The Government of Canada is committed to stopping the increase in Canada’s
greenhouse gas emissions and drastically reducing them. The Government of Canada
has established a national target of an absolute 20% reduction in greenhouse
gases, relative to the 2006 level, by 2020. Under current forecast assumptions
total reductions required to meet this target will be in the range of 280 Mt
in 2020. Over the longer term, the Government is committed to achieving a 60
to 70% reduction from the 2006 level by 2050.
To achieve these reductions, the Government is continuing to work to develop
a regulatory regime that will achieve real emissions reductions in Canada and
contribute to the achievement of the national 2020 target. Moreover, the Government
will set mandatory standards that will reduce the carbon dioxide emissions from
automobiles and be consistent with the national fuel economy standards announced
by the United States for the 2011 model year. It is also implementing a variety
of program initiatives designed to encourage the development, demonstration
and deployment of clean technologies. Along with the measures outlined in the
2008 version of this Plan, the Government is implementing new actions that will
ensure reductions in greenhouse gas emissions over the long term. These include
the new Clean Energy Fund to improve the development of clean technologies such
as carbon capture and storage, the Green Infrastructure Fund, and new investments
to enhance Canada’s ability to produce nuclear-generated electricity.
The Government’s domestic climate change agenda will continue to evolve
over time. This Plan includes those programs and policies announced and funded
as of May 1, 2009. While the Plan provides contextual information on new climate
change measures, emissions reductions estimates are only provided for those
measures that are expected to result in emissions reductions during the Kyoto
period, as per the requirements of the Kyoto Protocol Implementation Act.
Pursuant to the requirements of paragraph 5 (1) (a) (iii.1) of the Act regarding measures respecting a just transition for workers affected by greenhouse gas emission reductions, the Government has considered the requirement and determined that the implementation of regulatory or other measures proposed in this Plan will not require significant worker adjustment in regulated industries.
Similarly, paragraph 5 (1) (d) of the Act requires the Government to ensure “an equitable distribution of greenhouse gas emission reduction levels among the sectors of the economy that contribute to greenhouse gas emissions”. The analysis conducted by the Government indicates that there will not be any notable inequities among sectors.
In response to the CESD audit, additional details pertaining to the projected
employment levels and greenhouse gas emission reduction levels among economic
sectors are identified in Annex 3.
The following provisions address the requirements of paragraphs 5 (1) (a) (i) and (ii) of the Kyoto Protocol Implementation Act as well as paragraphs 5 (1) (b) (i) and (ii), (e) and (f).
In April 2007 the Government released the Regulatory Framework for Industrial Greenhouse Gas Emissions and updated it in 2008 as set out in the Turning the Corner plan. Earlier this year the Government indicated that it was refining this approach to reflect the new realities of the global economic downturn and the opportunities represented by a new Administration in the United States. The Government has committed to releasing detailed plans by year’s end.
Significant consultations are required before an updated industrial regulatory regime can be finalized. Given the KPIA deadlines for reporting, the 2009 Plan cannot reflect the new regulatory approach. Therefore, to comply with the Act, this Plan includes the expected emissions reductions for the industrial regulations as described in Turning the Corner, though the final regulatory regime will differ from Turning the Corner.
The Regulatory Framework for Industrial Greenhouse Gas Emissions has two key components: (1) stringent and mandatory short, medium and long term emissions reduction targets, relative to 2006 emissions; and, (2) compliance mechanisms that provide firms with flexibility in how they meet their targets.
The finalized Framework set an initial required reduction of 18% from 2006 emission intensity levels in 2010 for existing facilities. Every year thereafter, a 2% continuous improvement in emission intensity will be required. By 2015, therefore, an emission-intensity reduction of 26% from 2006 levels will be required, with a further reduction to 33% by 2020. The emission-intensity approach ties the emission reduction targets to production. This allows emission reductions to be achieved while supporting economic growth.
New facilities, which are defined as those whose first year of operation is 2004 or later, will be granted a three-year commissioning period before they will face an emission-intensity reduction target. After the third year, new facilities will be required to improve their emission intensity each year by 2%. A cleaner fuel standard will be applied, thereby setting the target as if they were using the designated fuel. A flexible approach will be taken in special cases where the equipment or technology used in a new plant facilitates carbon capture and storage or otherwise offers a significant and imminent potential for emission reductions.
For both existing and new facilities, fixed process emissions, which are emissions tied to production and for which there is no alternative reduction technology, will receive a 0% target in the regulations. In other words, for these types of emissions, there is no way, with current technology, for them to be reduced except by shutting down production.
The Regulatory Framework released in 2008, included several new provisions which were not a part of the April 2007 announcement:
In order to promote investments in important green technologies and facilitate the transition from intensity-based to hard emissions caps, firms can comply with the regulations either by reducing their own emissions through abatement actions or by making use of one of the Framework's compliance mechanisms, detailed below.
Inter-firm trading: Firms whose actual emission intensity in a given year is below their target will receive tradable credits equal to the difference between their target and their actual emission intensity, multiplied by their production in that year. These credits can be banked for future use or sold to other parties, including other regulated firms.
Offset System: Offsets are projects that result in incremental real, verified domestic reductions or removals of greenhouse gas emissions in activities that are not covered by the federal greenhouse gas regulations. These projects will generate credits that firms can use for compliance purposes.
Clean Development Mechanism: Firms can use certain credits from the Kyoto Protocol's Clean Development Mechanism. Access to these credits for compliance purposes will be limited to 10% of each firm's total target.
One-time credit for early action: Firms that took verified action between 1992 and 2006 to reduce their greenhouse gas emissions will be eligible to apply for a share of a one-time credit for early action. A maximum of 15 Mt worth of credits will be allocated, with no more than 5 Mt to be used in any one year. Firms will be required to submit evidence of changes in processes or facility improvements they had undertaken that resulted in verifiable, incremental greenhouse gas emission reductions. The maximum allocation for emission reductions will be one credit for each tonne of carbon dioxide equivalent reduction. If the total tonnage of emission reductions applied for were to exceed 15 Mt, the credits will be distributed to individual firms in proportion to their contribution to the total emission reduction achieved.
Pre-certified investments: As an alternative to contributing directly to the technology fund, under the pre-certified investment option, a firm will be eligible to receive credits for investing directly in large-scale and transformative projects, either its own or joint-venture projects, selected by the firm from a menu set out by the federal government.
Pre-certified investments will have the same contribution rate as the technology fund and will be subject to equivalent criteria and requirements, including ownership provisions.
To facilitate the implementation of carbon capture and storage in new facilities, the Government will start discussions with industry, as well as the Governments of Alberta and Saskatchewan, to pre-certify carbon capture and storage projects. The use of such pre-certified investments will ensure that funds from such sectors as oil and gas will be dedicated to emission reductions from those sectors.
In addition, because of the significant potential for carbon capture and storage to reduce emissions and in order to encourage investment in such projects, contributions of up to 100% of a firm's regulatory obligation in these pre-certified projects will qualify for credits up to 2018. This provision will be limited to firms that can make direct use of carbon capture and storage technology in the following sectors: oil sands, electricity, chemicals, fertilizers, and petroleum refining.
Unintentional fugitive methane emissions from sources such as equipment leaks and storage from the upstream oil and gas and oil sands sector and natural gas transmission, distribution, and storage facilities were not identified as covered sources in the April 2007 framework. Reduction requirements for these sources will be implemented through regulated codes of practices. Likewise, regulated codes of practices will be implemented to reduce hydrofluorocarbon emissions from industrial processes and industrial product use and from other applications, such as refrigeration, and air conditioning.
Technology fund: Firms can obtain credits for compliance purposes
by contributing to a technology fund. The fund will be a means to promote the
development, deployment, and diffusion of technologies that reduce emissions
of greenhouse gases across industry. A third-party entity, at arm's-length from
government, will be created to administer the fund. A key principle is that
there will be no inter-regional transfer of wealth.
Contributions to the deployment-and-infrastructure component of the fund, aimed
at investments with a high likelihood of yielding greenhouse gas emission reductions
in the near term, will be limited to 70% of the target in 2010, falling to 65%
in 2011, 60% in 2012, 55% in 2013, 50% in 2014, 40% in 2015, 10% in 2016, and
10% in 2017. No further contributions will be accepted after 2017. The research
and development component, which will focus on projects aimed at supporting
the creation of transformative technologies, will be limited to 5 Mt each year,
also ending after 2017.
From 2010 to 2012, the contribution rate for the fund will be $15 per tonne
of carbon dioxide equivalent. In 2013, the contribution rate will be $20 per
tonne. Thereafter, the rate will escalate yearly at the rate of growth of nominal
GDP until 2017.
Putting emissions on a long-term downward trend will require a strong commitment to the development and deployment of clean energy technologies, such as carbon capture and storage. The Technology Fund will establish a significant pool of capital targeted on advancing the clean energy technology essential to achieving emissions reductions, while maintaining economic growth.
Expected reductions from the Regulatory Framework presented in this report represent the total emission reduction obligations required of industry under the Regulatory Framework. The Framework provides a number of options to industry for meeting these obligations. The Government’s modeling indicates that the choice of compliance option is influenced by differences in marginal costs that they present to regulated industries and therefore, actual in-year reductions may vary from the Plan’s estimates, depending on the specific compliance options chosen by individual firms. Because the Framework is market-based, it is not possible to establish with certainty which options will be most used by industry.
The regulations implemented in the Framework will establish rigorous rules for
the quantification, reporting and verification of each company’s emissions.
Approximately 15 months after the Regulatory Framework enters into force, it
will be possible to provide improved estimates regarding the actual use of each
compliance option by individual firms. In the interim period, the Government
will be gaining experience with the quantification, reporting and verification
of domestic reductions or removals of greenhouse gas emissions in projects and
activities under the Offset System.
| Year | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.0 | 0.6 | 37.5 | 49.5 | 55.2 |
| Preliminary Expected Reductions (Mt)4 | 0.0 | 0.9 | 46.6 | 55.3 | 61.6 |
The Government is in the process of amending energy efficiency regulations under the Energy Efficiency Act. Amendments will include the introduction of new performance requirements for 20 currently unregulated products, such as commercial clothes washers and commercial boilers, and tightened requirements for ten products, such as residential dishwashers and dehumidifiers, for which efficiency standards are already in place. Stricter regulations will lead to inefficient products disappearing from the market, leaving only the better performing items. The anticipated broadening and strengthening of the Act will allow 80 percent of the energy used in homes and businesses to be regulated. Consultation with provinces, territories, as well as stakeholders, was considered essential in the development of fair and meaningful standards.
As part of the Clean Air Regulatory Agenda, the first of three planned amendments
to the energy efficiency regulations was published on December 24, 2008. The
amendment prescribed seven new minimum energy performance standards and increased
the stringency of existing standards for four products. In addition, this amendment
specified regulations that will phase out the use of inefficient incandescent
light bulbs in most areas of regular use by 2012. Analysis, consultation and
drafting are well-advanced for the second of the planned amendments.
