2 Mt). Emissions from Road Transportation, specifically LDGTs, HDDVs and HDGVs, increased emissions slightly but not significantly. Electricity and heat generation emissions decreased significantly between 2005 and 2006 due mainly to lower demand and all-time record hydro flow. Between 2005 and 2006, the New Brunswick Power Generation Corporation reported hydro production approximately 43% above the long-term average. Combined with a 6.2% decrease in overall energy demand (including lower winter demand), emissions decreased as a result of less RPP-fired generation being required to meet peak demand (Emera 2007). Excluding the Electricity and Heat Generation Sector and the Commercial & Institutional Sector, the relatively constant level of emissions between 2005 and 2006 is probably reflective of rising fuel costs. Overall transportation combustion sources (including domestic aviation, road transportation, railways, domestic marine and off-road sources) actually declined by 2.2% over the short term. Short-term emission trends in New Brunswick are illustrated in Figure A10-10. Figure A10-10: New Brunswick Short-Term Emission Changes, 2005-2006 A10.5 QuebecQuebec contributed 81.7 Mt (11.5%) to Canada’s total GHG emissions in 2006 (Table A10-5). The province’s emissions have decreased by 1.2% (or 1.0 Mt) since 1990, while GDP grew 43.7% over the same period. Rich in natural resources, Quebec’s economy relies extensively on its abundant hydroelectric capacity, which helps to power its mining and manufacturing sectors. This historically cheap electricity supply has meant that a high percentage of homes and businesses are heated with hydro power rather than fossil fuels (Hydro Quebec 2007). Table A10-5: Trends in GHG Emissions and GHG Intensity, Quebec With almost half of the province covered by forests, the Forestry Sector, which ranks second in Canada behind British Columbia, is also an important contributor to the provincial economy. However, over the last 10 years, the provincial economy has diversified from energy, forestry, mining, metallurgy and agriculture to include aerospace and aeronautics, and a growing chemical product industry (Finances Quebec 2006). Softwood lumber disputes between Canada and the United States have simmered for more than 20 years. The most recent conflict occurred in 2002 when the United States imposed duties of 27%, devastating the forestry industries of Quebec, Ontario and British Columbia (CBC News Online 2006). The amount of hydroelectricity generated in Quebec in 2006 accounted for 49% of the total hydroelectricity generated in the country, and 30% of the total electricity generated overall (Statistics Canada 2008). This generating potential, along with nuclear facilities and recent developments in wind power, has meant that emissions from the electricity and heat generation industries are low, ranging from a low of 0.3 Mt to a high of 1.9 Mt. Quebec is Canada’s second most populous province, with 23.4% of the population in 2006, and the country’s lowest per capita GHG emitter at 10.7 t per person. In 2006, over 34% of GHG emissions were from road transportation, with the majority from gasoline automobiles, LDGTs (i.e. SUVs, vans and pickups) and HDDVs. Manufacturing industries contributed 11% to the provincial total while the aluminium production industry contributed 8%. A10.5.1 Long-Term Trends (1990-2006)Over the long term, Quebec’s GHG emissions decreased by 1.0 Mt (or 1.2%). The decrease was led by lower emissions from the manufacturing industries (3.1 Mt or 26%), process emissions from magnesium smelters (2.3 Mt or 97%), Residential Sector (2.3 Mt or 33%) and gasoline vehicles (1.7 Mt or 14%). Higher long-term emissions were observed in LDGTs (4.4 Mt or 113%), HDDVs (3.9 Mt or 96%) and the Commercial & Institutional Sector (1.7 Mt or 41%). The pulp and paper industry in Quebec has a long and rich history. This sector has been under pressure for the last 5 years due to lower demand and competition in the export market (Statistics Canada 2007a). The softwood lumber dispute, rising costs and a stronger Canadian dollar compared to the United States contributed to the decline of this industry in the province and was the biggest reason for the decrease in GHG emissions from the manufacturing industries since 1990. Relatively inexpensive, reliable electricity has resulted in Quebec attracting industries that are high energy consumers. The province of Quebec is Canada’s primary producer of aluminium, with lower-level activities in British Columbia (AAC). In 2006, Quebec accounted for 87% of Canada’s process emissions associated with primary aluminium production. Between 1990 and 2006 the aluminium production subsector experienced a process emission decrease of 15%, which can be attributed to better control of anode events in smelters through the use of electronic monitoring and automated emission controls. Although the GDP of the aluminium industry has grown significantly since 1990, its fuel combustion-related GHG emissions decreased slightly, thanks to an increase in energy efficiency and subsequent reduction in energy usage (Barraso 2006). Research and the use of substitute gas mixtures played an important role in significantly reducing (97% or 2.3 Mt) SF6 emissions from magnesium production between 1990 and 2006. During the last couple of years, the production decrease in anticipation of the Norsk Hydro’s plant closure also contributed, to a lesser extent, to the emission drop seen in the magnesium production industry. Decreases in long-term residential emissions are the result of the convergence of two different factors. The first involves a long-term decrease in HDDs of 6.5% between 1990 and 2006. The warmer weather resulted in lower heating demand in the winter and fewer emissions from heating equipment. The second factor involves abundant, cheap and reliable hydroelectricity. The vast majority of homes in Quebec are heated using electric heat. Since 1990, residents have also switched from relatively high GHG-intense refined petroleum product (RPP) fuels (like fuel oil) to electricity-based systems, which has increased electricity demand but lowered GHG emissions. The long-term increase in road transportation related emissions, particularly LDGTs (SUVs, vans and pickups) and HDDVs are observed throughout the country, and Quebec is no exception. The choice to switch from gasoline automobiles to LDGTs is the most obvious reason for increased emissions over the long term. The increase in emissions from HDDVs can also be related to increased usage, although in this case it relates to their role in the mining and production industries and just-in-time shipping. Long-term emission trends in Quebec are illustrated in Figure A10-11. Figure A10-11: Quebec Long-Term Emission Trends, 1990-2006 A10.5.2 Short-Term Changes (2005-2006)In the short term, emissions decreased by 1.8 Mt, (2.2%) largely the result of lower emissions from the Manufacturing Industries (0.9 Mt), Commercial & Institutional (0.8 Mt) and Residential (0.5 Mt) sectors. A portion of these decreases were offset by short-term increases in emissions from the Electricity and Heat Generation Sector (0.4 Mt), LDGTs (0.4 