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National Round Table on the Environment and Economy: Long-term Energy and Climate Change Issues for Canada For the regions of Manitoba, Saskatchewan, Northern Ontario, and the Atlantic Provinces Contract number: NRT-2006105 September 29, 2006 Submitted to: Kelly Bagg Acting Manager of Communications National Round Table on the Environment and the Economy Email: [email protected] Submitted by: Michelle McLaren Program Officer, Climate Change and Energy International Institute for Sustainable Development E-mail: [email protected] Table of Contents Long-term Energy and Climate Change Issues for Canada ........................................................................1 Synopsis – Atlantic Canada ..............................................................................................................................2 Potential Speakers: Atlantic Canada................................................................................................................4 Synopsis – Saskatchewan, Manitoba and Northern Ontario ......................................................................6 Potential Speakers: Saskatchewan, Manitoba and Northern Ontario........................................................7 Long-term Energy and Climate Change Issues for Canada On September 7, 2006, the National Round Table on the Environment and Economy (NRTEE) engaged the International Institute for Sustainable Development (IISD) to assist with preparations for two outreach sessions as part of a ten-city national initiative entitled, Long-term Energy and Climate Change Issues for Canada. The initiative attempts to launch an extensive dialogue on Canada’s long-term response to energy and climate change. This dialogue will be part of an effort to continue a study on what a low carbon future for Canada might look like over the next half century. In association with this initiative, IISD has undertaken preparations for a meeting to be held in Winnipeg, covering the region of Manitoba, Northern Ontario, and Saskatchewan, and a meeting to be held in Moncton for the Atlantic Provinces. IISD has identified local and regional senior stakeholders who could be invited to these meetings and offer advice on long-term energy and climate change issues facing each region, including a list of potential speakers on the subject. To further aid in the effectiveness of the initiative and as per the agreement between NRTEE and IISD, IISD has prepared a synopsis of key topics that might be addressed at each of these regional meetings based on interviews with key stakeholders and a review of literature. 1 Synopsis – Atlantic Canada In 2004, Atlantic Canada (Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland) produced 59.88 million tonnes (Mt) of greenhouse gas (GHG) emissions, or approximately 8.3 percent of Canada’s total. 1 Nova Scotia and New Brunswick each produced about 40 percent of these emissions. It is expected that by 2012, Nova Scotia and New Brunswick will emit about 25 Mt and 23 Mt respectively, followed by Newfoundland and Labrador at 11 Mt. 2 The Atlantic region faces unique challenges when determining a long-term response to meeting its energy needs and addressing climate change. The region is highly dependent on a resource-based economy and use of conventional sources of energy. This situation causes it to be more vulnerable than other parts of Canada to the economic consequences of adapting to climate change. The high costs expected for the region in adapting to climate change, coupled with increases in energy demand, indicates the need for a comprehensive plan for a healthy and prosperous future. Key issues for the region with respect to a long-term response to energy and climate change are: Impacts • Rising temperatures caused by climate change will expand oceans, while hurricanes and other extreme weather events are projected to increase in frequency in Atlantic Canada. These changes are expected to adversely impact components of the energy sector. For example, offshore production and exploration of fossil fuel may be hindered by sea level rise, tropical cyclones and ocean waves. 3 Electricity transmission infrastructure may be damaged by more frequent extreme weather events such as ice storms and hurricanes. Such possibilities indicate that a long-term energy strategy is required which addresses adaptation measures. Energy supply and demand • The Atlantic Provinces are highly dependent on oil (both imported crude and some domestic crude from local offshore2) for heating purposes and offshore oil drilling and exploration represent a major source of potential income in Newfoundland and Labrador and Nova Scotia. However, increases in the international price of oil could have an effect on the continued and increased inefficient use of coal. • The renewable energy potential in Atlantic Canada is quite high, and plans such as those to develop the lower Churchill system in Labrador, and adding 80 MW of wind power to the grid by 2012 in Prince Edward Island2 may become more abundant. To take full advantage of opportunities, a need for an efficient, cost-effective plan to integrate renewable energy into the regional energy mix is necessary. • The energy system in the Atlantic region, and particularly New Brunswick, are highly integrated into the United States market. Exports to, and imports from the United States need to be given careful consideration when dealing with energy demand and supply issues over the long-term. • The region needs to take greater advantage of new and existing energy efficiency measures. Commercial technologies currently not widely employed could be brought into the mainstream market with the right combination of incentives, education and awareness. Environment Canada. 