ENERGY STAR labeling complements the standards by leading consumers to the
best performing equipment. In fact, a recent survey found that 84% of Canadian
consumers who bought, or who were planning to buy home electronics say that
the fact that the products are ENERGY STAR-qualified impacts their purchasing
decision.
| Preliminary Expected 5 | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Expected | 0.09 | 0.26 | 0.75 | 1.40 | 3.55 |
The Government is currently developing regulations under the Canadian Environmental Protection Act, 1999 (CEPA, 1999) that will set mandatory standards to reduce the carbon dioxide tailpipe emissions from new cars and light trucks beginning with the 2011 model year. A Notice of Intent to initiate the development of these regulations under CEPA, 1999 was published in Canada Gazette Part I on April 4, 2009. These regulated standards will be consistent with the national fuel economy standards for 2011 model year vehicles that were finalized by the United States on March 27, 2009. The U.S. Administration will continue to progressively tighten fuel economy standards to achieve a level of 35.5 miles per gallon by 2016 for the combined fleet of cars and light trucks.
The Government previously intended to regulate fuel consumption standards of new vehicles under the Motor Vehicle Fuel Consumption Standards Act. However, proceeding under this Act would have required significant changes to the Act itself, which posed the risk of delaying regulatory action. Proceeding with regulations under CEPA, 1999 ensures that the Government has the flexibility to align with United States fuel economy regulations as they emerge, which is crucial to achieving a harmonized approach that takes both our environment and economy into account. CEPA 1999 is a modern piece of environmental legislation with considerable flexibilities to enable timely harmonization with United States standards and also provides consistency with potential longer-term United States national approaches to improve fuel economy and reduce greenhouse gas emissions. Further, this approach is in line with other international jurisdictions that are moving to implement GHG-based vehicle regulations, notably the European Union. Finally, this approach will be consistent with the Government of Canada’s existing use of CEPA, 1999 to establish standards limiting smog-forming air pollutant emissions from new vehicles in alignment with the national standards of the United States Environmental Protection Agency (EPA).
In light of these recent developments in Canada and the United States, the development of Canadian regulations and the assessment of its impacts in Canada remain in the early stages. Therefore, emission reductions for 2011 and 2012 have not been determined at this time.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Expected | N/A | N/A | N/A | TBD | TBD |
Rail
In May 2007, Environment Canada, Transport Canada and the Railway Association
of Canada signed a Memorandum of Understanding that committed industry members
to take steps to align with the stringent regulatory requirements of the United
States EPA. The Memorandum of Understanding (MOU) also set greenhouse gas emission
intensity targets for the various rail services such as freight and passenger
rail. The Government of Canada is in the process of developing regulations,
under the Railway Safety Act, that will align with the EPA locomotive emission
standards. Once the MOU expires, the voluntary approach will be replaced with
a regulatory regime. The Minister of Transport will implement new regulations,
under the Railway Safety Act, to take effect in 2011. As these regulations are
not yet developed, the Government is not in a position to provide expected emissions
reductions.
Air
The Government continues to support harmonized international efforts to limit
or reduce both domestic and international aviation emissions of both greenhouse
gases and air pollutants. The Minister of Transport supports the work of the
International Civil Aviation Organization to develop international standards
and recommended practices for the reduction of greenhouse gas and air pollutant
emissions from aviation sources. These standards and recommended practices will
be considered in the development of domestic regulations under the Aeronautics
Act. As the standards are still being developed, the Government is not in a
position to provide expected emissions reductions.
Marine
Canada is working with other countries at the International Maritime Organization
to address the impacts of the international shipping sector on climate change.
The Government of Canada supports the development of a stringent global greenhouse
gas emissions regime that applies equally to ships of all flags, as this would
reduce the likelihood of unilateral and regional actions to reduce emissions
from ships and provide a uniform global policy environment for the shipping
industry. Once adopted, these international standards would be implemented domestically
by regulations under the Canada Shipping Act, 2001. In advance of such regulations,
the Government of Canada is developing a Memorandum of Understanding with the
shipping industry to reduce air emissions from domestic marine operations, which
would be applicable to both vessels and other marine facilities operating in
Canada. As the standards are still being developed, the Government is not in
a position to provide expected emissions reductions.
The federal government will develop and implement a federal regulation, to be developed under CEPA, 1999, that would require fuel producers and importers to have an average annual renewable fuel content of at least 5% of the volume of gasoline that they produce or import. This measure is expected to come into effect in 2010.
In addition, the Government intends to put in place an additional requirement for an average 2% renewable fuel content in diesel fuel and heating oil, upon successful demonstration of renewable diesel fuel use under the range of Canadian conditions. This is intended to come into effect no later than 2012. This requirement is approximately equivalent to a renewable fuel content requirement for 5% of on-road diesel fuel.
Bill C-33, An Act to amend the Canadian Environment Protection Act, 1999, provides additional authorities needed to make efficient national regulations requiring renewable content in Canadian fuels. It received Royal Assent on June 26, 2008, and is expected to be come into force in June 2009.
Environment Canada has secured resources through Budget 2008 which are required to develop these regulations. Regulatory development, science and technology work, including life cycle assessment, and the demonstration projects needed to support the policy decisions around the regulations are all moving forward. The draft regulations are expected to be proposed in the Canada Gazette, Part I, for consultation in Fall 2009.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0 | 0 | 0.3 | 1.0 | 2.1 |
| High | 0 | 0 | 0.9 | 2.8 | 4.3 |
| Expected | 0 | 0 | 0.3 | 1.0 | 2.1 |
While the regulation of renewable fuels content described above is the only
renewable fuels measure that will directly achieve emissions reductions during
the Kyoto period, the Government is supplementing these regulations with a number
of program measures that make up the Government’s full renewable fuels
agenda. While the initiatives described below will not achieve direct reductions
during the Kyoto period, they will help promote future renewable fuel technologies
that are necessary to combating climate change over the long term.
The ecoENERGY for Biofuels Initiative supports the production of renewable alternatives
to gasoline and diesel and encourages the development of a competitive domestic
industry for renewable fuels. Through the initiative, the Government will invest
up to $1.5 billion over nine years in support of biofuels production in Canada
by partially offsetting the investment risks associated with fluctuating feedstock
and fuel prices. The program is in its second year of operation and is fully
operational. In fiscal year 2008/09, the program signed 22 contribution agreements
representing a total commitment of $938 million and a volume of 1.63 billion
litres of biofuels.
