Canada s Climate Action Plan (2002): Options Paper Summary

Canada s Climate Action Plan (2002): Options Paper Summary

ROLE & SIGNIFICANCE The role of Issue tables in the development process of Canada s Action Plan on Climate Change were integral for providing expert and detailed input to analysis and identifying challenges and reduction strategies. During the development of the Action Plan, 16 Issue Tables were involved in discussions regarding strategies for greenhouse gas reductions. THE PROCEDURE The process involved the consultation of experts from the transportation, energy and agriculture sectors and representation from the municipal government with a broader community of stakeholders. This consultation was undertaken in order to draft reports on the issues and options discussed within each sector for consideration in the national implementation strategy. Guidelines provided for these tables included: a relatively manageable size of participants (preferably between 15-22) provision of deliverables within set deadlines consultations with and dissemination of knowledge to interested stakeholders whom are not sitting on the table directly The final deliverable was to produce an options report on the issues raised by each sector that includes short, long and medium term options of estimates of potential reductions in megatonnes, identification of risks and barriers for each option; estimates of costs and benefits (social, economic and environmental) for the options and; strategies and requirements for implantation. ORGANIZATIONSL STRUCTURE Each Issue Table was co-chaired by representatives from government and non-government participants in order to achieve fair, equal and politically unbiased representation. In addition to being responsible for organizing and directing meetings; ensuring deadlines and deliverables are met; fostering outside stakeholder consultations and; proving budget reports, co-chairs also sat on the Integrative Group. The Integrative Group was established during the Issue Table process to provide synthesis, integration and linkages amongst the work of each sector. The specific responsibilities of this group included: identification of gaps or duplications in the work of the Issue Tables and discussion of common interests, issues and options for reduction across sectors. Throughout the consultation process, the National Secretariat provided managerial and background support to both the Integrated Group and Issue Tables. Final reporting was given to the National Action Program on Climate Change for considerations into the national implementation strategy. The following section will summarize the key issues, actors and outcomes of three Sector Issue Table consultations. For the purpose of this research project, focus was placed on evaluating the Issue Table option reports of the electricity, transportation and municipal sectors. These three were concluded by our team to be the most representative sampling as they each exemplify a different sector of the economy whereby energy represents the supply sector, transportation the demand sector and municipalities a cross-cutting sector requiring both supply and demand management.

Table 1 - Summary of Electricity Sector Final Options Report Cost issues associated with a shift from least-cost to higher-cost energy technologies Time frame for implementing renewable energies Loss of electricity trading and sale to U.S. due to higher cost technologies Disconnect between current policy changes to the structure and regulation of the electricity sector and Kyoto guidelines Uncertainty about electricity demand growth and its relationship with economic activity Uncertainty about global and Canadian Climate change policy effectiveness, necessity and level of effort needed Differences in environmental standards between provinces (specifically Alberta) Premature retirement of coal plants costing taxpayers and shareholders First Nations relationship issues potential tensions from land encroachment for hydro projects Risk of energy alternatives to human health and the environment (specifically nuclear) 28 table members Co-chairs: Rick Hyndman & Richard Drouin Federal representation from Natural Resources Canada Provincial Government representatives from Ontario, Quebec, Alberta and British Columbia Representatives from Utilities companies including BC Hydro, ON Power Generation, Nova Scotia Power Inc, SaskPower, TransAlta Utilities, Hydro Quebec Four representatives from independent power producers and renewable energy companies Representatives from Non-government environmental organizations (Pembina Institute, Sierra Club) Other Experts with background in energy generation, supply and systems Need for Preparatory Measures including emission reporting and consumer information Financial support for transition to non-ghg technologies and ongoing research and development for capture and storage of CO2 and renewable technologies Credit for early action based on verifiable reductions Phased implementation approach Demand side management via government set efficiency standards, consumer incentives for increasing efficiency Emissions pricing approach to mandate reductions via emissions trading or GHG taxes Need for Canada to remain competitive in the international market via pricing and emissions trading agreement with U.S. Emissions reductions from 118Megatons (Mt) to 90Mt via 22 Terawatt Hours (TWh) natural gas generation increase, 9TWh hydro increase, 4TWh biomass increase, 39TWh coal decrease, 0.3 TWh oil decrease and no change to wind and nuclear generation levels

