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2011 COMMUNITY EXCELLENCE AWARDS
Category Worksheet
LEADERSHIP & INNOVATION
Name of Local Government: City of Dawson Creek
Project/Program Title: Dawson Creek Carbon Fund
Community Size: Mid-size community
Project Summary Paragraph
Dawson Creek has established an internal Carbon Fund designed to fund greenhouse gas
(GHG) emission reduction projects. Dawson Creek is committed to implementing GHG
reduction projects to reduce our overall emissions and to minimize our offset liability first, and
then to purchase offsets (if necessary). The establishment of a Carbon Fund allows Dawson
Creek to earmark $100 per tonne (based on our annual corporate inventory) that will be used to
implement emissions reduction projects at the corporate and community scale. This fund may
also be used to finance projects that will lead to emissions reductions (such as research and
education) but may not be used to purchase offsets. Offset purchases will be additional to the
Carbon Fund. To finance the Carbon Fund, Dawson Creek’s CARIP rebate will be deposited
into the Carbon Fund. Since the CARIP rebate will be less than $100 per tonne, the difference
will be made up from Dawson Creek’s general revenues. Dawson Creek’s Carbon Fund is
estimated to be $320,000 per year.
Project Analysis
Please answer the question in 300 words or less in 11 pt Arial font (our judges value directness
and brevity). If you experience difficulty answering a particular question, consider the aspects of
your program that may relate to the question and show us how they are linked.
1. ENVIRONMENT
How does the program/project protect BC’s environment?
Climate change is one of the most significant challenges facing BC’s environment today.
Dawson Creek’s Carbon Fund ensures that there are resources allocated annually to
implement greenhouse gas reduction projects in Dawson Creek. At both the corporate and
community-scale, the Carbon Fund will ensure that Dawson Creek’s buildings and vehicles
continue to become more efficient and that we continue to explore cleaner energy
alternatives (like solar hot water or biomass heating for community buildings). These actions
will not only reduce the amount of greenhouse gas emissions we produce from our
community and our own operations, but it will also ensure cleaner and healthier air and
water in Dawson Creek and in B.C.
2011 UBCM Community Excellence Awards
2. PROCESS
Please provide a brief outline of the steps involved in the program/project and the
status of each step.
Step 1 - Dawson Creek’s Carbon Neutral Plan (2009) identified the development of a
Carbon Fund as a critical next step in working towards meeting our commitment under the
Climate Action Charter. (Completed March 2009)
Step 2 – In-depth research to identify best practices (provincially and globally) for the
development and implementation of a Carbon Fund. (Completed April 2011)
Step 3 – Council approval and endorsement of the research and the recommended Carbon
Fund policy (June 28, 2011)
Step 4 – Implementation of the Carbon Fund and integration of the $100 per tonne into our
internal decision-making processes (ongoing)
3. RELEVANCE
Tell us how your submission is relevant to current environmental issues.
As of July 2011, 178 local governments have signed onto the Climate Action Charter and
have committed to achieving carbon neutrality in their own operations by 2012. All local
governments are also required to input greenhouse gas reduction targets into their OCPs
(for municipalities) and into Regional Growth Strategies (for Regional Districts). The BC
provincial government has legislated greenhouse gas reduction targets and has recognized
that climate change is one of the most significant challenges facing this province today.
Dawson Creek’s Carbon Fund demonstrates that Dawson Creek also recognizes the scale
of the challenge of mitigating climate change, and demonstrates that we are serious about
taking tangible steps to reduce our own emissions. The Carbon Fund allocates resources
annually so that Dawson Creek has the capacity to implement projects that will reduce the
greenhouse gases emitted by the city’s operations and by the community. This will help to
reduce our overall greenhouse gas emissions, and will also contribute towards meeting our
own and the provinces greenhouse gas reduction targets.
4. LEADERSHIP
How does the project reflect leadership and excellence in the advancement of
community development?
Dawson Creek is one of the only local government in BC that has committed to setting aside
resources annually specifically for greenhouse gas reduction projects. Our $100 per tonne
commitment is the largest Carbon Fund of any level of government in Canada. We are
continuing to show leadership and commitment to our carbon neutral commitments by 2012
by purchasing offsets (if necessary), but we will not use the Carbon Fund to do so. By
setting aside $100 per tonne, we have also created an internal incentive to reduce our
overall greenhouse gas inventory, and at the same time have created the fund to help us
make the needed reductions. This innovative approach to achieving real reductions in our
greenhouse gas emissions demonstrates that we are serious about taking action on climate
change, and that we are willing to implement creative solutions to do so. We are willing to be
a leader in B.C. on the energy and climate change file by specifically allocating resources
from our general revenues to support emissions reduction projects.
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2011 UBCM Community Excellence Awards
5. ECONOMICS
a. How was the project a good use of budget and resources?
