GREENHOUSE GAS EMISSIONS REPORTING PROGRAM. Overview of 2008 Facility Data

GREENHOUSE GAS EMISSIONS REPORTING PROGRAM Overview of 2008 Facility Data

Photo credits: Cover page: Photocom Inside: Jim Moyes (p. 1); Photocom (p. 12) ISSN 1918-6150 Her Majesty the Queen in Right of Canada, represented by the Minister of the Environment, 2009 Aussi disponible en français sous le titre Programme de déclaration des émissions de gaz à effet de serre : Aperçu des données des installations pour l année 2008

Overview of 2008 Facility Data Page 1 Facility Greenhouse Gas Emissions Reporting Program 1 2 Analysis of reported greenhouse gas emissions 2008 emissions 2 3 Short-term trend: 2007 2008 4 4 Long-term trend: 2004 2008 8 5 What do I need to know before using the reported facility level greenhouse gas information? 11 6 For more information 13 7 Contact us 13 8 Disclaimer 13 i

Facility Greenhouse Gas Emissions 1 Reporting Program Overview of 2008 Facility Data In March 2004, the Government of Canada established the Greenhouse Gas Emissions Reporting Program, thus initiating a phased approach to the collection of information on greenhouse gas (GHG) emissions. This program continues to be part of Canada s ongoing effort to develop, through a collaborative process with the provinces and the territories, a harmonized and efficient GHG reporting system that minimizes duplication and eases the reporting burden for industry and governments alike. The program s four main objectives are to provide Canadians with timely information on GHG emissions; to enhance the level of detail in the National Greenhouse Gas Inventory; to support provincial and territorial requirements for GHG emissions information; and to support the development of regulations. A key change in the program s reporting requirements for 2009 data to be reported in 2010 is the lowering of the reporting threshold from 100 kilotonnes (kt) of CO 2 equivalent (CO 2 eq.) to 50 kt of CO 2 eq. This change will enable Environment Canada to obtain a better understanding of GHG emissions across Canada and improve alignment with existing data needs. The reporting requirements for 2009 data to be submitted next year are set out in the Notice with respect to reporting of greenhouse gases (GHGs) for 2009 1 published in the Canada Gazette. 1 This Notice can be viewed at www.gazette.gc.ca/rp-pr/p1/2009/2009-07-11/html/notice-avis-eng.html#d101. 1

2 Analysis of reported greenhouse gas emissions 2008 emissions A total of 350 facilities reported GHG emissions for the 2008 calendar year, collectively emitting a total of 263 megatonnes (Mt 2 ) of CO 2 eq of GHGs. Facilities can voluntarily report their GHG emissions if their emissions are below the reporting threshold, and 53 facilities did so in 2009. Total facility GHG emissions in 2008 represent just over a third (35%) of Canada s total 2007 GHG emissions and just over half (54%) of Canada s 2007 industrial GHG emissions 3, as published in the National Inventory Report, 1990 2007: Greenhouse Gas Sources and Sinks in Canada 4. The data used in this overview report are current as of September 14, 2009. While facilities have the ability to submit updates to their data, these updates will only be reflected in Environment Canada s release conducted next year. Facilities in Alberta accounted for the largest share of reported emissions, with approximately 42% of the total, followed by those in Ontario with 26%. Saskatchewan and Quebec both accounted for 8% of reported emissions (Table 1). Table 1 Reported 2008 GHG emissions by province Province Number of Facilities Total Emissions (kt CO 2 eq) % of Total Emissions Newfoundland and Labrador 7 5 273 2% Prince Edward Island 1 99 0% Nova Scotia 9 11 104 4% New Brunswick 12 10 284 3% Quebec 46 20 002 8% Ontario 87 66 911 26% Manitoba 9 2 367 1% Saskatchewan 24 21 885 8% Alberta 109 110 921 42% British Columbia 43 13 186 5% Northwest Territories 3 534 0% Totals 350 262 565 100% Note: Totals may not add due to rounding. 2 1 Mt = 1000 kt. 3 Canada s industrial GHG emissions include the following GHG categories from the National Inventory Report, 1990 2007: Greenhouse Gas Sources and Sinks in Canada: Stationary Combustion Sources (except Residential), Other Transportation, Fugitive Sources, Industrial Processes and Waste. 4 National Inventory Report, 1990 2007: Greenhouse Gas Sources and Sinks in Canada at www.ec.gc.ca/pdb/ghg/inventory_report/2007/ som-sum_eng.cfm. 2

