Category: Green News

Canada, US and Mexico sign MOU on Climate Change and Energy Collaboration

On February 12, 2016, the energy minister and energy secretaries from Canada, Mexico and the United States met for the North American Energy Ministers Meeting in Winnipeg, where the parties signed a Memorandum of Understanding on Climate Change and Energy Collaboration. The countries also announced a web platform where North American energy information can be accessed in one place. The MOU represents a step towards a continental energy strategy, under which Canada, Mexico and the US will collaborate and share information in six key areas:

  1. Sharing experience and knowledge in the development of reliable, resilient and low-carbon electricity grids.
  2. Modeling, deploying and accelerating innovation of clean energy technologies, including renewables.
  3. Exchanging information in order to improve energy efficiency for equipment, appliances, industries and buildings, including energy management systems.
  4. Exchanging information and promoting joint action to advance the deployment of carbon capture, use and storage.
  5. Identifying trilateral activities to further climate change adaptation and resilience.
  6. Sharing best practices and seeking methods to reduce emissions from the oil and gas sector, including methane and black carbon.

As noted above, the three countries have announced a web platform for sharing information on energy resources in North America. The North American Cooperation on Energy Information (NACEI) was initiated in 2014 and sought to develop resources for:

  1. comparing, validating, and improving respective energy import and export information;
  2. sharing publicly available geospatial information related to energy infrastructure;
  3. exchanging views and information on projections of cross-border energy flows; and
  4. harmonizing terminology, concepts and definitions of energy products.

With the launch of the NACEI, North American energy information is now available on one platform and includes:

  • Energy Trade Data: Data tables covering traded energy between the three countries, as well as a methodological guide explaining the attributes of each data source. A detailed cross reference of terminology and a common set of conversion factors are also available.
  • North American Energy Maps: A series of maps of energy infrastructure and a multi-layered interactive mapping site are available and will be augmented as additional GIS data is verified.
  • Energy Outlooks: Reports describing and comparing the outlooks for energy trade across the continent.

Further discussions on a continental energy strategy are expected when Prime Minister Justin Trudeau meets with President Barack Obama in March 2016.

Amendments to Ontario’s GHG Reporting Regulation now in Force

In December 2015, the Ontario Ministry of the Environment and Climate Change filed amendments to the Greenhouse Gas Emissions Reporting Regulation (O.Reg. 452/09) that came into force on January 1, 2016. An amended Guideline for Greenhouse Gas Emissions Reporting was published as well. The amendments include:

  • lowering the reporting threshold to 10,000 tonnes carbon dioxide equivalent (CO2e) from the current threshold of 25,000 tonnes per year, while maintaining the requirement to have emissions greater than 25,000 tonnes per year third party verified;
  • dividing the emission sources into those that only need to report and those that require third party verification;
  • clarification on verification to allow for the use of qualified positive, in addition to positive and adverse verification statements;
  • adding petroleum product suppliers and natural gas distributors to the reporting regulation starting in 2016, to support the implementation of a cap and trade program; and
  • adding other sources to the reporting regulation including:
    – equipment used for natural gas transmission, distribution and storage;
    – electricity imports;
    – electricity transmission and distribution;
    – magnesium production; and
    – mobile equipment at facilities (optional reporting only).

These amendments were made to support the implementation of Ontario’s cap and trade program, the design for which is expected to be finalized in spring 2016. As previously announced by the Ontario government, it will also be releasing a detailed five-year action plan in 2016 which will include specific commitments for the province to meet its 2020 emission reduction targets and establish the framework necessary for Ontario to meet its 2030 and 2050 emission reduction targets.

