ab executive council foi climate change plan economic impact

7/26/2019 AB Executive Council FOI Climate Change Plan Economic Impact

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Boyl

FOIP Coordinator

Executive

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Enclosure



Cabinet

and

Treasury Board confidences

22 1) The

head ofa

public body must refuse to disclose to an applicant information

that

would reveal the

substance

of

deliberations of

the

Executive Council or any

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ts

committees or

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he Treasury

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submillcd or prepared for submission to the Executive Council or any of

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or any orits commillees.

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appeal

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iii) years or

more

have passed since the decision wns

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or considered.

t99 l ~ : F 1 1 1 s21



Advice

from

officials

24 1) The head

o

a public body may refuse

to

disclose

information

to

an

applicant i

he

disclosure could

reasonably be expected

to

reveal

a} advice, proposals, recommendations, analyses or policy options developed by or foro public body or a

memberofthc

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management o

personnel or

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administration

o

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public body

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the

Lieutenant Governor in Council,

f) the contents o

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o nn agency,

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ii) o a committee o a governing bDdy referred

to

in subclause i},

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could reasonably be expected to result in disclosure o a pending policy or budgetary decision,

or

h) the

contentS

o

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research or

audit

report that

in

the

opinion

o

he head

o

he

public

body

is

incomplete

unless no progress h s been made on the report for at least 3

years.

2) This section does not apply

to

information that

a) has been in existence for

5

years or

more,

b)

is

a statement

o t

he reasons

for

a decision

that is

made

in

the exercise o a discretionary power or

an

adjudicative function,

c) is the resuh o product or environmental testing carried out by or for a public body, that is complete or

on

which

no progress hilS been made for

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least 3 years,

unless

the testing was

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i) for a fee

as

a service to a person other

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o

developing methods

o

esting or testing products for possible purchase,

d)

is

a statistical survey,

e) is the result ofbackground research o a scientific or technical

nature

undertaken in connection with the

formulation o

a policy proposal, that

is

complete or on

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has

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for

atleast3

years,

f) is

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instruction or guideline issued to the officers or

employees

o n public body, or



g) is

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substantive rule or statement

o

policy that

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o

interpreting n Act or regulation

or 11dministering

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program

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activity o he

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body.

(2.1) The head o a public body must refuse to disclose to

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II)

a record relating to n audit by the Chief Internal Auditor o Alberta that is created by or for the Chief

Internal

Auditor

o

Alberta.

or

(b) information

that

would reveal information

about

n

audit

by

the Chief Internal Auditor

o Alberta.

(2.2) Subsection (2.1) docs not11pply to n record

or information

described in that

subsection

a)

i

IS years or

more

has elapsed since the audit to which the record or information relates was complcll:d,

or

(b) if the audit to which the record or

inform11tion

relates was discontinued or

i

no progress has been

made

on the udit

for

5 years

or

more.

3) In this section, audit

means

n financial or other formal and systematic examination or

review

o o

program, portion o

a prosram or

activity.

RSA

2000 cf.25 s24,2006

c:l7 s



t

overnment

xception Sheet

o p

File Number: 2015-G-0143

Disposition

FOIP

Page

Release

Partial

No Release

OI

P Exception

Release

1 to 27

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22(1

j

24(1)(a)

-

- --

28

X

24(1 ) a. b,c)

29 to

34

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24(1)(a,b,c)

-

- ·

5

X

36

X 24(1

)

a,b,c}

37-40

X

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-·-

24(1)(a,b,c)

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42-52

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53-88

~

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22 \ ; 24(1)(a)

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89-115

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24 ~

1- - -

--

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22(1 ·

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1

(a )

16-138

X

139 X

140-173

-

X

22(1); 24(1 a )

174-177

X

24(1 )(a,b)

-

- F-

-·



FOIP Request 2015-G-0143

Minister s Message

Climate change

is

one

of

the

greatest challenges

to

ever face

our

planet,

our

society and

our

economy.

24 1

)(a,b,c)(Advice from Officials)

Alberta's new government is committed to a stronger approach to protecting

our

environment and

growing a prosperous and sustainable economy for the well-being of Albertans today and for

generations to come.

We recently updated the province's expiring carbon regulations, as

an

immediate first step in getting

serious about

our

climate change responsibilities.

Even

more importantly, we appointed Dr. Andrew

Leach

to chair an Expert Advisory Panel on climate change. The Panel will

be

responsible for reviewing

our

current suite

of

policies, consulting

with

Albertans on

their

views about climate change and

providing government

with

advice on a comprehensive set of permanent measures to reduce emissions

as Alberta transitions toward a lower-carbon economy.

24(1 )(a,b,c)(Advice from Officials)


Climate change is a complex challenge and Alberta is ready for a fresh start.

We invite you to share your view

with

us.


Shannon Phillips

inister of Environment and Parks

July 2015

E Page 29




ab

l of

on

t nts

Page

numbers

will

be

added

once

formatting is

finalized

Minister s Message

24(1 )(a,b,c)(Advice from Offic1als)

Alberta s Challenge

Alberta s Vision

Alberta s Emission Profile

Multi-sector Policies

il and

Gas

Electricity

Transportation

Buildings

and

Houses

ther Industrial Emitters, Manufacturing and Construction

Agriculture, Forestry

and

Waste

Ambition Scenarios

Next Steps

EC Page 3



FOlP Request #2015-G-0143


Climate change is real and i t is having a tangible effect, globally, nationally and locally.

The effects

of

climate

change are wide-reaching and scientific evidence

overwhelmingly

suggests

that,

without

significant action on a global scale,

the

consequences will be severe.

Effects

of

Climate Change

The rate

of

observed changes

in

the

world s

climate since

the

1950s is unprecedented. The

concentrations

of

greenhouse gases in

the

atmosphere

have increased, leading

to

a

warming

atmosphere; diminishing

snow and

ice in

many

regions;

warming

oceans and rising sea levels; and

increasing

extreme weather

events.

The evidence is clear. (this section will be converted to a sidebar

or

other graphic treatment)

Since 1900,

the global

average surface

temperature

has increased

by

about 0.8

•c

(1.4 "F). This

has been accompanied by warming of

the

ocean, a rise in sea level, a strong decline

in

Arctic sea

ice, and

many other

associated climate effects.

Much of this warming

has occurred

in the

last

four

decades. 24(1)(a,b,c}(Advlce from Offic1als)

. From: Climate Change:

Evidence and Causes- An overview from the Royal Society and the US National Academy

of Sciences

Human

influence

on the climate system is clear, and recent anthropogenic emissions of

greenhouse gases

are the

highest in history. Recent climate changes have had widespread

impacts on

human

and natural systems. From: Intergovernmental Panel on Climate Change {IPCC)

Fifth Assessment

Report-

Synthesis Repore

Although c limate change can be caused by both natural processes and human activities, the

recent warming

has been largely attributed to

human

activity,

primarily the

release

of

carbon

dioxide and

other

greenhouse gases

to the

atmosphere. These gases enhance the insulating

properties

of the atmosphere,

reducing

heat

loss,

thereby warming the

planet. Continued

emission of these gases is

the

primary cause for concern about climate change now

and

into

the

immediate future.

