Council delivers recommendations for Canada’s energy transition, including “cleaner oil and gas”

Generation energy council reportThe federal government established a  Generation Energy consultation process in 2017, to inform an energy policy for a low-carbon future.  That process concluded when the appointed Generation Energy Council presented its Report  to Canada’s Minister of Natural Resources on June 28.  The report, titled Canada’s Energy Transition: Getting to our Energy Future, Together, identifies “four pathways that collectively will lead to the affordable, sustainable energy future”: waste less energy, switch to clean power, use more renewable fuels, and produce cleaner oil and gas.  The report outlines concrete actions, milestones for each of these pathways – most problemmatic of which is the pathway cleaner oil and gas.  Each pathway also includes a general statement re the “tools” required, giving passing mention to  “Skill and Talent Attraction and Development”.

The priorities for the “cleaner oil and gas” pathway include: “reducing emissions per unit of oil or natural gas produced; • improving the cost competitiveness of Canadian oil and gas; and • expanding the scope of value-added oil and gas products and services for both domestic and export markets.”  The report lauds the potential of Carbon Capture Use and Storage (CCUS), as well as the economic value of the petrochemical industry. Amongst  the milestones in this pathway: “By 2025, reduce methane emissions by 40 to 45 percent from 2012 levels, with ongoing improvements thereafter.. …By 2030, reduce life-cycle greenhouse gas emissions for oil sands extraction to levels lower than competing crudes in global markets…Develop a trusted and effective regulatory system, including a life-cycle approach to greenhouse gas emissions, as measured by objective third party assessment of key attributes relative to competing jurisdictions…  By 2030, a more diversified mix of oil and gas products, services and solutions to domestic and global markets has a measurably significant impact on industry and government revenues.”

The Council was co-chaired by Merran Smith (Clean Energy Canada and Simon Fraser University)  and Linda Coady (Enbridge Canada); members are listed here . The Council heard from over 380,000 Canadians in an online discussion forum and in person. An impressive archive of submissions and commissioned studies, some previously published and some unique, is available here . Authors include government departments, academics, business and industry associations, and think tanks.

Standing Committee recommendations for a greener built environment include training

passive house exterior VancouverOn June 18, the House of Commons Standing Committee on the Environment and Sustainable Development presented their latest and 17th report, Better Buildings for a Low-Carbon Future .  The Committee mandate included the collective of  residences, commercial buildings, and institutional buildings – which are responsible for approximately 12% of  total greenhouse gas emissions in Canada.

The research for the Standing Committee report began in February 2018 and consisted of  four meetings, during which Committee members heard from 19 witnesses and received five written briefs from witnesses – including government officials, industry associations such as the Building Owners and Managers Association, real estate developers such as Landmark Homes,  Canada Green Building Council, Passive House Canada – but no labour unions or worker organizations .  Testimony is available from this link , and a Brief from the Royal Architectural Institute of Canada  has also been made public.

The report summarizes the provisions related to the built environment in the Pan-Canadian Framework on Clean Energy and Climate Change, also available in the federal 2018 Status Report on the Framework),  discusses the building codes in Canada, and addresses the unique situations of heritage buildings and buildings in Canada’s North. The Committee makes 21 specific recommendations, including:

#1  “the National Research Council, working with the Canadian Commission on Building and Fire Codes, publish the national model energy codes for both new and existing buildings as soon as possible, and for existing buildings no later than fiscal year 2022-23”;

#4 “The Committee recommends that Employment and Social Development Canada ensure that programs exist or are established to address the labour transition required so that skilled personnel are available to implement netzero energy ready codes;

#6 “The Committee recommends that Infrastructure Canada work to provide significant funding in order to accelerate energy retrofits of commercial, institutional, and multi-residential buildings in the public and private sectors, such as through the Canada Infrastructure Bank”;

#10 “The Committee recommends that Natural Resources Canada, the National Research Council, and Environment and Climate Change Canada include building operator and building inspector training as part of federal funding, research, and incentive programs aimed at improving energy efficiency and reducing greenhouse gas emissions from the built environment”;

#16 “The Committee requests that the federal government focus more attention on its Greening Government Strategy and report back to the Committee on its progress by the end of 2018 .”

How local government policies can encourage energy efficiency jobs and training

Through the Local Government Lens: Developing the Energy Efficiency Workforce, is a report released on June 13 by the American  Council for an Energy- Efficient Economy (ACEEE).  It cites  data from the  2018 U.S. Energy & Employment Report, which reported  that there are 2.25 million efficiency jobs in the U.S. currently – 1.27 million of which are in the construction trades, followed by 450,000 in professional and business services.  The report dives more deeply into the demographics and characteristics of the energy efficiency workforce, and discusses the unique challenges of workforce development policies – the need to replace a retiring workforce, funding uncertainty for job creation and infrastructure, a need to encourage diversity, and a complex set of stakeholders,  given that there is no single educational or skills path for efficiency workers. The report includes unions and union-led training in its discussion of stakeholders and in its recommended strategies for workforce development policies.

Case studies with various approaches are presented from across the U.S., with the sole Canadian example of Vancouver, B.C.  For example: Boston, where training in energy building management is provided to city and utility workers at local community colleges;  New Orleans, where the city coordinates with U.S. Green Building Council, local community colleges, the New Orleans Office of Supplier Diversity, and the Urban League of Louisiana to provide efficiency-related training to low-income community members and minority- and women-owned businesses; and Los Angeles, which has established a Cleantech Incubator to attract new businesses and private-sector investment to the city. Other U.S. cities discussed are New York City, Orlando Florida, and  Columbus Ohio.

