8 Jun 2011
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Canada - Energy in the Context of Sustainable Development i

The Concept of Sustainable Development Applied to Energy
Evolution of Sustainable Energy Development and Management in Canada
Decision Making - Canada's Policy Approach to Energy and Sustainable Development
Reporting Practices - Indicators for Sustainable Development at the National Level
Regional and International Cooperation
Capacity Building - Prospects for the Future
Financing - Innovative Programs and Initiatives
Key Themes and Challenges
At the 1992 United Nations Conference on the Environment and Development (UNCED?also
called the Earth Summit), held in Rio de Janeiro, the international community adopted a
Declaration on Environment and Development , as well as a global blueprint for action on
sustainable development known as Agenda 21. To ensure effective follow-up of the Earth
Summit, the General Assembly of United Nations established the UN Commission on
Sustainable Development (CSD) in December of that same year.
The UNCSD is responsible for reviewing progress in the implementation of Agenda 21, and the
sustainable development objectives outlined in the Declaration. The UNCSD continues it
responsibility in reviewing outcomes from the 2002 World Summit on Sustainable Development
(WSSD), including the Johannesburg Plan of Implementation (JPOI), as well as providing policy
guidance to follow up at the local, national, regional and international levels.
As a functional commission of the UN Economic and Social Council (ECOSOC), CSD has 53
member States (about one third of the members are elected on a yearly basis). Each session of the
CSD elects a Bureau, comprised of a Chair and four vice-Chairs. The CSD meets annually in
New York, in two-year cycles, with each cycle focusing on clusters of specific thematic and
cross-sectoral issues, outlined in its multi-year programme of work (2003-2017). At its
fourteenth session, from 1-12 May 2006, the United Nation?s Commission on Sustainable
Development (CSD) will review progress made by member countries with respect to sustainable
energy development; industrial development; air pollution/atmosphere; and climate change.
The Programme of Work for CSD 14, includes the provision of information by member countries
on decision-making strategies and policies; capacity building; financing and cooperation. As a
contribution on the energy front, Canada has prepared this report to reflect progress on energy in
the context of sustainable development highlighting actions and initiatives through the inclusion
of a general annex of related case studies. iii
Since the 1987 World Commission on Environment and Development report that drew linkages
between the global challenges of environmental degradation, poverty and development, and the
Earth Summit in Rio de Janeiro in 1992, the Government of Canada has been actively engaged in
efforts to make sustainable development a reality in Canada and around the world. Canada?s
position with respect to how energy issues are dealt with in the UNCSD process has been to
ensure a constructive discussion on energy in support of the Summit?s over-arching themes of
poverty alleviation, health and sustainable production and consumption.
In the summer of 2002, Canada actively participated in the World Summit on Sustainable
Development (WSSD), in Johannesburg. Canada worked together with other nations to address
the barriers and challenges to the implementation of sustainable development and to create a joint
plan of implementation. In the areas where the Plan of Implementation addresses energy issues,
the recommendations, the goals and objectives echo many of Canada?s own goals and objectives.

Post-Johannesburg, the government of Canada continues to work within its federal departments,
across all levels of government and with its partners?in Canadian industry, non-governmental
organizations, educational institutions, Aboriginal organizations and Canadian communities?as
it delivers on its national mandate and the commitments made in Johannesburg. Experience in,
and contribution to, ongoing scientific research, information sharing, and policy and program
development helps to inform and shape Canadian energy-policy related resource issues,
particularly where there are clear links to global concerns such as climate change and access to
energy services.
It has been recognized for some time that sustainable energy practices, including improved
energy efficiency, reduction of energy intensity and increased contribution of renewable energy
in the overall energy mix, remain key to mitigating the impacts of climate change. Also in 1992,
Canada signed and ratified the United Nations Framework Convention on Climate Change
(UNFCCC). In December 1997, negotiators from all participating countries in the Framework
Convention met for the Third Conference of the Parties, which resulted in the development of the
Kyoto Protocol, which established a timetable for emission limitations for six most important
greenhouse gases between 2008 and 2012.