Particularly important is

the

emission

of

carbon dioxide , which is released

through the

combustion

of

carbon-based fossil fuels. In Canada, over 80% oftotal national

greenhouse gas emissions are associated

with the production

or

consumption of

fossil fuels

for

energy purposes. From: Canada's Action

on

Climate Change

3

1

ht tps:U royalsocletx.oaJpollr;.ylpro ects/ cl ate-evldence-causes/

l IPCC . 2014

Climate Change 2014

: Syn1hesis Report. Contribution of Working

Groups

I, II

and

Ill to 1he Fif1h Assessment

Report

of the

lntergovemmental Panel

on Climate

Change [CoreWn

ling

Team , R.K. Pachauriand L.A. Meyer(eds )] .

IPCC

,

Geneva, w i t z e ~ n d 151 pp

s http:l/www.cllmatechange.gc.ca/default.asp?lang;En n:FZDBlFBE·l

EC Page

31



FOIP Request #2015-G-0143


Alberta's 24 1 )(a,b,c)(Advice from OfficiqiN intended to help inform a comprehensive action plan on

climate ch

an

ge. This discussion paper lays

the

foundation

for

these

important

conversations

with

Albertans. •t sets out the challenges we face, presents considerations and opt ions for action, and offers

crucial questions that Albertans

will

have the

opportunity

to explore.

Create an

arrow

graphic here,

to

show

the

progression from Climate Change Conversations ->

report

from panel to

Minister

·> in ternationa l consul tation (COP21} -> action plan

on

climate change

An Expert Advisory Panel

will

guide the Climate Change Conversations and

inform

the development of a

new

action plan. The panel's report

will

consider environmental, social and economic factors, and

ensure that interactions between related policies, such

as

Alberta's Royalty Review, are carefully

understood. New commitments

will

require realistic plans to achieve them.

24 1 ){a,b,c)(Advice from Officials)

Members

of Alber ta's Expert Advisory Panel on Climate Change

insert

pi tures

and brief bios

o

panel members)

We

want

to hear your thoughts on

what

Alberta's goals should be and how they can be

achieved. Action

to

reduce greenhouse gas emissions goes

far

beyond the most talked-about

industries. All Albertans

must

be part of

the

solution, and we look forward to hearing

about

ways Albertans can reduce emissions in

their

day-to-day lives, about new technologies and the

opportunities for success they bring, and

about how

the province can retain a

true

Alberta

advantage in a lower-carbon future .

We

will

learn from Alberta's citizens, labour, industry, communities,

other

jurisdictions,

scientists, economists, experts in a variety of emerging and already

prominent

industries, and

tradi tiona l knowledge shared by Indigenous Peoples

to

provide

the

government

with

a set of

options

to inform

a

new

action plan on climate change."

ndrew

Leach Expert Advisory Panel Chair

Get Involved


Visit:

http://www.in

sertwebsitehere.ab.ca

for

more

information,

to

learn more about the

consultation process and oppor tunities to attend public consultations, or

to

take the online survey.

EC Page 32




Alberta s Challenge

Alber ta's challenge

is

to define

the

province

as

a leader in a world

that is

taking action on climate

change.

Alberta's economy is fueled by natural resources. Energy product ion in the province has grown

significantly, and

with that

growth has come increased greenhouse gas emissions.

Insert a chart

of

Alberta s historical emissions with th different sectors (stacked wedges).

24 1 ) ~ . b , c ) A d v i c e

from Officials)

Any ambit ious climate change policy wi ll necessarily affect Alberta's energy industries, but these

industries cannot be the only focus. The day-toAday lives

of

Albertans are also significant contributors to

greenhouse gas emissions. Just

as

the scientific evidence for of

the

severity of climate change is

overwhelming, the economic evidence is equally clear policies applied as broadly

as

possible, and with

comparable stringency, across

the

economy will yield

the

most cost-effective path to reduced emissions.

Alberta's policies must address emissions

from

all

sources

oil and gas, electricity, transportation,

buildings and homes, industry, construction, manufacturing, agriculture, forestry and waste.

Canada's Targets

The world is joining together to face the global challenge of climate

change.

In December 2015, the United Nations will host

the

Conference of the

Parties in Paris, France. The goal ofthis conference is to create a

binding treaty that will commit all nations to significantly reducing their

greenhouse gas emissions.

In advance of the United Nations Conference of

the

Parties,

the

Government

of

Canada has released its target for emission reductions.

The Government of Canada has proposed a commitment to reducing

greenhouse gas emissions to 30%

below

2005 levels, or to 524

megatonnes, by 2030.

Mt

=megatonne =one

million tonnes

=carbon dioxide

e

=carbon dioxide

equivalent=

greenhouse

gas

emissions converted

using the global warming

potentia s for each

greenhouse gas

Greenhouse Gas =GHG =

prim ary greenhouse gases

in the atmosphere are

water vapour, carbon

dioxide, methane, nitrous

oxide and ozone.

4

Regulatory reporting results under the Specified

Gas

Emitters Regulation, excluding the Nexen Long Lake in-situ

facility

with

integrated upgrader.

5

Environment Canada, Nat ional Inventory Report 1990-2013.

E Page 33




This target builds on the federal government 's existing

commitment

to reduce emissions to 17% below

2005 levels by 2020.

Meeting

these targets will require the support of all provinces and ter ritories.

24(1 }(a,b,c)(Advice from Officials)

Insert a graphic showing Canada's rising emissions, Including

the

2020 and 2030 targets

and

the

gap between

the two.

currentl y accounts for approximately

37% of

Canada's total

emissions, or

67

megatonnes, and this number

is

growing. In the most

recent Environment Canada projection, Alberta emissions were projected

to

grow

to

287Mt by 2020,

up to

39% of Canada's total.

Without a meaningful contribution from Alberta, Canada

will not

meet its

targets.

As

the province has already experienced, the reputational impact

of these outcomes

is

likely

to

fall disproportionately on Alberta.

Reducing emissions in

Alberta

w ll be a complex challenge, but globally

credible climate change policies are essential to securing Alberta s

future

as a prosperous energy economy in a global marketplace.

Energy is

the

driving force of Alberta's economy, accounting for about 30%

of

the province's GOP

directly, and energy influences demand in most

other

sectors of the economy. The value of Alberta's

energy products comes

from

trade. Alberta exports approximately

75%

of ts crude

oil

and

bitumen

and

SO

of ts natural gas. The ability to export these energy products is crucial to capturing their fair market

value. Alberta's energy economy depends on its ability

to

reach and sell its resources

to

markets in

North America and around the world.

24(1 )(a,b,c)(Adv1ce from Officials)

As nations around the world

join the fight against climate change, demand

is

growing

for

cleaner forms of energy. International and

domestic resistance

to

energy infrastructure projects, including pipelines, highlights

the

increasing

importance of environmental performance to customers and regulators alike.

In

the

absence of strong climate change policies, Alberta's energy production has increasingly come

under the

microscope, drawing domestic and internationa l concern. Alberta's resources have become

symbolic

to

many of the challenge of climate change.