2006. National Inventory Report, Greenhouse Gas Sources and Sinks in Canada 1990–2004. Natural Resources Canada. 2006. Canada’s Energy Outlook: The Reference Case 2006. 3 Environment Canada. 2004. Climate Change and the Canadian Energy Sector: Report on Vulnerability Impact and Adaptation. 1 2 2 Education • What role should education play (in terms of the school curriculum, and public engagement and awareness), in the success of a long-term energy and climate change strategy in the Atlantic region? Support in the form of funding, tools, and programs for education and outreach both in the public and non-governmental sectors could be considered in the effort to promote behavioural change toward energy conservation, and demand side management. Incentives and Regulations • What set of incentives and regulations, in conjunction with public education, would work with the appropriate policy to ensure the effectiveness of a long-term energy and climate change strategy? Incentives for both the private sector and consumers need to be addressed along with regulations for large final emitters, small/medium size enterprises, and other industries. Collaboration • Knowledge sharing and information exchange is critical among all levels of government, NGOs, business, industry, and other stakeholders. In that respect, it is critical for Atlantic Canada to follow up with several credible and existing studies that provide recommendations and address sensitivities within the region such as the 2001 Climate Change Action Plan prepared by the Committee on the Environment and the Northeast International Committee on Energy of the Conference of New England Governors and Eastern Canadian Premiers. Community Engagement: • Communities are highly sensitive to climate change and energy planning and therefore need to be discussed as a sub-issue to all topics. Communities have the capacity to create jobs and benefit in the long-term if, for example, the region were to promote the growth of green industries. Transportation • Poor or absent transportation infrastructure is a current reality in Atlantic Canada. This issue could be addressed in terms of both public transit and efficiency of personal transportation through improved access and trip reduction. • Alternative fuels for fleet, particularly heavy transport, are said to be of interest and necessity to Atlantic Canadians. Funding for research into alternative fuels for transportation such as algae biofuel production, distribution and use is necessary along with accompanying demonstration projects. Air Quality • Up to 90 percent of smog in Atlantic Canada comes from the United States 4 through long-range transport, and therefore transboundary pollution is of concern in the region. • Poor air quality is also caused by increased wood burning in households, leading to acute and chronic effects such as asthma and increased respiratory infections. Environment Canada. 2005. Clean Air Online: Transboundary Pollution. Available: http://www.ec.gc.ca/cleanairairpur/CAOL/air/interim2001/transboundary_e.html 4 3 Potential Speakers: Atlantic Canada Dr. Roff John Professor, Canadian Research Chair Atlantic Centre for Global Change and Ecosystem Research Acadia University Wolfville Nova Scotia B4P 2R6 Tel: (902) 585-1921 Fax: (902) 585-1054 Email: [email protected] Dr. Samuel M. Sami Professeur et directeur du CRCE École de génie Université de Moncton Tel : (506) 858-4194 Email : [email protected] Mr. George Foote Director, Intergovernmental & Climate Change Initiatives Nova Scotia Department of Energy Bank of Montreal Building, Suite 400 5151 George Street P.O. Box 2664 Halifax, Nova Scotia B3J 3P7 Tel: (902) 424 - 8168 Email: [email protected] Dr. Jim Wright Director Oil and Gas Development Partnership Alexander Murray Building Room ER 6034 Mermorial University of Newfoundland and Labrador St. John’s, Newfoundland A1B 3X5 Tel: (709) 737-6192 Email: [email protected] Mr. Darwin Curtis Director 4 Energy Demand Management New Brunswick Department of Energy Carleton Place Fredericton New Brunswick Tel: (506) 453-3720 Fax: (506) 457-7204 Email: [email protected] Mr. Carl Brothers Site Manager PEI Energy Corporation PO Box 72 Alberton C0B 1B0 Email: [email protected] Mr. Tony Lamport Nova Scotia Department of Economic Development Centennial Building 1660 Hollis St., Suite 600 Halifax Nova Scotia B3J 1V7 Tel: (902) 424-0377 Fax: (902) 424-7008 Email: [email protected] Ms. Louise Steward Irving Oil Ltd. 10 Sydney Street Saint John New Brunswick E2L 4K1 Tel: 1-888-310-1924 Email: [email protected] Mr. Terry McNeil Director Newfoundland and labrador Conservation Corps 267 Duckworth Street St. John's Newfoundland A1C 1G9 Tel: (709) 729-7279 Fax: (709) 729-7270 Email: [email protected] 5 Synopsis – Saskatchewan, Manitoba and Northern Ontario Industry, households, communities and governments in Saskatchewan, Manitoba and Northern Ontario may all be able to play significant roles in helping to put Canada on a path to achieve significant long-term reductions in energy-related greenhouse gas emissions. This synopsis describes some of the key reduction opportunities, as well as some of the challenges that would need to be overcome. Energy-related GHG emissions • In 2004, energy-related GHG emissions in Saskatchewan were 56.8 MT (megatonnes), an increase of 62 percent over 1990 levels (35 MT). The main sources of growth were power generation and combustion/fugitive emissions from the production of fossil fuels. The energy sector accounted for 82 percent of total provincial GHG emissions in 2004. • Manitoba’s economic structure gives its GHG inventory the lowest percentage of emissions from the energy sector (61 percent) among provinces and the highest percentage from agriculture (32 percent). Energy-related GHG emissions in Manitoba have been stable since 1990 at just over 12 MT, with increases in the transport sector offset by reductions