When completing the GHG report, a reporter is required to identify the main activities occurring at its facility by selecting the North American Industry Classification System (NAICS) 5 code that corresponds to these activities. Three industrial sectors accounted for the majority of GHG emissions Utilities, primarily those generating electricity, representing 43%; Manufacturing, accounting for 32%; and Mining, Quarrying, and Oil and Gas Extraction, accounting for 21% (Figure 1). Examples of reporting facilities within Manufacturing include cement and lime manufacturing; pulp and paper mills; petroleum refineries; chemical manufacturing; and iron, steel and aluminium production facilities. Activities of reporting facilities within Mining, Quarrying, and Oil and Gas Extraction include production of petroleum and natural gas; oil sands mining and bitumen production; and mining of coal, iron ore, other metals, potash and diamond. In 2008, 292 of the 350 facilities that reported had GHG emission levels of less than 1 Mt. The remaining 58 facilities emitted GHGs in quantities greater than 1 Mt and accounted for 69% of the total reported emissions 6. Figure 1 Industrial sector contribution to 2008 reported GHG emissions Manufacturing (NAICS 31-33) 32% Other* 4% Mining, Quarrying, and Oil and Gas Extraction (NAICS 21) 21% Utilities (NAICS 22) 43% * Other includes Transportation and Warehousing, as well as Administrative and Support, Waste Management and Remediation Services industrial sectors. 5 The NAICS code is a six-digit code that was developed by Statistics Canada, the U.S. Office of Management and Budget and Mexico s Instituto Nacional de Estadistica Geografia e Informatica to enable the respective national agencies to collect comparable statistical data. The NAICS code in Canada consists of 20 sectors, 102 subsectors, 324 industry groups, 718 industries and 928 national industries. 6 Facility-level data is published on Environment Canada s Greenhouse Gas Division website at www.ec.gc.ca/pdb/ghg/onlinedata/ dataandreports_e.cfm. 3

3 Short-term trend: 2007 2008 Over the past year, total reported emissions decreased by 15.7 Mt of CO2 eq (6%). This decrease occurred across all sectors, with the Utilities and Manufacturing sectors demonstrating the largest decline (8.7 Mt and 3.8 Mt respectively) (Table 2). The total number of facilities reporting dropped by 2, from 352 to 350. An additional 2 Mining, Quarrying, and Oil and Gas Extraction facilities reported over the past year. The total emissions from the 79 facilities that reported for 2007 and 2008 declined by 2.5 Mt. Four new Utilities facilities reported in 2008. Among the 77 facilities that reported for 2007 and 2008, emissions decreased by 9.1 Mt. There was a decline of 8 reporting facilities in the Manufacturing sector: 5 facilities closed in either 2007 or 2008, while the remaining 3 indicated that they fell below the reporting threshold. These 8 facilities accounted for 1.5 Mt of GHGs in 2007. These changes in reported emissions are likely due to differences in the number of facilities reporting, variability in production volumes or operations (e.g., plant closures, shutdown periods, decreases in demand), economic factors or emission reduction efforts. Of the reported six GHGs, sulphur hexafluoride has seen the largest percentage decline (93%) due to the closure of two magnesium facilities over the past year. Amongst the provinces and territories, British Columbia and the Northwest Territories had an increase in reported emissions, while other provinces saw a decline in reported emissions (Figure 2). The increase experienced by British Columbia is largely due to an increase in emissions from conventional oil and Table 2 Short-term trend by sector, 2007 2008, all facilities All Facilities Number of Facilities Emissions (kt CO 2 eq) NAICS Sector 2007 2008 2007 2008 Difference 21 Mining, Quarrying, 83 85 57 022 55 568 1 453 and Oil and Gas Extraction 22 Utilities 78 82 121 821 113 110 8 711 31 33 Manufacturing 160 152 86 703 82 913 3 790 Other Other 31 31 12 756 10 972 1 782 Totals 352 350 278 301 262 565 15 736 Note: Totals may not add due to rounding. 4