The Kyoto Protocol was an important step, but covers only 35% of global emissions.
Consideration needs to be given to a more inclusive international climate change regime. To
this end, Canada hosted the 11th Conference of the Parties (COP11) to the UNFCCC, and the 1st
Conference of the Parties serving as the Meeting of the Parties (COP/MOP1) to the Kyoto
Protocol (since entry into force on February 16, 2005), in Montreal from November 28th to
December 9th, 2005.
The nature of current global energy production and consumption patterns, with a heavy reliance
on finite fossil fuels, presents some serious challenges to successfully achieving the goals and iv
objectives of sustainable development. Montreal provided an opportunity to signal a
commitment to a sustainable future. In recognition of this, Canada undertook an unprecedented
global initiative to consult and engage other nations to help achieve a global approach to the
future as a goal of the conference. Advancing development goals in a sustainable manner was
forwarded as one of the six key themes (along with broader participation, improving
environmental effectiveness, realizing the full potential of technology, tackling adaptation, and
building a strong global market).
The Montreal Plan of Action emerged from the conference as the roadmap for future work on
addressing climate change globally (in addition to early success at the Confernce through the
adoption of the Marrakech Accords and agreement on a regime to ensure compliance under the
Kyoto Protocol). The Action Plan is based upon the successes achieved under each of the key
conference objectives - implementing the Kyoto Protocol, improving Kyoto as well as the
Convention, and innovating the world?s future approach to cooperation on climate change.
The Montreal Action Plan?s five key components include:
· Initiating discussions under the Convention on long-term cooperative action to
address climate change;
· Initiating discussions among Annex 1 Parties to the Protocol on the second
commitment period (post 2012);
· Advancing the Kyoto Protocol through a strengthened Clean Development
· Moving forward the Program of Work on adaptation under the Convention and
implementation of the Adaptation Fund under the Kyoto Protocol; and,
· Advancing discussions on the impacts of deforestation and technology transfer.
As the UNFCCC process serves to highlight, governments have a large role in ensuring that the
development, distribution, and use of energy is undertaken in an environmentally responsible
manner. There is no question that energy services are essential ingredients of all three pillars
of sustainable development -- economic, social and environmental. Energy supports
development at the national level by promoting industrial growth and providing access to
international markets and trade. Energy facilitates economic development at the local level by
improving productivity and enabling income generation.
Energy is strongly linked to the environment. Many energy sources are drawn directly from the
environment requiring sound management for these sources to be sustainable. Energy
extraction, production, processing and distribution have environmental impacts including air
emissions, pollution, water quality and use, land use issues, soil degradation, as well as the
disruption of ecosystems. v
In Canada's energy context, sustainable development is interpreted as managing energy's
contribution to current well-being and the development of the Canadian economy in a manner
that protects environmental quality and ensures that resources to meet the needs of present and
future generations.
Individual Canadians, leading Canadian companies and federal, provincial and municipal
governments in Canada are coming to better understand how environmental sustainability is
fundamentally important to preserving our high quality of life in Canada, to improving the
bottom lines of our companies and to ensuring the competitiveness of our economy.
The Government of Canada believes that achieving environmental sustainability will be a key to
Canada's competitiveness in the 21st century. This commitment is reflected in primary policy
documents, such as the Speech from the Throne, which sets out the government's commitments
to Canadians and outlines the policies and programs it will be implementing in the current
session of Parliament, and the Budget, which is its fiscal plan.
But fully realizing the broad transformative change that is required to advance this agenda
requires a comprehensive and integrated approach. 1
Evolution of Sustainable Energy Development and Management in Canada
Canada is fortunate to have secure, reliable, and diverse sources of energy, which have played an
important role in the country's economic growth; helping major industries become established
and compete internationally. Over the decades, major investments in Canada's energy
infrastructure have supported this economic development and contributed to the quality of life
enjoyed by Canadians as well as challenges that require continuous effort.