But it's

not

just

about

pipelines and protests. Global policies are increasingly

putting more

m s s o n s

intensive energy sources at a disadvantage. The European Union's Fuel Qual ity Directive requires a

reduction in the greenhouse

gas

intensity of fuels used in vehicles by

6

by 2020, and California's

lo w

Carbon Fuel Standard calls

for

a reduction

of at

least 10% by 2020.

Each

of these imposes

implicit or

explicit penalties on higher emissions sources

of

oil and will reduce the value of resources here in

Alberta

i he

province's action on emission reduction does

not

improve.

EC Page 34




Albertans, Canadians and the world are demanding a greener product. A lower-carbon Alberta energy

industry can help meet

that

demand, allowing the province's economy to thrive for generations to

come.

Meeting the

Challenge

The world is demanding less emissions-intensive energy products.

Canada h s set

n

aggressive target for significant emissions reductions.

Alberta must move toward a greener future, with strong commitments and a globally credible

climate change action plan.

Alberta s Vision

Alberta's vision

is

for a healthy and prosperous province

that

is a leader in environmental stewardship

and enjoys sustained economic growth, steady

job

creation and a great quality

of

life.

This vision belongs to all Albertans and all Albertans will play a role in achieving it.

The province's new approach to climate change will provide a framework for Alberta to:

• make a significant and meaningful contribut ion to Canada's greenhouse g s reduction

commitments and contribute to the global effort to mitigate climate change;

• ensure

the

resiliency

of

its energy economy in a lower-carbon world;

• acknowledge

the

interactions and coordinate with other related policy initiatives, including the

royalty review, land-use plans, infrastructure planning and investment in innovation;

• provide open and transparent monitor ing and regular reporting to Albertans on progress toward

emissions reductions;

• foster partnerships with municipalities, provinces, the federal government and First Nation and

Metis

communities; and

• ensure Albertans are engaged and part

of

the solution.

Alberta's

new government

is

committed

to

creating an action plan

on

climate change

that will

define Alberta's emission reduction targets and lay

out

the steps to achieve them

EC Page 35




Alberta s Emissions Profile


Multi sector Policies

Alberta's emissions come from all sectors across the economy,

as

well

as

the day to day lives of

Albertans. Alberta may choose to adopt a single, economy-wide policy

or

set of policies as the basis for

its approach to climate change. These could include emissions prices or regulatory approaches.

Economy-wide Emissions Profile: 267

t

total greenhouse gas emissions in 2013

14%

or

33

t

emissions growth since 2005

37 - percentage of Canada's emissions in 2013

66 tonnes-

per capita emissions in

2013, the 2 d

highest in Canada

RI Sidentlal/

commercial

"'

~ n u f /

2013 Alberta GreenhouseGil Emission•

267 Mt

COZ eq

Total

W

t

Agriculture

- ~ I 7%

1

"0

illrdsrm

t.....,.IDtJI I Isobbllno<l from heAlbmaGHG RoporlnJPn>,...,.. Al l Dthordlla

and tcbl l emlosiot l

sf 1990 201.S l l t l c n l

~ ~ • p o r t

Cu

rrent

S

tate:

This chart provides a sense of Alberta's

emissions and where they come from.

Insert chart showing Alberta's emission

projection growth

EC

Page 36




Economy Wide Policy Approaches

These approaches could be applied to

the

economy as a whole, as

part

of a suite of policies, or to specific sectors of

the

economy.

Carbon

pricing-

Carbon prici ng is a catch-all

term

for

a set

of

policies which establish a price

for

greenhouse

gas

emissions. Economic

research suggests that carbon pricing, when applied broadly across emissions in the economy, allows

for

the most cost-effective

(lowest cost per tonne) emissions reductions. This does not

imply

that carbon prices are necessarily

more

effective at reducing

emissions

than

regulations- whatever policy tool is chosen,

the

stringency with which that tool

is

applied will determine the

emissions reductions achieved.

A price on carbon provides a financial incenti ve

for

emitters

to

reduce their emissions. This can spur

the

adoption of technology,

efficiency and conservation, and provides emitt ers

with

flexibility to reduce emissions in a way that best suits their individual

processes, abilities and circumstances.

The following are approaches to carbon pricing that have been employed in various jurisdictions:

Carbon Tax System- A tax

is

levied based on a set price per tonne of emissions. A carbon tax has the benefit of providing

certainty

in

terms

of

cost. One tonne= a set price, i.e. $20/t onne. Companies (and citizens

in

many cases) have

the

choice

to pay the tax or to avoid emissions. However, there is no certainty in

the

environmenta l outcome, as one could simply

choose to pay the tax instead of reducing emissions. The price of the carbon tax can be adjusted over time to achieve

desired environmental outcomes,

but

this reduces cost certainty.

The most common ly cited carbon tax regime is that implemented in British Columbia, where combustion emissions face a

price

of

$30 per tonne across the province. Revenue from the tax is used to finance government expenditures,

after

a

reduction in corporate and personal income taxes. Many European nations, notably Sweden, have long relied on carbon

taxation

as

a means of both generating revenue and reducing emissions.

Cap and Trade System- A limit or cap

on

total emissions from regulated emitters is set, allowing the trans fer of emissions

allowances or permits between regulated emitters. If

one

company exceeds

their

mandate emissions and another

decreases their emissions below the 'cap', t hey can trade with each other to even

out

their emissions. A cap and trade

system has an environmental outcome that is certain (based on the cap). However, the cost

of

emitting depends on the

demand for permits relative to

the

cap

(or

supply).

Many

cap and trade systems introduce price controls (i.e. price ceilings

and/or floors) to provide more certainty on the economic Impacts

of

the policy,

but

this reduces emissions certainty.

The

most

commonly cited cap-and-trade regime

for

greenhouse gases is that imposed in the European Union but,

more

recently, a cap-and-trade program has been implemented by Ontari o and Quebec,

with

a set a floor price and price ceiling

in

an effort

to manage cost uncertainty . The most recent auction price in May 2015 was US$12.39 (about $15/tonne).

Importantly,

in

addition

to

covering large emitter s,

the

cap·and·trade program

in

Quebec also impacts consumers, since

fuel and natural

gas

distributors are required to purchase emissions permits for the eventual combustion emissions of the

fuel they sell. Cap·and·trade programs also formed the centerpiece of legislation to combat acid rain in North America.

Hybrid

System -Alberta s existing Specified Gas Emitters Regulation for large

emitters

is an example of a hybrid system: it

is part tax, part cap and trade and

part

regulatory. The regulation requires facilities

that

emit 100,000 tonnes

of

Oze or

more per year to reduce their emissions intensit y by 12% below a historical baseline. This reduction requirement will

increase to 15% in 2016 and to 20% in 2017. Facilities that reduce emissions below

their target

are able to generate

emissions performance credits, which are tradable or may be banked for use

in future

years. Facilities that are unable to

meet their annual intensity target may comply through

the use of

traded credits; by purchasing emissions offsets,

effectively outsou rcing emissions reductions to

other,

non·regulated sectors; or

they

may pay into a technology fund at a

set price per tonne

of

carbon dioxide. Many hybrid systems are possible, and are

not

necessarily more

or

less stringent

than a cap·and·trade or carbon tax system.

