International cooperation and knowledge exchange is essential and sparks innovation. Therefore, for the third time, a side-event at the congress targets an international audience and will take place in English. This year`s international dialogue also follows up on the findings of the Renewable Cities’ Global Learning Forum in Vancouver, May 2015 and marks an important milestone in building a global 100% RE cities and regions network, a project of the Global 100% RE campaign.
Author: WM
International Conference on Local Climate Action (ICCA2015) Oct. 1-2, 2015
Municipalities play a strategic role in addressing climate change. They drive developments and act as role models for successful measures in greenhouse gas emissions reduction. To highlight local potential and achievements and to support mutual know how-transfer on policies and implementation, Germany will host the International Conference on Climate Action (ICCA2015). The conference is organized by the German Federal Ministry for the Environment, Nature Conservation, Building and Society (BMUB), the ministry for the Environment, Energy and Climate Protection of Lower Saxony and the German Institute for Urban Affairs (Difu).
Moving the Discussion Forward: Alberta Environment & Parks releases Climate Change Discussion Document
On August 14, 2015, the Alberta government released a Climate Leadership Discussion Document (Discussion Document) to lay the foundation for ongoing consultations with Albertans on climate change policy. The Discussion Document sets out the challenges the province faces, presents considerations and options for action, and offers questions to spur debate and discussion for stakeholders and members of the public. The Discussion Document is a follow up to the Alberta government’s June 2015 announcement that it was taking steps to achieve real, demonstrable reductions in the province’s greenhouse gas (GHG) emissions by tightening the requirements under the Specified Gas Emitters Regulation and appointing an advisory panel to undertake a comprehensive review of Alberta’s climate change policy.
The Discussion Document sets out the province’s new approach to climate change to:
• serve as an important commitment to protect the health of Albertans and our ecosystem;
• make a significant and meaningful contribution to Canada’s greenhouse gas reduction commitments and the global effort to mitigate climate change;
• ensure the continued strength and competitiveness of the province’s economy in a lower carbon world;
• advance innovation, encourage adoption of new technologies and support more renewable and cleaner sources of energy and conservation;
• acknowledge the interactions and coordinate with other related policy initiatives, including the royalty review, land-use plans, infrastructure planning and investment;
• provide open and transparent monitoring and regular reporting to Albertans on progress toward emissions reductions;
• foster partnerships with municipalities, provinces, territories, the federal government and First Nations and Métis communities; and
• ensure Albertans are engaged and part of the solution.
Following the review process, Alberta’s climate change advisory panel will provide its recommendations and advice to the Minister of Environment and Parks in fall 2015. Stakeholders and members of the public are encouraged to engage in public meetings and taking the online survey.
Alberta’s Carbon Price to Increase as the Province Moves Toward Climate Change Policy Renewal
Alberta’s new Premier, Rachel Notley, expects to have a long-term climate change strategy in place for the province before she travels to the Paris Climate Conference (COP21) in December 2015. In taking up the mantle of climate leadership, Alberta’s Minister of Environment and Parks, Shannon Phillips, announced on June 25, 2015 that the government is moving forward with a two-step process for renewing the province’s climate change policy.
The centrepiece of Alberta’s climate change program is the Specified Gas Emitters Regulation (SGER), which came into force in 2007. Under the current regime, Alberta requires any facility emitting 100,000 tons or more of greenhouse gases (GHG) a year to reduce their emissions intensity by 12%. Following Minister Phillips’ announcement, the stringency level is set to increase:
• 15% as of January 1, 2016
• 20% as of January 1, 2017
There are four ways companies can comply:
• by making improvements to their operations;
• using Emission Performance Credit (if a facility reduces its emissions intensity to below its reduction target, it is eligible for an emission performance credit which are used to counteract the emissions of the facility);
• purchasing Alberta-based emission offset credits; and/or
• contributing to the Climate Change and Emissions Management Fund (the Fund).
The price of carbon for regulated entities choosing to pay into the Fund is also scheduled to increase:
• in 2016, $20 for every ton over a facility’s reduction target; and
• in 2017, $30 for every ton over a facility’s reduction target.
In addition to renewing and bolstering the SGER, the province appointed Professor Andrew Leach from the University of Alberta to chair an advisory panel to develop a more ambitious climate change regime in advance of COP21 in December 2015. The advisory panel has a mandate to carry out stakeholder consultations and prepare a discussion paper by the early fall which will inform the development of a new provincial climate change strategy. Indications are that the panel will undertake a comprehensive review and all options will be considered, including a carbon tax and a cap-and-trade scheme which could link with other jurisdictions such as Quebec or California. It is uncertain which aspects, if any, of Alberta’s unique emissions intensity scheme will survive the panel’s review. However, Alberta’s new NDP government seems keen to show that it is willing to commit to a higher carbon price and more stringent emission reduction targets, which will help to lend credibility to future climate change policy measures that it will be introducing in the coming months.
