Agenda
Climate Change
In 2007, the government of Canada unable to meet its obligations under the Kyoto Protocol, published an alternative approach to climate change policy, the Turning the Corner framework. This new framework introduced a revised target: to achieve a 20% GHG emissions reduction below 2006 levels by 2020 (equivalent to 3% below 1990 levels in Kyoto terms) and a 60% to 70% reduction by 2050.
Reserves
Canada, one of the largest and geographically diverse OECD member countries, possesses substantial renewable energy, including hydropower, biomass, and wind, solar, geothermal and ocean energy. Total primary energy supply of Canada was 272.7 Million Tons of Oil Equivalent (Mtoe) in 2008, of which 44 Mtoe or 16.1% came from renewable sources.
Based on Canada's immense volume of recoverable reserves of oil sands bitumen,Canada ranks second in the world in terms of oil reserves, behind Saudi Arabia. As of year-end 2005, Canada's remaining oil reserves stood at 178 billion barrels, composed of 173 billion barrels of bitumen reserves and 4.2 billion barrels of conventional crude oil reserves.
Canada has approximately six billion barrels of oil located outside the oil sands. These can be found primarily in Alberta, Saskatchewan and offshore Newfoundland and Labrador.
According to the BP Statistical Review of World Energy 2007, Canada accounts for 0.9 percent of the world's proven natural gas reserves. The NEB's estimate of remaining marketable gas reserves at the end of 2005 is 1 619 billion m3.
Status
Composition
Canada is a world leader in the production and use of energy from renewable resources.
Renewable energy sources currently provide about 16% of Canada’s total primary energy supply. Moving water is the most important renewable energy source in Canada, providing about 59 percent of Canada’s electricity. In fact, Canada is the second largest producer of hydroelectricity in the world.
Targets
Across Canada, an estimated 19,000 MW of generating capacity is likely to retire by 2025. Another 45,000 MW of generating capacity is expected to be needed to meet current growth projections. The federal government committed to seeing 90 percent of Canada's electricity generated by non-emitting sources by 2020. It also committed to reducing greenhouse gas emissions to 17 percent below 2005 levels by 2025. That goal grows to 60 to 70 percent below 2006 levels by 2050.
Growth
Over the 1981-2000 period, CO2 per capita in Canada increased at 0.25% per year. This is largely the result of the increase in our standards of living (+1.6%) offset to a large extent by the decline in the energy consumption per unit of GDP (-1.08%) and CO2 emissions per unit of energy consumed (-0.23%). CO2 efficiency has improved in Canada as a result not only of the decline in their energy use for every unit of goods and services produced, but also because Canada has been using forms of energy that generate less emissions.
Institutional Structure
Overview
Canada has a federal government, ten provincial governments and three territorial governments. With the exception of hydropower and ocean energy, provincial governments have exclusive jurisdiction over the development and management of renewable energy resources within their respective boundaries.
Federal energy policy is shared between Natural Resources Canada and the National Energy Board. Under the federal Fisheries Act, the federal government has jurisdiction over hydro-power and ocean energy to the extent that these activities impact fishery resources.
Natural Resources Canada
Natural Resources Canada (NRCan) is the lead agency on energy policy for the government of Canada. NRCan seeks to enhance the responsible development and use of Canada’s natural resources and the competitiveness of Canada’s natural resources products. The Renewable and Electrical Energy Division (REED) of Natural Resources Canada (NRCan) is responsible for developing and implementing policies and programmes are aimed at increasing the deployment of renewable energy technologies for electricity and heat generation.
National Energy Board
The National Energy Board (NEB) is an independent federal agency established in 1959 by the Parliament of Canada. It regulates the international and interprovincial features of the oil, gas and electric utility industries. The NEB plays a role in health and safety standards and is engaged in environmental protection, ensuring that environmental issues are managed during the planning, construction, operation and abandonment of energy projects within its jurisdiction.
Budget
Current
The Next Phase of Canada’s Economic Action Plan advances Canadian leadership in the development and promotion of clean energy technologies, with new budget measures including:
a. Providing renewed funding of almost $100 million over two years for research, development and demonstrations of clean energy and energy efficiency.
b. Expanding eligibility for the accelerated capital cost allowance for clean energy generation equipment.
c. Providing $8 million over two years to promote the deployment of clean energy technologies in Aboriginal and Northern communities.
d. Aligning deduction rates for intangible capital expenses in oil sands projects with rates in the conventional oil and gas sector.
Funding
The Clean Energy Fund, part of the Government of Canada’s Economic Action Plan (Budget 2009), will invest almost $1 billion over five years in research, development and demonstration projects to advance Canadian leadership in clean energy technologies. Nineteen successful projects have been selected in response to a call for proposals under the Renewable and Clean Energy portion of the Clean Energy Fund.
History
Assistance programs for research and development in renewable energy have been in place for over 25 years. The main funding organization is Natural Resources Canada through the federal Program of Energy Research and Development (PERD). In the mid-1980s, at the peak of energy R&D expenditures, the federal government’s total budget for renewable energy was in excess of $40 million per year. Current support is of the order of $15 million annually.
Key Policies
Legislation
The federal government has instituted a number of programmes to promote the development of some types of renewable energy. In general, these programmes fall under three headings: market assistance, fiscal measures, and research and development.
Fiscal Measures
There are two principal fiscal measures that provide support for investment in the production of electricity from renewable sources. First, under the Federal Income Tax Act, equipment that is designed to produce energy from renewable sources is eligible for an accelerated capital cost allowance (ACCA) at 50% on a declining basis. Secondly, for projects using these renewable energy technologies, many start-up expenses qualify as Canadian Renewable and Conservation Expenses (CRCE) that may be deducted in full in the year incurred, carried forward to future years or transferred to investors using flow through shares.
Support for Energy Research and Development
The ecoENERGY Technology initiative is a five-year programme which funds research, development and demonstration to support the development of the next-generation clean-energy technologies. Key areas include knowledge and technologies for carbon capture and storage; new end-use technologies such as hydrogen and fuel cells, and for energy efficient buildings and industry; technologies for producing and using renewable energy from clean sources such as wind, solar, tidal, and biomass.
Miscellaneous
Additional Information
Renewable sources of energy would rise from 15 per cent of Canada’s primary energy demand today, to 25 per cent by 2020 and 74 per cent by 2050.
Transition to Globalisation
Producers of Hydro Electricity
Table showing the worlds top producers of hydro electricity by both world total and
percentage of hydro in total domestic electricity generation.
Globalisation > Economy > Energy > Sources > Renewable > Hydro
Transition to Tools
The EU Requests WTO Consultations with Canada Over Ontario’s Renewable Energy Policy
The European Union has decided to request World Trade Organization (WTO) consultations with Canada regarding the renewable energy policy of one of its provinces, Ontario, which provides subsidies to producers of renewable energy provided they use domestic technology. This is in clear breach of the WTO rules that prohibit linking subsidies to the use of domestic products.
Tools > Regional > Europe > EU > Dom. Policies > Economy > Energy > Renewable
Transition to Actors
Federal Policy Initiatives
Canada needs to make renewable energy and energy efficiency the highest priorities in energy policy, and build new power and fuel infrastructure to deliver renewable energy to Canadians.
Actors > Sector > Civil society > NGOs > Environment
