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Agenda Item No.: G.1.h. C Initiatives of the 20% Club for CO2 Reduction. Recommendation: 1. That the strategy for reducing greenhouse gas emissions from City operations (referenced in the Council approved Environmental Strategic Plan Topic 2.1) summarized in Attachment 1 be received for information. 2. That this report be used as the basis of the submission to the Voluntary Challenge & Registry and the Federation of Municipalities Partners for Climate Protection program. Report Summary The report presents the plan for reduction of greenhouse gas emissions from City operations. Previous Committee Action At the Utilities and Public Works Committee meeting on May 13, 1997 the following motion was passed: “That the April 28, 1997 Asset Management and Public Works Department report be received for information” including a commitment for the development of a “CO2 reduction strategy”. At the Council meeting of 7th October 1997, a motion was passed that “the administration include an additional $80,000 in the Office of the Environment 1998 budget to perform a study of options and implications for achieving greenhouse gas emissions reduction in Edmonton”. At the Council meeting of July 20th, 1999, the Environmental Strategic Plan Policy Document was approved. This includes approval of the Strategic Direction 2.1 “Reduce community-wide greenhouse gas emissions”. Routing: Delegation: Written By: September 20, 1999 File: 99PWW084 Report The City has had a commitment since 1995 to the Voluntary Challenge and Registry (VCR) program and the emissions reduction target of the Federation of Canadian Municipalities (FCM) Partners for Climate Protection program. Strategies for reducing greenhouse gas emissions from City operations were examined for reaching both: a) the Kyoto target (6% reduction below 1990 figures by 2008); and, b) the FCM target (20% reduction below 1990 emissions figures). If no GHG emissions reduction were to be implemented, emissions from City operations would likely increase 12% by the year 2008. For City operations, the Kyoto 6% reduction target can be met and exceeded with proven and available technology. Three-quarters of the FCM 20% reduction target (i.e. 16%) can be met with similar technology. Research and development of specific applications of new and emerging technologies will be required to attain the 20% FCM target. Longer-term emission reduction requirements beyond 2008, to offset projections of emission increases due to City growth, will rely heavily on the application of emerging technologies. Emissions from City operations represent only a small portion (3%) of the total GHG emissions from within Edmonton’s boundaries. City operations were examined first to: (1) demonstrate civic leadership and promote awareness; and (2) determine a viable methodology before tackling the much wider set of circumstances associated with emissions from community wide sources - for Transportation and Public Works Committee, City Council W. D. Burn M. T. Brostrom Asset Management & Public Works (Page 1 of 2) G 1 h C Initiatives of the 20% Club for CO2 Reduction which the City has no control over action and enforcement. A task force comprised of members of the administration, in consultation with key stakeholders, will develop the community-wide options for greenhouse gas emissions reductions. This process will take into account the strategy for City operations, the findings of the Options Paper of the Municipalities Table and provincial round table findings. Options to reduce community-wide GHG emissions are expected by year-end 1999. To ensure Edmonton’s approach is consistent with other jurisdictions, the City’s Office of the Environment is represented on Alberta’s Clean Air Strategic Alliance (CASA) Climate Change Project Team and also on the Federal Municipalities Table, which is providing input into Canada’s National Strategy on Climate Change. Several companies, including EPCOR, have initiated greenhouse gas emission reduction strategies. EPCOR is currently reporting reduction of 6% below 1990 emission levels. Budget / Financial Implications Decisions already made by Council on planned capital expenditures such as bus replacement and the energy management revolving fund for buildings positively impact greenhouse gas emissions. Any changes to these capital expenditures would result in a corresponding positive or negative impact on the City’s greenhouse gas emissions. Already planned projects (Level I expenditure) will limit the increase in emissions at year 2008 to 1.5% above 1990 figures. Additional GHG emissions reduction strategies (Level II), for implementation during the 8-year period 2000 to 2007, will cost approximately $20.7 million and reduce emissions at 2008 by 16%. This will yield operating savings of $22.1 million from 2001 to 2008. Over 12 years, these savings will increase significantly to $41.8 million. Approximately $2.1M for piloting (Level III(a) expenditure) will also be required for introducing new technologies necessary to fully achieve the FCM 20% target and to constrain emissions growth beyond 2008. Partners will be sought to help offset these costs. Level II and IIIa projects will be included in the departments’ annual budget submissions as required. Justification of Recommendation 1. In 1995, the City of Edmonton committed to both VCR program and the emissions reduction program of the FCM. These programs require submission of action plans detailing how specific greenhouse gas emissions targets will be met and how progress will be measured. Attachment 1, Overview of Greenhouse Gas Emissions Reduction Plan for City Operations, describes the overall approach that is needed to enable the City to meet its commitments for greenhouse gas stabilization and reduction. Background Information Attached 1. Overview of Greenhouse Gas Emissions Reduction Plan for City Operations Others Consulted for this Report 1. Environmental Advisory Committee. Others Approving this Report 1. Environmental Steering Committee. (Page 2 of 2)