Agenda Item No.: G.1.a.
The Kyoto Protocol: A Comparison of the Alberta and Federal Government Climate
Change Plans and Positions of the AUMA and FCM.
Recommendation:
That the December 2, 2002, Asset
Management and Public Works report be
received for information.
Report Summary
This report provides an overview of the
comparison between the Alberta
government’s climate change plan and the
federal government’s plan to achieve the
Kyoto targets.
Previous Council/Committee Action
At the October 1-2, 2002, City Council
meeting the following motion was passed:
1. That Administration bring forward a
report to City Council providing an
overview of the Alberta
Government’s plan, Albertans and
Climate Change: A Plan for Action,
along with an explanation on how
this plan differs from the Kyoto
Protocol.
2. That Administration bring forward a
report providing an overview of the
Alberta Urban Municipalities
Association and Federation of
Canadian Municipalities positions on
Kyoto and analysis of how it would
affect Edmonton and Alberta.
Report
Alberta and Federal Plans
 The Alberta and Federal governments
have released general plans for
addressing climate change. A
comparison of the two plans is provided
in Attachment 1.
 While the stated objective of both orders
of government is to reduce greenhouse
Routing:
Delegation:
Written By:
December 02, 2002
File: 2002PWW120
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gas emissions, they take different
approaches and work toward different
targets.
The federal government is working
toward Canada’s Kyoto target of 6%
absolute reduction in GHG emissions
from 1990 levels by 2008 to 2112.
The provincial government’s target is a
50% reduction in emissions intensity
indexed to Gross Domestic Product
(GDP) growth by 2020. The actual
emission target will vary depending
upon economic growth.
AUMA and FCM Positions
 The positions of the national and
provincial municipal associations are
identified in their Kyoto resolutions,
approved in May 2002 and September
2002 respectively.
 The Federation of Canadian
Municipalities (FCM) resolution
supports the ratification of Kyoto while
the Alberta Urban Municipalities
Association (AUMA) supports the
Government of Alberta plan.
 Common to both resolutions are the
following five principles:
1. No region of the country bears an
unreasonable cost related to reducing
greenhouse gas emissions.
2. Greenhouse gas emissions related to
producing oil and gas and electricity
are allocated to consuming
jurisdictions and sectors, rather than
producing jurisdictions.
3. Sinks in the forest and agriculture
sectors, particularly Western Canada,
are pursued as part of a national
City Council
W. D. Burn
M. T. Brostrom
Asset Management and Public Works
(Page 1 of 2
G
1
a
The Kyoto Protocol: A comparison of the Alberta and Federal Government Climate
Change Plans and Positions of the AUMA and FCM

strategy to diversify rural economies
through development of a bioeconomy.
4. Investment in research and
development, pilots and
commercialization of technologies
and processes that remove carbon
dioxide from waste streams (i.e., coal
gasification, injection into
reservoirs) is required.
5. Canada’s Kyoto action plan to be
based on maximizing improvements
in productivity and competitiveness.
Edmonton’s community and stakeholder
endorsed CO2RE initiative has many
components that support both the federal
and provincial plans. Attachment 2
provides an overview of the potential
opportunities and linkages to the
provincial and federal climate change
initiatives.
3. FCM Resolution ENV02.2.04: A
Municipal Proposal for Ratification of
the Kyoto Protocol (May 2002)
4. AUMA Resolution No. A6: Kyoto
Agreement (September 2002)
Background Information Attached
1. Climate Change Plans Comparison –
Government of Alberta and Federal
Government
2. CO2RE Initiative Opportunities and
Linkages to the Federal and Provincial
Climate Change Plans
Background Information Available on
Request
1. Climate Change: Achieving Our
Commitments Together – Climate
Change Plan for Canada
2. Albertans & Climate Change – Taking
Action
(Page 2 of 2
Attachment 1
Climate Change Plans Comparison – Government of Alberta & Federal Government
Government of Alberta
Federal Government
JURISDICTION
JURISDICTION


Alberta specific plan, not binding for or including
other provinces or territories.