Mt) and Other (Undifferentiated Processes) (0.3 Mt). GHG emission decreases in the Manufacturing Industries Sector were not attributable to one specific industry, and in fact decreases were observed in all subsectors, with the exception of the mining subsector, which showed a slight increase. These decreases are likely the result of higher oil prices, fuel switching, and the appreciation of the Canadian dollar as some sectors were negatively affected while high prices and demand for primary metals tempered the overall totals. The relatively small short-term increase in emissions from the Electricity and Heat Generation Sector (0.4 Mt) is mostly the result of a new natural gas-fired cogeneration system coming online during 2006. The short-term increase in emissions from LDGTs reflects more vehicles on the road, at the expense of gasoline automobiles. Other & Undifferentiated Processes emissions increased by 0.3 Mt (27%.), which may be due to the increased use of other products (e.g. paraffin and waxes). Short-term emission changes in Quebec are illustrated in Figure A10-12. Figure A10-12: Quebec Short-Term Emission Changes, 2005-2006 A10.6 OntarioIn 2006, Ontario was the second largest contributor to Canada’s total GHG emissions, with 26.7% of the total (or 190 Mt). Provincial emissions grew by 9.3% (16.2 Mt) between 1990 and 2006 while GDP grew by 56% over the same period (Table A10-6). By itself, Ontario made up over 41% of Canada’s GDP in 2006. As a province with a significant manufacturing sector, the provincial economy is export-driven, largely relying on the United States market, which accounted for 86% of the province’s total exports (on a dollar value basis) in 2006 (Statistics Canada 2007a). Ontario is responsible for almost all automotive exports and is known as the leading auto production jurisdiction in North America. In fact, motor vehicle and part exports made up almost 17% of Canada’s total merchandise exports, ranking second only to fossil fuel exports. In Ontario, the automotive industry is so ubiquitous that one in seven jobs is tied directly or indirectly to the sector (Ontario Economic Development). Table A10-6: Trends in GHG Emissions and GHG Intensity, Ontario Other important sectors of the manufacturing economy include Chemical & Petroleum Products, Mining & Primary Metal Manufacturing, Food, Beverages & Tobacco, and Electrical & Electronic Products. The structure of the provincial economy has changed since 1990, due in part to fluctuations in global markets that have affected the export market. In response to lower manufacturing costs abroad for some goods and primary materials, the economy adapted with an increase in service-based industries that has resulted in Toronto becoming the financial capital of Canada (Ontario Economic Development undated). Electrical demand in Ontario is met primarily through nuclear, hydro and coal-fired generation. Ontario is the home for most of Canada’s nuclear capacity and the provincial government pledged in 2003 to shut down all coal-fired generation by the end of the decade. The first of the province’s four coal-fired power plants was shut down in 2005. As a result of this policy, investment in wind power and other renewable energy resources has grown substantially and has resulted in Ontario becoming a leader in new wind construction. In 2006, there was 776 MW of new wind capacity installed in Canada, with 399 MW installed in Ontario (CanWEA 2008b). With a population of over 12.7 million in 2006 (or 39% of all people in Canada), Ontario is by far Canada’s most populous province. In terms of emissions, Ontario ranks in the bottom quarter of per capita emitters, with approximately 15.0 t per person. The transportation of products (both raw materials and finished goods) is an integral part of the manufacturing sector. When one factors in a large population, it is unsurprising that road transportation emissions made up a quarter of the provincial emissions (25% or 47.4 Mt) in 2006, while the Electricity and Heat Generation Sector contributed 16% (29.6 Mt) of the total. The Manufacturing Industries themselves contributed 11% (21.6 Mt) while the Residential and Commercial & Institutional sectors contributed 10% (18.2 Mt) and 7% (12.5 Mt), respectively. A10.6.1 Long-Term Trends (1990-2006)Between 1990 and 2006, emissions increased by 16.2 Mt, due mainly to growth in LDGTs (9.5 Mt), HDDVs (5.4 Mt), the commercial & institutional Sector (3.4 Mt) and electricity and heat generation (2.9 Mt). The long-term increase was offset by decreases from adipic acid production (9.5 Mt), gasoline automobiles (3 Mt), and manufacturing industries (1.1 Mt). With a large population centre spread across a relatively broad geographic area (known as the Golden Horseshoe), the growth in road transportation emissions can be directly related to urban sprawl and consumer preferences for SUVs, vans and pickups. Over the long term, LDGT emissions increased by 123%. According to Statistics Canada, in 2006 there were over 5.6 million commuters in Ontario, with 71% using a car to get to work. The increase in GHG emissions from HDDVs can also be attributed to the Manufacturing Sector, as production management methods like just-in-time manufacturing result in increasing use of transport trucks for the movement of raw materials and finished goods. The population increase, urban sprawl and expansion of the Retail Sector also adds to the increasing usage of HDDVs over time. The increase in commercial and institutional emissions is related to the shift in the provincial economy, from a mainly manufacturing base to a diversified service industry, including finance, insurance and real estate (FIRE) (Ontario Economic Development 2008). The growth in the Commercial & Institutional Sector is most notable in employment figures. In 2006, the service industry employed 75.3%, up from 72.9% in 2000, and the manufacturing industry decreased to 15.5% in 2006, from 18.5% in 2000, even though total employment rose over the same period. The subsequent increase in commercial floorspace resulted in greater demand for heating and cooling that is coupled with a long-term HDD increase of 3.7%. Ontario is the home to the country’s only adipic acid production plant. The substantial reductions in process emissions at this facility between 1990 and 2006 are the result of the installation of a catalytic emission abatement system in 1997 and labour disputes in 2005. Long-term emission trends in Ontario are illustrated in Figure A10-13. Figure A10-13: Ontario Long-Term Emission Trends, 1990-2006 A10.6.2 Short-Term Changes (2005-2006)Provincial emissions decreased by 7.6 Mt between 2005 and 2006. The bulk of the decrease is observed in Electricity and Heat Generation (4.8 Mt), Residential (1.5 Mt), Adipic Acid Production (1.4 Mt), and Commercial & Institutional (1.4 Mt) sectors. Short-term emission growth is led by the manufacturing industries (1.6 Mt), iron and steel production (0.7 Mt), and direct agricultural soil emissions (0.6 Mt). The significant decrease in electricity and heat generation emissions is a result of a combination of factors. Ontario increased its nuclear capacity in 2006, with the return to service of