Alberta s Climate Change Strategy Renewal Update October 9, 2013

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1 Alberta s Climate Change Strategy Renewal Update October 9, 2013

2 Overview Where are we today? - Context and success to date Where do we need to go? - Emissions trends - Policy considerations How do we get there? - Policy renewal - Federal GHG regulations

3 #9: Canada #1: China #2: U.S.

4 Greenhouse Gas Emissions in the Canadian Context EC Outlook, October 18, GHG Emissions Data from NI Forecast - EC Outlook

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6 Alberta s Climate Change Strategy

7 Carbon Capture and Storage 139 Mt by 2050 Key element of Alberta s Climate Change Strategy $1.24 billion for two large-scale CCS projects Alberta s geology ideal for CCS 2.76 Mt reduction

8 Greening Energy Production 37 Mt by 2050 Provincial Generating Capacity Hydro, Wind, Solar and Biomass 15 per cent and percentage is growing (70% increase since 1998) Micro-generation policy Bioenergy Producer Credit Program $440 million over 5 years will support 30 bioenergy facilities until March 2016 Renewable Fuels Standard 2% biodiesel blend with diesel 5% ethanol blend with gasoline Biofuel must have 25% fewer GHG emissions than equivalent fossil fuel

9 Energy Efficiency 24 Mt by 2050 Residential sector: $52 million, 3 year incentive program Incentives for other sectors Commercial Transportation Program Commercial Lighting Program Agriculture Sector Municipal Climate Change Action Centre GreenTRIP - $2 billion provincial investment towards improving public transit EE Framework completed May 2013

10 Regulating Greenhouse Gas Emissions In 2007, Alberta regulated large industrial GHG emissions Existing facilities required to immediately reduce per unit GHG output by 12% Three compliance options: Physically reduce emissions Purchase serialized Alberta offsets $15 dollar/tonne towards technology fund RESULTS (March 2013 preliminary numbers): 40 million tonnes of emissions avoided (from BAU) $398 million into the Climate Change and Emissions Management Fund $213 million invested in 51 clean energy projects

11 Technology and Innovation Fund $398 million collected to date Announced funding for 51 clean technology initiatives More than $213 million allocated Leverage approximately $5:1 in private investment Expect >$1B worth of clean technology projects at current leverage Project emissions reductions estimated at 10.2 MT by 2020

12 Offsets 34 offset protocols 20 Mt of offsets retired to date Top offsets: agriculture (tillage) wind energy efficiency enhanced oil recovery nitric acid abatement wastewater management

13 Tonnes of CO2e Reduced Offset Project Types Submitted for Compliance 6,000,000 Nitric Acid Abatement 5,000,000 Anaerobic Wastewater Treatment Forest Harvest Practice Biofuel EOR 4,000,000 Acid Gas Landfill Gas Compost 3,000,000 Energy Efficiency Tillage Hydro 2,000,000 Biomass Energy Wind 1,000,

14 Adaptation Province-wide vulnerability assessment completed Cross-Ministry risk assessments and adaptation strategies for 9 Ministries complete Comprehensive climate change government adaptation strategy underway Stakeholder consultation plan under development Provincial Adaptation Strategy to follow

15 Where do we need to go? Policy Considerations Alberta is under a microscope internationally Alberta is not on track to meet our targets Growing emissions Social license and competitiveness key concerns Federal action

16 Federal Regulations Environment Canada moving forward with a sector-by-sector approach to regulating GHGs in Canada: Transportation passenger cars/ trucks/ RFS Coal-fired electricity phase out of coal equivalency focus Oil and gas stretch target with compliance flexibility Emissions Intensive Trade Exposed achievable performance standards Natural-gas fired electricity under development

17 Policy Renewal Objectives: Reduce greenhouse gas emissions and maintain strong economic activity in Alberta Ensure a fair distribution of the costs imposed by climate policy Ensure Alberta s outcomes are achieved through appropriate jurisdictional authority Enable market instruments integral to bridge the gap between current and long-term policies and reductions across the economy Incent technological innovation necessary for long-term deep reductions and transformational change Determine effect of policy on market access/ social license/ competitiveness

18 Alternative and Renewable Energy Framework Alberta s competitive electricity system is working well - maintaining it is a priority The Alternative and Renewable Energy Policy Framework will be part of a renewed Climate Change Strategy and feed into the Canadian Energy Strategy Policy options for electricity, transportation and thermal end uses of alternative and renewable energy are being examined during development of the Framework Stakeholders invited to submit ideas, concerns and interests relating to alternative and renewable energy development for consideration in the development of the Framework

19 CONCLUSIONS Climate change highly political Lack of international movement has lead to regionalized approaches Link with economic and social objectives critical Strategic investment in research, innovation and technology needed Consumers and producers part of the problem and the solution