The energy sector in Canada has grown with the economy, and the market share of different
sources of energy has evolved significantly over the past 130 years. In the nineteenth century,
wood was the primary energy source. At the turn of the twentieth century, coal use was on the
rise and replaced wood as the primary source for the next fifty years. The advent of
hydroelectricity in the early 1900s, spurred enormous improvements in the quality of life in
Canada. With the advent of motor vehicles and the growing demand for gasoline and diesel
fuel to power them, petroleum and its associated products became the primary source of energy
in Canada. Natural gas has also become a major energy source and is used in many parts of
Canada to provide heating, generate electricity, and power industrial processes. Canada has
also been at the forefront in applying nuclear energy through the development of its CANDU
nuclear reactor systems. Canada?s energy intensity and consumption challenges have evolved
with the aforementioned developments.
In Canada's constitution, jurisdiction over energy is divided between the federal and provincial
Jurisdictional Division of Responsibility
Federal Government Provincial and Territorial
* Resources management on frontier * Resource management within
lands provincial boundaries
* Inter-provincial and/or international * Intra-provincial trade and commerce
trade and commerce * Intra-provincial environmental impacts
* Uranium and/or nuclear power
* Trans-boundary environmental impacts
* Policies of national interest:
- Economic development
- Energy security
- Federal energy S&T

Provincial governments have jurisdictional responsibility for resource management within their
borders, including intra-provincial trade and commerce and environmental impacts.
Federal powers in energy are primarily associated with the interprovincial and international
movements of energy and energy-using equipment, and with works extending beyond a 2
province's boundaries. This permits the federal government to develop policies and regulate
interprovincial and international trade, pipelines and power lines.
The federal government regulates virtually all aspects of uranium production, transportation and
distribution. By the virtue of its peace, order and good government power, arising from the
Constitution Act 1867, and the exercise of its declaratory power, uranium (the fuel for nuclear
reactors) falls under the exclusive jurisdiction of the federal government.
The federal government also has broad taxation and spending powers; however, federal taxation
in the energy field is currently limited to conventional corporate taxation, excise taxes and the
Goods and Services Tax (GST). The federal government also leads in areas such as energy
science and technology and energy efficiency research.
On Canada's frontier lands (north and offshore) the federal government maintains ownership of
oil and gas resources. Some provincial governments dispute this, and in some offshore areas such
as Nova Scotia and Newfoundland, the question of ownership has been put aside and the oil and
gas industry is jointly managed. In each of these areas, an independent offshore petroleum
board regulates oil and gas exploration, development and production on behalf of both levels of
government; mirror legislation and regulation are enacted both federally and provincially.
Decision Making - Canada's Policy Approach to Energy and Sustainable Development
Energy is an essential input to all Canadian economic activity - industrial, manufacturing,
technology, agriculture. In 2004, the energy sector contributed 5.9% to GDP, $46.4 billion in
new capital investment, and $67.3 billion in exports. It directly employed 241,000 skilled,
well-paid workers. Between 2000-2003, revenues to governments from royalties and taxes
ranged from $10 billion to $14 billion. This number is expected to increase significantly in the
wake of surging world oil prices in recent years.
Canadian energy policy has provided the foundation upon which this solid economic
performance has been built. Sustainable development is the overarching objective of Canada?s
current energy policy direction. Sustainable development principles are currently integrated
into many Federal Government actions and initiatives, such as the Federal House in Order
Initiative as the Government of Canada?s plan for reducing greenhouse gas emissions within its
own operations.