the Pickering A reactor and also lower overall demand for electricity (IESO 2007). A warmer winter (HDDs decreased by 11%), a cooler summer (CDDs decreased by 28%), and a significant focus on energy conservation by the province and a coalition of the six largest electricity distributors in the province contributed to a decrease in electricity consumption of over 200 GWh between 2005 and 2006 (CLD 2007). Lower demand resulted in significantly fewer coal-based GHG emissions from this subsector compared to 2005. The decrease in residential and commercial and institutional GHG emissions over the short term is mainly because of the warmer winter experienced in 2006 compared to 2005 while the decrease in adipic acid emissions can be partly attributed to lower production that resulted from a prolonged strike at Ontario’s only adipic acid-producing facility. In 2006, emissions coming from adipic acid production decreased by 54% (1.4 Mt) compared to the 2005 level, because of excellent operation of the abatement system. It should be noted that 2005 was a particularly difficult year for Invista’s facility in Maitland, Ontario, since there were operational difficulties with the abatement system at the beginning and at the end of the year in addition to a prolonged six-month strike. The increase observed in energy-related manufacturing industry GHG emissions is mainly due to increases from the chemical manufacturing subsector and the other manufacturing subsector. However, decreases in the pulp and paper subsector kept GHG emissions from rising higher in the short term. The increase in energy-related GHG emissions from the Chemical Sector (which includes basic chemicals, resins, and pharmaceuticals, for example) was likely related to production returning to normal levels as a result of supply shortages that occurred after Hurricanes Katrina and Rita in 2005 (CCPA 2006; Air Products and Chemicals 2005). Decreases in pulp and paper subsector emissions reflect the economic difficulties felt by the subsector during 2006, and also observed in many other provinces (Statistics Canada 2007a). Process emissions from iron and steel production increased by 0.7 Mt between 2005 and 2006, mainly as a result of increased usage of metallurgical coke. Agricultural soil emissions rose by 0.9 Mt between 2005 and 2006 because of higher synthetic fertilizer nitrogen consumption and better crop production. Short-term emission changes in Ontario are illustrated in Figure A10-14. Figure A10-14: Ontario Short-Term Emission Changes, 2005-2006 A10.7 ManitobaIn 2006, Manitoba’s GHG emissions were up by 13% (2.4 Mt) with respect to 1990 and up 0.7% (0.2 Mt) since 2005 (Table A10-7). The province contributed about 3.0% to Canada’s total in 2006, with 3.6% of Canada’s population. Over the long term, the province’s annual GDP and population increased 38.2% and 6.6%, respectively, contributing 600 kt of GHGs per billion dollars GDP in 2006. The Manitoba economy is one of Canada’s most diverse. The province is home to a large agricultural and manufacturing sector, as well as a natural resources sector that includes hydro power exports and mining. Table A10-7: Trends in GHG Emissions and GHG Intensity, Manitoba With such a diverse economy, the financial picture can change rapidly. For example, in recent years record prices for primary metals and oil and gas has meant an increase in mining exploration and the development of new mines. Heavy rains and flooding can affect the output from the Agriculture Sector while trading barriers can also have an impact. Key trading partners for the province’s manufacturing industry are both Alberta and Ontario, with the United States being the main international market (Manitoba Dept. of Finance 2007). In recent years, lower demand in Ontario for manufactured goods have been offset by strong demand in Alberta (Statistics Canada 2007a). Manitoba’s abundant hydro power resources provide not only cheap, reliable electricity for the economy but also a significant source of income due to electricity exports (Manitoba Hydro 2006). The province is also committed to other sources of renewable energy, specifically wind power. In 2005 and 2006 St. Leon, a small farming community 150 kilometres southwest of Winnipeg, became the home of the province’s first large-scale wind farm. At the time, the 99-MW facility was Canada’s largest, but it has since been surpassed by farms in other provinces (CanWEA 2008b). The province has also implemented the Ethanol Sales Mandate in a bid to reduce provincial GHGs, requiring fuel suppliers in Manitoba to replace at least 8.5% of their gasoline available for sale with ethanol in 2008 (Manitoba Science, Technology, Energy and Mines 2008). Manitoba’s abundant hydro resources and relatively small population of just under 1.2 million results in a per capita emission rate of 18.0 t per person, good for sixth lowest in Canada and just behind Newfoundland and Labrador. The province’s agricultural base means that the main contributors to GHG emissions in 2006 were mainly from this sector. Emissions from enteric fermentation and agricultural soils were the main contributors in 2006, together accounting for 29% of provincial emissions, with LDGTs and HDDVs contributing 16%. A10.7.1 Long-Term Trends (1990-2006)Manitoba’s economic structure results in its GHG emissions having the lowest percentage of emissions from the Energy Sector (57%) and the highest percentage from the Agriculture Sector (36%). Over the long term (1990-2006), emissions increased by 12.9%, (2.4 Mt) with the growth in agricultural emissions accounting for 94% (2.3 Mt) of this increase. Decreases in residential emissions (0.7 Mt or 41%), gasoline automobiles (0.5 Mt or 29%) and railways (0.4 Mt or 59%) helped to offset the increases in agricultural emissions and LDGTs (0.9 Mt or 108%) and HDDVs (0.7 Mt or 85%). Agricultural emissions from all sources increased significantly between 1990 and 2006. CH4 emissions from enteric fermentation and manure management increased by 71% and 95%, respectively, while N2O emissions from manure management increased by 70%, mainly due to increases in beef cattle and swine populations. N2O emissions from agricultural soils increased by 15%, mainly because of the increases in nitrogen fertilizer consumption, animal manure on pasture and animal manure applied as fertilizers on cropland. HDDs decreased by 9.7% between 1990 and 2006, and helped to decrease residential GHG emissions over the long term by 0.7 Mt, while the population increased by 6.6%. This decrease in emissions was also supported by a switch from GHG-intense heating fuels (home heating oil) to natural gas and electricity, which in this hydro-rich province has minimal GHG impacts. The long-term increase in emissions from HDDVs and LDGTs is reflected in the decrease in emissions from railways and gasoline automobiles. The switch from rail for the transportation of raw materials and finished goods for the manufacturing industry is observed by an increase in HDDV emissions (transport trucks). The preference for LDGTs over gasoline automobiles is also notable. Long-term emission trends in Manitoba are illustrated in Figure A10-15. Figure A10-15: Manitoba Long-Term Emission Trends, 1990-2006 A10.7.2 Short-Term Changes (2005-2006)From 2005 to 2006, overall provincial emissions increased by less than 0.2 Mt. Emissions from agricultural soils grew by 0.5 Mt but were offset by decreased emissions from off-road diesel transportation (0.3 Mt), commercial and institutional (0.2 Mt) and residential (0.2 Mt) use. A very favourable year for crop production along with a higher consumption of synthetic nitrogen fertilizes in 2006 helped boost real GDP in agriculture by 16.2% and was attributed to the agricultural soil emission increases (Manitoba Deptment of Finance 2007). A poor agricultural year in 2005, which included heavy rains and flooding, depressed emissions from this sector in 2005 and thus, when compared to 2006, the year-to-year increase is surprisingly high. Increases in road transportation emissions between 2005 and 2006 grew in response to better economic conditions for the manufacturing industries and agricultural sector. In 2006, manufacturing shipments rose 5.2%, which helped increase road transportation emissions that were also growing in comparison to 2005, thanks to favourable agricultural conditions and the opening of the United States border to cattle. Significantly lower off-road diesel emissions (0.3 Mt) can also be attributed to the heavy rains and flooding that occurred in 2005. Increased usage of off-road vehicles and support equipment in response to the flooding likely artificially increased consumption relative to a typical year, resulting in the large decrease observed in 2006. An almost 7% decrease in HDDs between 2005 and 2006 helped reduce emissions from the Commercial & Institutional and Residential sectors over the short term. Fewer heating degree days meant less fuel and GHG emissions required for space heating. Short-term emission changes in Manitoba are illustrated in Figure A10-16. Figure A10-16: Manitoba Short-Term Emission Changes, 2005-2006 A10.8 SaskatchewanSaskatchewan generated 72.0 Mt GHGs in 2006 (10.1% of Canada’s total), a 63% increase over 1990 and a 1.2% decrease compared with 2005 (Table A10-8). GDP output increased 37.3% between 1990 and 2006, while population declined by 1.9%. The production and export of natural resources is the true backbone of the Saskatchewan economy. About 95% of all goods produced in the province directly depend on resources like grains, potash, uranium and oil and gas (Saskatchewan Bureau of Statistics 2007). Agriculture has always been an important part of the provincial economy, although mining, forestry and the oil and gas industry have been growing in importance. With a land area of more than 650 000 km2 and almost one third devoted to agricultural crops, it is not surprising that Saskatchewan produces more than half of the wheat grown in western Canada. Other important agricultural products include barley, canola, cattle, and hogs. Table A10-8: Trends in GHG Emissions and GHG Intensity, Saskatchewan The relative ease with which the abundant underground natural resources can be extracted in the province has had a tremendous impact on the development of the economy. It is estimated that the province has an estimated 75% of the world’s potash reserves and, as of 2002, Saskatchewan was the world’s largest uranium-producing region. The province is second in Canada behind Alberta in oil and gas production, and third in coal production (Saskatchewan Energy and Resources). Over 60% of electricity generation in the province is from coal-fired power plants, although hydro power can also provide anywhere between 14% to 32% of the total generation, depending on hydraulic conditions. The contribution of coal-fired utility generation has been decreasing since 1990, with natural gas fired stations growing in terms of their contribution to overall output (Statistics Canada 2008). Saskatchewan has also invested significantly in renewable energy. In early 2006, the 149.4-MW Centennial Wind Power Facility was commissioned, making Saskatchewan the home of the largest wind farm in Canada--until November of that year when the 189-MW Prince Wind Energy Project in Ontario became the largest facility in Canada. Regardless, over 500 GWh of electricity was generated in the province from wind energy in 2006 --almost 16% of Canada’s wind energy total (CanWEA 2008b). Saskatchewan’s GHG emission contribution per sector reflects the transition from Canada’s central to western provinces--that is, an increasing portion of energy-related emissions, and accounting for 80% of the province’s emission sources. The relatively low provincial population of less than 1 million and a resource-based economy involving the oil and gas and mining industries all contribute to Saskatchewan having the highest per capita emissions in Canada. In 2006, this translated to 72.9 t GHGs per person and 2.3 Mt GHGs per billion dollars GDP. GHG emissions in 2006 were 28 Mt higher than in 1990. The main contributors to provincial emissions in 2006 were the Oil & Gas Sector and the Electricity and Heat Generation Sector. Fugitive emissions from oil and natural gas production contributed 17.5 Mt (or 25%) with fossil fuel production contributing 6.2 Mt (or 9%). Emissions from the Agriculture Sector also made a noticeable contribution, with enteric fermentation and agricultural soil emissions accounting for 6% and 10% of the provincial total for the year. A10.8.1 Long-Term Trends (1990-2006)Provincial emissions grew by 28 Mt (63%) between 1990 and 2006. The Energy subsectors were the major contributors to long-term growth, specifically fugitive emissions from oil and natural gas production increasing by 11.4 Mt (189%), electricity and heat generation (confidential), and fossil fuel production increasing by 2.5 Mt (68%). Enteric fermentation emissions increased by 1.9 Mt from 1990 with mining emissions (confidential) also increasing. Minor decreases in emissions were observed in the Residential Sector (0.4 Mt), HDGVs (0.4 Mt) and the manufacturing industries (0.3 Mt). Saskatchewan is Canada’s second largest oil producer, accounting for 32% of Canadian production (CAPP). Oil production in the province has more than doubled in the last 20 years, with natural gas expanding significantly over the same period. In 2006, over 1500 natural gas wells were drilled in the province, significantly higher than the early 1990s and slightly lower than in 2005 due to lower market prices. This significant growth is behind the large increases observed in fugitive and fossil fuel production emissions. Electricity generation increased by 33% between 1990 and 2006. Coal-generated capacity is and remains the dominant source of electricity for the province, accounting for 60% of provincial electricity generation in 2006, down from 64% in 1990 (Statistics Canada 2008). Generation from natural gas, hydro and wind resources continues to increase although the growth in demand has played a larger role in the long-term GHG emissions increase than changes in electricity generation. Agricultural emissions rose by 49% between 1990 and 2006. The main driver is the 61% increase in cattle population, although the 80% increase in the hog population and synthetic nitrogen fertilizer consumption also contributed. Strong global demand for natural resources like potash and uranium has helped increase emissions from the provincial mining sector over the long term. Provincial potash production reached a record 16.6 million tonnes of muriate of potash (KC1) in 2005 with sales reaching a record $2.7 billion for the year (Saskatchewan Bureau of Statistics 2007). Long-term emission trends in Saskatchewan are illustrated in Figure A10-17. Figure A10-17: Saskatchewan Long-Term Emission Trends, 1990-2006 A10.8.2 Short-Term Changes (2005-2006)Between 2005 and 2006 Saskatchewan’s GHG emissions decreased by 0.9 Mt. There were no major fluctuations in emissions between 2005 and 2006, with all year-to-year changes at less than 1 Mt. Fugitive emissions from oil and natural gas increased the most, although only by 0.3 Mt, with HDDVs and off-road diesel vehicles both increasing by 0.1 Mt. Decreases were slightly greater, with electricity and heat generation (confidential) decreasing the most, followed by agricultural soil emissions (0.6 Mt), pipelines (0.3 Mt) and fossil fuel production (0.3 Mt). Slightly higher fugitive emissions were observed in 2006 compared to slightly lower GHG emissions from fossil fuel production. Higher throughput at fossil fuel production facilities in 2006 contributes to higher fugitive emissions while stationary emission decreases are likely the result of increases in efficiency. Electricity generation was down in 2006 compared to 2005, due to lower demand and may also be an indicator of increasing efficiency. Lower pipeline emissions reflect decreasing demand and production of natural gas due to warmer weather. The overall reductions in agricultural emissions (enteric fermentation and soil emissions) can be attributed to poor growing conditions experienced in the province in 2006, due to drought-like conditions and a slight decrease in the cattle population, which is likely attributed to the opening of the United States borders in 2005. Provincial crop production in 2006 was down almost 18% from 2005, and slightly below the 15-year average (Marshall and Adam Overview of the Saskatchewan Economy 2008). Short-term emission changes in Saskatchewan are illustrated in Figure A10-18. Figure A10-18: Saskatchewan Short-Term Emission Changes, 2005-2006 A10.9 AlbertaIn 2006, the province of Alberta generated 234 Mt of GHGs, 13.3% of Canada’s GDP, with 10.3% of the total population. Between 1990 and 2006, GDP and GHG output increased 91.7% and 36.6% to $147.7 billion and 234 Mt, respectively (Table A10-9). Alberta has long been known as Canada’s energy province. Home to significant natural gas, crude oil and coal reserves, the province’s economy has boomed thanks to growing international demand for its natural resources. When the estimated oil sands reserves are included, the province has the second largest petroleum reserves in the world, second only to Saudi Arabia (Statistics Canada 2007a). Forestry and agriculture are two other key parts of this diverse, resource-rich economy. The strength of the resource sector has helped support a vibrant and diverse manufacturing industry, a sector that includes chemical/petrochemical products, petroleum refining, food processing and forest products. Table A10-9: Trends in GHG Emissions and GHG Intensity, Alberta The Alberta economy has been the key factor behind Canada’s economic growth for at least the past 5 years. In 2006, the resource boom (that is, the rise in commodity prices) entered its fifth year. Energy, primary metals and agricultural products all benefit from higher prices and helped in the increasing valuation of the Canadian dollar. In mid-2006, oil prices hit a record of $78.40 (US) a barrel, a 30% increase from the start of the year, and was one of the underlying factors for increases in oil sands investment. In 2006, oil sands investment was almost $12 billion, more than twice the $5.2 billion invested in 2003 when the surge in oil prices began. Oil sands investment was also spurred by steadily declining conventional crude oil production, a result of the depletion of the highly productive conventional oil wells in the Western Canada Sedimentary Basin (Statistics Canada 2007a; Alberta Finance and Enterprise 2007). For a province with such significant coal and limited hydropower resources, it is not surprising to find that the majority of electricity is generated from coal-fired generating stations. Unlike many other provinces, Alberta’s landlocked location means that hydroelectric resources are difficult or uneconomic to access and therefore hydro generates a small percentage of the total for the province. Electricity in Alberta is not solely fossil fuel-based, however. Although landlocked, Alberta’s location on the leeward side of the Rocky Mountains means it has excellent wind and solar resource potential. This resulted in the province installing the first commercial wind farm in Canada in 1993 while continuing to lead the way in installed wind capacity. Alberta provided a remarkable 65% of Canada’s primary energy production in 2006. Due to the lack of significant hydro generation, this results in the province having the second highest GHG emission per capita, at 69.5 t GHG per person. The province’s total GHG emissions are dominated by emissions related to energy. In 2006, the main contributors were electricity and heat generation (54 Mt, or 23%), fossil fuel production (40 Mt, or 17%), oil and natural gas fugitive emissions (37 Mt, or 16%) and mining (11 Mt, or 5%). In 2006, Alberta accounted for 21.6% of all farms in Canada and 40% of all Canadian cattle. Alberta’s total gross farm receipts were $9.9 billion in 2005, while operating expenses reached $8.8 billion. Alberta generates 31.5% of Canadian agricultural GHG emissions. A10.9.1 Long-Term Trends (1990-2006)Between 1990 and 2006, GHG emissions increased by 62.7 Mt, predominantly driven by increases from electricity and heat generation (13.7 Mt), mining (9.0 Mt), fossil fuel production (8.5 Mt), and fugitive sources from the oil and natural gas industry (8.3 Mt), all of which are constituents of the Energy Sector. As for the non-energy-related subsectors, the Other (Undifferentiated Production subsector (comprised primarily of petrochemical process emissions) showed an increase of 4.1 Mt, while enteric fermentation emissions increased by 3.2 Mt from 1990. Decreases over the long term have been limited to combustion emissions from manufacturing industries (2.4 Mt) and gasoline automobiles (0.9 Mt). With long-term population growth of over 32%, combined with a booming resource sector, has resulted in increased demand for electricity and subsequently generation. In fact, generation emissions increased by 34% while electricity generation increased by 40%. Due to its very small hydro-electric capacity, readily available GHG-intense fossil fuels are the predominant fuel source, with coal generating over 83% of the electricity in the province in 2006 (Statistics Canada 2008). The growth of the Oil & Gas Sector has been the predominant reason behind increased electrical demand, while population growth has also played a role. The oil and gas industry has been booming since oil sands