British Columbia joins Sub-National “Under 2 MOU” Climate Change Initiative
On May 19, 2015, British Columbia (BC) joined a new sub-national climate change initiative known as Under 2 MOU. The Under 2 MOU brings together states and regions willing to commit to reducing their greenhouse gas (GHG) emissions and will galvanize action at the Conference of the Parties (COP 21) in Paris this December. The founding signatories, who were present at the May 19 signing ceremony in Sacramento, California, include the following:
• Acre, Brazil
• Baden-Württemberg, Germany
• Baja California, Mexico
• British Columbia, Canada
• California, USA
• Catalonia, Spain
• Jalisco, Mexico
• Ontario, Canada
• Oregon, USA
• Vermont, USA
• Wales, UK
• Washington, USA
The Subnational Global Climate Leadership MOU is nicknamed “Under 2 MOU” in reference to (i) the goal of limiting warming to below 2°c, and (ii) the MOU’s shared goal of limiting greenhouse gas emissions to 2 tons per capita, or 80-95% below 1990 level by 2050. By joining the Under 2 MOU initiative, signatories also commit to establishing midterm targets, increasing energy efficiency and renewable energy, coordinating on a number of issues from transportation to short-lived climate pollutants, and working towards consistent monitoring, reporting, and verification of their emissions. All signatories will submit an appendix to the MOU that will outline their unique set of actions and plans to reach their goals.
The Under 2 MOU originated from a partnership between California and Baden-Württemberg out of the desire to bring together ambitious states and regions willing to make a number of key commitments towards emissions reduction and to help galvanize action at COP 21. Jurisdictions are invited to sign the MOU up to COP 21 in December. Interested jurisdictions are asked to submit a letter expressing their intent to sign on to the MOU and to complete an appendix that outlines the unique set of actions that are in place or planned to reach their emissions reduction targets.
According to the United Nations Development Program (UNDP), 50 to 80% of the mitigation and adaptation actions necessary to tackle climate change will be implemented at the subnational or local levels of governance. Subnational governments are particularly well placed to address climate change for a number of reasons, including:
• They are often responsible for the development and implementation of policies that have the most impact on climate change, including in the following areas: air quality; transportation; energy and energy efficiency; the built environment; natural lands; technology innovation, development, and transfer; and others that have direct implications for greenhouse gas emissions levels.
• Sub-national governments often serve as the laboratories for policy innovations which are then adopted at the national and even international level.
• Sub-national governments provide the critical link in the vertical integration of climate policies between national and local governments.
Carbon Financing
Carbon Financing is financing obtained by way of financial instruments that are issued by program authorities, governments or market participants in exchange or in recognition of documented real GHG emission reductions.
Ontario Resurrects Cap-and-Trade
Following recent public consultations on its Climate Change Discussion Paper, Ontario is expected to bring in a cap-and-trade system which reports say could raise between $1 billion to $2 billion per year, depending on the price of carbon permits. Ontario Environment Minister Glen Murray is expected to present the plan to cabinet for approval by mid-April 2015. Under a cap-and-trade system, a limit is placed on total greenhouse gas (GHG) emissions with the price of carbon being determined by the market. Under the system envisioned by Ontario, the cap will be divided into permits, some of which will be given away (to maintain competitiveness, particularly where a particular industry is trade sensitive) while the remaining permits will be auctioned off. Regulated emitters will be required to obtain a sufficient number of permits to cover their emissions and where emitters are able to reduce emissions, they will be able to sell permits to those emitters who need more. The auction proceeds will likely be directed into GHG emission reduction initiatives such as energy conservation retrofitting.
Once implemented, Ontario’s system could be linked with Quebec and California’s current cap-and-trade program, which would create a carbon market of 61 million people that covers more than 60% of Canada’s population. Ontario’s cap-and-trade plan has been waiting in the wings for a while. The province agreed to price carbon when it joined the Western Climate Initiative with Quebec, B.C. and California in 2008, and subsequently the Ontario government passed enabling legislation for a cap-and-trade system. However, cap-and-trade soon took a back seat to the recession and political uncertainty meant that there was little appetite for moving forward with climate change plans. With Ontario Premier Kathleen Wynne taking a climate leadership role, there is new impetus for bold action on GHG reduction initiatives at the provincial level.
