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Targets and compliance options for Canadian cement operations. Angela Burton, Director – Government Affairs Cement Sustainability Initiative COP11 Side Event Montreal, Canada December 5, 2005. Context.

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targets and compliance options for canadian cement operations
Targets and compliance options for Canadian cement operations

Angela Burton, Director – Government Affairs

Cement Sustainability Initiative COP11 Side Event

Montreal, Canada

December 5, 2005

  • Cement and concrete industries contributed approximately $6.6 billion or about .52% of total Canadian GDP in 2004
  • Canadian Portland production 13.8 mmt in 2004
  • Portland cement exports to US above 5 mmt in 2004
  • Cement operations in 5 of 10 Canadian provinces
  • Federal government has constitutional jurisdiction to implement international environmental agreements
  • Provincial governments have constitutional jurisdiction over natural resources and industry
action on climate change
Continuous improvement:

Direct GHG per tonne down 7% since 1990

Reduction in overall energy intensity by 12% since 1990

Product demand increased by 24%

Longstanding constructive dialogue with governments based on four elements:

Process limitations / energy efficiency

Alternative fuels / energy recovery

Industrial by-products

Technology investments

Action on Climate Change
canada s national inventory
Total Canadian emissions were 740 Mt in 2003, an increase of 24% over 1990

This is 180 Mt above our Kyoto Protocol target of 6% below 1990 or 560 Mt average annual emissions between 2008 and 2012

GDP has grown by more than 42% since 1990, for an average decrease in emissions intensity of 1% per year

The greatest contributors to Canadian emissions are the energy (37% or 275 Mt) and transportation (24% or 180 Mt) sectors

These two sectors are responsible for nearly all growth in Canadian emissions since 1990

The cement industry contributed 11 Mt or just under 1.5% of Canada’s total emissions in 2003

Canada’s National Inventory
climate change plan for canada
Climate Change Plan for Canada
  • The Climate Change Plan for Canada, released in April 2005, articulated 6 key areas for action:
large final emitters system
Covers energy, mining and manufacturing sectors, including electricity, upstream oil and gas, transmission, refining, mining, smelting, pulp and paper, cement, steel, chemicals

Elements of the LFE system include:

Regulated intensity targets based on projected 2010 emissions

Access to a variety of domestic and international market based compliance options

Mandatory monitoring and reporting subject to auditing and verification

Guaranteed $15 per tonne compliance options

BATEA standard for new facilities and modernizations

Large Final Emitters System
cement industry regulation
Draft drafting instructions for cross cutting regulations released for public comment prior to COP 11

Sector specific regulations are being developed based on LFE target setting criteria:

Fixed process emissions = 0% reduction target

Combustion emissions = 15% reduction target

Total target not to exceed 12% for any sector

Cement industry is finalizing details of an approach that meets the above criteria and:

Is based on clinker emissions intensity

Builds the incentive to reduce clinker to cement ratio into regulation

Acknowledges reductions from 2000 baseline

Cement Industry Regulation
offsets system design
Central to Canadian market liquidity

Project based, voluntary

Broad as possible in terms of project types and accessibility

Not intended to produce Kyoto compliant units, potential for linking agreements

Aggressive timelines for establishing system

Many significant issues:

Specifications for quantification and verification

Time required for development of protocols

Accreditation of verifiers

Procurement rules for the Climate Fund

Capacity building

Overall transparency and inclusiveness of process

Offsets System – Design
Canada faces most significant challenge to achieve national target of any Annex B country

LFE system is most advanced aspect of Canadian plan, however some issues and details yet to be resolved

Cement industry has made progress towards establishing regulatory certainty for the first commitment period

More significant issues remain with respect to domestic emissions trading, in particular the offsets system