exploration and extraction became financially viable in the late 1990s. Rising crude oil prices over the last 5 years has maintained the industry and helped its expansion all while demand for final products has risen steadily both domestically and internationally (Statistics Canada, 2007a). Due to data aggregation, some of the emissions associated with oil sands mining are included in the mining industry total. As a result, the second, third and fourth largest long-term increases can be attributed in whole or in part to the Oil & Gas Sector. Many of the industries and subsectors that make up the manufacturing industries category have shown long-term increases. These increases have been offset by a 3.5 Mt decrease in emissions from the Other Manufacturing subsector. The exact cause of this significant decrease is difficult to explain with certainty; however, it would be reasonable to assume that shifts in the provincial economic structure are the most likely cause, as this subsector includes a wide and diverse set of industries. Methane emissions from enteric fermentation increased by 3.2 Mt since 1990, due mainly to the 44.5% expansion of the cattle industry because of growing demand by the United States market. Long-term emission trends in Alberta are illustrated in Figure A10-19. Figure A10-19: Alberta Long-Term Emission Trends, 1990-2006 A10.9.2 Short-Term Changes (2005-2006)Emissions increased by 3.7 Mt between 2005 and 2006. The increase was the result of higher emissions from Electricity and Heat Generation (1.4 Mt), Off-road Diesel (0.8 Mt), HDDVs (0.6 Mt), and Pipelines (0.5 Mt). Offsetting these increases were decreases in the Manufacturing Industries (0.8 Mt), Enteric Fermentation (0.3 Mt) and Commercial & Institutional (0.2 Mt). A continued increase in electricity generation and demand was the main factor behind the increase in emissions. Between 2005 and 2006, electricity generation increased by 1.6% although more electricity (and heat) was generated using natural gas than coal in 2006--largely on the industrial side. Wind-powered electricity also increased in 2006, although this resource has an insignificant effect on total generation and GHG emissions (Statistics Canada 2008). The short-term increase in off-road diesel and HDDV emissions reflect support to the Oil & Gas Sector, as the Alberta economy remains red-hot. GDP increased by 6.7% in 2006, compared to 5.0% in 2005 and population grew by 2.7% in 2006 compared to 2.3% in 2005. Demand for goods and services to support the Oil & Gas Sector and the growing population are reflected in increased road transportation emissions. Strong demand for oil and gas products on the export market has resulted in pipeline capacity being severely strained. Since the majority of fossil fuels in Alberta are exported via pipeline, as fossil fuel production increases, so do pipeline emissions to move commodities (NEB 2007). As new pipelines are constructed to ease congestion, emissions are expected to continue to rise even while efficiency gains are realized. As observed in the long-term trends, decreases in GHG emissions from the manufacturing industries are largely due to the effect of the other manufacturing subsector. Decreases in commercial and institutional emissions can be attributed to lower heating requirements as HDDs decreased by 4.7% between 2005 and 2006. Agricultural emissions from enteric fermentation are mainly the result of decreases in the dairy and beef cattle population. The re-opening of the United States border to cattle in March 2005 helped reduce the population, driving down enteric fermentation as exports of livestock products increased in 2006. The United States-Canadian border was closed to beef imports in 2003 when bovine spongiform encephalopathy (BSE) was detected and Canadian exports were severely restricted. Short-term emission changes in Alberta are illustrated in Figure A10-20. Figure A10-20: Alberta Short-Term Emission Changes, 2005-2006 A10.10 British ColumbiaIn 2006, British Columbia’s 4.3 million residents generated a total of 62.3 Mt of GHGs (Table A10-10) and contributed $135.8 billion to the country’s GDP. This represents 8.7% of Canada’s total GHG emissions and 12.3% of the total GDP. Between 1990 and 2006, the province’s total emissions increased 13.4 Mt (27.5%), while GDP and population increased 60.5% and 31%, respectively. Table A10-10: Trends in GHG Emissions and GHG Intensity, British Columbia Historically known for forestry and mining, British Columbia’s resource-based economy has matured in recent years. The diversification into many non-resource activities was partly out of necessity, as variability in international markets for natural resources has shown significant fluctuation over the years. For example, at present only about 9% of workers in the province have jobs in natural resource industries, down from 13% in 1990 (B.C. Ministry of Advanced Education 2006). Regardless, forestry, primary metals (copper, gold, and zinc), mining and oil and gas (coal, petroleum and natural gas) continue to play an important role in the economy as do fishing and agriculture. British Columbia’s location has made it the gateway to Asia. Growing global demand for natural resources has lifted resource prices in recent years while dampening prices for domestically manufactured goods. These lower prices have been exacerbated by a strengthening Canadian dollar. Growth in the Mining and Oil & Gas sectors have helped to stabilize the province’s economy, which felt the effects of lower United States demand for lumber and pulp and paper. Domestically, the construction industry has been positively affected by the impending 2010 Olympics, while the goods-handling industries have also benefited from increased national trade with Asia (BC Stats 2007; British Columbia Ministry of Finance 2007). British Columbia is rich in hydroelectric power. More than 90% of the electricity generated in British Columbia is from hydro, with most of the remainder provided by natural gas-powered generators (Statistics Canada 2008). The province has taken advantage of its position and interconnections with Alberta and the northwestern United States to become an important and profitable electricity exporter. The province’s significant hydroelectric capacity allows it to take advantage of energy banking, where power is imported during off-peak times to replenish hydro reservoirs for use during high-peak times. As with most provinces with a significant pulp and paper industry, biomass is also used for power production, although it adds little to the total supply. British Columbia is one of the only regions in Canada that does not have any commercial wind farms for electricity supply. British Columbia’s annual GHG generation rate, at 14.4 t GHGs per person in 2006, is slightly below what it was in 1990 (14.9 t GHGs per person), and its GHG per GDP equalled 460 kt per billion dollars in 2006. British Columbia is one of the lowest per capita emitters, ranked tenth, behind the Yukon and ahead of P.E.I. A review of British Columbia’s sector-specific emissions shows that, in 2006, 86% of GHG emissions arose from the Energy Sector. The majority of the province’s 62.3 