The Government of Canada is committed to ensuring that Canadians continue to prosper in a free,
equitable, and healthy society while striving to reduce the impact of their lifestyles on the
sustainability of their communities and the planet as a whole. At the market level, Canada?s
approach to sustainable development is to build on the strength of the markets, while addressing
their limitations through selective interventions. Sustainable development requires efficient
resource allocation, which is often best accomplished by competitive markets. Governments 3
have been fostering competitive markets by establishing essential market conditions such as
institutions, laws, regulations, and the like, that ensure transparency, predictability, and fairness
to all market participants, and provide a stable basis to encourage investment. Governments
may also have general laws intended to promote competition and deter anti-competitive practices.
Energy infrastructure that has the characteristics of a natural monopoly, such as pipelines or
electricity transmission and distribution systems, can be provided either by government
enterprises, or by private companies subject to public regulation.
However, markets alone do not always ensure that all citizens have access to energy services and
other basic goods. Accordingly, Canadian jurisdictions have income support and welfare
programs so that all members of society can afford essential energy services along with other
basic items. Direct subsidies for energy consumption are generally avoided as they can promote
inefficient use and exacerbate environmental impacts. However, in some cases, Canadian
jurisdictions have instituted subsidies or authorized cross-subsidies, notably for electricity, in
order to ensure access, especially in rural and remote areas.
As well as a sound, market-oriented framework for energy policy, broader macroeconomic
conditions are especially important for the energy sector since energy investments can often be
quite capital-intensive. As such, it is important for the government to implement proper
monetary and fiscal policies that provide for appropriate availability of capital and levels of
interest rates as well as a fair taxation regime, and a well-functioning financial system.
There are possible adverse environmental and social consequences of energy production and use
that markets do not address. To correct for such limitations, Canadian jurisdictions use a mix of
policy instruments, such as information and persuasion; voluntary measures; scientific research
and technological development; economic instruments, and various types of regulations to ensure
high standards of environmental stewardship and social responsibility at all stages of energy
development and use. Canada?s experience affirms that jurisdictions require the flexibility to
select policy instruments that best address their own circumstances.
There are several key fronts where Canada has made some obvious progress, demonstrating our
seriousness and our desire to build momentum. One of these area is energy efficiency and
conservation in industrial processes, vehicles, commercial buildings and homes. Energy use in
Canada increased by only 13 percent between 1990 and 2002 rather than the 31 percent that
would have taken place without increases in energy efficiency. In addition, energy-related GHG
emissions are more than 50 megatonnes lower than they would have been otherwise. A
combination of regulations, incentives and government leadership by example has lead to these
gains. Another area has been enhancing the availability and the actual use of all forms of
renewable and alternative energy sources - from the big familiar ones like hydro power to more
experimental forms of solar, wind, geothermal and biomass. The Canadian government now
has several programs to support renewable energy, which are detailed later in this report. There
has also been an increase in co-generation projects and their effective integration into power
grids, as well smaller-scale district energy initiatives as viable and sustainable local options. 4
There is also focus on reducing the environmental impacts of fossil fuel development. Overall,
a very important key to advancing sustainable development on the energy front is the Canadian
government?s continued efforts to expand and enhance research, science and technology.
Energy policy is also shaped by Canada's domestic and international commitments. A key
commitment was made at Kyoto in 1997 (ratified by Canada on December 17, 2004) to reduce
Canada's greenhouse gas (GHG) emissions to six percent below 1990 levels by 2008 to 2012
Other significant commitments include the North American Free Trade Agreement .
(NAFTA) and similar national, bilateral and international agreements which set rules for global
and regional markets and commodity trading. As well, there are agreements in other areas such
as transboundary pollution (i.e. Canada-US Air Quality Agreement)which influence sustainable
development within the energy sector. Domestically, Canada's constitutional division of
powers requires that federal, provincial and territorial governments work together in such areas
as climate change, environmental assessment and the regulation of Canada's energy infrastructure.
Industry associations, energy producers, energy users and environmental organizations are
major stakeholders who contribute and help shape the policy development process.