Dawson Creek’s Carbon Fund is an excellent use of budget and resources. This Fund
will provide much-needed seed money for emissions reduction projects that may not
have been funded through our normal budgeting process. Dawson Creek will not raise
taxes to create the fund, but will reallocate existing resources to earmark $100 per tonne
of our own emissions into the Carbon Fund. As emissions reduction projects are
implemented, our overall greenhouse gas inventory will decline, and therefore we will be
required to purchase fewer carbon offsets. Since our greenhouse gas inventory and
required offset purchases will decline over time, we are limiting the impact of future
increases in energy and offset costs. By using the Carbon Fund to implement emissions
reduction projects now, we are protecting ourselves from the uncertainty of future
increases in energy and offset costs. The resources necessary for the research and
development of the Carbon Fund and policy were a necessary project cost, as no other
local governments in B.C. or Canada have implemented a fund like this before.
b. How does the project encourage economic sustainability? (e.g. life cycle analysis,
internalizing costs and alternative financing, economic instruments)
The amount allocated into the Carbon Fund is based on our annual greenhouse gas
inventory. As we implement projects funded by the Carbon Fund, our overall
greenhouse gas inventory will decline. Since we are committed to carbon neutrality
through the Climate Action Charter, reducing our own emissions will also reduce the
amount of offsets we will be required to purchase each year. By reducing the amount of
energy (and greenhouse gases) we need and produce, we are also limiting our exposure
to the risk of future price increases for energy and offsets. The $100 per tonne cost will
also help us to internalize the cost of increasing greenhouse gas emissions, and will
create an additional incentive to improve conservation, efficiency and the use of
renewable energy sources.
6. SUSTAINABILITY
How does the project encourage social sustainability? (e.g. stakeholder engagement,
public participation, equity and diversity, health and safety, knowledge sharing, capacity
building, community identity and marketing)
In 2004, the community of Dawson Creek completed a community visioning process that
identified sustainability and action on climate change as key priorities for the community.
Since then, the community has supported several initiatives to take action on climate
change. The Dawson Creek Carbon Fund is the most recent initiative to build on Dawson
Creek’s leadership on climate action in B.C. The Carbon Fund has invited community and
stakeholder engagement in the process of implementing the Carbon Fund, and we have
undergone a 30-day comment period where we invited community input on the Carbon
Fund. Dawson Creek is also willing to share the knowledge and research we have gained
with other communities interested in developing their own Carbon Fund. Finally, by
implementing our Carbon Fund, we are creating a local economic development opportunity,
and are facilitating the development of local green jobs.
7. INNOVATION
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2011 UBCM Community Excellence Awards
What makes your program/project innovative?
Dawson Creek is the first local government in Canada to create a fund specifically for
greenhouse gas reduction projects based on a price per tonne of our own greenhouse gas
inventory, while also maintaining our commitment to separately purchase offsets towards
carbon neutrality. We are one of the first B.C. local governments to set aside resources
specifically for greenhouse gas reduction projects, and the only B.C. local government who
has committed resources beyond just the CARIP rebate. Our $100 per tonne is the highest
Carbon Fun among local governments in Canada. The Carbon Fund is a creative way to
fund emissions reduction projects while at the same time creating an internal incentive to
reduce our emissions even further. This initiative is innovative in B.C. and across Canada.
8. TRANSFERABILITY
How is this program/project transferable to other local governments?
The policy Dawson Creek developed to guide the implementation of the Carbon Fund could
be applicable to any local government in B.C. Our research has identified best practices
from Carbon Funds around the world, and we have compiled a background research
document and a recommended fund design that is sharable for all interested local
governments. Since most local governments have signed onto the Climate Action Charter
and are required to set emissions reduction targets in their OCPs and RGSs, implementing
a Carbon Fund is one way for all B.C. local governments to fund reduction projects to meet
their commitments. We are happy to share the work we have done with other local
governments.
9. KNOWLEDGE SHARING
What helpful advice would you share with other communities looking to embark on a
similar project?
Key pieces of advice for other communities wanting to develop and implement a Carbon
Fund:
1. Complete an accurate greenhouse gas inventory annually so that you have the ability
to measure and report on your greenhouse gas emissions.
2. Based on your inventory, set a price per tonne of your own emissions to allocate to
your Carbon Fund. The price per tonne should be significant (i.e., high) enough to
provide your community with a significant fund each year for projects. It also should be
high enough to create a significant internal incentive to limit any future increases in
your greenhouse gas inventory.
3. Develop a policy to guide the specific projects your Carbon Fund will fund. For
example, Dawson Creek’s Carbon Fund may provide resources for reduction projects
at both the corporate and the community scale, and we have developed a specific list
of criteria to help prioritize potential projects. Dawson Creek’s Carbon Fund will not be
used to purchase offsets.
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2011 UBCM Community Excellence Awards
10. TELL US MORE
Please share any other information you think may help us better understand your
submission.
Dawson Creek has been a leader on energy, climate change and sustainability in B.C. for
many years. We have completed a wide range of projects to improve conservation,
efficiency, and the use of renewable energy technologies in our community. We have
integrated energy and climate change thinking into several official plans, including a
Community Energy Plan, a Carbon Neutral Plan, and Integrated Sustainability Plan. We
have also taken several concrete actions to reduce emissions in our community, including
installing solar hot water and solar PV system on several community buildings, upgrading
the efficiency of corporate buildings, and developing a biomass heating project for our
multiplex facility. We have clearly demonstrated that we are committed to taking action on
climate change, and we are committed to implementing innovative policies, actions and
plans into the way we operate. The Carbon Fund allows us to ensure that funds are
allocated each year to support new emissions reduction projects. This ensures that we can
continue to move forward with innovative projects, and that we can be certain that the funds
are available to do so. The Carbon Fund policy helps us prioritize our project ideas, and
ensures that we select projects that will reduce emissions, but that also meet other
sustainability criteria including economic and social impact. We believe that allocating $100
per tonne to a Carbon Fund will also create an additional incentive to ensure that our
overall greenhouse gas inventory is on a downward trajectory over time. Our commitment
to purchase offsets separately from the Carbon Fund also demonstrates that we take our
carbon neutral commitment under the Climate Action Charter seriously, and that we intend
to honour that commitment.
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