in other areas. • Together, Saskatchewan and Manitoba accounted for 11 percent of total national energy-related GHG emissions in 2004. While data for northern Ontario is not separately reported, total Ontario energy-related GHG emissions in 2004 were 164 MT, 26 percent of the national total. Carbon capture and storage • The development and commercialization of technologies and processes for carbon capture and storage will be critical to reducing greenhouse gas emissions in Saskatchewan’s coal power industry as well as the oil and gas sector. The Petroleum Technology Research Centre (PTRC) in the Regina Research Park is leading an international research project Unit that is studying the effectiveness of permanently storing CO2 underground. • Two major projects are already underway in Saskatchewan - carbon dioxide (CO2) flood projects implemented in the Weyburn Unit by EnCana Energy and in the Midale Unit by Apache Canada are expected to provide underground storage for close to 30 million tonnes of CO2 over the life of the projects. Renewable electricity generation • The wind energy resources in Saskatchewan and Manitoba are very large, but are effectively limited by the ability to firm the intermittent power from wind turbines. Fortunately, the storage offered by Manitoba’s hydroelectric facilities provides a way to firm wind power and greatly increase its value and economic potential. Both Saskatchewan and Manitoba have greatly increased wind power capacity in recent years, and Manitoba has committed to develop an additional 1,000 MW of wind over the next decade. 5 • More than 5000 MW of hydroelectric power have been developed in Manitoba already, providing 97 percent of the power produced in the province. There is potential to add an equivalent or greater amount of low-impact hydropower in Manitoba and Northern Ontario. • New transmission infrastructure will be key to developing and integrating additional renewable electricity generation in Saskatchewan, Manitoba and Northern Ontario. Additional transmission is 5 Government of Manitoba. 2006. Green and Growing: Building a Green and Prosperous Future for Manitoba Families. 6 needed to connect new power facilities, to link northern communities more effectively with the southern grid, and to allow power to flow to neighboring jurisdictions in Canada and the US where it can displace more carbon-intensive generation. Biofuels • With well over half the arable land in Canada, Saskatchewan and Manitoba have abundant agriculture land to produce feedstock that could be turned into bio-fuels such as ethanol and biodiesel. • Saskatchewan was the first Canadian province to pass legislation mandating the use of ethanol, and Husky’s 130-million litre facility in Lloydminster is the largest ethanol plant in Western Canada. In the 1980s, Manitoba was the first province in Canada to construct an ethanol plant (located in Minnedosa) and one of the first to have a biodiesel plant (located in Arborg). The Manitoba government has also passed biofuels legislation mandating the use of 10 percent ethanol in gasoline products once local production grows to meet the demand. Transportation • Saskatchewan, Manitoba and Northern Ontario may be able to benefit from the development of new transportation technologies. Winnipeg is the home of the largest bus manufacturer in North America and is a major producer of hybrid buses. • Plug-in hybrid vehicles are a good fit with the region – due to the existing plug infrastructure in parking lots and the ability to use renewable electricity to provide even greater emission reductions. • Due to low electricity costs, Manitoba is quite likely to be the first jurisdiction in North America that is able to economically produce hydrogen from electrolysis of renewable electricity – for true zero emission hydrogen vehicles. Energy Efficiency • Saskatchewan (the original home of the R2000 house) and Manitoba have always been innovators in energy efficiency. • Manitoba has become a leader in earth energy systems also known as geothermal or ground source heat pumps. There are now more than 4000 geothermal systems in Manitoba – between 25 percent and 30 percent of all geothermal system installations in the country – and 56 percent of Canada’s geothermal installers are trained in Manitoba. Installations have tripled in the past four years and are predicted to double again in the next two years. • The new Manitoba Hydro headquarters currently under construction, consolidating nearly 2,000 staff from across Winnipeg into the downtown, promises to be one of the most energy-efficient large buildings in the world, incorporating state-of-the art energy efficiency technologies in a world-class design while recycling and reusing up to 90 percent of the materials from the original buildings from the site. Potential Speakers: Saskatchewan, Manitoba and Northern Ontario Mr. John Clarkson Deputy Minister Manitoba Science, Energy, Technology and Mines Room 349, Legislative Building 450 Broadway Winnipeg, Manitoba R3C 0V8 7 Tel: (204) 945-2771 Fax: (204) 948-2747 Email : [email protected] Mr. Bob Brennan President and CEO Manitoba Hydro P.O. Box 815 Stn Main Winnipeg Manitoba R3C 2P4 Tel: (204) 474-3311 Mr. Rick Patrick Vice President SaskPower 2025 Victoria Avenue Regina Saskatchewan S4P 0S1 Tel: +1 (306) 566-2955 Email: [email protected] Mr. Trevor Fridfinnson Director of Operations Bison Transport 1001 Sherwin Rd. Winnipeg Manitoba R3H 0T8 Tel: (204) 949-5631 Fax : (204) 949-5773 Email [email protected] Ms. Anne Lindsey Executive Director Manitoba Eco-Network 3-303 Portage Ave. Winnipeg Manitoba R3B 2B4 Tel: (204) 947-6511 Fax: (204) 989-8476 Email: [email protected] Mr. Rodney McDonald President Manitoba Chapter 8 Canada Green Building Council 301-35 King Street Winnipeg Manitoba R3B 1H4 Tel: (204) 478-0598 Email: [email protected] 9