Carbon dioxide and methane are considered
natural resources and not toxic under atmospheric
conditions and are inextricably linked with the
management of other renewable and nonrenewable natural resources, including sinks.
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Canada-wide plan that includes all provinces and
territories.
The federal government is responsible for
negotiation of international treaties, including the
United Nations Framework on Climate Change
(UNFCC).
Made-in-Canada approach based on collaboration,
partnerships and respect for jurisdiction with no region
bearing an unreasonable burden.
GAS EMISSION TARGETS & TIMELINES
GAS EMISSION TARGETS & TIMELINES
Target
 Minus 50% emissions intensity below 1990 levels
(indexed to GDP growth).
Target
 Minus 6% below 1990 levels.
Timeframe
 By 2020.
Timeframe
 By the 2008 to 2012 budget period.
Absolute Reduction from 2000 Levels
 Minus 13% (approximate)1.
Absolute Reduction from 2000 Levels
 Minus 18% (approximate).
Absolute Reduction from 1990 Levels
 Plus 13% (approximate)2.
Absolute Reduction from 1990 Levels
 Minus 6%.
1

Estimates are based upon a predicted provincial GDP
growth rate average of 2% annually.
2
The absolute reduction target will vary depending
upon actual GDP growth.
Absolute reduction of 6% from 1990 levels to be
achieved in the budget period 2008 – 2012
Attachment 1 – Page 1 of 5
Attachment 1
Climate Change Plans Comparison – Government of Alberta & Federal Government
Government of Alberta
Federal Government
STRATEGIC APPROACH & ACTIONS
STRATEGIC APPROACH & ACTIONS
Negotiate with Key Sectors
 Work with stakeholders and begin negotiations
with 10 key sectors (including municipalities).
Emissions Trading
 Define, establish a registry and buy real credits.
Put the Alberta Government “House” in Order
 Fund innovative technologies in operations,
support energy retrofits for schools, purchase
alternative and hybrid vehicles, purchase green
power, driver education program for staff and
establish longer term emission reduction target.
Help Albertans Conserve Energy
 Provide information on energy efficiency and
conservation for homes and small businesses,
support retrofits, energy conservation programs
and reduce barriers to low-impact power
generation.
Support Technology
 Enhance government support for research and
support centres of excellence for clean energy
technologies and climate change analysis.
Carbon Management
 Start pilot projects/monitoring programs for use of
carbon for enhanced oil recovery, CO2 enhanced
coal bed methane recovery and work with other
governments to develop protocols for monitoring
of CO2 in stored geologic formations.
Renewable/Alternative Energy Sources
 Will expect average emissions intensity from
electricity generation to decrease and look to
CASA for an overall framework. Also expect
electricity retailers to disclose emission intensity
of the electricity they market.

Three step approach:
 First, investments to-date that will address one
third of the total reduction (80 MT).
 Second, it articulates a strategy for a further
100 MT reduction.
 Finally, outlines a number of current and
potential actions that should enable Canada to
address the remaining 60 MT reduction.
Credit for Early Actions
 In 2000, federal and provincial energy and
environment ministers endorsed the principle that
companies that take early action should not be
disadvantaged by an output based emissions
regime. The Government will continue to work
with industry to design a system that will not
disadvantage those firms that have taken early
action.
Key Areas for Action in the Plan:
Transportation
 Renew commitment to working with automotive
manufacturers to improve new vehicle fuel
efficiency by 25% by 2010 and propose additional
steps to encourage consumer demand for more
efficient vehicles;
 Commit the new investments to increase the use
of public transit and manage growth in vehicle
use;
 Set the goal of increasing the amount of gasoline
containing 10% ethanol blend to 35% of the
market, in collaboration with the provinces and
territories, and the amount of biodiesel production
to 500 million litres;
 Propose improved performance targets and best
practices for all freight transport, and enhanced
intermodal infrastructure.
