Prairie Resilience: From Strategy to Implementation

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1 Prairie Resilience: From Strategy to Implementation SustainTech 2018 Saskatoon - March 22, 2018 Sharla Hordenchuk, Executive Director Climate Change Branch, Ministry of Environment

2 Introduction Background Provincial Strategy Resilience Framework Standards and Compliance Programs & Strategies Regulatory Framework Management, Next Steps and Milestones

3 How d we get here? Dec 2015 March 2016 Oct 2016 Dec 2016 May 2017 Dec 2017 Jan 2018

4 Provincial Strategy Designed to make Saskatchewan more resilient to the climatic, economic and policy impacts of climate change 42 commitments in 5 key areas: Natural systems Physical infrastructure Economic sustainability Community preparedness Measuring, monitoring & reporting 14 Ministries and Crowns involved

5 Purpose of Strategy Makes SK more resilient to climatic, economic, and policy changes. Creates made-in-saskatchewan approach to climate regulation that responds to concerns of businesses and residents facing backstop Assists SK in realizing unaccounted value of CCS knowledge, agricultural exports, uranium exports, forestry, etc., through market mechanisms (offsets and ITMOs) 2

6 Major Strategic Initiatives Resilience is over-arching focus Emission performance standards, with flexible compliance mechanisms Methane regulations, with complementary policies to incent demand Enhanced emphasis on renewable energy in electrical generation Comprehensive policy approach Measuring, Monitoring, and Reporting

7 Why focus on resilience? Sole focus on GHG emissions indicator does not make sense for natural resource-based, northern economy significant emissions from agricultural/forestry production exported internationally (pulses, fertilizer, potash, lumber) Resilience is much stronger, multi-dimensional climate indicator: capacity of human or ecological systems to cope with, adapt to, and recover from stress and change. Allows for growth, includes adaptation, can be tailored to SK s resource-/ag.-based economy and communities facing both climate impacts and adaptation challenges 3

8 How to Ensure Focus on Resilience? Strategy commits to measuring progress. Development of measures to be tracked and reported upon. Measures in each of 5 themes of Strategy Details of measures currently being refined with engagement from stakeholders. Upon finalization, baselines and targets to be established

9 Regulatory Framework Legislation The Management and Reduction of Greenhouse Gases Act (MRGHG Act) o Partially proclaimed and in force January 1, 2018 o Amendments under review Regulation The MRGHG (General and Electricity Producer) Regulations in force January 1, 2018 Expected to be in place by January 1, 2019 o The MRGHG (Reporting) Regulations o The MRGHG (Compliance) Regulations

10 Output Based Performance Standards Implement sector-specific, output-based, facility-level performance standards on facilities emitting >25 kt/a CO 2 e Anticipate regulated sector of ~80 facilities in mining, manufacturing, oil and gas, forestry and waste. Examples of >25kt/a CO 2 e facilities are: o Regina refinery o Meadow Lake pulp mill o Uranium and potash mines o Canola crushers

11 Flexible Compliance Allow facilities to meet obligations in ways best suited to their business: o Meet the performance standard; o Make a payment into provincial technology fund; o Use a best performance credit, generated by a regulated facility reducing emissions beyond performance standard; and/or, o Apply an offset credit, a verifiable reduction in emissions made by a non-regulated entity (e.g., in agriculture or forestry).

12 Programs and Strategies 42 commitments in Strategy, a few examples include: o Adopting the 2015 National Building and National Energy Codes o Improving delivery times, fuel use & increase efficiency o Managing flood risk to local communities with floodplain mapping o Helping to achieve Canada s Target 1 for parks & conservation areas o Maintaining or restoring landscape integrity o Promoting upgrades of municipal sewage & waste to capture biogas o Ensuring forest management enhances removal & storage of carbon

13 Strategy Implementation Management The Ministry of Environment is leading the collaborative and integrated implementation of the Strategy: ADM Climate Change Committee Strategy Implementation Working Groups Resiliency Model & Measures Legislative & Regulatory Structure Offset Mechanisms Programs and Strategies Internal Implementation Committee

14 External Milestones December 2017 Prairie Resilience released February 28 Deadline to sign Pan- Canadian Framework November Results of federal assessment of provincial systems January 1 Provincial regulatory framework and resiliency model in place January 2017 MRGHG Act and Coal-Fired Electrical Producer Regulations in force March 30 Deadline to opt in to federal backstop September 1 Deadline to submit provincial/territorial carbon pricing systems for federal assessment January 1 Federal backstop imposed in whole or in part for jurisdictions not meeting the federal benchmark

15 Federal Policy Greenhouse Gas Pollution Pricing Act January 2018 The federal backstop o Implementation date - January 1, 2019 o Consists of a carbon levy on all fuels (liquid, gas, solid) o $10/tonne CO 2 e 2018 increasing to $50/tonne CO 2 e 2022 o An output-based pricing system in 2019 on industrial emitters >50kt/a To be imposed in whole or in part on jurisdictions assessed to have not met the benchmark

16 Next Steps We are focused on moving from strategy to action. The following steps will be taken in order to begin implementation of Strategy on January 1, Engage on the Strategy 2. Proclaim or amend enabling legislation 3. Release additional documents for discussion 4. Refine the plan 5. Release regulations and guidance documents (introduce resilience measures and regulatory standards) 6. Establish reporting structures 7. Begin implementation

17 Climate Change Branch SK Ministry of Environment

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