English_Bay,_Vancouver,_BCVancouver, B.C. launched several initiatives to teach skills required to build in accordance with its Zero Emissions Building Plan, approved in 2016.  The city plans to subsidize training  for builders and developers to learn more about passive house design standards, technical building requirements, economic and energy impacts, and energy modeling tools.  Vancouver will also contribute funds to the Zero Emissions Building Centre of Excellence, a nonprofit-run collaborative platform that will compile and disseminate zero-emission building educational resources to the local building industry.

A blog summarizes the report; it is available free from this link, registration is required.

Energy efficiency programs can create 118,000 jobs per year in Canada, says new report

Less is more jobs map_20180501_TMA new report from a new organization:  on May 3, Clean Energy Canada announced that it had partnered with a new national policy organization, Efficiency Canada, to  publish a study of the economic impacts of energy efficiency for Canada.  The report’s title tells the story:   Less is More: A win for the economy, jobs, consumers, and our climate: energy efficiency is Canada’s unsung hero  .

There are two scenarios reported: The first, modelling energy efficiency programs in the Pan-Canadian Framework (“PCF”) , estimates that every $1 spent on energy efficiency programs generates $7 of GDP,  and an average of 118,000 jobs per year will be created between 2017 and 2030.  Jobs would be spread across the country and the economy, with about half of new jobs produced in  the construction, trade and manufacturing sectors, peaking in 2027 and 2028.  The  overall economic impact is largely driven by energy cost savings – for  consumers,  $1.4 billion per year (which  translates into $114 per year per household).  For business, industry and institutions, the savings are estimated at  $3.2 billion each year.  Importantly, the PCF energy efficiency programs could  reduce greenhouse gas (GHG) emissions by approximately 52 Mt by 2030, or 25% of Canada’s Paris commitments.

For the second, more ambitious policy scenario, “PCF+”, the net increase in GDP grows to $595 billion, employment gains are  over 2,443,500 job-years in total from 2017 to 2030, and  greenhouse gas emissions are reduced by 79 Mt, or 39% of Canada’s Paris commitment.

Less is More is only 8 pages long.  The detailed results, as well as explanation of the modelling assumptions, are found in the Technical Report ,  produced by Dunsky Energy Consulting of Montreal, commissioned by Clean Energy Canada and Efficiency Canada.  The technical report  modelled the net economic impacts of energy efficiency measures related to  homes, buildings and industry (not included: the transportation sector, nor  electrification and fuel switching in the building sector). Modelling was done for two scenarios: implementation of programs in  the Pan-Canadian Framework on Clean Growth and Climate Change (PCF), and a PCF+ scenario, which includes all the PCF programs plus  “best in class” efficiency efforts , derived from exemplary programs across North America.

Efficiency Canada , the national policy organization launched on May 3, is  based at Carleton University in Ottawa and is the new incarnation of the Canadian Energy Efficiency Alliance.  From the new website: “Efficiency Canada advocates to make our country a global leader in energy efficiency. We convene people from across Canada’s economy to work together to advance policies required to take full advantage of energy efficiency. And we communicate the best research out there to build a more productive economy, sustainable environment, and socially just Canada.”   To read their full story, go to their webpage, Who is Efficiency Canada ?

Alberta reports progress under Climate Leadership Plan, increases carbon levy

Climate Leadership Plan Progress Report 2016 – 2017 ,  released in December 2017, summarizes and measures the outcomes for the programs initiated under the Climate Leadership Plan .  The report  includes a section on Skills and Employment, providing very basic measures of  “Green Skills Demand” and “Jobs Supported”.   Green Skills Demand is measured as the percentage of job postings categorized as green, and the results show an increase from 2014 to 2016, though green job postings have not yet recovered to 2014 levels.  The  Jobs Supported section estimates include total direct, indirect and induced jobs created, calculated by Statistics Canada and using an input-output (IO) model.  It concludes that, in 2016-17, $311 million was invested back into the economy in programs and policies under the Climate Leadership Plan, which  supported approximately  2700 jobs.

Also, effective January 1, 2018, Alberta’s carbon levy increased from $20 per ton to $30 per ton.  The government press release states that 60 per cent of households are expected to receive a full or partial carbon levy rebate in 2018, ranging from approximately $300 (tax-free) for a  single adult earning up to $47,500 per year to $540 for  a couple with two children earning up to $95,000 per year .    The Pembina Institute has produced an Infographic and FAQ’s “What you need to know about Alberta’s Carbon Levy” .

The government also released a new Carbon Competitiveness Incentive Regulation (CCIR) in December 2017, designed to help trade-exposed industries.  From the  press release on December 6:  “The CCIRs are the product of extensive consultation with industry and will be phased in over three years. Companies will have further incentives to invest in innovation and technology to create jobs and reduce emissions through a $1.4-billion innovation package released earlier this week, which includes $440 million for oil sands innovation alone.”  Although the oil sands industry receives the lion’s share of the Energy Innovation Fund, described here   and here , the Fund also includes incentives for bioenergy producers, cross-sector green loan guarantees of $400 million, and funding for energy efficiency upgrades for large agricultural and manufacturing operations, institutions, commercial facilities and not-for-profit organizations.   The Pembina Institute explains the new regulations in a detailed technical report, Understanding the Pros and Cons of Alberta’s new industrial carbon pricing rules , released on December 20.