Regulatory Approaches - There is awide range

of

regulatory approaches,

but the

classical definit ion would be one in which the

government regulates the adoption of he best economically feasible technology, or performance equivalent to that technology.

Regulations can also be in the form

of

outright bans

or

restrictions on use,

or

requirements

to

use, part icular technologies

or

classes

of product.

In Canada, the federal government

has

regulated that coal-fired power plants must,

at

the end

of

their lifespans, either be shut down

or be retrofitted to perform

at

emissions intensity rough ly equivalent to that of a natural·gas-fired power plant. Other examples

of

regulatory approaches are vehicle emissions regulations and,

in

some jurisdictions, requirements

for

a minimum share

of

renewable

electricit y generation. Environmental regulations have also strictly limited Incandescent light bulbs, certain pesticides and ozone

depleting chloronuorocarbons

CFCs).

Building codes also set requirements for energy efficiency and insulation for buildings and

houses.

EC Page 37




Discussion Questions

1.

Given Canada's emission reduction

targets

30% below

2005

levels by 2030- what does a

successful climate change approach l ook like

for

Alberta?

How

should we measure success?

2.

What

is an appropriate price on carbon? What opportunities and challenges would exis t in

Alberta under

different

carbon pricing models? Should all emitters face a price on carbon?

3.

Should Alberta apply the same emission reduction policy/standards to the entire economy or

have sector specific policies? Should Alberta focus on the sectors

with

the

most

emissions? Or

emissions growth?

4.

What

opportun ities could exist

for

Alberta

as it

moves toward a lower-carbon economy?

5. How can Alberta families and business be supported through this transition?

What

will be the

specific needs

of

individual sectors, municipalities, populations, etc.?

6. Emission reduction policies can be regressive, imposing a higher relative cost on low-income

families. How

can

we best mitigate these costs for lower-income Albertans?

7.

How

can all Albertans be involved in this process?

What

tools, incentives, etc. could encourage

Albertans to take part? Is a broad-based policy enough

or

should more tools

be

used?

Oil and Gas

(for each of

these

sections, we will insert a small graphic showing the sector s slice of the emissions pie chart

from the last section

and

a chart showing

- -- -

emissions growth in

the sector

Sourte: canacb Uixth NaUonal Repo rt on Climate Chanae

Greenhouse gas emissions

from the

oil and

l O

gas sector are the largest itnd fastest growing

source of

emissions in Alberta. They are also

the fastest growing source of emissions in

Canada growth largely driven by the

expansion

of

oil sands development.

Emissions Profile: In 2013 the oi l, gas and

refining sector

emitted

122 megatonnes of

C02e, representing

just

over 46%

of

provincial emissions.

160

~

140

:

0

uuo

I a>

60

40

20

2005 2010 2015 2020 2025

2030

•

Od

gnds s f t u

• Oi sands mlnlrt

• Bitumen

u w d ~ g

- ConventiOnal

Crude Oil

EC Page 38




Alberta's oil production is forecasted to grow from 2.9 million barrels per day {2013 production) (will

update to 2014 numbers) to nearly 4 million barrels before 2020. (Source: Alberta Energy Regulator ST98:

Albert a's Energy Reserves & Supply/Demand Outlook Insert

C PP

numbers)

Current State: Under the Specified

Gas

Reporting Regulation,

emissions reductions are currently required at facilities that

emit 100,000 tonnes

or

more of carbon dioxide equivalent per

year.

In 2014, 103 facilities were captured by

the

regulation, which

represent approximately

45% of

provincial emissions. Facilities

that

emit more than 50,000 tonnes or more of C02e per year

must report their emissions annually. In 2013, 147 facilities in

Alberta were captured by this regulation, accounting for

XXV

of oil and

gas

sector emissions.

Quick Facts: Oil sands development is the main driver

of

emissions growth in the province. Production from facilities

using drilled wells, known

as

the 'in-s itu' sub-sector, is the

fastest growing source of greenhouse gas emissions in Alberta

and Canada.

World ank Global as Flaring

Reduction Partnership

Alberta is part of the orld Bank's

Global

Gas

Flaring Reduction

P<lrtnership, which ensures

Alberta's best practices and

regulatory approach on flaring

m<magement are shared with the

world. Under Alberta's current

system, more than 95 of solution

gas, which is produced during oil

produc tion, is conserved.

Neighbouring provinces

of

Saskatchewan and British Columbia

have modelled

their

approach

to

solution gas conservation after

Alberta's approach.

Almost all emissions f rom the

in

situ oil sands sector are associated with burning natural gas to produce

steam for injection into the wells. For mining operations, the emissions are pr imari ly from producing

hot water for extraction, mine fleet vehicles, fugit ive emissions from mine faces and tailings ponds. For

upgraders, the majority of emissions are associated with fuel combustion for process heat and industrial

process emissions.

There are several emissions sources within the

oil and

gas

sector that Alberta could target through

enhanced climate policies:

• oil sands {48

of

sector emissions),

• natural

gas

exploration, production, processing, transportation and distribution {31 of sector

emissions),

• conventional oil {15 of sector emissions),

• refineries {4

of

sector emissions),

• transportation, including transmission and distr ibution (2

of

sector emissions).

Fugitives (including venting, flaring, oil,

gas,

conventional and unconventional oil and gas exploration,

production, transportation and distribution) make up 30 of the above emissions. This represents a

significant opportunity for reductions,

as

methane is a key component of these emissions and has high

global warming impacts.

EC Page

39




Spotlight on Innovation: Emissions from combustion of natural

gas

to produce heat

or

electricity

represent more than 75% of emissions from the oil sands sector. Many existing facilities are exploring

solvent co-injection,

as

well

as

optimized drill ing and steaming techniques. These approaches have

begun to show significant improvements in emissions intensity and water intensity

as

a result.

Venting, flaring and fugitive emissions are associated

with

oil and gas production and processing.

Venting is

the

controlled release

of

natural

gas

to the atmosphere without burning. Flaring and venting

most often occur

where

there is a lack of facilities to otherwise capture the natural gas .

Flaring is the burning

of

natural gas where

it s

produced along with oil (known as associated gas in

the

industry), during natural

gas

production or in maintenance

or

emergency circumstances requi ring a

release of pressure by removing the gas.

Fugitive emissions are unintentional leaks

from

equipment

or

pipelines.


1.

How

can

Alberta's oil and

gas

sector compete in a world

that is

moving

toward

less carbon

intensive energy?

2.

How can

we speed the development of

new

technology and innovation?

3.

Where are the greatest opportunities for reducing greenhouse gas emissions in the oil sands? In

conventional oil and gas production, including venting and flaring?

4. How can Alberta increase the amount

of

value-added to energy products in the province

(through refining, upgrading and petrochemicals) while at the same time decreasing emissions?

le tri y

(Insert a small graphic showing the sector's slice

of

the emissions pie chart from

the

last section and a

ch rt

showing emissions growth

n the

sector)

Electricity is an important part of

he

day-to-day lives

of

Albertans whether it is turning on a light or

powering

the

province's schools, hospitals and industrial sector.