Table 2 - Summary of Transportation Sector Final Options Report Cost issues associated with a shift from least-cost to higher-cost energy technologies Influencing and changing the travel, commuting and living habits of Canadians Influencing the aviation sector Economic issues associated with improving vehicle technologies and alternate fuel development Relationship between economic growth leading to increased demand for transportation Loss of competitiveness with U.S. automobile manufacturing market Time scale constraints of Kyoto on influencing and reducing transportation emissions and developing/ implementing new technologies Unrealistically high fuel taxes and prices required to meet targets and lack of public support Impacts of fuel pricing on tourism Equity issues of fuel pricing on lower-income earners Limitations on current transpiration data and trends Regional differences across Canada for transport contributions to national GHG s emissions 25 table members Created four subgroups within table to engage additional stakeholders (Consultations, Road Vehicle Technology and Fuels, Freight Transport and Passenger Transport) Co-chairs: Ken Ogilvie- Pollution Probe & Ron Sully- Transport Canada Representatives from Provincial Governments of QU, ON, AB, MA, BC Federal Representatives from Natural Resources Canada, Railway, Air Transport, Automobile and Shipowners Associations NGO representation from Pembina Institute Private sector representatives from manufacturing and freight transport industries Increasing public awareness and influencing voluntary changes in travel behavior at the individual level via passenger travel options (car-sharing, driving education, biking infrastructure, increased parking charges) Aggressive pricing mechanisms for air travel Increased enforcement of speed limits for an estimated 4.2 Mt reduction Road pricing systems Need for harmonized reduction targets with the U.S. Feebates which offer rebates for fuel efficient vehicle purchases and charge extra for less-efficient models Load matching to reduce empty transport trips, removal of inefficient trucks off roads, efficient rail car technologies Implementation of fuel taxes Improved and sustained data collection and reporting Overall commitment to implementing improved technologies across transport sectors Emissions trading Overall reductions of 23Mt by 2020 via passenger travel (8 Mt reduction), freight transport improvements (4.3Mt), road infrastructure and pricing (10.8Mt)

Table 3 - Summary of Municipalities Sector Final Options Report Limitations of human resources available at the municipal level to undertake Local Action Plans and GHG reduction projects Budgeting and financial barriers to action (lack of monetary resources) Legislative barriers set by Provinces and Federal levels which municipalities must act in compliance Challenges to changing infrastructure and management of municipal waste Difficulty in acquiring federal/provincial investment and financial aid Sheer number of municipal actors to be involved (over 4,000 municipalities in Canada) Need to ensure co-benefits received/experienced directly by community implementing reduction strategies GHG reduction a new issue being considered by many municipalities so data on trends, costs etc. are limited Time and place specific nature of strategies required by different municipalities Political timescale restrictions and turnover rates in government setting 27 table members Co-Chairs: Jack Layton- City of Toronto & Ken MacLeod- Municipal Affairs Provincial Representation from BC, ON,AB Federal Representation from Natural Resources Canada, Environment Canada, Canada Mortgage and housing Municipal Representation from Federation of Canadian Municipalities, Canadian Association of Municipal Administrators, Toronto Hydro, Sudbury, Halifax, Perth, Ottawa, Regina, International Council for Local Environmental Initiatives, Edmonton, Yellowknife NGO and private representation from Pembina Institute, Eltec Inc., Rose Technology group Need for partnership between all levels of government and private sector Development of Local Action Plans based on time and place specific needs and available resources Reducing emissions from municipal infrastructure Implementing landfill gas capturing technologies Municipal education and engagement strategies to build capital investments in reduction strategies Enhancing producer responsibility for waste via disposal fees, increased recycling Solid waste diversion mechanisms Tree planting on community scale and improved energy systems (retrofits for efficient upgrades) Requirement for financial aid and initial investment into municipal strategies by provincial/fed governments Legislative and regulatory changes where needed to increasing municipal responsibility and ability to act Actual reductions of 20-55 Mt of GHG emissions by 2010