The ecoAGRICULTURE Biofuels Capital Initiative (ecoABC) is a $200 million initiative
to provide repayable contributions of up to $25 million per project to help
farmers overcome the challenges of raising the capital necessary for the construction
or expansion of biofuel production facilities. It has been operational since
April 2007. In 2006, the Government also established the $365 million Agricultural
Bioproducts Innovation Program, which became operational in January 2007. Further,
in 2006 a component was added to the Co-operative Development Initiative to
focus on biofuels and value added activities for agricultural production.
In 2006 the Government also announced the Biofuels Opportunities for Producers
Initiative, which assisted agricultural producers in developing sound business
proposals, and, undertaking feasibility or other studies to expand biofuels
production capacity. The initiative ended March 2008. During the duration of
the program, 121 projects were supported for a total of $18.2 million.
An additional $500 million is being provided to Sustainable Development Technology
Canada to invest with the private sector in establishing large-scale facilities
for the production of next-generation renewable fuels.
Budget 2008 also made investments in the development of renewable fuels in Canada.
The Government provided $10 million over two years for scientific research and
analysis on biofuels emissions to support regulations development and demonstration
projects to verify that renewable diesel fuel is safe and effective for the
Canadian climate. Budget 2008 also provided funding to establish a pilot program
to demonstrate E85 fuelling infrastructure and promote its commercialization.
E85 is a renewable fuel containing 85% ethanol and 15% gasoline.
As a means to support these regulatory actions and further reduce greenhouse
gas emissions, the Government is investing in a series of ecoACTION programs
intended to promote the development and deployment of new technologies. This
section outlines ecoACTION programs including ecoENERGY and ecoTRANSPORT. The
emissions reductions ranges provided for each of these measures are based on
variability in factors relating to program implementation. Generally, the Government
reports the lowest or average figure in the range to provide the most conservative
estimate of program impacts. The methodology used to calculate the emissions
reduction ranges attributed to each ecoACTION investment is referenced in Annex
2. In addition, Annex 2 provides uncertainty analysis in relation to the methodology
in response to recommendations made by the Commissioner for the Environment
and Sustainable Development.
The following sections detailing ecoACTION investments address the requirements
of paragraph 5(1)(a)(iii) of the Kyoto Protocol Implementation Act as well as
paragraphs 5 (1)(b)(i) and (ii), (e) and (f).
The ecoENERGY Technology Initiative (ecoETI) is investing $230 million over five years (2007-12) in the research, development and demonstration of clean transformational energy technologies and systems. Given the longer term nature of this project, the investment is expected to lead to reductions in greenhouse gas emissions in the post-2012 period. The Initiative is directed towards increasing clean energy supplies, reducing energy waste and reducing pollution from conventional energy. The program came into effect in October 2007, with the announcement of funding for the clean coal technology project. (Note: a one-year extension was approved to the original four-year profile. Therefore the ecoEnergy Technology Initiative will terminate in March 2012)
The new technologies will be expected to lead to significantly reduced emissions of particulates, gaseous pollutants, toxic substances and greenhouse gases from the production and use of energy. Given the long-term nature of research and development, and the many factors that come into play for the adoption of leading edge technologies, firm quantitative estimates of air pollutant and greenhouse gas emission reductions are not possible.
The ecoENERGY Technology Initiative is in its second year of operation and has fully allocated its funding to approved projects and initiatives. In fiscal year 2008/09, ecoETI completed a call for carbon capture and storage proposals and announced it was proceeding to negotiate contribution agreements for eight new carbon capture and storage research and development and demonstration projects ($140 million). In addition, work continued on a number of energy research and development and demonstration projects commenced in 2007/08 or earlier, including the Canadian Hydrogen Airport, EPCOR IGCC and Weyburn-Midale demonstration projects.
This program has been implemented by the projected date. There are no quantified
emissions reductions associated with this initiative. It supports Canada's actions
to reduce GHG emissions by accelerating the development and market readiness
of technology solutions in clean energy.
The ecoENERGY for Renewable Power program is investing $1.48 billion to provide
incentives to increase Canada’s supply of clean electricity from renewable
sources such as wind, biomass, low-impact hydro, geothermal, solar photovoltaic
and ocean energy. The program will provide an incentive of 1 cent/kWh for up
to 10 years to qualifying projects. The program came into effect on April 1,
2007 as projected, and as of March 31, 2009, 52 contribution agreements had
been signed with proponents, representing about $900 million in federal funding
over 10 years and 2700 MW of renewable power capacity.
Analysis shows that, dependent on a number of factors, emission reductions attributed
to the ecoENERGY for Renewable Power program could range from 6.0 to 6.67 Mt
by 2012. The table below indicates the amounts that the Government anticipates
the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 1.7 | 2.8 | 4.5 | 6.0 | 6.0 |
| Expected | 2.2 | 3.74 | 5.45 | 6.67 | 6.67 |
The ecoENERGY for Renewable Heat initiative is investing approximately $36 million over four years in incentives and industry development to support the adoption of clean renewable thermal technologies such as solar air and solar hot water for water and space heating in buildings. The program achieves GHG reductions by encouraging individuals and organizations to use renewable solar thermal systems.
Since the program’s inception, as projected on April 1, 2007, 727 funding applications from industrial, commercial and institutional sectors to install solar air and solar hot-water systems have been received, and 502 contribution agreements with successful applicants, representing about $9 million in federal funding have been signed. In addition, Contribution Agreements with 15 partners (utilities, developers and buyers’ groups) to run pilot projects that will test ways to deploy solar hot water systems in the residential sector have been signed. Under the pilot projects, up to 8000 solar water-heating systems will be installed in Canadian homes by the end of the program. Also under the ecoEnergy for Renewable Heat program, the Government has entered into Information Sharing Agreements with Ontario, Saskatchewan and British Columbia to coordinate complimentary solar thermal programs and has also entered into agreements with two renewable energy industry associations and two other groups to improve training and certification of solar and geoexchange industry professionals.
