Can Subnational Arrangements Fill the Gap ?

Outline
1.
Canada’s GHG Emissions Profile
2.
Canadian Federal Government’s existing Climate
Policy and Regulation
3.
Sub-National and Regional Initiatives
4.
Provincial Climate Policy and Regulation a.
b.
c.
d.
Quebec
Ontario
British Columbia)
Alberta
5.
Role of Sub-National Arrangements going forward?

1. Canada’s GHG Emissions Profile

1. Canada’s GHG Emissions Profile

1. Canada’s GHG Emissions Profile
Source: Pembina Institute Backgrounder at http://www.pembina.org/reports/kxl-climate-backgrounder-jan2013.pdf

2. Existing Federal Climate Policy and Regulation
 “The Government of Canada is implementing a sector-by-sector regulatory approach to reduce GHG emissions that protects the environment and supports economic prosperity.”
 Focus
— Transportation (regulations relating to passenger automobiles, light trucks, heavy vehicles)
— Renewable fuels (*current constitutional challenge)
— Electricity (Reduction of Carbon Dioxide Emissions from
Coal-Fired Generation of Electricity Regulations
(SOR/2012-167))
 Missing?

2. Existing Federal Climate Policy and Regulation
Source: Pembina Institute, Top Stories from Canada’s Latest Greenhouse Gas Emissions Inventory

3. Sub-National and Regional Initiatives
 Western Climate Initiative
— Canadian members: British Columbia, Ontario, Quebec and
Manitoba
 Pacific Coast Collaborative
— Alaska, British Columbia, California, Oregon and Washington
 Under 2 MOU (International)
— Canadian provincial signatories: British Columbia, Ontario,
Quebec and Northwest Territories
 Pan American Action Statement
— Canadian provincial signatories: Ontario, Quebec, Nfld
 North America 2050
— Canadian members: British Columbia, Ontario, Quebec and
Manitoba

1. Canada’s GHG Emissions Profile https://www.ec.gc.ca/indicateurs-indicators/default.asp?lang=en&n=18F3BB9C-1

3. Sub-National and Regional Initiatives
Source: Pembina Institute, Top Stories from Canada’s Latest Greenhouse Gas Emissions Inventory

4. Provincial Climate Policy and Regulation: Quebec
Source: Groupe de recherche sur les ressources énergétiques des bassins sédimentaires du Québec

4. Provincial Climate Policy and Regulation: Quebec
 Targets:
— 6% below 1990 levels
✔
— 37.5 per cent below 1990 levels by 2030
 Key Policy Initiatives:
— levy based on carbon content of fossil fuels (2006)
— cap-and-trade system
 linking with California January 2014

4. Provincial Climate Policy and Regulation: Ontario
 Targets:
— 15% below 1990 levels by 2020
—
—
37% below 1990 levels by 2030
— 80% below 1990 levels by 2050
 Key Policy Initiatives:
Complete coal phase out
 “the single largest GHG reduction measure in North America”
— Green Energy and Green Economy Act (2009)
 energy efficiency
 Feed-in tariff for renewable energy
 amended approval processes for renewable energy
 April 13, 2015 – Premier announced Ontario will introduce a cap and trade scheme
— intention to link with Quebec and California

4. Provincial Climate Policy and Regulation: Ontario
Source: Ministry of the Environment and Climate Change: Ontario’s Climate Change Discussion Paper 2015: http://www.downloads.ene.gov.on.ca/envision/env_reg/er/documents/2015/012-3452.pdf

4. Provincial Climate Policy and Regulation: Ontario
Source: Ministry of the Environment and Climate Change: Ontario’s Climate Change Discussion Paper 2015: http://www.downloads.ene.gov.on.ca/envision/env_reg/er/documents/2015/012-3452.pdf

4. Provincial Climate Policy and Regulation: BC
 Targets:
— 6% below 2007 by 2012
✔
— 33% below 2007 levels by 2020
— 80% below 2007 levels by 2050
 Key Policy Initiatives:
— Revenue neutral carbon tax
—
—
—
— carbon neutral government
Clean Energy Act
 requires that at least 93% of the province’s electricity be generated by clean, renewable sources o BC Hydro’s generation portfolio currently exceeds 96% clean or renewable resources
 Requires, by 2020, that at least 66% of BC Hydro’s future incremental power demand must be met through conservation and efficiency improvements
Commitment to “cleanest” LNG facilities in the world
Forests offsets protocol

4. Provincial Climate Policy and Regulation: BC

4. Provincial Climate Policy and Regulation: BC
Source: BC Government Greenhouse Gas Inventory 2012

4. Provincial Climate Policy and Regulation: Alberta
 Targets: **new government and awaiting new climate policy!!!
—
—
Reduce emissions by 20 megatonnes by 2010
Reduce emissions by 50 megatonnes by 2020
— Reduce emissions by 200 megatonnes by 2050
 Result in “50 per cent below business as usual level and 14% below 2005 levels while maintaining economic growth”
 Key Policy Initiative:
 Specified Gas Emitters Regulation 2007
—
— baseline and credit, emission intensity approach industrial facilities that emit over 100,000 tonnes of GHGs per year are required to reduce emission intensity by 12% (15% by January 1, 2016; 20% by January 1, 2017) relative to baseline established using 2003-2005 average emissions
— compliance measures15%
 Reduce emission intensity
 Use previously generated emission performance credits (from facilities that reduce intensity beyond target)
 Purchase emissions offsets
 Payment into a technology fund at a rate of $15/tC0
2
2017) .
($20/tC0
2 for 2016 and $30/tC0
2 for
 Cost of intensity improvements and offsets effectively
 Current Climate Leadership discussion – pre-Paris announcement?

4. Provincial Climate Policy and Regulation: Alberta
Share of Industrial GHG Emissions by Major Sector in Alberta
Source: Pembina Institute, Power to Change: How Alberta Can Green its Grid and Embrace Clean Energy http://www.pembina.org/reports/power-to-change-pembina-cec-2014.pdf

5. Role of Sub-National Arrangements Going forward?
 New Canadian Federal Government policy
— “We will ensure that the provinces and territories have adequate tools to design their own policies to meet these commitments, including their own carbon pricing policies.”
 What role for sub-national arrangements to support forward momentum??
— As linkages build, might other provinces (AB) be encouraged to join?
— Or, as linkages build, a variation of carbon clubs (al la
William Nordhaus) form to punish those who don’t join?

Thank you / Merci