Attachment 1 – Page 2 of 5
Attachment 1
Climate Change Plans Comparison – Government of Alberta & Federal Government
Government of Alberta
Federal Government
Biological Sinks
 Confirm ownership of carbon sequestration
potential of soil/forests, develop land use registry
to track reductions/removals, participate in
research and support initiatives to develop ways of
measuring, monitoring, verifying and trading sinkrelated greenhouse gas offsets.
Housing and Commercial/Institutional Buildings
 Expand cost-shared home energy audits for
homeowners; and
 Provide information to encourage consumers to
purchase energy efficient appliances and
equipment.
Also proposed that governments work towards the
following goals:
- Energy efficient retrofits of 20% of the housing
stock and 20% of the commercial/institutional
building stock by 2010; and
- Building all new homes to R2000 or equivalent
standard by 2010 and all new
commercial/institutional buildings to a
minimum of 25% above the Model National
Energy Code by 2010.
Adapting to Climate Change
 Work with stakeholders to understand impacts,
take part in research projects and enhance the
alberta government’s adaptation research.
Large Industrial Emitters
 Emissions targets established through covenants
with a regulatory or financial backstop in
consultation with industry, provinces, and
territories;
 Domestic emissions trading, with access to offsets
and international permits; and
 Cost-shared strategic investments in a number of
areas such as renewable energy; clean coal
demonstration projects; and a CO2 pipeline.
Small and Medium-Sized Enterprises (SMEs) and
Fugitive Emissions
 Expand the Canadian Industry Program for
Energy Conservation (CIPEC) to include SMEs;
 Cost-share energy efficiency audits;
 Continue to provide information and assistance,
through the Industrial Research Assistance
Program, on the best energy efficiency technology
available to small manufacturers; and
 Promote practices to reduce flaring and venting of
waste gases.
Attachment 1 – Page 3 of 5
Attachment 1
Climate Change Plans Comparison – Government of Alberta & Federal Government
Government of Alberta
Federal Government
EMISSION TRADING SYSTEM
EMISSION TRADING SYSTEM
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
Develop a definition for eligible greenhouse gas
offsets.
Establishment a registry for greenhouse gas
offsets.
Take part in initiatives to buy real emission
reductions.
IMPLEMENTATION
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
Establishment of Climate Change and Emissions
Management Fund.
Fund to be used for purposes related to reducing
emissions of specified gases or improving
Alberta’s ability to adapt to climate change.
Proposed Legislation
 The Government of Alberta introduced Bill 63 in
the Provincial that will provide a legal framework
to support its action plan on reducing greenhouse
gas emissions. Highlights of the plan include:
 Alberta Government may make regulations that
will decide on target reductions, validation of
sinks and emissions offsets, establishing the
various sectors, consequences of non-compliance,
limits on levels of specified gases that may be
released and maximum levels of emission of
specified gases per unit of energy input and
output.

Purchase of domestic offsets or international
permits.
 Emitters hold permits for their emissions thus
creating an incentive for the use of lower
emissions technologies and energy sources.
 Federal government will continue to work with
industry, provinces, territories and stakeholders to
clarify the architecture of a workable, efficient
and effective domestic emissions trading system.
IMPLEMENTATION
Five Key Instruments
 Emissions reduction targets for large industrial
emitters established through covenants with a
regulatory or financial backstop.
 Partnership fund that will cost-share emissions
reductions in collaboration with provincial and
territorial governments.
 Strategic infrastructure investments.
 Co-ordinated innovation strategy.
 Targeted measures including information,
incentives, regulations and tax measures.
Existing Legislation & Requirements
 CEPA requires that the Minister of the
Environment monitor and report environmental
information. Domestic reporting of emissions of
greenhouse gases, trends in emissions and
guidance documents by Environment Canada
fulfil this legislative requirement.