Analysis shows that, dependent on a number of factors, emission reductions
attributed to the ecoENERGY for Renewable Heat program could range from 0.017
Mt to 0.025 by 2012. The table below indicates the amounts that the Government
anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.003 | 0.007 | 0.012 | 0.017 | 0.017 |
| High | 0.005 | 0.01 | 0.016 | 0.025 | 0.025 |
| Expected | 0.005 | 0.01 | 0.015 | 0.02 | 0.02 |
The ecoENERGY for Buildings and Houses program is investing $60 million over four years to encourage the construction and operation of more energy-efficient buildings and houses through a range of complementary activities. The Buildings and Houses program has started its third year of operation and is fully implemented. In fiscal year 2008/09, activities in such areas as the new National Energy Code for Buildings, the development of a building benchmarking/labeling program and a building recommissioning program as well as energy management training and capacity building occurred.
Specific efforts include, but are not limited to: implementing new design tools and training programs (e.g., Dollars to $ense workshops, workshops on new building design simulation and RetSCREEN); updating building energy benchmarking, rating and labelling; promoting labelling systems for housing (e.g., EnerGuide Rating System), engaging in ongoing dialogue and co-operation with provincial and territorial programs; increasing awareness of energy efficiency practises of building owners and managers through continuous building optimization; and establishing and maintaining partnerships to encourage energy efficiency capacity building.
In fiscal year 2008/09, 24 service organizations were licensed to deliver programs at the local/regional level and four other strategic partnerships were developed to continue market transformation activities. As well, over 11,500 new homes and 257,000 existing houses were labeled and more than 4300 housing professionals, builders, and energy advisors were trained. Since program inception, approximately 0.773 Mt of GHG emission savings can be attributed to this initiative (as per end of 2008/09, data yet to be finalized).The ecoENERGY for Buildings and Houses measure came into effect on April 1, 2007, and was implemented by the projected date.
Analysis shows that, dependent on a number of factors, emission reductions attributed to the ecoENERGY for Buildings and Houses program could range from 2.02 to 2.24 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.32 | 0.56 | 1.13 | 1.57 | 2.02 |
| High | 0.36 | 0.62 | 1.26 | 1.74 | 2.24 |
| Expected | 0.32 | 0.56 | 1.13 | 1.57 | 2.02 |
The ecoENERGY Retrofit Initiative provides incentives for energy efficiency improvements in homes and in small and medium-sized organizations in the institutional, commercial and industrial sectors.
The ecoENERGY Retrofit for Homes provides home and property owners with grants up to $5,000 per unit to offset the cost of making energy efficiency improvements. The Retrofit for Homes program involves residential energy efficiency assessments by certified energy advisors and is complemented by a suite of provincial programs.
The ecoENERGY Retrofit for Homes program is in its third year of operation and is fully implemented. An additional $300 million was allocated to the ecoENERGY Retrofit for Homes program through the 2009 federal budget bringing the total budget for this element to $460 million over four years. As of the end of fiscal year 2008/09, grants to 94,000 homeowners have been made to support energy efficiency upgrades that will reduce their annual energy consumption by about 23% and GHG emissions by approximately 3.4 tonnes per house per year (as per end of 2008/09, data yet to be finalized).
The ecoENERGY Retrofit for Small and Medium Organizations ($40 million over five years) provides financial incentives to facilities meeting specified criteria based on the estimated amount of energy saved by retrofit activities. The ecoENERGY Retrofit for Small and Medium Organizations has started its third year of operation and is fully implemented. As of the end of fiscal year 2008/09, 351 contribution agreements have been signed. Thus far, approximately 77 kt of GHG emission savings can be attributed to this initiative (as per end of 2008/09, data yet to be finalized).
The ecoENERGY Retrofit included $20 million in 2007-08 for the Existing Buildings Initiative which promoted behavioural changes and energy-saving retrofits to improve energy efficient practices through financial incentives, partnerships, training and advice.
The ecoEnergy Retrofit Initiative came into effect on April 1, 2007 and was implemented by the projected date. Analysis shows that, dependent on a number of factors, emission reductions attributed to the ecoENERGY Retrofit Initiative program could range from 1.58 to 1.88 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.45 | 0.65 | 1.15 | 1.58 | 1.58 |
| High | 0.51 | 0.74 | 1.32 | 1.88 | 1.88 |
| Expected | 0.46 | 0.67 | 1.20 | 1.66 | 1.66 |
The ecoENERGY for Industry program is investing $18 million over four years to encourage information-sharing on new technologies and best practices in energy use, as well as training and specialized assessments for energy managers to identify and implement energy-saving projects.
The program is an industry-government partnership delivered through the Canadian Industry Program for Energy Conservation (CIPEC). CIPEC encourages industrial energy efficiency improvements and reductions in GHG emissions through a number of voluntary activities, including: Dollars to $ense energy management workshops, site-specific industrial energy assessment incentives, and recognition programs for industrial energy-efficiency leaders.
The ecoENERGY for Industry program is in its third year of operation and is fully implemented. As of the end of fiscal year 2008/09, this program has helped Canadian industry save 7.6 PJ of energy and avoided 736 kt of GHG emissions. This has been realized through the CIPEC and site-specific energy assessments (as per end of 2008/09, data yet to be finalized). This program took effect April 1, 2007 and was implemented by the projected date.
