Alberta’s Climate Leadership Plan

August 17, 2016

A+ for Energy 2016 Energy Education Conference

Bill Werry, Deputy Minister Alberta Climate Change Office

Alberta Emissions Profile

• 267 Mt CO2e – total provincial GHG emissions in 2013

• 14 percent or 33 Mt – emissions growth since 2005

• 37 percent – Alberta’s percentage of Canada’s emissions in 2013

Alberta 267 MtCanada 726 Mt

World >43,000 Mt

Timeline of Key Actions

2002 - Released Albertans & Climate Change: Taking Action (first provincial strategy in Canada)

2003 - Climate Change and Emissions Management Act passed (first legislation to establish economy-wide price on carbon in North America)

2004 - Specified Gas Reporting Regulation 2007 - Specified Gas Emitters Regulation (first economy-

wide price in Canada) 2008 - Revised provincial Climate Change Strategy 2015 - Amended Specified Gas Emitters Regulation

(reduction requirements and carbon price increased) 2015 – Climate Leadership Plan

Alberta’s Climate Leadership PlanGlobal Context• 21st Conference of the Parties (COP 21) The Paris

Agreement – Over 160 countries to sign agreement to keep global warming below 2°

• North American Climate, Clean Energy, and Environment Partnership Action Plan – Announced by Prime Minister Justin Trudeau, President Barack Obama,

and President Enrique Peña Nieto on June 29, 2016

Resource: http://bigpicture.unfccc.int/ United Nations Framework Convention on Climate Change • Covers various issues, including mitigation, adaptation and finance, in order to

gain a better understanding of the global efforts to combat climate change.

Alberta’s Climate Leadership PlanNational ContextCanada’s approach www.climatechange.gc.ca

– An ambitious and effective global agreement – Keeping emissions in check – Enhancing accountability and transparency – Support climate change adaptation – Promoting cost effective climate change policies – Investing toward a low-carbon future for all – Sustaining momentum and progress – Seeking early wins in the pre-2020 period

Vancouver Declaration on Clean Growth and Climate Change

Vancouver Declaration on Clean Growth and Climate Change

• Federal / Provincial Working Groups: 1. Clean Technology, Innovation and Jobs 2. Carbon Pricing Mechanisms 3. Specific Mitigation Opportunities 4. Adaptation and Resilience

• Increase Action and Cooperation • Energy Efficiency and Clean Technology • Engage Indigenous Peoples and the Public

Resource: Canadian Intergovernmental Conference Secretariat for full

Declaration

Alberta’s Climate Leadership Plan Key Initiatives1. Implementing a new carbon price places

an economy-wide price on greenhouse gas emissions

– Applying a carbon levy on transportation and heating fuels

– Emissions intensity carbon pricing will be replaced by an emissions performance based system

– New approach will generate funding that will be fully recycled back into the economy

Regulatory Approach – Industry Options

Compliance Flexibility Options – Reduce emissions at facility

– Use emission performance credits

– Purchase serialized Alberta-based carbon offset credits

– Pay $20/tonne into the Climate Change and Emissions Management Fund ($30 in 2017)

Wind

Tillage34%

LandfillGas4%

Hydro4%

ForestHarvestPrac2ce2%

EOR5%

EnergyEfficiency5%

Compost2%

BiomassEnergy6%

AnaerobicWastewaterTreatment3%

AcidGas5%

AbatementfromNitricAcidProduc2on5%

Alberta’s Climate Leadership Plan Key Initiatives

2. Phasing out emissions from coal-generated electricity by 2030 and replacing that capacity with electricity produced by renewable sources and natural gas

Phasing out Emissions from Coal-Generated Electricity Key Principles of Transition 1.Protecting Alberta Consumers and Taxpayers 2.Supporting Communities and Workers 3.Fairness to Companies and Investors

Resource: http://bit.ly/29nNtTs

3.Legislated oil sands limit of 100 megatonnes (Mt) per year

Alberta’s Climate Leadership Plan Key Initiatives

Climate Leadership Plan – Oil SandsAnnual Limit of Oil Sands Emissions ▪legislated maximum oil sands emissions limit of 100 Mt in any year

▪ provisions to encourage cogeneration ▪ provisions for new upgrading capacity to

encourage value-add ▪drives development and implementation of new technology that reduces emissions while still allowing production growth

Jointly recommended to government by oil sand industry and leaders and environmental organizations.

2013 Emissions

2030 Emission

Projection

4. Implementing a new methane emission reduction strategy with the goal of reducing methane emissions from the oil and gas sector by 45% from 2014 levels by 2025

Alberta’s Climate Leadership Plan Key Initiatives

Climate Leadership Plan – Methane Management

45 percent reduction in oil and gas methane emissions by 2025 ▪ Regulatory and non-

regulatory approaches ▪ Reductions at new, modified

and existing facilities ▪ Joint Initiative will operate

from 2016 through 2020 and focus on reductions from existing facilities

Bill 20-Climate Leadership Implementation Act: Three main functions

1. Provides authority to implement the carbon levy, outline the carbon price, and create the necessary administrative framework. It will also set out the framework for consumer rebates and exemptions.