Emissions Profile: Electricity generation is

the

second largest source

of

emissions in Alberta, responsible

for

17 ,

or46 megatonnes of the province's greenhouse gas emissions in 2013

6

•

Coal-fired generation

represented 85%

of otal

emissions

from

the electricity sector

7

•

6

Based

on adual coal emissions from SGER

and

SGRR

Internal

estimates for natural gas generation

and

total provincial

emissions from

1990-2013 Nalionallnventol')'

Report

page

60

.

7

Estimate based on Specified Gas

Reporting

Regulation data Specified Gas

Emitters

Regulation

Data

EC Page40




Current

State: Alberta has a deregulated, energy-only wholesale electricity market. This means that

electricity production is undertaken by private companies who are not guaranteed a rate of return on

their capital investments as they would be in a regulated system. They sell power at market prices

determined through supply and demand. This differentiates

Alberta

from

some

other

urisdictions where provincial

utilities produce electricity for domestic consumption. Any

suggestions for changes to Alberta policies must reflect this

distinction.

24(1)(a,b,c)(Advice from Officials)

For coal-fired electricity generation, the federal

government has put in place a regulation that will

require generators to reduce their emi

ss

ions to 'clean as

gas' (420 kilograms of carbon dioxide equivalent per

megawatt

hour)

when they

reach roughly 45 to 50 years

of operation.

Canada's Reduction

of

Carbon Dioxide Emissions from

Ontar io

From 2003 to 2014, Ontario phased out

all

of 1ts l f i r e d electncity,

1

eplacing this

elertncity

gene1ation with nuclear, natural

gas, b1ornass, hydro, wind, and solar. They

implemented a Feed-m-Tariff policy m

2009, which subsidizes prices for

renewable electricity produced and fed

into the electricity r,nd.

C liforni

In 2002, Culifornia implemented a

Renewuble Portfolio Standard

with

the

eo

a of

hilving

33%

renewable energy

capacity by 2020. The program has

reduced emissions and water use, and

has

creatPd jobs in the renewable energy

sector.

Coal-fired Generation

of

Electricity Regulations require approximate ly

60% of

Alberta's coal-fired

generating capacity to meet the 'clean as gas' standard

or

retire by 2030.

Alberta's Electricity Emissions Management Framework

manages pollutants other than

GHGs

(nitrogen oxides,

sulphur dioxide, particulate

matter

and mercury)

that

will have implications for half

of

all existing coal uni ts by

2020. This will also likely ind irectl y yield some

greenhouse gas reductions.

The existing Micro-generation Regulation enables

Blomus

other

5

Generation Capacity In Alberta as of May 2015]

Albertans

to

generate their own alternative or renewable electricity (e.g. rooftop solar panels) by

simplifying

the

process to connect to the electric ity grid. Alberta has approximately

1,200

micro

generation sites,

with

a combined capacity of nearly 9 megawatts (less than 0.1% of total generation

capacity).

Quick Facts:

Many

of

Alberta's existing coal-fired plants are nearing

the

end

of

their

design

or

lifespan

based on the provincial air quality management requirements and

the

federal greenhouse gas

standards. This provides an opportunity to

achieve significant emissions reductions by replacing coal

with greener sources

of

generation.

EC Page 4




Renewable Energy is obtained

from

resources that can be naturally replenished, including wind, solar,

hydro, biomass and geothermal. Alberta has a significant potential for increased renewable energy

development across the province.

Many

renewable energy sources, like wind and solar, are considered

intermittent-

sometimes the

wind

doesn't blow and the sun

doesn t

shine. These need

to

be backed

up

by generation

from

sources that

are available at all times, like hydro-electric ity and natural gas. To encourage the production of more

renewable electricity, government could finance, subsidize or regulate renewable energy production or

use tools such

as

carbon pricing to facilitate additional renewable electricity capacity.

As of

May

2015, renewable energy sources accounted

for

17% of Alberta's installed electric generation

capacity. In terms

of

actual electricity generation, however, renewable energy only accounted

for

roughly

9

of

total

generation in 2014. (should

use

stats from the same year)

Cogeneration is

the

combined production of heat and electricity

from

a single combustion process at or

close

to

the point of use. It has

grown

to roughly 30% of Alberta's total capacity today. Cogeneration is

more

energy efficient than separate electricity and heat product ion and many energy developers expect

to

employ some degree of on-site generation in the future. Alberta's

oil

sands industry is the main

developer of cogeneration in the province.

Spotlight on Innovation: In an effort to increase the understanding and involvement of First Nations in

measures to mitigate cl imate change, the Assembly

of

First Nations has undertaken a process to

identify

the opportunities that

exist-

or can be made available-

to

deploy renewable energy and energy

efficiency technologies in First Nation communities. Many First Nations communities are in remote

locations with electricity provided

by

diesel generators, representing a significant

opportunity

for

improvements in

air

and greenhouse gas emissions, and cost reductions through deployment of custom

renewable energy solutions.

Canada's first commercial

wind

farm was built in Alberta in 1993. The

farm

is now owned by TransAita

and is located in Cowley Ridge in Southern Alberta. Alberta ranks third in Canada with an installed wind

energy capacity

of

1,471

MW,

and Alberta's electricity production

from

wind power has increased by

85 from 2010 to 2014

8

•

Alberta Innovates- Energy and Environmental Solutions

has

invested in a solar photovoltaic research

project

with

the University of Alberta

to

develop thin, nanotechnology-based solar cells that can be

sprayed, rolled onto a surface

or

even woven into fabric, making them cheaper

to

manufacture and

potentia lly making solar energy accessible

to

everyone.

9

•

AESO

20 14 Annual Market Stausucs Rcpon

• AI EES

Annual

Rcpon 2014-2015

EC Page42




Feed-in Tariff FIT): A feed-in tariff sets a long-term, contrac ted price typically 20-years) based on the cost of

producing renewable energy plus a reasonable

rate

of return. This

is

similar to

the

way long-term power

purchase agreements {PPAs) are signed

in

regulated market s. However,

FITs are

typically set up as standing

offers for anyone who Is able to invest in a project, although they may also be offered only for a limited

number

of

projects. Best practices

see

FIT

prices regularly reviewed for

new

projects as technology costs

decline.

FITs

can be applied to large-scale wind farms or to smaller sources like roof-top solar panels.

Green

Power

Call: Rather

than

sett ing a fixed price for renewable power,

some

jurisdictions have opted for a

method

similar

to

an auction, calling for propo nents

of

renewable

energy

projects

to id

their

power

into

the

system, and then offering long term contracts

at

the bid prices to the most cost-effective sources of power.

Such a system is most applicable to large-scale projects, and provides greater certainty over the quantity and

location of generated power. The auction provides incentives which should yield the most cost-effective

renewable power available.

Tax Credits or Subsidies: Rather than fixing a selling price for renewable electricity, these policies may reward

producers via tax credits or direct payments t oward capital costs or for generation over and above market

prices. For example, producers in the United States benefi t from a production tax credit PTC) for renewable

power, while Canada

has

previously enacted policies which provide renewable

power

producers with a per·

unit paymen t directly from the government e.g. ecoEnergy

for

renewable power). Tax subsidies

can

also

come in the form of accelerated capital cost depreciation rather than credits tied to generation.