Analysis shows that, dependent on a number of factors, emission reductions
attributed to the ecoENERGY for Industry program could range from 0.4 to 1.7
Mt by 2012. The table below indicates the amounts that the Government anticipates
the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.17 | 0.27 | 0.37 | 0.40 | 0.40 |
| High | 0.74 | 1.17 | 1.59 | 1.70 | 1.70 |
| Expected | 0.17 | 0.27 | 0.37 | 0.40 | 0.40 |
The ecoAUTO Rebate Program, administered by Transport Canada and delivered
in partnership with Service Canada provided a cash incentive to Canadians to
help the environment by buying or leasing more fuel-efficient vehicles. Through
this initiative, the federal government offered rebates from $1,000 to $2,000
towards the purchase or lease (12 months or more) of new fuel-efficient vehicles
for the model years 2006, 2007 and 2008. Only new eligible vehicles purchased
or leased between March 20, 2007 and December 31, 2008, and for which a rebate
application form was received by March 31, 2009, qualified for the rebate.
Under this measure, vehicles whose combined fuel consumption (55 per cent city,
45 per cent highway) is at or below the program’s fuel consumption targets
of 6.5 l/100km for cars and 8.3 L/100km for light trucks were eligible for a
rebate of up to $2,000. Flex-fuel passenger vehicles, which are capable of operating
with either gasoline or a fuel blend of 15% gasoline and 85% ethanol (E85),
received a rebate of $1,000 if their E85 combined fuel consumption rating was
no more than 13.0 L/100km. The full rebate schedule is as follows:
| Range of Combined Fuel Consumption (L/100km) | Passenger Cars | Light-Duty Trucks | Flex-Fuel Vehicles E85 CFCR |
|---|---|---|---|
| 5.5 or less | $2,000 | $2,000 | $1,000 |
| 5.6 – 6.0 | $1,500 | $2,000 | $1,000 |
| 6.1 – 6.5 | $1,000 | $2,000 | $1,000 |
| 6.6 – 7.3 | $0 | $2,000 | $1,000 |
| 7.4 – 7.8 | $0 | $1,500 | $1,000 |
| 7.9 – 8.3 | $0 | $1,000 | $1,000 |
| 8.4 – 13.0 | $0 | $0 | $1,000 |
The measure came into effect March 20, 2007 and was implemented by the projected date. Application forms were released and the measure was fully implemented as of October 1, 2007. The measure concluded on March 31, 2009, which was the last date to submit an application form for eligible vehicles. As of April 17, 2009 the ecoAUTO Rebate Program received over 180,000 applications and issued over 168,700 rebates totalling $189.9 million. In addition, the toll-free number received over 113,500 inquiries and the program’s website recorded 875,000 visits.
Analysis shows that, dependent on a number of factors, emission reductions attributed to the ecoAuto Rebate Program could range from 0.01 to 0.02 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| High | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 |
| Expected | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
The Green Levy applies to passenger vehicles with a fuel consumption rating of 13 litres or more per 100 kilometres (55 per cent city and 45 per cent highway) and is imposed at rates ranging from $1,000 to $4,000. The Green Levy is payable by the manufacturer or importer of new vehicles delivered after March 19, 2007 and by the importer of used vehicles, if the used vehicle was originally put into service (in any jurisdiction) after March 19, 2007. The Canada Revenue Agency and the Canada Border Services Agency are responsible for the administration of the Green Levy, working with manufacturers and importers of vehicles to facilitate its application.
This program has been implemented by the projected date of March 20, 2007.
Analysis shows that, dependant on a number of factors, emission reductions attributed to the Green Levy could range from 0.23 to 0.28 Mt by 2012. The table below indicates the amounts the Government anticipates the program will achieve. More details about the methodology and assumptions used to derive the estimates for each scenario can be found in Annex 2.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| High | 0.09 | 0.14 | 0.09 | 0.23 | 0.28 |
| Expected | 0.10 | 0.14 | 0.17 | 0.20 | 0.23 |
The ecoENERGY for Personal Vehicles Initiative is investing $21 million over four years to provide Canadians with helpful tips and decision-making tools to assist them with buying, driving and maintaining their vehicles in a manner which reduces fuel consumption and greenhouse gas emissions. Such resources include, but are not limited to: the Fuel Consumption Guide; new driver training; and idle-free and tire inflation campaigns.
The program is in its third year of operation and nearly all components are fully implemented. Each year, over 440, 000 new drivers are trained using materials from the Auto$mart fuel efficient driving initiative. To date, the estimated GHG emission reductions associated with idle reduction and tire maintenance campaigns, and new driver training, are 0.06 Mt (as per end of 2008/09, data yet to be finalized). The report on the auto sector's achievement of the first interim goal for GHG reductions under the Memorandum of Understanding with the auto sector is being finalized.
The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Expected | 0.025 | 0.05 | 0.075 | 0.1 | 0.1 |
The ecoMobility program is investing $10 million over four years to provide financial support to municipalities and regional transportation authorities for transportation demand management (TDM) projects that reduce emissions by shifting personal automobile travel to other modes, reducing the number and length of car trips, and shifting trips to less congested times and routes. The program will also help build national capacity to implement transportation demand management measures through research, professional development and the development of materials/resources.
National consultations were held in Summer and Fall 2007 on the design and
implementation of the program. Provinces, municipalities and non-government
organizations reacted positively to the program and there is strong support.
A request for proposals to initiate innovative transportation demand projects
in municipalities was launched in February 2008, with 14 successful projects
announced in January 2009. A second request for proposals is underway with a
closing date of May 1st, 2009. Selected projects will be announced in the Fall
2009.
Complementary, national capacity building initiatives have been rolled out in
2008/09 and will continue for the remainder of the program. Examples of activities
that have taken place include: development of TDM measurement guidelines; webinars;
inventory of school-based TDM programs; and a bike sharing guide. More activities
are planned for the upcoming fiscal year such as: technical training resources
to support Active and Safe Routes to School; creation of an Active Transportation
node; inventory of existing research on consumer attitudes towards active transportation;
and development of training resources for practitioners on the TDM measurement
guidelines. Program activities were initially delayed to accommodate extensive
national consultations in the first year of the program; however activities
are now under way as scheduled. The program has been extended to 2012 to allow
a full three year project delivery.