BC’s New GHG Reporting Framework came into force on January 1, 2016

In January 2010 British Columbia’s first mandatory GHG reporting regulation came into force. The Reporting Regulation specified that operations located in British Columbia and emitting 10,000 tonnes or more of carbon dioxide equivalent emissions (CO2e) per year (excluding emissions from biomass listed in Schedule C of the regulation) are required to report greenhouse gas (GHG) emissions (while reporting operations emitting 25,000 tonnes or more of CO2e per year have also been subject to a third party verification requirement).
As part of efforts to re-orient BC’s GHG regime and establish a framework for the developing liquefied natural gas (LNG) industry, the BC government passed the Greenhouse Gas Industrial Reporting and Control Act (the Act), which came into force on January 1, 2016. The Act introduces as part of the reporting performance standards that are set for industrial facilities or sectors by listing them within a Schedule to the Act. Currently, the Schedule sets GHG emissions benchmark for LNG facilities and includes an emissions benchmark for coal-based electricity generation operations. It is anticipated that other industrial facilities and sectors will be added later. The Act also streamlines several aspects of existing GHG legislation and regulation into a single legislative and regulatory system, including the GHG reporting framework established under the Greenhouse Gas Reduction (Cap and Trade) Act. Notably, three regulations necessary to implement the Act also came into effect on January 1, 2016:

  1.  Greenhouse Gas Emission Reporting Regulation – this regulation replaces the existing industrial Reporting Regulation and adds compliance reporting requirements.
  2. Greenhouse Gas Emission Administrative Penalties and Appeals Regulation – this regulation establishes the process for when, how much, and under what conditions administrative penalties may be levied for non-compliance with the act or regulations.
  3. Greenhouse Gas Emission Control Regulation – this regulation establishes the BC Carbon Registry and sets criteria for developing emission offsets issued by the BC government. The regulation also establishes a price of $25 for funded units issued under the Act that would go towards a technology fund to support the development of clean technologies. Regulated operations will need to purchase offsets from the market or funded units from government in order to meet their compliance obligations.

Under the new Greenhouse Gas Emission Reporting Regulation, industrial operations will continue to report GHG emissions as they have since 2010.

Paris Agreement Heralds New Era for Climate Change Policies

On December 12, 2015, the Paris Agreement was adopted by 195 members of the UN Framework Convention on Climate Change (UNFCCC), which sets out the terms of a global agreement to lower greenhouse (GHG) emissions and limit the impacts of climate change. Unlike the Kyoto Protocol, this is not so much a regulatory tool with one clear pathway of actions and regulations set at one point in time, but rather a framework with a portfolio of directions for different aspects of climate change mitigation instruments developing over time. This portfolio includes a framework of national GHG emission reduction plans, regular reviews, clean development financing as well as market and non-market approaches to reducing emissions. The Paris Agreement is a global instrument that will develop and solidify over time.

The key element at the national government level is the concept of Nationally Determined Contributions (NDCs), a process which relies on national governments to formulate, implement, monitor, report and update their own national reduction targets and strategies to achieve them. At the sub-national government level, technical and financial commitments in the Paris Agreement will help to facilitate climate action at the local level. However, non-state actors (such as companies and non-governmental organizations) also have a key role and are strongly encouraged to make their contributions to enable lower GHG emission solutions. The Paris Agreement will enter into force on the 30th day after the date on which at least 55 parties to the UNFCCC accounting for at least 55% of total global GHG emissions deposit their instruments of ratification, acceptance, approval or accession.

The Paris Agreement consists of 29 articles, with both binding and non-binding commitments. The aim of the Paris Agreement is to strengthen the global response to climate change on a time horizon towards 2030 and one of the key commitments by countries is to hold the increase in global average temperature to well below 2°C above pre-industrial levels, while pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels. The Paris Agreement also establishes goals to enhance capacity for climate change adaptation, strengthen resilience and reduce vulnerability to climate change.

While each member nation is required to put forward an NDC, there are no legal requirements for specific national emission reduction targets or actions in the agreement itself beyond the overall global climate change mitigation target. However, certain legally binding commitments have been built into the Paris Agreement. This includes a requirement that countries submit updated plans every five years with increasingly stringent emission reduction targets as part of the NDC, starting in 2020. Countries will also be required to carry out a global stocktake in 2023, and every five years thereafter, to assess their collective progress on emission reductions. Countries will also be required to monitor and report on their national emissions inventory using a common reporting format. In terms of financing, developed countries have committed to mobilizing the financial resources needed to assist developing countries with respect to both mitigation and adaptation.