Mt of emissions in 2006 were from fossil fuel production (7.4 Mt), oil and natural gas fugitives (6.1 Mt), manufacturing industries (5.3 Mt), LDGTs (4.9 Mt) and HDDVs (4.6 Mt). A10.10.1 Long-Term Trends (1990-2006)Over the long term, provincial emissions rose by 13.4 Mt (27.5%). This long-term growth was the result of growth in the fossil fuel industries (3.7 Mt), oil and natural gas fugitive emissions (3.2 Mt), LDGTs (2.7 Mt) and HDDVs (2.1 Mt). Decreasing emissions from railways (1.0 Mt), manufacturing industries (0.7 Mt), propane & natural gas vehicles (0.6 Mt) and aluminum production (0.5 Mt) helped slow long-term emissions growth. British Columbia is Canada’s second largest natural gas producer, accounting for 17% of production in 2006 (CAPP), with production up significantly from 1990. The province’s fossil fuel industry has grown significantly since 1990, and when combined with strong demand over the last decade, has resulted in significantly higher GHG emissions from this sector. Population growth and the switch to LDGTs (e.g. SUVs, vans and pickups) from gasoline vehicles has also helped increase emissions since 1990. This pattern has been observed across the country as older vehicles are replaced. Increased emissions from HDDVs are likely the result of decreasing railway emissions, as the transportation of goods and services moves from rail cars to transport trucks, thanks in part to increased international trade with the Pacific Rim. The increased use of these vehicles in the fossil fuel industry also plays a role in the observed long-term emissions growth. Emissions from the manufacturing industries are down only slightly, mainly due to significant reductions in GHG emissions from the Pulp, Paper & Print subsector offsetting increases in other subsectors, most notably in other manufacturing, cement and mining. Strong demand, both external and domestic, and high commodity prices helped increase the province’s GDP by 60.5% from 1990 even though British Columbia’s Pulp and Paper Sector felt the effects of a drop in demand and increasing global competition. Many subsectors of the other manufacturing category (such as metal fabrication and food processing) experienced strong growth in 2006 as exports to the Pacific Rim increased while exports to the United States decreased (BC Stats 2007; Statistics Canada 2007a). Long-term emission trends in British Columbia are illustrated in Figure A10-21. Figure A10-21: British Columbia Long-Term Emission Trends, 1990-2006 A10.10.2 Short-Term Changes (2005-2006)Between 2005 and 2006, British Columbia’s GHG emissions decreased by 2.0 Mt (3.2%). The decrease was led by lower year-to-year emissions from fossil fuel production (0.9 Mt), manufacturing industries (0.8 Mt), off-road diesel (0.4 Mt) and pipelines (0.2 Mt). Growth was led by emissions from mining (0.4 Mt), oil and natural gas fugitives (0.4 Mt) and HDDVs (0.2 Mt). Softening demand and lower prices for natural gas in 2006 were the most likely reasons for lower emissions from the fossil fuel production subsector. Natural gas and crude oil production decreased by 2% and 4.2%, respectively (Statistics Canada, 2007b) after record production in 2005. Softer demand and lower prices for natural gas also helped reduce emissions from pipeline; the value of oil and natural gas production decreased by 21.4% in 2006 (BC Stats, 2007 and BC Ministry of Finance, 2007). Decreasing emissions from the Other Manufacturing subsector were mainly responsible for the decrease observed in the manufacturing industries. Growth in the metallic mineral products subsector is the likely main driver of growth in Other Manufacturing as the value of these exports rose by 32.5% in 2006 (BC Stats 2007). Decreases were observed in motor vehicle exports, and scientific, photographic and other technical equipment. The shift in the types of industries in this catch-all category has significant impacts on emissions as some are fossil fuel-intensive, while others can be more electricity-intense and thus open to higher efficiency gains that can reduce GHGs. The increase in emissions from the mining, oil and natural gas fugitives and HDDVs is indicative of strong demand and high prices for natural resources and commodities. The combination of rising prices for base metals (particularly copper and precious metals) and strong demand from the Pacific Rim (most notably China) helped increase investment and production in the mining and associated subsectors (Statistics Canada 2007a). Short-term emission changes in British Columbia are illustrated in Figure A10-22. Figure A10-22: British Columbia Short-Term Emission Changes, 2005-2006 A10.11 Yukon, Northwest Territories, and NunavutIn 1990 (the NIR base year), there were only two territories in Canada-Yukon (YT) and the Northwest Territories (NWT). However, in 1999, Nunavut (NU) was created from the NWT. Due to data limitations, it is not possible to present economic indicators for each territory separately. Together, Canada’s territories contributed 1.7 Mt (Table A10-11) or 0.3% to the national GHG total and $6.15 billion to the national GDP in 2006. The following discussion presents GHG emissions for Yukon and the combined territories of NWT and NU. Table A10-11: Trends in GHG Emissions and GHG Intensity, Total Territories Economic development in the Yukon has been closely linked to the mining industry for more than a century. The impact of mining has been decreasing, with oil and gas development, tourism and public administration growing in importance. The mining sector declined significantly in the late 1990s and early 21st century, although high mineral prices are leading to increases in both mineral and oil and gas exploration. The only hydrocarbon production in the Yukon comes from the Kotaneelee field, with raw natural gas shipped via pipeline for processing in neighbouring British Columbia (Yukon Dept. of Energy, Mines, and Resources). Utility electricity generation in Yukon is mostly hydro-based with diesel generators used for back-up purposes. There are also two wind turbines installed near Whitehorse, the first turbine being installed in 1993. Yukon, with a GHG emission total for 2006 of 0.4 Mt (Table A10-12), has shown a 27% reduction since 1990, most of which is due to reductions in combustion emissions from Electricity and Heat Generation, the Commercial & Institutional subsector and gasoline automobiles. While total emissions went down, there were increases in emissions from fossil fuel industries and in transportation-related emissions, primarily HDDVs used to transport goods and support the fossil fuel industry. Note: NA = Not applicable. The long-term increase in fossil fuel industry emissions is mainly from the natural gas collection and transportation facility, which transports raw natural gas via pipeline to British Columbia for further processing. Since 1990, Yukon’s population has increased by 12%, while per capita emissions have decreased from 19.4 to 12.6 t GHG per person. Yukon is now one of the lowest per capita GHG emitters in Canada, behind only Quebec. The Territory of Nunavut (“our land” in Inuktitut) was created in 1999 when the Northwest Territories was split into a western