Reporting Practices on Indicators for Sustainable Development at the National Level
The Government of Canada continues to demonstrate leadership and a commitment to
sustainable development in its own operations. Sustainable development strategies, submitted
to Parliament every three years (since 1997) by 29 federal departments and agencies, function as
important tools to guide and communicate some of the ways in which the Government intends to
meet this commitment. Each strategy outlines how departments will systematically integrate the
principles of sustainable development into their policies, programs, legislation and operations.
Through these strategies, the Federal Government is accountable to Canadians for their decisions
and actions that include energy related goals, expected results and targeted outcomes.
In addition, the position of a Commissioner of the Environment and Sustainable Development
was established in part to encourage stronger performance by the federal government in
environmental and sustainable development areas. The Commissioner monitors the extent to
which departments have implemented the action plans and met the objectives outlined in their
strategies. Encouraging the government to be more accountable for greening its policies,
operations, and programs including energy, is a key to the Commissioner's mandate.

Natural Resources Canada, under its enabling legislation, is required to take sustainable
development considerations into account in carrying out its mandate. In its first Sustainable
Development Strategy, Natural Resources Canada undertook to develop objective means to
assess progress towards sustainability in energy. A suite of indicators (economic,
environmental and social) was developed that act as guideposts to the issues that will likely
require attention from decision makers in developing energy policy. As we go forward, taken
together these indicators will also serve to highlight the progress towards sustainability in energy.
Economic Development Indicators:5
The economic indicators show the overriding importance of energy to the Canadian economy,
both as a primary industry, and as input into the overall Canadian economy. The industry is a
significant direct employer, and more importantly the jobs it provides are both better paid and
more productive than the average. Energy exports contribute significantly to Canada's positive
balance of merchandise trade strengthening our dollar. The energy industries are highly
capital-intensive, which in turn accounts for their higher-than-average productivity.
Additionally, energy is a significant user of, and contributor to, Canada's high technology
industries. As the Canadian economy developed since the 19th century, its pattern of energy
use changed to meet new requirements. As we move into the future, no doubt new patterns of
use will emerge, especially in the context of climate change mitigation and adaptation.
However, it appears that Canada will have a supply of energy in all its forms well into the future.
In short, the economic indicators are generally positive.
Environmental Stewardship Indicators:
The indicators show improvement in energy's impact on the environment. Both greenhouse gas
emissions per unit of energy consumed and the GHG emissions intensity of the economy have
been declining since 1979 (NOTE: A separate report has been prepared on air quality). Energy
efficiency measures were the cause of some of these declines, while changes in the energy mix,
such as increased use of natural gas for electricity production, were also significant. However,
economic growth has more than offset these efficiency gains, so that total GHG emissions
continue to increase. Non-conventional renewable sources are still minor contributors to
overall energy production, but wind power (the non-conventional renewable source closest to
being commercially viable) has seen considerable growth in percentage terms. On balance,
many of the environmental indicators are trending in a positive direction, but there are areas
where progress needs to be accelerated.
Social Well-being Indicators:
Comparison over time of the amount of disposable income spent on energy by households,
broken down by income quintile, shows clearly the importance of energy to modern life in
Canada. The indicator not only shows that the proportion of disposable income spent by
households has been relatively constant since at least the mid-1970s, but also that the poorest 20
percent of households spend 20 percent of their disposable income on energy. This means that
measures which could affect energy prices, whether taken for environmental or other reasons,
may need to be accompanied by measures to protect disadvantaged Canadians. It also means
that governments may need to act on an ad hoc when energy prices rise sharply to protect
low-income families and individuals. Other social-related energy indicators, such as energy
sector wages and health-related pollutants from vehicles and power stations show positive trends.