Even though climate change has been on the global agenda for the past two decades, the Paris Agreement marks a major milestone in global climate change policy, where both developed and developing countries have reached a consensus on taking action and making the necessary investments to move the world towards a low carbon and resilient future. Over the next few months, it will become clear to what extent policy makers from all levels of government will engage with stakeholders to initiate the conversation on what actions will be required at all levels of the economy and government to meet our international climate commitments.

 

Paris Agreement Adopted – Full Text Released

On the 12 December 2015 the Paris Agreement was adopted by the
COP 21 UN Climate change conference in Paris. The official signature is scheduled for the 22nd of April 2016. It is expected that all 195 nations will have ratified /approved the agreement by this date. The full text can be found here: Link

Ontario, Quebec and Manitoba Agree to Link Cap & Trade Systems

On December 7, 2015, Ontario, Quebec and Manitoba signed a memorandum of understanding at the Paris climate talks to formalize the intent of all three provinces to link their cap and trade systems. Under the Western Climate Initiative, the three provinces’ cap-and-trade systems would then link to California’s cap and trade program.
Quebec’s cap and trade system has operating since 2013 and is already linked with California’s cap and trade program. Ontario is in the process of finalizing the details of its cap and trade program, which is expected to come online in 2017. When it released province’s new climate change strategy on December 3, 2015 – Climate Change and Green Economy Action Plan – Manitoba confirmed its intent to introduce a cap and trade program for 20 large emitters. Speaking in Paris, Manitoba Premier Greg Selinger said he believes more states and sub-national governments can be convinced to join them in linking cap and trade system, who can learn from each other’s experiences.

 

Manitoba Releases Updated Climate Change Strategy and Confirms Implementation of Cap & Trade

On December 3, 2015, Manitoba released its Climate Change and Green Economy Action Plan (the Plan), which updates the province’s 2008 Climate Action Plan, Beyond Kyoto. The Plan sets out Manitoba’s medium and long-term GHG reduction targets:

  • By 2030, Manitoba will reduce its greenhouse gas emissions by one-third over 2005 levels.
  • By 2050, Manitoba will reduce its greenhouse gas emissions by one-half over 2005 levels.
  • By 2080, Manitoba will be carbon neutral.

The Plan also outlines projects that will be undertaken through Manitoba’s new five-year $5 million Climate Change Action Fund. Funds will be invested across sectors to continue driving innovation in the province’s transportation and agriculture sectors, assess local climate risks and develop solutions, expand climate change work on the ground by partnering with communities, and expand innovative energy projects in First Nation communities. Manitoba will also look at how carbon pricing can be used as a tool to drive innovation and boost economic growth while reducing GHG emissions. Manitoba, a member of the Western Climate Initiative, reiterated its commitment to implement a cap and trade program for 20 large emitters in the province and will look at other innovative measures, such as a made-in-Manitoba Carbon Stewardship model for sectors not covered by cap and trade. To that end, Manitoba will carry out public consultations on carbon pricing to explore a range of opportunities. Under the Plan, the Manitoba government will also reduce emissions from government operations through increased energy efficiency, a greener vehicle fleet and equipment, greener office spaces, and waste reduction. Manitoba will provide a complete inventory of its own GHG emissions and develop a comprehensive policy framework to enable it to become a carbon neutral government. The Plan also addresses key sectors such as buildings, transportation and agriculture. Manitoba has demonstrated its climate leadership with the development of new zero-emission battery electric transit buses and transformative research into new crops and natural bio-products.

BC Climate Leadership Team Issues 32 Recommendations to BC Government

In May 2015, BC Premier Christy Clark appointed a Climate Leadership Team (consisting of leaders from B.C. businesses, communities, First Nations, academia and the environmental sector) to provide advice and recommendations to government for its new Climate Leadership Plan.
Following stakeholder consultations, the Climate Leadership Team prepared a report that was released by the BC government on November 27, 2015, in advance of the COP 21 meeting in Paris. The team’s report consists of 32 recommendations addressing a number of areas including GHG reduction targets, carbon tax design, transportation, buildings, communities, offsets, and First Nations.