Renewable Portfolio Standard RPS):

An RPS

is a regulation that can apply to electricity suppliers or retailers

that

requires a minimum amount

or

share

of

renewable ene rgy by a specified date. RPS mechanisms can vary

depending on which renewables qualify,

but

typically include wind, solar, biomass, geo thermal energy and

at

least run-of-river hydro. This is the most common policy mechanism in the

U.S.

where 29 states have

these

regulations in place, and t hey drive investment in generating assets which they may not have absent the

constraint. RPSs typically include a trad ing mechanism to allow for flexibility in meeting the regulation, which

may or may not enable trading across political borders.

Carbon Offsets: Some jurisdictions, including Alberta, allow renewable ene rgy projects to be credited for the

implied reductio n in greenhouse gas emissions

that

their gener ation provides. These credits, once certified,

can then be sold to those looking to offset, either for regulatory reasons or on a voluntary basis, their

emissions. Offsets may be traded over long distances

or

may

be

restricted

to

a local market. Offsets are

typically only certified for projects that are deemed to be additional to the business-as-usual case they

would not have occurred In the absence of the offset credit itself- and have a protocol to determine this

eligibility. The value of the offset can depend on demand compared to the cost of otherwise complying with

emissions regulations, the availability of supply

and

on a ceiling price.

Renewable Energy Credits REC): The environmental attributes of renewable energy can be de-coupled from

the energy Itself and sold as a separate product. The REC can be sold into a voluntary market such as a

passenger wishing to offset his or her airplane emissions, or their home electricity use, for example). Some

jurisdictions allow utilities to use renewable energy credits to comply with renewable portfolio standards,

and this has created a market in renewable energy credits. A firm generating renewable power may sell

electricity at home, but sell the renewable energy credit tied to

that

electricity to a firm in a distant market.

In these cases, the emissions reduction occurring as a result of that renewable energy project should not be

double counted by parties or jurisdictions.

EC Page4



FOIP Request

2015-G-0143

ransportation

(Insert a small graphic showing

the

sector's slice of

the

emissions pie chart from

the

last section and a chart

showing emissions growth

n

the

sector)

Everyone knows that cars and trucks produce

emissions

tailpipes are a visible reminder

of

transportation's contributions to greenhouse gas. In the life cycle

of

a barrel

of

oil, most emissions occur

when the oil is used by cars and trucks.

Emissions Profile: Transportation was responsible

for

16 , or

44

megatonnes of Alberta's greenhouse

gas emissions in

2013.

Emissions from the transportation sector have steadily increased in Alberta since

1990.

Current State: Alberta's transporta tion sector includes:

• passenger vehicles and public transit,

• freight trucks and rail, and

• off-road vehicles.

Alberta s Renewable Fuels Standard

requires commercial fuel

British Columbia

The Renewilble and Low

Carbon Fuel Requirements

Regulation

will

reduce

the

c ~ r b o n intensity

of

transport<Jtion fuels by

10 by 2020.

producers to blend renewable products into

their

fuels - an average of 5 renewable alcohol in

gasoline and

2

renewable diesel in diesel fuel sold in Alberta. All renewable fuels must emit at

least

25

fewer greenhouse gas emissions than the fossil fuel they're replacing.

Effective January 1,

2004,

Canada's

On-Road Vehicle and Engine Emission Regulations

introduced

more

stringent national emission standards

for

on-road vehicles and engines and a

new

regulatory

framework under

the

Canadian Environmental Protection Act,

999

(CEPA

1999)

10•

The Regulations

align Canadian emission standards with those

of

the U.

S. EPA for

light-duty passenger vehicles, light

duty trucks (such

as

vans, pickup t rucks and sport

utility

vehicles), heavy-duty vehicles (such

as

1

http://www .ec.gc.ca/lcpe-cepa/default.asp?lang=En&n•DASSB8Bl·l&wsdoc=9Q6E23B8·041E-91F9·E2E8·82090DCC1524

EC

Page44




heavy trucks and buses), and motorcycles and will result in significant emission reductions from the

fleet

of

on-road vehicles

in

Canada

11

•

The lberta Fuel Tax

ct

is a direct tax on consumers

for the

purchase

of

all unmarked fuel in

Alberta. This includes gasoline, diesel and propane, except where the fuel

is

delivered and

consumed outside Alberta. The current tax is $0.13/litre for all grades of gasoline.

Quick Facts: In Alberta, there were 1.16 vehicles per licenced driver in 2013.

While much

of

the transportation sector

has

become more fuel-efficient over time the growing number

of

vehicles in the province has offset many

of

the eff iciency gains. Between 2004 and 2014 in Alberta,

the number of

vehicles (registered in all classes)

has

risen by 44%.

12

Promotion

of

public trans it in urban areas, encouraging car-pooling and urban design techniques

that

minimize vehicle use and promote alternative transportation can be employed by

to

reduce emissions.

Vehicles release ai r pollutants such

as particulate matter, oxides

of

nitrogen and volatile organic

compounds and contribute to photochemical smog.

Spotlight on Innovation: In October 2014, Ferus Natural Gas Fuels opened the first commercial liquefied

natural gas fueling station in Canada. Natural gas

is

a lower-emissions alternative fuel to diesel and

gasoline. Located in Elmworth, Alberta,

65

km north

of

Grande Prairie,

it

is located

to

serve British

Columbia and Alberta oil and gas activities in

the

region. Currently, the facility can produce

up

to 50,000

gallons per day

of LNG

and has capacity to expand up to 250,000 gallons per day

of LNG.

13

Active transportation includes to any form

of

human-powered transportation- walking, cycling, using a

wheelchair, in-line skating or skateboarding. Active transportation could mean walking to a store or to

the

bus

stop, or riding a bike to school or work.

Clean Vehicle Technology includes hybrid, electric, natural

gas

and hydrogen fuel cell vehicles.

11

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EC Page45




Buildings and Houses

(Insert a small graphic showing

the

sector s slice of the emissions pie chart from the last section and a chart

showing emissions growth In the sector)

Climate change is a global challenge,

but

many

of the

solutions

can

be found close

to

home. When

i t

comes to buildings and houses, energy efficiency and conseiVation have

an

important role to play.

Emissions Profile: Emissions from Alberta homes and buildings were 21 megatonnes

of COze

in 2013.

This represents approximately

8%

of Alberta s

2013

emissions.

Current State: Alberta s building sector includes: (will include

breakdown

of

emissions,

i f

possible, by square footage)

• residential buildings- single attached and single

detached houses, apartments and mobile homes;

• commercial buildings - a broader spectrum

of

building

types, including wholesale trade, retail trade,

transportat ion and warehousing, information and

cultural industries, offices, social assistance, arts,

entertainment and recreation, accommodation and

food seiVices, and

other

seiVices; and

• institut ional buildings municipal government,

universities, hospitals and schools.

anitoba

Aki Energy, an Aboriginal social

enterprise, is helping local First

Nations communities establish

energy efficiency solutions in their

homes. y installing geothermal

systems and

retrofitting

homes, Aki

Energy is helping to create green

jobs and

to

reduce heating and

cooling bills of homes. Through

Manitoba Hydro s Pay-As-You-Save

financing program, the costs of

retrofits

are paid back out of bill

savings

over

20 years, allowing

homeowners to avoid up -front

costs.