Attachment 1 – Page 4 of 5
Attachment 1
Climate Change Plans Comparison – Government of Alberta & Federal Government
Government of Alberta
Federal Government
 Lieutenant Governor in Council may make
regulations:
- establishing a system of emission trading
for the purpose of achieving reductions in
specified gas emissions consistent with
emission targets specified in ‘specified gas
emission targets’ and ‘Sectoral
Agreements’;
- establishing interim specified base emission
targets for Alberta; and
- establishing specified base emission targets
and interim specified gas emission targets
for different specified bases and for
different sectors of the Alberta Economy.
 Contravention of the Act may be subject to
administrative penalties.
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The United Nations Framework Convention on
Climate Change, which Canada ratified in 1992
commits Canada to developing and reporting
emissions and removals of greenhouse gases.
Specifically, Article 4, paragraph 1 (a) states that
"all parties to the convention must develop,
periodically update, publish and make available
to the Conference of the Parties national
inventories of anthropogenic emissions by sources
and removals by sinks of all greenhouse gases not
controlled by the Montreal Protocol.”
The Kyoto Protocol further strengthens Canada's
reporting requirements and mandates the annual
reporting of greenhouse gas emissions and
removals, as an annual report, as well as
supplementary explanatory information. In
addition, countries are required to establish
national systems for reporting, verification, to link
with domestic and international trading systems
and other Kyoto Protocol mechanisms.
Attachment 1 – Page 5 of 5
Attachment 2
CO2RE Initiative Opportunities and Linkages to the Federal & Provincial Climate Change
Plans
The CO2RE Strategy (Edmonton's Community-Wide Greenhouse Gas Emissions Reduction & Energy
Plan) and Business plan is action and implementation orientated. This will position CO2RE to benefit
from Government climate change programs, initiatives and funding.
JURISDICTION
The CO2RE Strategy is a ‘made-in-Edmonton plan that meets both Provincial and Federal Government
jurisdictional requirements.
GAS EMISSION TARGETS & TIMELINES
CO2RE has two primary community-wide goals that are not in conflict with either Government plan;
1. To achieve up to a 6% reduction in GHG emissions (from 1990 levels) by 2010
2. To achieve up to a 20% reduction in GHG emissions (from 1990 levels) by 2020
STARTEGIC APPROACH & ACTIONS
The CO2RE Strategy is a multi-sector stakeholder developed plan designed to achieve its goals through
delivery of a wide a range of stakeholder driven, community-wide energy efficiency programs and
actions. This fits well with both Government’s plans which are based on a consultative style strategic
approach with individual sectors.
CREDIT FOR EARLY ACTIONS
The federal government’s plan outlines continued negotiations on credit for early actions. The CO2RE
GHG Registry will provide the means for individual Edmonton companies (including GHG reductions
already achieved from City operations) to be able to receive full credit for GHG emission reductions
already achieved through early actions. The alberta government plan does not currently address any
system of credit for early actions.
KEY ACTION AREAS
The federal government’s plan identifies actions for transportation, housing, commercial/institutional,
industrial and small and medium enterprises (SMEs). The CO2RE strategy also identifies similar action
areas for each of these sectors which will provide us with the ability to utilize proposed actions and
support funding. The provincial plan outlines a consultative process to identify actions for each sector,
which will also work well with CO2RE by allowing us to jointly develop concrete actions with the
provincial government.
EMISSION TRADING SYSTEM
Both government plans identify the need for development of a GHG registry for emission trading. A
GHG registry is identified for development in the CO2RE business plan, which will position us to benefit
and jointly develop our GHG registry with both Governments.
IMPLEMENTATION
The CO2RE strategy is well positioned to obtain financial support for implementation from the Provincial
Government’s “Climate Change & Emissions Management Fund” and the Federal Government’s
“Partnership Fund” and “Financial Incentives”.
The CO2RE Strategy multi-sector, community-wide approach fits both the provincial and federal
governments plans positioning CO2RE in a win-win situation. It is anticipated that CO2RE will become
the delivery agent for the strategic approaches and actions identified in both governments plans.
Attachment 2 - Page 1 of 1