Figure 2 Provincial short-term trend, 2007 2008 N.L. P.E.I. N.S. N.B. Province Que. Ont. Man. Sask. Alta. B.C. N.W.T. -8000-7000 -6000-5000 -4000-3000 -2000-1000 0 1000 Change in Emissions (kt CO 2 eq) gas extraction, while the Northwest Territories saw an increase in emissions from diamond mining. Ontario reported the largest decrease in emissions (7.0 Mt), the majority of which occurred within the Utilities sector, mainly fossil-fuel electric power generation (5.2 Mt), while Manufacturing accounted for a 1.1 Mt drop in reported emissions. The decrease in emissions from the Utilities sector is a result of the combination of hydraulic conditions, economic activity and increased conservation efforts. The cool, wet summer led to record hydroelectric production (a low-ghgemitting source) and lower demand for electricity. Coal-fired electricity generation decreased by 18% from 2007 7. Emissions from Alberta declined by 3.5 Mt. The two largest reductions are linked to oil and gas extraction activities and the Utilities sector (1.4 Mt each). The decrease in emissions from the Utilities sector is due to planned and unplanned outages resulting in a 1.3% reduction in coal-fired generation from 2007 8. Quebec saw a decline of 3.4 Mt, due largely to a 1.8 Mt decline in Manufacturing, followed by a 1.6 Mt drop in Utilities. The suspension of electricity generation from a naturalgas-powered facility led to the drop in emissions from Utilities 9. Comparable facilities are those that reported GHG emissions every year from 2004 to 2008. When comparing emissions 7 Source: Independent Electricity System Operator. 8 Source: Alberta Electric System Operator. 9 Source: Hydro Quebec. 5

between total facilities and comparable facilities, comparable facilities tend to dictate the emission trend (Figure 3). Understanding the trend from comparable facilities provides a more accurate representation of the overall trend as it removes the variability in the number of facilities reporting each year. There are 275 comparable facilities, which generally represent over 95% of the reported emissions from all facilities in any given year. Further data and analysis presented from this point forward in the report will focus on comparable facilities and their emissions. When comparing industries and their overall change in emissions, fossil-fuel electric power generation led with a decline in emissions of 7.6 Mt, followed by nonconventional oil extraction with a drop of 2.9 Mt. Overall, the industries shown in Figure 4 represent a decline of 14.8 Mt (94% of the total short-term decrease). As mentioned above, a number of factors contribute to these changes in emissions. For example, the decreased emissions in the cement industry are directly attributable to reductions (close to 10%) in the production of clinker (the main ingredient for cement), as observed in national statistics. The decrease in clinker production itself results from declines in domestic sales of cement, cement-derived products and cement exports 10. Figure 3 Comparable facilities versus all facilities, 2007 2008 285 000 280 000 275 000 Emissions (kt CO 2 eq) 270 000 265 000 260 000 255 000 250 000 245 000 240 000 235 000 2007 2008 Year All Facilities Comparable Facilities 10 Source: Statistics Canada and Industry Canada. 6

Figure 4 Top five short-term changes by industry, 2007 2008, comparable facilities Fossil-Fuel Electric Power Generation (NAICS: 221112) Non-Conventional Oil Extraction (NAICS: 211114) Industry Pipeline Transportation of Natural Gas (NAICS: 486210) Petroleum Refineries (NAICS: 324110) Cement Manufacturing (NAICS: 327310) -8000-7000 -6000-5000 -4000-3000 -2000-1000 0 Change in GHG Emissions (kt CO 2 eq) 7