2. Proposes new Crown agency, called Energy Efficiency Alberta, tasked with delivering energy efficiency and community energy system programs on government’s behalf.

3. Enables government to use carbon revenue collected for the CCEMF for a broader range of climate related purposes.

Climate Leadership Plan- Budget 2016

• Over the next 5 years, the carbon levy is expected to raise $9.6 billion, all of which will be reinvested in the economy and rebated to Albertans – $6.2 billion will help diversify our economy and create new jobs:

• $3.4 billion for large scale renewable energy, bioenergy and technology

• $2.2 billion for green infrastructure like transit • $645 million for Energy Efficiency Alberta, a new provincial

agency that will support energy efficiency and community energy system programs and services for homes, businesses and communities

Climate Leadership Plan- Budget 2016

– $3.4 billion will help households, businesses and communities adjust to the carbon levy: • $2.3 billion for carbon rebates to help low- and middle-

income families • $865 million to pay for a cut in the small business tax

rate from 3% to 2% • $195 million to assist coal communities, Indigenous

communities and others with adjustment

Alberta’s Climate Leadership Plan Measures of Success• Reduced GHG emission

– Compliance options are flexible and met – Transition to cleaner sources of electricity – Oil sands emissions are managed within limit

• Diversified low-carbon economy – Competitiveness is maintained – Create new jobs

• Family & Community well-being and resilience – Transition to new employment opportunities – Energy efficiency and green infrastructure incentives shift attitudes

and consumer behaviours – Avoid downstream health care costs and lost productivity

Climate Leadership Plan- Engagement

• Key engagements planned in summer/fall of 2016 include: – Energy efficiency and community energy programs – Micro-generation Regulation – Performance standards for Large Final Emitters – Coal facilitator report – Innovation and technology framework – Methane technical engagement – Indigenous engagement – Establishing Oil Sands Advisory Group

Albertans taking Action

• Global Education Connect II Program: Whitepaper – Alberta students school the premier on climate change (Green Energy

Futures, YouTube)

• Iron and Earth – Worker led initiative to retrain 1,000 idle electricians, boilermakers, and other

oilsands workers to specialize in renewable energy

• Government of Canada www.climatechange.gc.ca – Submit ideas on climate change – Host your own Town Hall (resources included) – Kids and Climate Change – Learn more about government action internationally

Ongoing updates:

www.Alberta.ca/Climate

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TACKLING CLIMATE CHANGE Canada’s Approach

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OBJECTIVE – Why we are here?

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CLIMATE CHANGE – A rising challenge

• The science is clear

• Global temperatures have risen 0.85°C since 1880

• Canada’s temperatures have risen 1.6°C since 1880

• We must act now

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CLIMATE CHANGE – The Paris Agreement

• Canada: one of 195 signatories

• Limit average temperature rise to less than 2.0°C

• Strive to keep increase below 1.5°C

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CLIMATE CHANGE – In Canada

• Many Canadians are already experiencing climate change:

•more extreme weather events

•longer, hotter heat waves

•thawing permafrost and loss of Arctic ice

•threats to local food sources for Indigenous peoples in the North

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CLIMATE CHANGE – By economic sector

• Canada’s greenhouse gas emissions can be broken down across economic sectors

Source: Environment Canada and Climate Change (2016) National Inventory Report 1990–2014: Greenhouse Gas Sources and Sinks in Canada.

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CLIMATE CHANGE – Emission targets• Canada’s current greenhouse gas target is 30% below 2005 levels in 2030

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CLIMATE CHANGE – At home and abroad

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CANADA’S APPROACH – Working groups

• The First Ministers meeting established four working groups to develop Canadian options for climate change

• Working groups by theme: – Mitigation – Carbon Pricing – Adaptation and Resilience – Clean Technology, Innovation

and Jobs

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CANADA’S APPROACH – The process

• Our discussion will contribute to Canada’s approach to climate change

• Ideas will be recorded and posted to the interactive website, so people will be able to read them and submit comments

• Feedback submitted through the website will be shared with working group members

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KEY QUESTIONS for discussion

• What have been your own experiences with the impacts of climate change?

• What are the solutions to reducing greenhouse gases that you would like to see governments, businesses and communities implement?

• What are your ideas for growing the economy and jobs while also reducing emissions?

• What are some ideas to promote innovation and new technologies in the effort to reduce greenhouse gas emissions?

• What can Canada do to better adapt to impacts of climate change and support affected communities, including Indigenous communities?

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THANK YOU!