Some of the key recommendations from the Climate Leadership Team include:

  • setting a legislated target for 2030 of 40% GHG reduction from 2007 levels, and reaffirming B.C.’s commitment to the 2050 target of an 80% GHG reduction from 2007 levels;
  • establishing the following sector-specific GHG reduction goals (below 2015) for 2030: (a) 30 per cent for the transportation sector totalling 6.3 MT of CO2; (b) 30 per cent for the industrial sector totalling 8.4 MT of CO2; and (c) 50 per cent for the built environment totalling 3.4 MT of CO2;
  • lowering the provincial sales tax (PST) from 7 per cent to 6 per cent, supported by incremental carbon tax;
  • increasing the carbon tax by $10 per year commencing in July 2018 while (a) maintaining the current tax reductions achieved through the existing carbon tax that are broad based, provide support to vulnerable populations, or promote GHG reductions; (b) adjust the current low income and rural and northern tax credits; and (c) establish targeted and transparent mechanisms for emission-intensive, trade-exposed sectors until such time that carbon pricing and regulatory policy equivalency with other jurisdictions is achieved;
  • expanding the coverage of the current carbon tax to apply to all GHG emission sources in BC after five years, starting with measurable GHG emissions covered by the current reporting regulation;
  • using incremental revenues generated from the increase in the carbon tax to (a) eliminate PST on all electricity rates; (b) establish mechanisms to facilitate investments in technology and innovation that reduce GHG emissions; and (c) establish mechanisms to provide local governments with funding for projects that will result in demonstrable GHG emission reductions;
  • amending the Clean Energy Act to increase the target for clean energy on the integrated grid from 93 per cent to 100 per cent by 2025;
  • establishing a strategy and funding to phase out diesel generation in remote communities and replace it with low-GHG electricity service by 2025;
  • developing a low-carbon transportation strategy to enable the transportation sector to emit 30 per cent fewer GHG emissions by 2030 which include Zero Emission Vehicle targets, increases to the scope and coverage of the Low Carbon Fuel Standard, and the establishment of a revenue neutral PST for all vehicles based on grams of Co2 per kilometre;
  • undertaking a review and update of the Climate Action Charter to align provincial and community goals;
  • creating a waste-to-resource strategy that reduces GHG emissions associated with food waste, organic waste, and landfills;
  • working with First Nation communities to transition communities that are currently dependent on diesel generation to low-GHG electricity service; and
  • undertaking a review of the current offset policy in BC.

The BC government is now reviewing the Climate Leadership Team’s recommendations. It will commence the public consultation process in January 2016, with a view to releasing a final Climate Leadership Plan in March 2016.

Ontario Outlines Next Steps Of Climate Change Strategy

On November 24, 2015, the Ontario government released the province’s Climate Change Strategy which sets out the government’s near and long-term vision for a low-carbon future. Although the strategy is short on details, it provides an indication of the government’s priorities on climate change. The Ontario government has said that it will release a detailed five-year action plan in 2016, which will include specific commitments to meet near-term 2020 emissions reduction targets, and establish the framework necessary to meet targets for 2030 and 2050. Ontario has set an interim emissions reduction target of 37% below 1990 levels by 2030 and a long-term target of an 80% reduction in emissions over 1990 levels by 2050.

As articulated in the strategy, by 2050, the Ontario government envisions that its citizens will be using less energy and the energy they do use will be from low-carbon sources. Communities will be climate-resilient, complete and compact. More people will choose electric or other zero-emission vehicles and transit to get swiftly and efficiently where they need to go. Agricultural lands, natural areas and ecosystems will be better protected for the benefit and enjoyment of all. By 2050, the government sees a province that will be employing new ways to reduce waste while ensuring that more of the waste produced is reintroduced to the economy. Industries will be thriving while generating fewer or zero emissions. Finally, businesses and innovators will be creating world-leading clean technologies and products that drive new economic growth, productivity, and job creation.

Under the Climate Change Strategy, the government will:

  • Introduce climate legislation to establish a long-term framework for action and make the cap-and-trade program law in Ontario.
  • Integrate climate change mitigation and adaptation considerations into government decision-making and infrastructure planning.
  • Introduce changes to government operations, procurement, employee training, building retrofits and in other areas to help government move towards carbon neutrality.
  • Develop a coordinated approach to reduce emissions from new and existing buildings.
  • Reduce emissions from transportation by promoting the uptake of zero emission and plug-in hybrid vehicles.
  • Develop data and metrics to measure emission impacts of projects and programs including progress towards emission reduction targets. This will entail the development of tools to assess climate change risk to food production, human health, vital infrastructure, and the economy.

