Alberta s Climate Leadership Plan. Alberta Climate Change Office. May 17, 2017

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1 Alberta s Climate Leadership Plan Alberta Climate Change Office May 17, 2017

2 Outline Context Setting Alberta s Climate Leadership Plan Measures of Success

3 Context Setting

4 Alberta Emissions Profile 267 Mt CO2e total provincial GHG emissions in percent or 33 Mt emissions growth since percent Alberta s percentage of Canada s emissions in 2013 World >43,000 Mt Canada 726 Mt Alberta 267 Mt

5 Emissions Context Million Tonnes CO2e BC AB SK MN ON QC NB NS NL Canada s Second Biennial Report On Climate Change (2016) note that this projection was modelled prior to Alberta s Climate Leadership Plan

6 INTERNATIONAL DRIVERS UN Climate Change Conference of the Parties COP 21, Paris COP 22, Marrakesh

7 Source: Canada s Intended Nationally Determined Contribution (INDC) to the United Nations Framework on the Conventional of Climate Change (UNFCC)

8 Federal/Provincial Collaboration Vancouver Declaration on Clean Growth and Climate Change

9 Pan Canadian Framework and Canada s NDC 9

10 Alberta s Climate Leadership Plan

11 Alberta s Climate Leadership Plan Released in November 2015 in response to Climate Change Advisory Panel report The Climate Change Advisory Panel heard from a wide range of Albertans including the public, farmers, Indigenous communities, academia, think-tanks and industry representatives on a new climate change strategy for Albertans.

12 Climate Leadership Plan Key Initiatives Phasing out emissions from coal-generated electricity and developing more renewable energy Coal power emissions phase out by % of generation from renewables by 2030 Implementing a new carbon price on greenhouse gas pollution Carbon Levy on all transportation and heating fuels Together with the new performance standards for large industrial emitters, the carbon pricing model covers 78-90% of Alberta s emissions New approach will generate funding that will be fully recycled back into the economy Capping oil sands emission limit 100 Mt CO2e limit, with provision for cogen emissions and new upgrading Reducing methane emissions from oil and gas by 45% by 2025

13 Coal Transition Coal Phase Out by 2030 Generation to be replaced by renewables and natural gas Carbon Levy Output Based Allocation (2018) Oil Sands Limit (100Mt) Joint-Methane Reduction Initiative Revenue: Section 3 of Climate Leadership Implementation Act Cabinet Decision Annual Revenue Allocation INVESTMENT ADJUSTMENT Consumer Rebates Job Transition & Training Small Business Rebates Innovation & Technology Bioenergy Green Infrastructure Energy Efficiency Renewables Indigenous Communities

14 Carbon Pricing Alberta is aligned with the current highest price in Canada, $30/tonne, and our emissions coverage and stringency is also as good as or better than other Canadian provinces. Carbon Levy on heating and transport fuels All revenue collected will be rebated to Albertans and reinvested in the economy to help fund provincial efforts to reduce greenhouse gas emissions Output Based Allocation Build on the experience of the Specified Gas Emitters Regulation (2007) Drive emissions reductions while protecting trade exposed industries Includes large emissions and trade exposed industry: oil sands, electricity, refineries, petrochemicals, cement, mining, etc.

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16 Measures of Success

17 Alberta s Climate Leadership Plan Measures of Success Reduced GHG emission Compliance options are flexible and met Transition to cleaner sources of electricity Oil sands emissions are managed within limit Diversified low-carbon economy Competitiveness is maintained Create new jobs Family & communities well-being and resilience Transition to new employment opportunities Energy efficiency and green infrastructure incentives shift attitudes and consumer behaviours Avoid downstream health care costs and lost productivity

18 Thank You Questions? Ongoing updates: