Transcript The Importance of Climate Change

Key requirements for
implementation of the Kyoto
Protocol in Canada
Matthew Bramley
Director, Climate Change
Pembina Institute, Ottawa
[email protected]
Presentation to
Senate Standing Committee on Energy, the
Environment and Natural Resources,
March 27, 2003
Outline
• Broad concerns re Kyoto implementation
–
–
–
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covenants/domestic emissions trading
targeted measures
purchase of international emissions units
implementation process
• Lessons from the United States
• The “One-Tonne Challenge”
Canada’s greenhouse gas
emissions 1990-2000
Other
7%
35
Landfills
3%
Industry
35%
Buildings
11%
Growth (%)
Agriculture
8%
30
25
20
15
10
5
0
Road vehicles
18%
Electricity
production
18%
Ele
s
try
ure
fills
tion hicles lding
s
t
l
d
c
u
u
n
u
i
c
Ind
ve
La
Bu
rod
gri
d
p
A
a
y
Ro
icit
r
t
c
Source: Environment Canada
Kyoto gap: 240 Mt CO 2e / year
Climate Change Plan for Canada
96
21
8
8
30
12
60
Industry + electricity:
• covenants/emissions trading
• 10% of new electricity capacity from
low-impact renewables
Transportation:
• 25% gain in new vehicle fuel efficiency
• investments in public transit
Buildings:
• retrofit 20% of all buildings
Agriculture
Credits for “sinks”
Government purchase of international units
Not yet quantified:
• Partnership Fund
• provinces, municipalities
Covenants/domestic emissions
trading (industry, electricity)
• By far the largest element in the Kyoto plan (55 Mt)
• Need punitive backstop to ensure government can
negotiate the full 55 Mt by end 2004
• Offset credits must not duplicate other parts of the
Kyoto plan (no double counting)
• 55 Mt must be additional to 41 Mt that other parts
of the Kyoto plan seek from industry and electricity
• Emissions intensity targets must be adjustable in
case output is higher than expected in 2008-12
Targeted measures (transportation,
buildings, agriculture, landfills)
• Information, education, research and development
will, on their own, only have a marginal impact
• Need regulated standards:
– new vehicle fuel efficiency, appliance standards,
renewable energy portfolio standards, building codes
• Need major financial incentives/disincentives:
– low-impact renewables, building retrofits
– can be loans, or revenue-neutral instruments
• Need major investments in infrastructure:
– public transit
Purchase of international
emissions units
• Problems with international units:
– many may not correspond to genuine reductions
– no clean air co-benefits in Canada
– divert Canada from the path to long-term
“decarbonization” of the economy
– tend to maintain international inequities
• The government must stick to its commitment to
close the majority of the Kyoto gap in Canada
• Canadian buyers must choose high quality
international units
Implementation process
• Ratification was only the first step: continued strong
government leadership needed
• Move the Climate Change Secretariat to PCO:
– need to ensure adequate leadership by centralizing
responsibility for executing Kyoto implementation
– end interdepartmental squabbling
– bring climate change expertise to the heart of government
– recognize the importance of federal-provincial
collaboration in Kyoto implementation
• Need to ensure equity and public buy-in by
involving environmental organizations in a
meaningful way
Lessons from the U.S.
• A Comparison of Current Government Action on
Climate Change in the U.S. and Canada (available at
www.pembina.org)
• The U.S. currently leads Canada in every area, e.g.:
–
–
–
–
–
–
–
3 states explicitly regulate CO2 from power plants
~15 states with renewable portfolio standards
federal Production Tax Credit for wind energy
~20 states with public benefits funds (consumer efficiency)
California legislation on GHG emissions from vehicles
much higher capital investment in public transit
landfill gas capture mandatory at most large landfills
• One reason why the competitiveness argument
against Kyoto is weak
The One Tonne Challenge
• Reduce average personal greenhouse gas
emissions from 5 tonnes to 4 tonnes per year
Air
transportation
10%
Road
transportation
45%
Source: Natural Resources Canada
Space heating
26%
Water heating
10%
Appliances
7%
Lighting
2%
Meeting the one-tonne challenge
• Information and education will prepare the ground
but on their own have only a marginal impact
• Changes should be required from producers of
GHG-emitting products as they know the products
better than consumers and are far better organized
– cars, appliances: efficiency regulations
– buildings: building codes
– electricity: renewable portfolio standards
• Where consumers are asked to change, they will
need meaningful incentives, e.g.:
– grants/loans for building retrofits
– more attractive public transit services