Quick Facts: Energy efficiency improvements

can

be one

of

the most cost-effective ways to improve the

affordability, and reduce

the

environmental impact,

of

energy consumption. Policies including carbon

prices and government subsidies can make these improvements more attractive.

Examples of energy efficiency upgrades to homes and buildings include: high efficiency appliances, such

as

fridges and washing machines; high efficiency furnaces and hot water heaters; and

LED

and compact

fluorescent lighting.

There are many benefits

from

adopting energy efficiency and conseiVation, beyond reducing

greenhouse gas emissions.

For example:

• Reducing energy use saves families, consumers and building owners money, which can

then

be used

in other parts

ofthe

economy.

• Municipalities benefit from lower energy costs and can reinvest those savings

into

enhanced

programs

for their

citizens.

• A shift toward greener building standards and energy efficiency updates to existing buildings could

provide good construction and maintenance jobs for Albertans.

EC Page 46



FOIP Request 2015·G-0143

Spotlight

on

Innovation:

With

funding support

from

Alberta s Climate Change and Emissions

Management Corporation, ATCO

Gas

is helping to offset the cost

of

ncorporating Combined Heat and

Power technology in commercial and institutional buildings. This form of energy uses natural

gas

to

accomplish

two

jobs- provide electricity and heat- reducing greenhouse gas emissions and lowering

energy costs

for

consumers

4

•

The first LEED Gold greenhouse in Canada

Is

located in Brooks, Alberta. This Alberta Infrastructure and

Agriculture research facility is powered by 100% green power.

15


1. How

can

Alberta transition to a greener bui lding stock?

2.

How can Alberta make energy efficiency more prominent in housing decisions? In rental

housing?

3. What opportunities are there

for

all levels

of

government facilities

to

be more energy

efficient?

4.

How

can

the province support lower-income Albertans with the upfront capital costs involved

with improving energy efficiency in their homes?

5. How can Alberta leverage skilled trades and labour to help advance energy efficiency in

Alberta homes and buildings?

6.

What are the current barriers to adopting energy efficiency

in

homes and buildings?

Technology, availability, contractors, costs, rental housing, etc.?

Other Industrial Emitters nufacturing and o struction

(Insert a small graphic showing the sector s slice of the emissions pie chart from the last section and a chart

showing emissions growth In the sector)

Alberta has many industrial sectors with large facilities, including: production

of

cement and

other

minerals, chemical production, coal mining (metallurgical and thermal), fertilizers, forest products,

metals, and landfills. These industries generally produce products for export, so prices are determined

by global markets. The industry may not be able to transfer costs imposed in Alberta to their consumers.

Emissions Profile The balance

of

Alberta s industrial sector (i.e. excluding electrici ty and oil and gas)

accounted

for7 ,

or 19 megatonnes of Alberta s

total

emissions in

2013.

Manufacturing and

construction accounted of 5 of Alberta s emissions in 2103.

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EC Page47




Current

State: Alberta's Specified Gas mitters Regulation applies to large

emitters

within this sector.

Given

the

diversity

of

this sector, there are a variety

of

other regulations that affect

different

players.

Quick Facts: Many of these industries represent an important part

of

Alberta's supply chain and support

the

province's growing economy

with

links

to

oil and gas, forestry, agriculture and electrici ty production.

Coal mining produces

raw

product

for

electricity

or

steel production, while mineral, chemical, cement

and fertilizer manufacturing adds value to Alberta's produced resources in the form

of

petrochemicals,

polyethylene and resins, agricul ture additives, concrete products and more.

Alberta 's Industrial Heartland is home to 43%

of

Canada's basic chemical manufacturing, including:

• petroleum refining and upgrading:

• ethylene and styrene production:

• natural gas fractionation and processing:

• fertili zer product ion and metal refining; and

• other petrochemical and specialty products.

Percentage

of

domestic vs exports

Spotlight on Innovation: In 2008 and 2012, Orica Canada Inc. installed dedicated secondary catalysts

to

drastically reduce the emissions

of

nitrous oxide

a

potent greenhouse

gas

with a global warming

potential 98 times that

of

C02) from

the

Nitric Acid Production Facility near

Carse

land, Alberta. Since

adding the secondary catalysts,

the

facility's emissions have been reduced by about 500,000 tonnes of

C02e per year.

Agriculture Forestry and W

te

(Insert a small graphic showing the sector's slice of

the

emissions pie chart from the last section and a char t

showing emissions

growth

In

the

sector)

Agriculture and forestry are

important

parts

of

Alberta's economy. Together with waste, these sectors

can help Alberta reduce, remove and replace (by displacing fossil fuels) creenhouse gas emissions, using

biological sources

of

energy and land management.

Emissions Profile: In Alberta, agriculture makes up 7%

of

provincial emissions and forest ry (including

pulp and paper) accounts

for

1 . Waste accounts

for

1 of Alberta's emissions.

EC Page48




Emissions

from

soil management practices, including irrigation, ti lling and application of fertilizer and

manure, account for more than half of Alberta's agricultural emissions.

Current State: Emission reductions in this sector are currently driven volun tarily through the ability to

generate and sell carbon offset credits.

To date agricultural, forestry and waste-based carbon offset protocols have been a major source of

greenhouse gas reductions. Carbon offsets are one

tool

to drive behavioural practice changes.

Collectively, 12Mt of carbon offset projects have been certified and used for compliance by facilities in

this sector under the Specified Gas Emitters Regulation. The potential

to

generate emissions offset

credits acts

as

a form of carbon price, providing a financial incentive

to

reduce emissions in order to

qualify to obtain and sell the credits.

Alberta is in

the

process

of

re-evaluating offset calculations in

this

sector following a

report

by Alberta's

Auditor

General. (need

to

verify)

Carbon Offsets generated by projett and by year

Project type

2

00

7

2008

2009 2010

2011

Tillage

11M 35

914 726 1 576 0

n

1 511 248 2 331 940

Forestry

421..0

43

Harvest

. .

Practices

Biomass 30 000 276 520 345 325 424 049 107 309

Blofuel

. .

15 278 30 000 6 845

Landfill

Gas 305 550 38 980 316 169 179 683

.

Aerobic

136 196 28 823 189 649 90 380

Composting

.

Anaerobic

Wastewater

-

treatement

296 650 105 034

199 024

Total 448 985 1 659 7S6 2 398 845 2 604 515 2 982 014

Quick Facts:The United Nations recognizes agriculture and

forestry

as

emissions sources

as

well

as

opportunities for

emission sequestration. Alberta's managed forest ry and

agricultural land makeup _

_

of he province and provide an

opportunity

for

emission reductions.

Globally, agriculture is the third largest

contributor

to

global

emissions by sector, following burning fossil fuels for

power

and

heat, and transportation.

Despite

their

continuing rise, emissions

from

agriculture are

growing

at a much slower rate

than the

sector as a whole,

demonstrating

the

increasing carbon efficiency

of

agriculture.

2012

2013

2014 Total

820 964 389 109

490 973

8 148 479

-

-

421 043

25 407

85 635

117 631 1 412 076

.

18 517 70 640

.