Analysis shows that, dependant on a number of factors, emission reductions attributed
to the ecoMobility program could range from 0.112 to 0.223 Mt in 2012.The table
below indicates the amounts that the Government anticipates the program will
achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| High | 0 | 0 | 0.217 | 0.220 | 0.223 |
| Expected | 0 | 0 | 0.109 | 0.110 | 0.112 |
The National Vehicle Scrappage Program, effective April 17, 2008, offers rewards to owners of old high-polluting vehicles (model year 1995 and older) to retire them. Program participants may choose one of: a free transit pass, memberships in a car-sharing program, a rebate on the purchase of a newer vehicle (model year 2004 and later) or $300 cash. The primary goal of the program is to reduce smog-forming emissions. Secondary goals are to reduce greenhouse gas emissions by encouraging owners of old vehicles to choose sustainable transportation alternatives (such as public transit), and preventing the release of toxic substances into the environment by ensuring the responsible recycling of vehicles.
National program implementation began in February 2009. The program is being delivered by Clean Air Foundation. In 2008, Environment Canada supported local not-for-profit organizations to deliver local scrappage programs. Full implementation across all provinces was delayed from July 2008 to February 2009. An interim approach allowing program delivery in seven provinces was used until full implementation was completed.
Analysis shows that, dependent on a number of factors, emission reductions attributed to the National Scrappage Program could range from 0.001 to 0.002 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.005 | 0.022 | 0.027 | 0.020 | 0.001 |
| High | 0.005 | 0.029 | 0.053 | 0.039 | 0.002 |
| Expected | 0.005 | 0.023 | 0.032 | 0.024 | 0.001 |
The ecoTechnology for Vehicles program is investing $15 million over four years to help to accelerate the adoption of advanced vehicle technologies that reduce greenhouse gas (GHG) emissions and promote a reduction of fuel consumption in the Canadian fleet of light-duty vehicles. This objective is achieved by acquiring and testing emerging environmental light-duty vehicle technologies, informing Canadians about these new technologies through showcasing and publications and working in partnership with industry, consumers, other government departments and key stakeholders.
The program is fully implemented/operational. It is currently entering its third year of operation, and has recently completed evaluating and showcasing several key technologies that have the potential to reduce the environmental impacts (GHG emissions) from light-duty vehicles in Canada, including advanced diesel after-exhaust treatment systems, plug-in electric motorcycles, power assisted bicycles and variable geometry turbine turbochargers.
Over the course of 2008/09, the program attended over twenty different events across the country, and disseminated information about advanced vehicle technologies to over 75,000 Canadians via the program’s public outreach events and web site (www.tc.gc.ca/eTV). To support these activities, a database of technology articles, videos and technical sheets, were developed and housed on the program’s web site.
The program also partnered with several vehicle manufacturers in 2008/09 to inform the public and prepare consumers to adopt the next generation of automotive technologies. Examples of these partnerships include a full electric vehicles and a fuel cell electric vehicle, among others.
Additionally, the program continued key partnerships with industry stakeholders, including:
The program experienced initial delays in acquiring suitable facilities to house/store specialized vehicles (e.g. hydrogen), but has now addressed this need and the program is being implemented as scheduled.
Analysis shows that, dependant on a number of factors, emission reductions attributed to the ecoTechnology for Vehicles program could range from 0.090 to about 0.6 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0 | 0.032 | 0.046 | 0.067 | 0.090 |
| High | 0 | 0.197 | 0.284 | 0.410 | 0.557 |
| Expected | 0 | 0.071 | 0.103 | 0.148 | 0.201 |
The ecoENERGY for Fleets initiative is investing $22 million over four years to generate reductions in fuel use and related costs, air pollutants and greenhouse gas emissions through measures targeted at both operators and managers of Canada's commercial and institutional road vehicle fleets. Such measures include: training and education (e.g. SmartDriver training); sharing of best practices (e.g., Fuel Management 101 workshops); anti-idling campaigns (e.g., Idle-Free Quiet Zone for truck drivers); and technical demonstrations promoting the adoption of existing and emerging new technologies.
The program is in its third year of operation and was implemented by the projected date. In fiscal year 2008/09, 170 fleets participated in 12 Fuel Management 101 workshops to promote greater uptake of transportation energy efficiency practices. The estimated GHG emissions reductions to date stemming from participation in SmartDriver and Fuel Management 101 workshops, as well as Idle-Free Campaigns, amount to 0.05 Mt (as per end of 2008/09, data yet to be finalized).
Analysis shows that, dependent on a number of factors, emission reductions attributed to the ecoENERGY for Fleets program could range from 0.5 to 0.7 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.22 | 0.34 | 0.47 | 0.50 | 0.50 |
| High | 0.31 | 0.48 | 0.66 | 0.70 | 0.70 |
| Expected | 0.22 | 0.34 | 0.47 | 0.50 | 0.50 |
The ecoFREIGHT program is investing $65 million over four years to reduce the environmental and health effects of freight transportation through the use of technology. The program includes six initiatives.
1. National Harmonization Initiative for the Trucking Industry: identifying
regulatory barriers and solutions in collaboration with provinces and territories,
so that the Canadian trucking industry can embrace emissions-reducing technologies.
2. Freight Technology Demonstration Fund: establishing cost-shared demonstrations
to test and measure new and underused freight transportation technologies in
real-world conditions, and disseminating information to industry.
3. Freight Technology Incentives Program: providing cost-shared funding to companies
and non-profit organizations in freight transportation to help them to purchase
and install proven emission-reducing technologies.
