Pan-Canadian Framework is effective – More Provinces act – A review of provincial level Climate Change Action in Atlantic Canada

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.

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.

BC signs Climate Action Plan with California, Oregon and Washington

 
On October 28, 2013 the leaders of British Columbia, California, Oregon and Washington signed the Pacific Coast Action Plan on Climate and Energy committing their governments to a comprehensive and strategic alignment to combat climate change and promote clean energy. The region covered by the Action Plan has a combined population of 53 million people and a GDP of $2.8 trillion, which represents the world’s fifth largest economy.

Through the Action Plan, all four jurisdictions will account for the costs of carbon pollution and where feasible, link programs to create consistency and predictability across the region.  In addition, the Action Plan provides for the following actions:

  • harmonizing 2050 targets for greenhouse gas (GHG) reductions and developing mid-term targets needed to support long-term reduction goals;
  • cooperating with national and sub-national governments around the work to press for an international climate change agreement in 2015;
  • enlisting support for research on ocean acidification and taking action to combat it;
  • adopting and maintaining low carbon fuel standards in each jurisdiction;
  • taking action to expand the use of zero-emission vehicles, aiming for 10% of new vehicle purchases by 2016;
  • continue deployment of high-speed rail across the region;
  • supporting emerging markets and innovation for alternative fuels in commercial trucks, buses, rail, ports and marine transportation;
  • harmonizing standards to support energy efficiency on the way to “net zero” buildings;
  • supporting federal policy on regulating GHG emissions from power plants;
  • sponsoring pilot projects with local governments, state agencies and the West Coast Infrastructure Exchange to make infrastructure climate smart;
  • streamlining approval of renewable energy projects; and
  • supporting integration of the region’s electricity grids.

The Action Plan provides a much needed boost to regional and national efforts climate change policy efforts.

The Pacific Coast Collaborative was established in 2008 to address the unique and shared circumstances of the Pacific coastal areas and jurisdictions in North America by providing a formal framework for co-operative action, a forum for leadership and the sharing of information on best practices, and a common voice on issues facing coastal and Pacific jurisdictions.