Transcript Document

ALBERTA AND CLIMATE CHANGE
MEETING NORTH AMERICA’S EVOLVING ENERGY NEEDS
April 28, 2009
Overview
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Alberta Context
Provincial Approach
Regulatory Framework
Offset System
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Biologic Sequestration
Provincial Context
• Fossil-fuel focused economy
– Resource extraction, upgrading and transport
– Oil sands growing as a major source of secure energy
– Driver of economic and emissions growth (oil sands, upgrading)
• Thermal-based electricity
– Coal at 60% generation capacity
– Growing wind generation (400% since 2000) but <5% generation
• Disbursed population
– Limited but growing concentration in a few urban areas
• Transportation accounts for 15% of total greenhouse gas
emissions
• 100 large point source facilities account for about 50% of total
emissions
Key Provincial Actions
• Taking Action on Climate Change – 2002
– Provincial 50% GHG intensity/GDP target by 2020
• Climate Change and Emissions Management Act
– GHG regulations on:
• Mandatory reporting of GHGs by industry – 2003
• Reduction targets for large facilities - 2007
• Alberta’s 2008 Climate Change Strategy
– Cut projected 2050 emissions in half
Specified Gas Emitters Regulation
• Applies to all facilities in Alberta that produce over 100,000 tonnes
of CO2E (Specified Gas Reporting Regulation)
• Develop facility baselines
– Based on average emissions intensity from 2003-2005
• Intensity limits – reductions off baseline intensity
– Emissions/production = baseline intensity
• E.g. emissions per barrel of oil, air dried tonnes of pulp
– 12% reduction off of baseline for existing facilities
• Phase-in of target for new facilities
– Intensity metric to address growth areas in the short-term
• Essentially an absolute limit for stable or declining facilities
Alberta’s largest emitters
(100,000+ tonnes CO2 per year)
Chemicals
7%
Heavy Oil
7%
Power Plants
47%
Gas Plants
8%
Other
13%
Oil Sands
18%
TITLE
Second Round Results
• 2008 reduction obligation - approximately 11 million
tonnes of GHGs
– Based on emission projections
– Facility improvements addressed approximate 2 million
tonnes
• 2.75 million tonnes (31% ) of offsets used
– Tillage, renewables plus a broader range of projects
including acid gas, EOR using CO2
• About 1.8 million tonnes of additional EPCs created
– 569,000 tonnes (6%) used in the second cycle
– Remaining compliance through Technology Fund
($82 million or 63%)
Offset System – Intent and Approach
• Recognition of the need to see short-term results
while technology solutions advance
• Opportunity to send a price signal to the rest of the
economy
• Mechanism to motivate/maintain/accelerate desirable
actions
• Any emission source not regulated is eligible subject
to the following:
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Action must be taken in Alberta on or after January 1, 2002
Not otherwise required by law
Must have a government approved quantification protocol
Reductions are verified by 3rd party
Offset System – Quantification Protocols
• Protocols are at the heart of the offset system
• Merge of technical and scientific basis with policy and
intent
• Alberta Protocols:
– Based on best available science/scientists (evolving)
– Quantification connected to national inventory (IPCC good
practice guidance)
– ISO Framework (life cycle)
– International consistency sought
– Multi-stakeholder review process
• Offset credits reflect reductions that would not otherwise
occur
– Post-2002 actions; not required by law (in regulation)
– Protocol process brings in environmental, economic and
other dynamics
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Check Carbon Offset Solutions website for
draft protocols, protocols under development
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Develop & compile Technical Seed Document(s)
(TSD) for protocol foundation
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Prepare Technical Protocol Plan (TPP)
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Submit TPP & TSDs to Alberta Government for
review
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Provide feedback to protocol developers – 60 days*
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Adapt into Alberta protocol format
(Standardization)
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1st round of reviews – expert technical review
No sustained objections, then move forward.
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2nd round of reviews – broader stakeholder review
No sustained objection, then move forward
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3rd round of reviews – posting for public review
30 days
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Finalization of protocol & review of public
comments by Alberta Environment**
2-10
mo
Protocol Developer
Alberta Government
Protocol Developer
Coordination by
Climate Change
Central (C3)
“All parties involved”
Alberta Government
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Government approval & posting of
protocol
4-6
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10-30
days
1-2
mo
Offset System – Biological Sinks
• Agricultural sink protocol (reduced/no-till)
– Based on decades of science
– Reflects years of carbon policy integration
• Approach serves to balance risks to ensure actions
happen and reductions are real and sustained
– 20-year timeframe (with 10-year review)
– Adjusted baseline (to ensure incremental reductions)
– Assurance factor (leading expert advice on chance of
reversals, creates a carbon reserve that is retired)
• Backstopped by rigorous data management requirements
– Builds off of robust data systems (crop insurance, air photos,
on the land inspections)
– Must pass third party verification
– Additional land check with Alberta Offset Registry
Close
• Climate change is a multi-faceted issue
- Science in the context of practical
• Response strategies need to reflect and respect
jurisdictional realities
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Alberta has a regulatory system that is leading to real
reductions, supported by actions through biological sinks
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Continuous improvement underpins the Alberta system
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Work with the experts (all market participants)
Evolve from action, not just ideas