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Update on the Implementation of Climate Change Plan for Canada

Update on the Implementation of Climate Change Plan for Canada. Brian O’Donnell September 2003. Outline. Background Challenge Investments 1997-2002 Climate Change Plan for Canada 3 step Approach Instruments Federal Budget 2003 / Investment in Climate Change

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Update on the Implementation of Climate Change Plan for Canada

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  1. Update on the Implementation of Climate Change Plan for Canada Brian O’Donnell September 2003

  2. Outline • Background • Challenge • Investments 1997-2002 • Climate Change Plan for Canada • 3 step Approach • Instruments • Federal Budget 2003 / Investment in Climate Change • Emission Reduction Partnering Package • Way Forward

  3. The Challenge – Canada’s GHG Emissions and the Kyoto Protocol Business as Usual* Projection 2010 Emissions 809 Mt 2001 Emissions 720 Mt Actions underway: 80 Mt Mt CO2 equivalent BAU Gap 240 Mt 1990 Emissions 607 Mt Step 2: 100 Mt Step 3: 60 Mt Kyoto Target 571 Mt *Business-as-usual scenario factors in an estimated 60 MT of reductions from current voluntary measures

  4. Climate Change Plan for Canada: Meeting our Kyoto Target

  5. Investment in Climate Change: 1997 - 2002 • Over 1997-2002 GoC invested $1.7 billion, including: • $300m for the Climate Change Action Fund • $120m for energy efficiency and renewable energy • $500m for Action Plan 2000 • $250m to Federation of Canadian Municipalities • $60m to Canadian Foundation for Climate and Atmospheric Sciences • $100m to Sustainable Development Technology Canada • $260m to wind power production • $100m for Canada Climate Change Development Fund (developing countries) • $15m for World Bank’s Prototype Carbon Fund • Funding to date has covered a broad spectrum of initiatives, touching all sectors

  6. Climate Change Plan for Canada:Instruments • The Plan sets out a mixed approach using 5 specific instruments: • Innovation & Technology Investments • Infrastructure Investments • Partnerships: Opportunities Envelope • Covenants and Emissions Trading by Industry • Targeted Measures

  7. Federal Budget 2003: Overview • Budget 2003 announced $2 billion over 5 years to further implement Plan through: • additional $250 million to Sustainable Development Technology Canada (SDTC); • additional $50 million to Canada Foundation for Climate and Atmospheric Science (CFCAS); • $1 billion to support technology innovation, cost effective emission reduction measures and other foundation building initiatives; and • ~$700 million remains unallocated

  8. Federal Budget 2003: Overview (con’t) • Budget 2003 also proposed new tax treatments: • removal of federal excise tax on ethanol/methanol portion of blended diesel & bio-diesel produced from biomass or renewable feedstocks • expand the class of renewable energy and energy efficient equipment eligible for accelerated capital cost allowances to encourage the use of renewable fuels • $3 billion new funding for strategic and municipal infrastructure with particular consideration for climate change • Government programs, including Technology Partnerships Canada, the granting councils and regional development agencies to report on contribution to climate change objectives

  9. Federal Budget 2003: Allocated Resources for Climate Change ($1,305 M)

  10. Federal Budget 2003: Emission Reduction Partnering Package ($580 M)

  11. Federal Budget 2003: Technology & Innovation Initiative ($500 M) SDTC—Hydrogen Economy $50M SDTC— TBD $150M SDTC—Cleaner Fossil Fuels $50M

  12. Emission Reduction Partnering Package

  13. Emission Reduction Partnering Package:Buildings and Transportation

  14. Emission Reduction Partnering Package (cont.):

  15. Emission Reduction Partnering Package(cont.):

  16. Technology and Innovation Initiative:Cleaner Fossil Fuels & Hydrogen Economy

  17. Technology and Innovation Initiative:Biotechnology, Energy Production and Use

  18. One-Tonne Challenge • National social marketing campaign aimed at individual Canadians • On average, each Canadian produces 5 tonnes GHG/year; the challenge encourages citizens to reduce by one tonne (20%) • Two components: • National marketing campaign: Advertizing campaign, website, GHG calculator, etc. • Partnership strategy: to expand/regionalize/localize the message, to offer point of decision/purchase prompts, to remove barriers to action • Link to targeted measures aimed at individual Canadians • Anticipated launch in fall 2003

  19. Opportunities Envelope(NRCan/EC co-lead) • Target: New projects or programs that • are identified as provincial and territorial (P/T) priorities • achieve cost-effective GHG emission reductions • are not addressed by other federal initiatives • Projects/programs: Identified through various F/P/T consultation/communication channels • Funding allocation: Projects/programs to be selected for funding on the basis of cost-effectiveness, in conjunction with other criteria • Funding available: $160 million • Timeline: Initial funding allocations expected in 2004

  20. Way Forward • Rollout of announced programs • Continue discussions with interested P/Ts on MOUs • Expect to complete some MOUs in early fall • Federal/Provincial/Territorial Working Groups on key areas

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