4. ecoFREIGHT Partnerships: building and maintaining partnerships within the
transportation sector to reduce emissions from freight transportation through
fast and flexible voluntary actions that can support the regulatory framework.
5. Please see the section on the Marine Shore Power Program.
6. Please see the section on ecoEnergy for Fleets.
With respect to the National Harmonization Initiative for the Trucking Industry (NHITI) two provinces, Ontario and Quebec, have now implemented heavy truck speed limiter regulations. The NHITI conducted significant foundational work to support this initiative, and is available to applicants to offer co-funding to assist with the development of enforcement capacity for these new requirements.
The Freight Technology Demonstration Fund and Freight Technology Incentives Programs have been launched. On March 7, 2008, 23 projects were selected for funding under Round 1. Twenty-six (26) projects have been selected for funding under Round 2, and the process of completing the contribution agreements is underway. Available funding under the program has been fully allocated.
The ecoFREIGHT Partnerships program is fully operational with the delivery of various shipper awareness and Memorandum of Understanding (MOU) activities with the Canadian air and rail associations. Annual reports were received by these two associations, reporting on progress achieved under the MOUs. Both associations were on track with their emissions reduction targets. The ecoFreight program was implemented by the projected date.
Analysis shows that, dependant on a number of factors, emission reductions attributed to the ecoFreight program could range from 1.508 to 1.372 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| High | 0 | 1.050 | 1.237 | 1.376 | 1.508 |
| Expected | 0 | 0.975 | 1.118 | 1.246 | 1.372 |
The Marine Shore Power Program is investing $6 million over four years to demonstrate the use of shore-based power for marine vessels in Canadian ports to reduce air pollution from idling ship engines in some of Canada's largest urban centres.
A first round of funding was held on August 25, 2008. Under this first funding round, Vancouver Fraser Port Authorities was selected to build a marine shore power installation on the East and West berth at their Canada Place facility. The construction is underway and the marine shore power installation should be available for the 2009 cruise vessel season. A second round of funding will be held in 2009.
Following consultations with industry in Fall of 2007 it was decided to delay the program funding round until after amendments to the Canadian Marine Act come into force so as to ensure that Canadian Port Authorities were eligible for funding. Therefore the due date for applications for Round one funding was held on August 25, 2008. This program was implemented by the projected date and has been extended to 2012 to allow for full project completion.
Analysis shows that, dependant on a number of factors, emission reductions attributed to the Marine Shore Power program could range from 1.372 to 0.008 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0 | 0.0032 | 0.0045 | 0.0045 | 0.0045 |
| High | 0 | 0.005 | 0.007 | 0.007 | 0.008 |
| Expected* | 0 | 0.005 | 0.007 | 0.007 | 0.008 |
| *Preliminary estimates made when the program was developed in 2006 | |||||
The Public Transit Tax Credit allows individuals to claim a non-refundable tax credit for the cost of monthly public transit passes or those passes of a longer duration, effective July 1, 2006. The Credit was extended in Budget 2007 to electronic fare cards and weekly passes when used on an ongoing basis. The objectives for the measure outlined in Budget 2006 were to provide assistance to Canadians by making transit more affordable, to reduce traffic congestion in urban areas and to improve the environment by lowering greenhouse gas emissions. This tax credit applies in respect of the cost of eligible public transit passes for travel occurring after June 30, 2006. The expansion of the credit to the costs of electronic fare cards and weekly passes when used on an ongoing basis became effective starting January 1, 2007.
Analysis shows that, dependent on a number of factors, emission reductions attributed to the Public Transit Tax Credit could range from 0.037 to 0.039 Mt by 2012. The table below indicates the amounts that the Government anticipates the program will achieve.
| Preliminary Expected Reductions (Mt) | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Low | 0.032 | 0.033 | 0.034 | 0.036 | 0.037 |
| High | 0.032 | 0.033 | 0.035 | 0.037 | 0.039 |
| Expected | 0.032 | 0.033 | 0.035 | 0.036 | 0.038 |
Along with the public transit tax credit, the Government has introduced a number of initiatives that will promote the expansion and use of sustainable public transit in Canadian cities. While the initiatives described below may not achieve significant reductions during the Kyoto period, they should help promote the use of low-carbon transportation options that are necessary to combating climate change over the long term.
In November 2007, the Government launched the Building Canada Infrastructure plan that provided a record $33 billion for investments in public infrastructure. Public transit is one of five national priorities targeted under several components of the plan, including the $8.8 billion Building Canada Fund, the $2.275 billion Provincial-Territorial Base Funding, the $11.8 billion Gas Tax Fund extension and the $1.25 billion Public Private Partnerships Fund.
In Budget 2008, the Government committed a further $500 million for the Public Transit Capital Trust to support capital investments in transit across the country. This is on top of the $1.3 billion for public transit capital investments in Budget 2006. Of these funds, $900 million was earmarked to provinces and territories through the Public Transit Capital Trust, a one-time investment paid through a third-party trust. The remaining $400 million was designed to accelerate provincial and territorial investments in public transit infrastructure.
The Government’s commitment to support public transit continued in Canada’s
Economic Action Plan through the $4 billion Infrastructure Stimulus announced
in Budget 2009, which will fund the same types of projects as the Building Canada
Plan.
4 The estimated emission reductions are based on the targets contained in the Regulatory Framework released in 2008, but adjusted to reflect the lower economic growth.
5 Note that the expected reductions have been modified from past KPIA input as a result of changes to regulatory timing. The figures presented here are consistent with those in the Regulatory Impact Analysis Statement (December 24, 2008). As they are based on technical product and market data, the expected reductions are not presented as a range in the RIAS and therefore, shown in a similar fashion above. For more information on these energy efficiency regulations access the link below (noting that Mt figures in the RIAS refer to only Amendment 10): Regulations Amending the Energy Efficiency Regulations