At present all of these energy-related indicators are in the process of being updated and will be
made available on Natural Resources Canada?s Sustainable Development weblinks
Overall, Natural Resources Canada's Energy Sector promotes the sustainable development and
safe and efficient use of Canada's energy resources through its policies, programs, and science
and technology such as outline by many of the case studies in the Annex1. It assesses the 6
potential economic, regional, international and environmental implications of Canada's energy
production and use. It also provides technical knowledge and advice to the energy industry and
to government. Its knowledge base helps the Government of Canada to formulate policies,
implement regulations, enhance job and wealth creation, and meet its international commitments.

Overall, the Canada?s energy sector is committed to developing and promoting economic,
regulatory and voluntary approaches that encourage sustainable development of energy resources.
A major goal is to achieve environmental and economic excellence. Canadian energy policy is
market-based and oriented toward sustainable development and is no longer narrowly concerned
with just production and supply issues. Today, it is more aligned to the broader economic,
environmental and public interest goals of the Canadian and world economies.
Financing - Innovative Programs and Initiatives
In order to attract sufficient investment in sustainable development energy projects, it is
important to create long-term security for investors. Irregular funding can impede investment,
cause inefficiencies and result in the loss of financing. Accordingly, the Canadian Government
is committed to ensuring predictability and consistency in all of its policies in support of
sustainable energy development.
The Canadian Government committed in the October 5, 2004, Speech from the Throne ?to
respect its commitment to the Kyoto Accord on climate change in a way that produces long-term
and enduring results while maintaining a strong and growing economy.? The Budget 2005
announced $3 billion in new measures to preserve the environment and address climate change.
This included:
· The introduction of a Climate Fund($1 B over 5 yrs), complemented by a
Partnership Fund ($250 M over 5 yrs), to address climate change.
· The quadrupling of the Wind Power Production Incentive($920 M over 15 yrs) to
4,000 MW by 2010 and the introduction of a Renewable Power Production
Incentive($886 M over 15 yrs) for up to 1,500MW of non-wind renewable energy.
· A $225 M expansion of the EnerGuide for Houses Retrofit Incentiveover 5 yrs.
· A Sustainable Energy Science and Technology Strategy ($200 M over 5 yrs).
In order to create a more competitive economy and healthier environment, the Government of
Canada also has taxation measures, such as an accelerated write-off of certain equipment that
either produces energy in a more efficient way, or from alternative renewable sources (Class 43.1
of the Income Tax Act). As of 2005, the provision allows taxpayers to deduct the cost of
eligible equipment at up to 50% per year (up from 30%), on a declining balance basis. Without
this write-off, many of these assets would be depreciated at considerably lower rates (4 or
20 %). There is also a category of fully deductible expenditures associated with the start-up of
renewable energy and energy conservation projects. The Canadian Renewable and
Conservation Expenses (CRCE) is applicable where at least 50% of the capital costs of the 7
property falls within Class 43.1 of the Income Tax Act. Under CRCE, eligible expenditures are
fully deductible in the year they are incurred or can be carried forward indefinitely to later years.
These expenditures can also be relinquished to shareholders through a flow-through share
agreement, providing the agreement was entered into before the expense was incurred.
Sustainable energy development also supported broadly through innovative policies and
programs in Canada. In most cases, these tend to be broad-oriented programs with goals for
multiple benefits, not simply sustainable development. Overall, they consist of the following:
PERD - The Program of Energy Research and Development (PERD) promotes the development
and use of Canada's non-nuclear energy resources in a clean and safe manner and the
development of energy-efficient, renewable, and alternative energy sources and technologies.
PERD's programs support the development of energy policy, standards and regulations, and are
aimed at finding technology solutions to challenges such as climate change and energy efficiency.
Other benefits from energy R&D activities include: improved air, water and soil quality;
lower costs to produce and use renewable and non-renewable energy sources; and the improved
safety and security of Canada's energy supply and distribution systems.
TEAM - Technology Early Action Measures (TEAM) is an interdepartmental technology
investment program established under the federal government's Climate Change Action Plan.