4 Long-term trend: 2004 2008 Over the long term, the total number of facilities reporting increased from 326 in 2004 to 350 in 2008, while total emissions decreased by 16 Mt (6%) in the same time frame (Table 3). As mentioned previously, analyzing comparable facilities (facilities that have reported every year) provides a more accurate trend analysis. If one focuses on comparable facilities over the longterm (2004 2008), one sees that emissions declined 14.1 Mt during the period (Table 4). This represents a 5% reduction in reported emissions over the period. The provincial/territorial long-term trend (Figure 5) is similar to the short-term one, in that most provinces and territories display a decline in emissions. However, Alberta exhibited a slight increase, largely due to an increase of 3.8 Mt from nonconventional oil extraction. The decline in emissions in Ontario is mostly due to a drop of 5.3 Mt in the Manufacturing sector, followed by a drop of 1.1 Mt in the Utilities sector. New Brunswick displayed a 2.6-Mt drop in emissions, attributable to the Utilities sector, which accounted for 2.2 Mt. Emissions from British Columbia declined by 1.5 Mt, caused by a drop in emissions from conventional oil and gas extraction, manufacturing sector and pipeline transportation. Table 3 Long-term trend, 2004 2008, all facilities All Facilities 2004 2005 2006 2007 2008 Number of facilities 326 337 345 352 350 Emissions (kt CO 2 eq) 278 315 278 018 271 941 278 301 262 565 Annual Change (%) NA 0.1 2.2 2.3 5.7 Change since 2004 (%) NA 0.1 2.3 0.0 5.7 NA = Not applicable Table 4 Long-term trend, 2004 2008, comparable facilities Comparable Facilities 2004 2005 2006 2007 2008 Number of facilities 275 275 275 275 275 Emissions (kt CO 2 eq) 265 657 268 334 261 883 266 442 251 532 Annual Change (%) NA 1.0 2.4 1.7 5.6 Change since 2004 (%) NA 1.0 1.4 0.3 5.3 NA = Not applicable 8

Figure 5 Provincial long-term trend, 2004 2008, comparable facilities Province N.L. P.E.I. N.S. N.B. Que. Ont. Man. Sask. Alta. B.C. N.W.T. -8000-7000 -6000-5000 -4000-3000 -2000-1000 0 1000 Change in Emissions (kt CO 2 eq) Among the three largest contributors, emissions from Utilities and Manufacturing have declined, while emissions from Mining, Quarrying, and Oil and Gas Extraction have slightly increased (Figure 6). The Utilities sector exhibits significant variability that reflects the many factors that impact this sector, such as fuel cost (particularly oil and natural gas), weather, generation sources (nuclear, coal, hydro, wind) and demand by the manufacturing and residential sectors. The industries showing the largest change in GHG emissions are different in the short term (Figure 4) versus the long term (Figure 7). Also worth noting is the fact that the top contributors to the shortterm emission trend all show a reduction whereas, in the long term, non-conventional oil extraction increased by 3.6 Mt. One of the industries showing the largest change in emissions from 2004 to 2008 is iron and steel. The long-term emissions reductions in this industry correspond to the decreases observed in the national production levels for steel (8%). The decrease in steel production is mainly driven by the downturn in the automotive industry, one of the largest consumers of steel. This is reflected in a drop of 53% in the domestic sales of steel products to the sector of motor vehicles and parts 11. 11 Source: Statistics Canada. 9

Figure 6 Long-term sector trend, 2004 2008, comparable facilities Emissions (kt CO 2 eq) 130 000 120 000 110 000 100 000 90 000 80 000 70 000 60 000 50 000 40 000 2004 2005 2006 2007 2008 Year Mining, Quarrying, and Oil and Gas Extraction Utilities Manufacturing Figure 7 Top five long-term changes by industry, 2004 2008, comparable facilities Fossil-Fuel Electric Power Generation (NAICS: 221112) Non-Conventional Oil Extraction (NAICS: 211114) Industry Conventional Oil and Gas Extraction (NAICS: 211113) Pipeline Transportation of Natural Gas (NAICS: 486210) Iron and Steel Mills and Ferro-Alloy Manufacturing (NAICS: 331110) -6000-5000 -4000-3000 -2000-1000 0 1000 2000 3000 4000 5000 Change in GHG Emissions (kt CO 2 eq) 10