Washington State introduces Comprehensive Climate Change Initiatives
In December 2014, Washington State Governor Jay Inslee introduced an ambitious climate change policy agenda for 2015, including the establishment of an all-encompassing carbon pricing program. This policy follows the signing of Executive Order 14-04 (Washington Carbon Reduction and Clean Energy Action) by Governor Inslee on April 29, 2014, which set out a plan for state climate action.
If passed by state lawmakers, the program would raise an estimated $1 billion a year through a new levy on greenhouse gas emissions. In particular, the program would cap statewide pollution rates at levels that decline over time, with polluters allowed to trade state-sold pollution allowances among themselves. It would aim to address emissions covered other similar programs operating in the US, while avoiding pitfalls of other programs, such as giveaways for certain polluters. The technical aspects of Washington’s proposed program are considered best practices and as such, they have been lauded by outside observers such as the Environmental Defense Fund.
The program has been designed to help Washington get on track toward meeting its legislated goal of reducing emissions to 1990 levels by 2020, with a further 50% reduction by 2050. A November 2014 report by the Carbon Emissions Reduction Taskforce (which was established by Governor Inslee in April 2014 to provide recommendations on the design and implementation of a carbon emissions limits and market mechanisms program for Washington) concluded that Washington is not on target to comply with the 2008 law regarding required reductions in greenhouse gas pollution. It found that the requirement of reducing yearly pollution levels back to 1990 levels in 2020 would “likely” be met if a new cap and trade policy is implemented. Further steps would be needed to meet more ambitious reductions required by 2035 and 2050.
The proposed program would cover an estimated 85% of greenhouse gas emissions produced by Washington and it is anticipated that approximately 130 companies would be required to pay a levy, generating approximately $1 billion a year in revenue. Revenue generated under the cap-and-trade proposal would help to cover shortfalls in transportation and education spending, reduce taxes and fund household energy efficiency improvements for poorer residents, as well as help meeting the general costs of running the state.
Below is an overview of the legislative proposals aimed at reducing Washington’s greenhouse gas emissions:
• Carbon Pollution Accountability Act: The proposed Carbon Pollution Accountability Act (SB 5283 / HB 1314) would create a new market-based program that limits carbon emissions and requires regulated entities to pay for their emissions. The limit will decrease gradually over time, allowing emitters time to transition to cleaner technology and more efficient operations. The program will generate about $1 billion annually which will be used for transportation, education and disadvantaged communities. The draft Carbon Pollution Accountability Act can be found here.
• Clean Transportation: The Department of Transportation has three strategies to decrease transportation emissions: cleaner cars, cleaner fuels and moving people and goods more efficiently.
• Electric Vehicles (EVs): Legislation will extend tax incentives for EVs, create an EV infrastructure bank, and require urban cities and counties to adopt EV incentive programs. Draft legislation can be found below:
o Alternative Fuel Vehicle Sales Tax Exemption (SB 5445 / HB 1925): This bill extend a sales tax exemption on the first $60,000 on the purchase of alternative fuel vehicles.
o Electric Vehicle Infrastructure Carbon Pollution Accountability ActBank (SB 5444 / HB 1572): An EV bank would give financial assistance to install publicly accessible high-speed charging stations.
o Electric Vehicle Readiness in Buildings (SB 5446 / HB 1929): This bill would require urban cities and counties to adopt high speed EV charging station incentive programs.
• Zero Emission Vehicles (ZEVs): The Department of Ecology has requested legislation to allow Washington to adopt the Zero Emission Vehicle program.
• Clean Fuel Standard: The Department of Ecology is preparing a draft rule that outlines a clean fuel standard that would help the state to transition to cleaner fuels over time.
• Sustainable Transportation Planning: To reduce carbon pollution that comes from cars, trucks and other transportation-related sources, the Department of Transportation has developed a five-part action plan.
Public hearings on the proposed Carbon Pollution Accountability Act are continuing and have attracted great interest. Stay tuned for more details.
Ontario Carbon Pricing Plan
Ontario Premier Kathleen Wynne announced on January 14, 2015 that a carbon pricing plan is currently under consideration by the provincial government. This follows the signing of a Memorandum of Understanding Concerning Concerted Climate Change Actions by Ontario and Quebec in November 2014, which includes a commitment by Ontario to explore the use of market-based mechanisms to curb emissions. To that end, Environment Minister Glen Murray is in the process of preparing a report on the various options to put a price on carbon, including the potential implementation of a carbon tax or a cap-and-trade system. It is anticipated that more details will be released about the carbon pricing plan in spring 2015.
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