The government will also report on, and renew, its action plan every five years. This strategy is meant to support Ontario’s proposed cap-and-trade program and complements earlier climate initiatives, which include establishing a 2030 mid-term emissions reduction target, ending coal-fired electricity generation, and electrifying and improving Ontario’s commuter rail network.

Alberta Releases Details of Climate Leadership Plan in Advance of Federal/Provincial Climate Change Meeting and COP 21

In advance of a meeting with Prime Minister Justin Trudeau and fellow premiers, Alberta Premier Rachel Notley unveiled the details of the province’s Climate Leadership Plan on November 22, 2015. The plan, which is based on the advice of the Climate Change Advisory Panel (the Panel, led by Dr. Andrew Leach), will also be promoted by Premier Notley at the United Nations Climate Change conference that will take place in Paris from November 30 to December 11, 2015.

Alberta’s Climate Leadership Plan accelerates the province’s transition from coal to renewable electricity sources and sets an emissions limits of 100 megatonnes for the oil sands with provisions for new upgrading and co-generation (the level of current emissions from the oil sands is approximately 70 megatonnes). To ensure that the policy is progressive and protects the competitiveness of Alberta’s core industries, the Panel has recommended a consumer credit which will offset the impact of the policy for households and allocations of emissions credits for industrial emitters. A copy of the Panel’s Report to the Minister, which was also released on November 22nd, is available Leadership Report Online.
Alberta’s Climate Leadership Plan sets out the following policy objectives:

Carbon Pricing
Carbon pricing provides the backbone of the Panel’s proposed policy architecture. Alberta will phase in carbon pricing in two steps:
o $20/tonne economy-wide in January 2017.
o $30/tonne economy-wide in January 2018.

The Panel has also proposed that the existing Specified Gas Emitters Regulation be replaced by a Carbon Competitiveness Regulation in 2018, which would:
a) broaden the carbon pricing signal in Alberta to cover approximately 90% of the province’s emissions, up from less than 50% today;
b) provide a consumer rebate to mitigate the impacts of carbon pricing on low- and middle-income Albertans, fund complementary emissions-abatement programs and, where applicable, support a sound and just transition for labour and communities and strategies to protect small- and medium-sized businesses;
c) improve the mechanism by which trade-exposed industries are protected to ensure their competitiveness while encouraging and rewarding top performance;
d) increase stringency at the same pace as peer and competing jurisdictions; and
e) avoid the transfer of wealth outside of Alberta.

Electricity and Renewables
• Alberta will phase out all pollution created by burning coal and transition to more renewable energy and natural gas generation by 2030.
• Three principles will shape the coal phase-out: (i) maintaining reliability; (ii) providing reasonable stability in prices to consumers and business; and (iii) ensuring that capital is not unnecessarily stranded.
• Two-thirds of coal-generated electricity will be replaced by renewables – primarily wind power – while natural gas generation will continue to provide firm base load reliability.
• Renewable energy sources will comprise up to 30 per cent of Alberta’s electricity production by 2030.

Methane Reduction
• In collaboration with industry, environmental organizations, and affected First Nations, Alberta will implement a methane reduction strategy to reduce emissions by 45% from 2014 levels by 2025.

Revenue Neutral
• One-hundred per cent of proceeds from carbon pricing will be reinvested in Alberta.
• A portion of collected revenues will be invested directly into measures to reduce pollution (including clean energy research and technology), green infrastructure (such as public transit), and programs to help Albertans reduce their energy use.
• Other revenues will be invested in an adjustment fund that will help individuals and families make ends meet; provide transition support to small businesses, First Nations, and people working in affected coal facilities.

Alberta’s Climate Leadership Plan is expected to reduce emissions from current trends by approximately 20 Mt by 2020, and approximately 50 Mt by 2030. This would roughly stabilize emissions, by 2030, just above current levels at approximately 270 Mt.