Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework...
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![Page 1: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/1.jpg)
Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution
Regulatory Framework for Industrial Air Emissions
October 2007
![Page 2: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/2.jpg)
Page 2
The Government announced the Regulatory Framework for Air Emissions
• On April 26, 2007, the federal government announced Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution and made public the regulatory framework for air emissions
• The regulatory framework for air emissions presents mandatory and enforceable reductions in emissions of greenhouse gases and air pollutants from industrial sectors
• Consultations and formal comments on the Notice of Intent (October 21, 2006) were instrumental in shaping/refining this Regulatory Framework for Air Emissions
![Page 3: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/3.jpg)
Page 3
The Regulatory Framework provides a nationally consistent approach to reduce air emissions
• Responding to– Uneven effort across the country to reduce air emissions– Inconsistent messages to industry– Insufficient action to protect health and the environment
• This approach provides– Tangible benefits for Canadians and their environment – Nationally consistent regulations – Continued competitiveness of our economy– A level playing field across Canada– The basis for negotiations with our international partners
![Page 4: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/4.jpg)
Greenhouse Gases
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Page 5
Greenhouse gas emission targets
Target
Existing facilities 6% improvement each year
from 2007 to 2010, giving an enforceable 18% reduction from 2006 emission intensity in 2010
2% annual improvement thereafter
New facilities 3 year grace period Clean fuel standard 2% annual improvement
Total Industrial Target
2006 Emission Intensity Level
% C
han
ge f
rom
20
06
In
ten
siti
es
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
2010 2015 2020
Total Industrial Target
2006 Emission Intensity Level
2010 2015 2020
![Page 6: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/6.jpg)
Page 6
Greenhouse gas compliance options
Ways to comply
In-house reductions
Climate Change Technology fund: one fund/two components Deployment & Infrastructure: focus on opportunities for near term emission reductions:
access as % of total target over 2010-2017 period - 70%, 65%, 60%, 55%, 50%, 40%, 10%, 10%
Research & Development: focus on new transformative technologies: access over 2010-2017 period - 5 Mt annually
Explore credit for certified project investments Contribution rate to funds ($/tonne over 2010-2017 period) - $15, $15, $15, $20, $20
escalating with GDP
Trading Domestic inter-firm trading Access to domestic offsets Access to the Clean Development Mechanism at 10% of firms’ total target Actively explore Canada-US linkages
Credit for early action of 15 Mt With a maximum of 5Mt any given year
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Air Pollutants
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Page 8
Air pollutant targets are aligned with the best in the world
• Benchmarking to other jurisdictions– Examined the most stringent standards for each pollutant in
each sector in Canada (provinces), in the U.S., and internationally
– Where no benchmark exists, targets developed based on specific activities and equipment in similar sub-sectors (e.g.: oilsands)
– Adjustment to Canadian circumstances where appropriate
• Identified sectoral targets based on these stringent regulatory emissions requirements
• Calculated national caps for the four main smog-forming pollutants
![Page 9: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/9.jpg)
Page 9
Air pollutant emission targets
Targets
NATIONAL CAPS for 2012 to 2015(% reduction from
2006 emissions)
NOx – 600 kt Cap (~40%) SOx – 840 kt Cap (~55%) VOCs – 360 kt Cap (~45%) PM – 160 kt Cap (~20%)
+SECTOR SPECIFIC CAPS for 2012
to 2015
ALL TO BE VALIDATED BY SPRING 2008, INCLUDING THE DATE OF
COMING INTO FORCE
0
500
1,000
1,500
2,000
2,500
Nitrogen Oxides(NOx)
Sulphur Oxides(SOx)
Volatile Organic Compounds
(VOC)
Particulate Matter (PM)
-40%
600kt
-55%
840kt -45%
360 kt-20%
160 kt
kil
oto
nn
es
2006 Industrial Air Emissions2015 Projected Industrial Air Emissions with proposed targets
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Page 10
Air pollutant compliance options
Ways to comply
In-house Reductions Fuel switching Equipment and Process Upgrades Control technologies
Domestic Trading for NOx and SOx Cap and trade system Feasibility of offsets will be assessed
Pursue discussions on Canada- US trading for NOx and SOx
![Page 11: Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution Regulatory Framework for Industrial Air Emissions October 2007.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649e725503460f94b71c05/html5/thumbnails/11.jpg)
Anticipated Impacts & Benefits of Regulating Industry
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Page 12
National economic impacts will be manageable
• Total package (regulations and eco-Action initiatives) has impacts that are below -0.5% of GDP for any given year throughout the forecast period
– Costs are highest in post-2015 period when package is mature– Regulatory package for climate change and air pollutants the largest
contributor to GDP impacts
• Compliance options provide the time and flexibility to meet targets through technology improvements rather than output changes
– Complements normal capital turnover cycles– Permits relatively cost-effective roll-out of major technologies such as
carbon capture and sequestration by 2016 or so
• As a result, GDP impacts in the pre-2015 period in particular are somewhat offset by increased investment activity
– Energy efficiency savings dampen cost impacts throughout the forecast period
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Consultations and Next Steps
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Page 14
Section 71 notice
• The government will require facilities in sectors to be regulated to report 2006 emissions and other relevant data under a notice issued under section 71 of the Canadian Environmental Protection Act,1999 (CEPA 1999)
• Section 71 data will be used to:– validate the baseline data and inform the allocation considerations for
the sector caps
– assist in the development of the reporting requirements
– inform the detailed regulation design
– enhance the level of detail in the current inventories
• The Section 71 notice will be published in Canada Gazette this fall• Facilities will be required to report back by spring 2008
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Page 15
Intensive consultations followed release of Framework in April
• Immediately following the release of the regulatory framework, work commenced with provinces and territories, industry sectors, and with non-governmental organizations on:
– Validation of sector-specific air pollutant targets including their date of coming into force – priority issue
– Allocation of air pollutant and implementation of GHG targets within each sector
– Broad parameters of compliance mechanisms (scope of offsets system, governance of technology fund, etc.)
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Page 16
What we’ve heard: Greenhouse gases• Industry generally accepts the stringency and structure of the
targets– Doable if compliance options not too constrained
• Some provinces and NGOs feel targets not stringent enough and would prefer different approach (cap and trade)
• Technology fund may be most controversial issue – differing views– Industry concerned over phase-out and investment constraints– Some fear the fund will interfere in market trading
• Credit for early action – Concern that 15 Mt not enough– Criteria for allocation may be too restrictive
• Other outstanding issues– Definitions: Clean Fuel Standard, New Facilities– Scope and timing of Offsets System
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Page 17
What we’ve heard: Air pollutants
• Timeline for validation of air pollutant targets too short• Air pollutant targets not based on local air quality
conditions• Potential for overlap/duplication with provincial regimes• Differing views around stringency of targets• Questions around benchmarking approach• Differing views around trading • Questions over how air quality objectives will be
developed and used
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Page 18
Moving Forward
• Fundamental issues have been raised on air pollutant framework -- consultations will be extended to Spring 2008
– Allows continuation of joint federal/provincial/territorial work through CCME
• Finalize the Greenhouse Gas Regulatory Framework by December 2007
• Finalize negotiation strategy for PM Annex by November 2007
• Begin to publish draft regulations in Spring/Summer 2008, to be amended later for air pollutant provisions