TEAM supports projects that are designed to develop technologies that mitigate GHG emissions
nationally and internationally, and that sustain economic and social development. TEAM
provides support in five major priority areas: cleaner fossil fuels; energy-efficiency technology;
biotechnology; hydrogen economy; and decentralized energy production
SDTC - Sustainable Development Technology Canada (SDTC) is a not-for-profit foundation that
finances and supports the development and demonstration of clean technologies which provide
solutions to issues of climate change, clean air, water quality and soil, and which deliver
economic, environmental and health benefits to Canadians. SDTC supports clean-technology
projects through the pre-commercialization points at which technologies move from the
laboratory and are proved in full-scale, real-world test situations. To do so, the Foundation
draws from an investment fund of $550 million. SDTC was established by the Government of
Canada in 2001. SDTC's mission is to act as the primary catalyst in building a sustainable
development technology infrastructure in Canada
The T&I R&D Initiative - Technology and Innovation Research and Development (T&I R&D)
advances promising greenhouse gas (GHG) technologies through applied energy science and
technology. It focuses on five technology areas where significant gains in GHG reduction can
be obtained: cleaner fossil fuels; advanced end-use efficiency; decentralized energy production;
biotechnology; and hydrogen and fuel cell-related technologies. By 2008 T&I R&D aims to
contribute to achieving the following outcomes: selected transformative technologies that are
ready for demonstration; new and improved policies, codes, standards and regulations; increased 8
energy efficiency; increased awareness and acceptance of technologies to reduce GHGs and
achieve other environmental benefits; and a strengthened Canadian industrial capacity.
REDI - The Renewable Energy Deployment Initiative (REDI), which came into existence in
1998, is a $51 million program designed to stimulate the demand for commercially reliable,
cost-effective renewable energy systems. REDI's main objective is to support the development
of a more dynamic and self-sustaining renewable energy industry in Canada by using a
combination of market transformation tools to create awareness of renewable energy heating and
cooling technologies; develop industry infrastructure; and offer incentives to end-users in
specific market segments. In conjunction with the renewable energy industry, REDI provides
support to undertake market development activities, such as market assessment studies and the
development of marketing strategies. Industry infrastructure initiatives such as targeted
educational programs and design tools for professionals, are also developed in order to meet the
demand for renewable energy systems. Significantly, REDI also offers businesses and
institutions a financial incentive to reduce the purchase and installation costs of qualifying
In the first six years of REDI, 196 projects were completed (as of March 1, 2004) for a total
client investment of $23,386,600 and REDI contributions of $4,269,854. Moreover,
approximately 100 projects are in progress; i.e: contribution agreements have been issued or
signed and projects are under construction.
WPPI - The Federal Government supports electricity producers through the Wind Power
Production Incentive (WPPI), which was launched in May 2002. In the 2005 Federal Budget,
the Government of Canada invested an additional $260 million over 5 years, and a total of $920
million over 15 years, to expand WPPI's target capacity from 1,000 to 4,000 megawatts. Total
installed wind energy capacity has increased by an annual average of 27% over the past five years.
As of September 2005, Canada had 591 MW of installed utility-scale wind energy capacity,
spread across seven provinces and one territory. Moreover, Canada has vast untapped wind
resources available. The Canadian Wind Energy Association claims that Canada has the
potential to meet 20% of its electricity needs from such power. It is notable that many
European wind turbine manufacturers are considering investing in Canada. Considerable
interest has been shown in Quebec and Ontario. Indeed, Canada's supportive policies and
favourable economic climate renders such investments commercially appealing.
RPPI - The 2005 Federal Budget provided for the introduction of the Renewable Power
Production Incentive (RPPI). It is designed to encourage the development of as much as 1,500
MW of new emerging (non-wind) renewable energy sources, such as biomass, landfill gas and
small hydro, by 2011. The budget provides $97 million over five years, beginning in 2006-07,
and a total of $886 million over 15 years, for RPPI to achieve its target.