5 What do I need to know before using the reported facility level greenhouse gas information? Greenhouse gas emissions are reported in CO 2 eq units. Greenhouse gases are not equal in the effect they have on the atmosphere. In fact, each GHG has a unique average atmospheric lifetime and heat-trapping potential. Greenhouse gas emissions are often calculated in terms of how much CO 2 would be required to produce a similar warming effect. This is called the carbon dioxide equivalent (CO 2 eq) value and is calculated by multiplying the amount of the gas by its associated global warming potential (GWP). For example, the GWP for methane (CH 4 ) is 21, which means that each tonne of CH 4 emitted is considered to have a cumulative warming effect over the next 100 years equivalent to emitting 21 tonnes of CO 2. The scientific community has established a GWP for each of the GHGs subject to reporting under the Greenhouse Gas Emissions Reporting Program. A complete list can be found in the latest notice published in the Canada Gazette at www.gazette.gc.ca/rp-pr/ p1/2009/2009-07-11/html/notice-avis-eng. html#d101. Greenhouse gas emissions data are only required from facilities that meet the reporting requirements. Not all industrial facilities in Canada are required to report their annual GHG emissions to Environment Canada. The Greenhouse Gas Emissions Reporting Program only requires facilities that emit the equivalent of 100 kt or more of CO 2 eq to report. If desired, facilities with emissions below the reporting threshold can still participate in the Greenhouse Gas Emissions Reporting Program and report their emissions annually. Note that the threshold has been reduced to 50 kt for 2009 data to be reported in 2010. The number of reporting facilities may change from year to year. Fluctuation in the number of reporting facilities is not unexpected from year to year. A change in production levels, process and technology and/or type of fuel used at a facility could all result in either an increase or a decrease in the annual emissions reported by a facility. As a result, a facility may go below or attain the reporting threshold of 100 kt CO 2 eq. The Greenhouse Gas Emissions Reporting Program is not the National Pollutant Release Inventory (NPRI). Although both programs are delivered by Environment Canada under the authority of section 46 of the Canadian Environmental Protection Act, 1999, they are two distinct programs. The NPRI currently collects pollution data on a range of emissions of concern, including criteria air contaminants, whereas the Greenhouse Gas Emissions Reporting Program collects GHG information from facilities. Facilities reporting to the Greenhouse Gas Emissions Reporting Program are asked to report their NPRI identification number to facilitate searching and comparison of emissions from facilities that report to both programs. 11

There are a number of methods that a facility may choose to use to calculate its GHG emissions. The methods selected by reporting facilities must be consistent with the guidelines adopted by the United Nations Framework Convention on Climate Change and developed by the Intergovernmental Panel on Climate Change. The facility must ensure that the reported data are of good quality. Reporters have a legal obligation to keep copies of the information submitted, along with any calculations, measurements and other data on which the information is based. All information must be kept for a period of three years from the date on which the information was reported to Environment Canada. Reporters are also required to submit a statement of certification, signed by an authorized official, stating that the information contained in the attached emission report is accurate and complete, to the best of their knowledge. Environment Canada conducts a number of checks on the reported GHG data for compliance purposes and for completeness prior to publication; however, any interpretation of the reported data must consider the possible presence of estimation, calculation or input errors made by facilities. 12

6 For more 7 information Contact us Overview of 2008 Facility Data The GHG Division website provides public access to information from all facilities that reported GHG emissions. Data is provided in tables, a searchable database and in a downloadable format. Users can search by emissions of a specific gas or emissions of all gases, by facility name or NPRI identification number, by reporting company, by province, territory or city, or by industrial sector using the NAICS code. Do you have questions about this report or need more information about its contents? If so, please contact the GHG Division: Email: ghg@ec.gc.ca Tel.: 819-994-0684 Fax: 819-953-3006 Website: www.ec.gc.ca/ghg GHG Division Facility GHG Reporting Data: www.ec.gc.ca/pdb/ghg/facility_e.cfm Reporting of greenhouse gases: www.ghgreporting.gc.ca 8 Disclaimer GHG Division Canada s National GHG Inventory: www.ec.gc.ca/ghg Canada Gazette notice for reporting of 2008 GHG emissions analyzed above: www.gazette.gc.ca/rp-pr/p1/2008/2008-02- 16/html/notice-avis-eng.html#d108 Canada Gazette notice for upcoming reporting of 2009 GHG emissions: www.gazette.gc.ca/rp-pr/p1/2009/2009-07- 11/html/notice-avis-eng.html#d101 Data presented here is current as of September 14, 2009. Environment Canada conducted a number of data checks for compliance purposes and for completeness. Environment Canada will continue to analyze the data that may result in periodic updates to the data. The data provided within this report are for information purposes only. Any interpretation of the data must consider the possible presence of estimation, calculation or input errors made by facilities. 13

Additional information can be obtained at: Environment Canada Inquiry Centre 351 St. Joseph Boulevard Place Vincent Massey, 8th Floor Gatineau, Quebec K1A 0H3 Telephone: 1-800-668-6767 (in Canada only) or 819-997-2800 Fax: 819-994-1412 TTY: 819-994-0736 Email: enviroinfo@ec.gc.ca