Some Elements of the Plan
Large Final Emitters of GHGs (36 megatonnes)
Large Final Emitters (or LFEs) of GHGs in Canada include companies in mining and manufacturing, oil and gas and thermal electricity sectors. These sectors make an important contribution to Canada's economic base, but they are large contributors to GHG emissions – just under 50 per cent of total Canadian GHG emissions. Their compliance options include: adopting upgrades to achieve in-house reductions and purchasing emission-reduction credits.
Emission trading is a proposed economic solution to air pollution and climate change. Emission reduction credits can be obtained by one company that produces fewer pollutants than the cap authorized by the government. Others can then purchase these credits either to make up for the extra pollutants that they create or to take these credits off the market.
Climate Fund (75-115 megatonnes)
The new Climate Fund is a market-based institution that will manage the purchase of emissions-reduction credits on behalf of the Government of Canada. The government will purchase domestic credits (from farmers, businesses and communities for example) and, eventually, qualifying international credits as well that will help Canada comply with its Kyoto target.
Auto Industry (5.3 megatonnes)
The automotive sector has recently signed an agreement with the Government of Canada committing to achieve emissions reductions through the deployment of more fuel-efficient and less greenhouse gas-intensive technologies and vehicles. Examples include improved fuel efficiency, advanced emission and diesel technologies and alternative-fuel and hybrid vehicles.
Renewable Energy (15 megatonnes)
The 2005 federal Budget committed over $1.8 billion for the next 15 years to invest in renewable energy. Funds will be used to quadruple wind power production to 4000 megawatts – enough energy to power one million Canadian homes. Funds will also be invested in developing other renewable energy sources including solar, small hydro and biomass. The Budget also introduced tax measures to promote energy efficiency and renewable energy.
Carbon Sinks (up to 30 megatonnes)
Carbon sinks are areas such as growing forests and farm fields where more carbon is stored than released. It is projected that up to 30 megatonnes of greenhouse gas emissions can be reduced by 2012 through existing farming and forestry practices across Canada.
Consumer Action (5 megatonnes)
The Government of Canada will provide incentives to support greener purchasing decisions and increase technical advice and services to individuals, businesses and communities. One successful federal program that will continue is the One-Tonne Challenge, which raises awareness of simple, cost-effective and energy efficient actions Canadians can take to reduce GHGs.
Partnership Fund (55-85 megatonnes)
The Government of Canada will work with provinces and territories, striking new agreements and improving existing ones. This may include financing on a cost-sharing basis and major technology and infrastructure investments in, for example, clean coal, phasing out coal-fired power plants, carbon dioxide capture and storage pipeline and extending the east-west electricity power grid.
Greening Government (1 megatonne)
The Government of Canada will reduce its own GHG emissions by approximately one third. It will do so by implementing a Green Procurement Policy governing all purchases, including power, by 2006 making its central heating and cooling plants more energy-efficient; and ensuring that all its new office buildings meet the Leadership in Energy and Environmental Design Gold Standard – meaning they will use about half the energy per building compared to today. The government will also replace its vehicles over time with more efficient alternatives, including hybrid models.
GHG Reduction Programs (up to 40 megatonnes)
A number of effective GHG-reduction programs are already in place and the Government of Canada will continue to support them. For example, $225 million has been committed in the 2005 federal Budget over five years for the EnerGuide Home Retrofit Incentive program to help encourage up to half-a-million homeowners to increase the energy efficiency of their homes.
Other programs are helping Canadians reduce emissions in areas such as the transportation sector and the use and availability of cleaner, alternative fuels. The new plan recognizes that to remain effective, efforts need to evolve over time, build on what works, reallocate from initiatives deemed less effective and take advantage of new possibilities and technologies.