part (still known as the Northwest Territories) and an eastern part. Prior to 1999, the entire area’s GHG emissions were reported as the Northwest Territories exclusively. The following discusses the Northwest Territories and Nunavut separately, where possible. The impact of natural resource extraction has been growing in the Northwest Territories and Nunavut since 1990. Diamond mining has been the biggest contributor to growth in the economy, with oil and gas extraction also a noteworthy part of the the Northwest Territories economy. The first the Northwest Territories diamond mine began production in 1998 with a second mine completed in 2003. Construction commenced on a third diamond mine in 2005, with an expected completion date of 2007 (Northwest Territories Industry, Tourism and Investment 2006). In Nunavut, the first new diamond mine in the area in over 25 years opened in 2006, although three gold, lead and zinc mines closed between 2002 and 2004 (Sakku Investments Corporation 2006). Electricity in the Northwest Territories is primarily hydro-based with diesel supplying most of the remainder. Since 1990, the utility has made significant improvements to reduce diesel consumption and increase hydro capacity. There has also been an increase in natural gas-fired generation (NWTPC 2006). All electrical power generation in Nunavut is diesel-powered, while all buildings are heated with fuel oil. The remoteness of some communities and lack of roads means that air transport is in some cases the primary means of travel. The Northwest Territories and Nunavut generated approximately 1.3 Mt of GHGs in 2006 (Table A10-13). This is a 13.2% decrease from 1990 and has been driven mainly by decreases in the commercial and institutional and fossil fuel industries. Unsurprisingly, considering the long distances between industry and population centres, HDDV and off-road diesel emissions offset the reductions. Since 1990, the combined population of these regions has increased 24% to almost 73 000, while GHG emissions per capita registered 17.7 t in 2006, a 30% decrease from 1990. Note: NA = Not applicable. The magnitude of the emissions makes discussion of short-term changes difficult, as both uncertainty and variability in reported data may have higher effects than economically driven inter-annual changes. Long-term emission trends in Yukon and in the Northwest Territories and Nunavut are illustrated in Figures A10-23 and A10-24, respectively. Short-term emission changes in Yukon and in the combined Northwest Territories and Nunavut are illustrated in Figures A10-25 and A10-26, respectively. Figure A10-23: Yukon Long-Term Emission Trends, 1990-2006 Figure A10-24: Northwest Territories and Nunavut Long-Term Emission Trends, 1990-2006 Figure A10-25: Yukon Short-Term Emission Trends, 1990-2006 Figure A10-26: Northwest Territories and Nunavut Short-Term Emission Trends, 1990-2006 ReferencesAir Products and Chemicals Inc. 2005. Air Products Announces Expected Financial Impact of Recent Hurricanes. News release September 27, 2005. Lehigh Valley (PA). Available online at: http://www.airproducts.com/PressRoom/CompanyNews/Archived/ 2005/27Sept05d.htm Alberta Agriculture and Food. 2007. Agriculture Statistics Yearbook 2006. Edmonton (AB). September 2007. Alberta Finance and Enterprise. 2007. Economic Outlook - 2006 in Review. Edmonton (AB). [AAC] Aluminum Association of Canada. Development of aluminum production in Canada since 1960. [undated; accessed 25/03/2008]. Available online at: http://www.aac.aluminium.qc.ca/frameset/index_en.html Barrasso Grace. (2006). 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[CCPA] Canadian Chemical Producers Association. 2006 Year End Survey of Business Conditions in the Basic Chemicals and Resins Industry. [CanWEA] Canadian Wind Energy Association. 2008a. Canada’s Current Installed Capacity. [revised 29/01/2008; accessed 08/02/2008]. Available online at: http://www.canwea.ca/images/uploads/File/fiche_a_29_janv_08.pdf [CanWEA] Canadian Wind Energy Association. 2008b. List of Wind Farms. [revised 29/01/2008; accessed 06/02/2008]. Available online at: http://www.canwea.ca/production_stats.cfm CBC News Online. 2006. Indepth: Softwood Lumber Dispute. [Dated August 23, 2006; accessed 06/02/2008]. Available online at: http://www.cbc.ca/news/background/softwood_lumber/ [CLD] Coalition of Large Distributors. 2007. “Shifting into future gear” - Progress Report 2006. Emera. 2007. 2006 Annual Financial Report. Halifax (NS). [EDC] Export Development Canada. 2006. “New Brunswick exports among best in country, says EDC.” News Release. 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Ontario Economic Development. Ontario Facts. [undated; accessed April 29, 2008]. Available online at: http://www.2ontario.com/facts/home.asp Ontario Ministry of Finance. 2007. 2007 Ontario Economic Outlook and Fiscal Review, Annex 6, Table 9. Available online at: http://www.fin.gov.on.ca/english/budget/fallstatement/2007/07fs-annex6.html#table9 Prince Edward Island Department of the Provincial Treasury. 2007. Thirty-third Annual Statistical Review 2006. Charlottetown (PEI). Sakku Investments Corporation. 2006. Nunavut Economic Review. Rankin Inlet (NU). Saskatchewan Bureau of Statistics. 2007. Economic Review 2006. Number Sixty. Regina (SK). Saskatchewan Energy and Resources. Resources. [undated; accessed 26/2/2008]. Available online at: http://www.er.gov.sk.ca/minerals Saskatchewan Office of the Provincial Secretary. Emblems of Saskatchewan. [undated; accessed 26/2/2008]. Available online at: http://www.ops.gov.sk.ca/Default.aspx?DN=81c94cec-8de8 -872f-42cf2ecf3b37 Statistics Canada. 2006 Census. Community Profiles - Toronto Metropolitan Area. Statistics Canada. 2007a. Canadian Economic Observer (April 2007). #11-010-XIB. Statistics Canada., 2007b. Report on Energy Supply-Demand in Canada (Annual). #57-003-XIB. Statistics Canada. 2008. Energy Statistics Handbook. #57-601-XIE. Yukon Department of Energy, Mines, and Resources. Yukon Oil and Gas Resource Assessments. [undated; accessed 27/2/2008]. Available online at: http://www.emr.gov.yk.ca/oilandgas/oilgas_resource_assessments.html 81 Another potential source of discrepancy is also the application at the provincial level of parameter values, which, while again representative as a whole of national circumstances, do not always accurately reflect regional conditions. [Back] 82 The meteorological data required to develop the HDD and CDD indicators are provided by Environment Canada. Annual HDDs and CDDs are common indicators used to determine the necessity for space heating or cooling in a region. Annual HDDs are the annual sum of the days when the average daily temperature is below 18° C multiplied by the number of degrees that the temperature is below 18° C on each of those days. Annual CDDs is the annual sum of days when the average daily temperature is above multiplied by the number of degrees above 18° C on each of those days. [Back] 83 Megatonnes of CO2 eq per billion dollars of provincial GDP. [Back] |
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The Green LaneTM, Environment Canada's World Wide Web site
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