47 416 887 798

21 921

10? 53.6 7 855 582 260

-

813 198

148 37S

64 969

936 451 678 419 682 392 12 391 177

ermany and orway

The United Nation's

ntergoVt:rnmental Panel on

Climate Ch;mge estimates that soil

carbon sequestration,

through

improved cropland and grazing land

m;magement, as well as the

restoration of degraded lands,

offers the greatest potential in

agriculture for climate change

mitigation. The UN's Food and

Agriculture Organization is working

with Germany and Norway to

create a global knowledge base

thut will identify best opportunities

to mitigate climate change through

improved farming practices.

(hit p: f www.un. ore/apps/nows/story.a s

p

?Nowsl

0=37536#.VZ6HZ89VhBc)

E

Page49




Methane accounts for

just under

50% of

total

agricultural emissions, nitrous oxide for 36%, and carbon

dioxide for some 14%.

The largest source of emissions in this sector is enteric fermentation, from digestion by livestock,

predominantly beef cattle. This is also the largest source of agricultural emissions overall, cont ributing

39% of the 2011

total

Emissions generated during

the

application

of

synthetic fertilizers accounted for 13%

of

agricultural

emissions in 2011, and are the fastest growing emissions source in agriculture, having increased

by

approximately 37 since 2001.

Spotlight on Innovation: Alberta has developed an offset protocol based on applying fertilizers using

best management practices founded in the 4R Nutrient Stewardship System. This system, originating in

Canada and

now

applied international ly, encourages farmers

to

apply fertil izer products using the Right

Source at the Right Rate, Right Time and Right Place. The g r i u l t ~ n ~ rrunicipal

sewege

nd

wastewater

protocol has the potential to be impactful by reducing nitrous

oxide emissions

from

agricultural soils, which is a greenhouse

gas 298 times more potent that C02.

Canada's Agricultural Greenhouse Gases Program has

approved $20.3 million for 19 projects

that will

bring farmers,

the agriculture community and academia

together

to work

toward a common goal of advancing research, technology

• b

io

m ram

llarVMt e d ~

• Pulpmm

u e s

• Comrercial

and

induslri l

biomasswasle

Alberta Biomass Production million ton nes year)

transfer and

the

adoption of beneficial management practices

to

mitigate agricultural greenhouse gas

emissions.

Blosequestratlon:

the

capture and storage

of

carbon dioxide through biological sink processes, including

increased photosynthesis through practices such

as

reforestation, preventing deforestation, genetic

engineering, enhanced soil carbon storage in agriculture or enhanced production

of

algae.

Bloenergy: renewable energy derived from biomass, which is organic material made

from

living organisms

that

has stored sunlight in

the

form

of

chemical energy.

Biomass: includes crops, crop residue, trees,

wood

and animal residue.

It

s used

to

develop fuels like

ethanol, butanol, biodiesel, and

other

hydrocarbon fuels.

EC Page 50




mbition Scenarios

When creating greenhouse

gas

emission mitigation policy,

it is important to

determine the level of

ambition, informed by policy and actions, required

to

achieve set targets and commitments.

Internationally,

the

most common means

to

measure climate change performance

is

through

comparisons of emissions in

future

years

to

some base year (typically 2005

or

1990)

or to

some

hypothetical projected business-as-usual scenario.

Increased levels of ambit ion require increased stringency in policy and actions. This could include carbon

pricing, stricter standards, investments in technology or any

other

action taken to mitigate climate

change. The level

of

ambition and

the

actions and policies required

to

achieve them will be critical

considerations as Alberta transitions to a lower-carbon future.

Below,

four

potential levels

of

ambition

are defined.

National Leadership Matching: To demonstrate national collaboration, Alberta could adopt policy

that

meets

that of

the leading jurisdict ion taking action on climate change in Canada. Currently, British

Columbia's carbon tax of

$30/tonne

applies

to

about 72% of their provincial emissions, making

it

the

current national leader. (Quebec's carbon price

is

forecast

to

rise

to $60/tonne

with 80 coverage in

2030.)

National Target Equal Eff

ort:

To demonstrate national leadership, Alberta could adopt policy that, if

adopted across every jurisdict ion in

the

nation, would achieve Canada's commitment of a 30% reduction

from 2005 levels by 2030. Alberta, and all provinces and terri tories, could apply a common price and

coverage

to

demonstrate 'equal

effort'.

Based on analysis by the National Round Table on

the

Environment and the Economy, this is expected to represent $150/tonne by 2030. {Can provide

reference .}

Global Target Equal Effort: To demonstrate global leadership, Alberta could adopt a policy that, i f

adopted across

the

world, would keep global temperature increase

to

2 degrees. Suggest sidebaron 2

degree principle from

IPCC.)

That is, Alberta and all jurisdictions globally could apply a common price and

coverage to demonstrate equal

effort .

Based on International Energy Agency analysis, this

is

expected

to

represent $140/tonne by 2040.

Can

provide reference.

Deep Decarbonisation Path:

To

demonstrate global leadership and a commitment

to

eventually

eliminate all human-caused greenhouse gas emissions, Alberta could adopt a policy that aims to achieve

zero carbon emissions over

the

course of

the

century. This is based on achieving fewer than 2 tonnes of

emissions per capita per year

by

2100.

E Page

51



FOIP

Request

2015-G-0143

ext Steps

Alberta s Action Plan on Climate Change

Following the

limate hange onversations

in the summer and early fall

of

2015,

advice from the

Expert Advisory Panel will

inform

Alberta s new government s action plan on climate change. Input from

the

public, labour, industry, stakeholders, First Nations and Metis communities, and

other

levels of

government wil l all be considered.

Alberta s action plan on climate change

will be

released

in the

fall

of

2015.

Future

work will

also consider

the

import nt m tter

of adaptation

to

climate change.

Partnerships

Climate change is a global challenge. Working

with

the right partners will both improve policy outcomes

and garner much bet ter external understanding

of

Alberta s new approach

to

climate change and

Alberta s new government

is

w o r k n ~ ~ to forge new relationships

across the country and around the

world th t will be invaluable in the

near term, Alberta re-evaluates

approach

to

climate change, and

over the longer term as provinces,

territories and nations

work

together to address this shared

global challenge.

emission reduction.

Alberta s future

success

in addressing emissions will

be

best

realized by strong support and partnerships within Canada and

around the world.

s

jurisdictions around the world have established

their own

approaches

to

climate change,

new

ideas, policies and strategies

have been created. Taking a global approach

to

a global

problem, Alberta wil l actively learn

from

others while sharing its

own expertise.

EC Page 5



Robert Mc ougall

From:

Sent:

To:

Subject

Attachments:

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I ' . : . '

' • • I I I

I ; : ;

f

: I I II

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I

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L • I • I

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m

l: Jo-Anne 1\acnn(iihm\ .ab.ca


Jo-Anne Bacon

Friday, November 20, 2015 11:08

AM

Colleen

Kneller

At

Table Docs

from November 18 Cabinet mtg

Carbon Price.pdf; Towards Cleaner Electricity

Footprintpdf;

CC

Policy Carbon

Pricing.pdf

ab executive council foi climate change plan economic impact

Documents