Since the signing of the Vancouver Declaration on Clean Growth and Climate Change in March 2017 and in the lead-up to the release of the Pan-Canadian Framework on Clean Growth and Climate Change (December 2017) (the “Framework”), the Atlantic provinces have been taking steps to update their climate change action plans and implement policies to meet the requirements of the Framework, including the need to implement carbon pricing (whether in the form of a carbon tax or cap and trade system) in 2018. Below is a round up of the latest climate change policy developments from the Maritimes.
New Brunswick
New Brunswick released its new climate change action plan – Transitioning to a Low-carbon Economy – in December 2016. The plan sets out more than 100 action items to combat climate change including plans to make government carbon neutral by 2030, implementation of energy efficiency programs, phase-out of coal as a source of electricity, and the establishment of a price on carbon that will meet requirements under the Framework. The Nova Scotia government has said that proceeds from the province’s carbon pricing regime will be directed to a dedicated fund for climate change initiatives.
Nova Scotia
A large proportion of Nova Scotia’s greenhouse gas (GHG) emissions come from the electricity sector and as a result, the province’s emission reduction strategy has focused mainly on electricity emissions. In particular, in 2009, Nova Scotia imposed a GHG reduction requirement of 25% by 2020 to support the transition away from coal. Following the province’s adoption of the Framework in December 2016, the Nova Scotia government said that it will implement a cap and trade program which will cover approximately 90% of Nova Scotia’s GHG emissions. As part of the development of the province’s cap and trade program, Nova Scotia Environment has released a discussion paper entitled Nova Scotia Cap and Trade Program Design Options. Since Nova Scotia does not wish to see the transfer of emissions in or out of the province, it has no plans to link with a cap-and-trade program in any other jurisdiction at this time. Nova Scotia Environment will be accepting comments on the discussion paper until March 31, 2017.
Prince Edward Island
Prince Edward Island (PEI) is in the process of developing strategies for both mitigation and adaptation measures. Last year, PEI launched a process to develop a 2016 Provincial Climate Change Mitigation Strategy, which resulted in the release of PEI’s Climate Change Mitigation Strategy Discussion Document in July 2016. Following public consultations, a draft report – Recommendations for a 2016 Provincial Climate Change Mitigation Strategy – was released in October 2016. While the report does not articulate the type of carbon pricing that PEI will implement, it does acknowledge that a vast majority of respondents in the consultation process indicated their support for a carbon-pricing model that is revenue neutral. The draft recommendations report will be further refined before it is finalized. PEI’s mitigation strategy is being developed first, in parallel with a new energy strategy that is focused on sustainable energy policies that support energy efficiency, renewable energy, and economic growth. A second draft of PEI’s 2016 Provincial Energy Strategy was released in June 2016 and sets out action items to be pursued over the next 5 to 10 year period in the following areas: (i) energy efficiency and conservation; (ii) electricity generation; (iii) energy storage; (iv) biomass; (v) transportation; and (vi) cross-sectoral initiatives. Implementation steps will be announced following the finalization of the strategy.
Newfoundland & Labrador
In June 2016, Newfoundland & Labrador passed the Management of Greenhouse Gas Act, which establishes a legislative framework for reducing GHG emissions by industrial emitters (i.e. industrial facilities emitting 15,000 tonnes of carbon dioxide equivalent (CO2e) per year). The legislation requires two years of emissions monitoring that will help establish reduction targets for large industrial facilities (i.e. those emitting 25,000 tonnes of CO2e per year). The legislation requires facilities meeting the 15,000 tonne threshold to submit annual GHG reports. Further, the legislation establishes a compliance fund that will support the development of emissions reduction technologies. In particular, the fund will provide companies with flexibility in achieving emissions reductions at a lower cost, while supporting emission reduction projects. A third party has been retained to help develop Newfoundland & Labrador’s first carbon offset protocols that will focus on energy efficiency, fuel switching and renewable energy projects. Finally, the province announced in February 2017 that the Office of Climate Change now operates within the Executive Council.