Project Green and the Partnership Fund - Project Green (2005), outlines the Government of 9
Canada's broad environmental vision for the country, features several market-based initiatives.
It includes the domestic offset credit system and the Climate Fund, initially set at $1 billion and
potentially increasing to $5 billion, which will provide an additional incentive for many forms of
sustainable energy systems. The Partnership Fund, initially funded at $250 million, is intended
foster partnerships with Canadian provinces and territories on priority initiatives addressing
climate change, including the facilitation of sustainable energy, including renewable energy.
The Government is also working on a Large Final Emitters regime to help manage and reduce
industrial emissions in the longer-term. In addition, on in transportation side the Government
of Canada and Canadian automobile manufacturers signed an agreement in April 2005, to reduce
greenhouse gas emissions from new vehicles in Canada so that annual reductions will reach 5.3
megatonnes by 2010.
Regional and International Cooperation
Canada participates in a wide range of regional and international organizations and fora
involved in addressing issues of energy and sustainable development. It also engages in
sustainable trade and export promotion technology transfer through Industry Canada,
Environment Canada and Export Development Canada as well as strategic partnerships with
industry associations, non-governmental organizations other key stakeholders.
Canada engages in international development assistance, primarily through the Canadian
International Development Agency, the World Bank, other multilateral development banks, and
the Global Environment Facility.
The UN is the primary multilateral forum focusing on sustainable development. Within the
UN, there are number of bodies which have a sustainable development focus in which Canada is
an active participant. The Government of Canada continues to participate in the United Nations
annual meetings, aside from the formal UNCSD process and the UNFCCC, there have been a
number of UN (Earth Summit, WSSD), and UN-supported (Bonn 2004, Beijing 2005)
Conferences in which Canada has work together with other nations to address the barriers and
challenges to the implementation of sustainable development in the energy sector, on a global
Multilateral cooperation organizations such as the International Energy Agency (IEA), the
Asia_Pacific Economic Cooperation (APEC) Energy Working Group, the International Atomic
Energy Agency, and the Organization for Economic Co-operation and Development's Nuclear
Energy Agency all work to forge a common understanding of energy policy challenges and
response options. In addition there a range of energy-related international initiatives and
partnerships, of which Canada is a member, including the Carbon Sequestration Leadership
Forum (CSLF), the International Partnership for the Hydrogen Economy (IPHE), the Methane to 10
Markets Partnership (M2M) and the Renewable Energy and Energy Efficiency Partnership
(REEEP) initiative, to name a few.
APEC and a number of the partnerships and initiatives have a diverse membership from the
developed and developing world. This allows for cooperation in such priority areas as capacity
building, technology transfer, and, particularly, the promotion of energy efficiency and the
adoption of cleaner energy processes and sources. These latter objectives are shared by all
member countries and will lead to economic, social, and environmental benefits. Canada
participates in ongoing scientific research, information sharing, and policy and program
development. This share experience and expertise in turn, helps to inform and shape Canadian
foreign policy related natural resource issues, particularly where resource issues are linked to
global concerns such as climate change and access to energy services.
Bilateral discussions and cooperative activities are also important vehicles by which Canada
works with other governments to address issues of energy and sustainable development.
In both developing countries and countries with economies in transition, energy solutions for
sustainable development require fundamentally different approaches than might be taken in
industrialized countries. Canada seeks to foster a wide range of energy options, which should be
assessed and compared against the criteria of sustainable development with regard to particular
circumstances. Access to flexible and diverse energy supplies is key to energy security and
reliability, as well as sustainability.
Canada is viewed as a world leader in natural resources management including exploration and
development of conventional and non-conventional hydrocarbon reserves, on land and offshore.
Canada is recognized for its expertise in high-tech exploration methods, horizontal drilling,
and various enhanced recovery methods from conventional hydrocarbon reservoirs and from
reservoirs saturated with heavy oil. Canada has gained a considerable expertise in the mining
and development of oil sands, oil extraction and processing technologies. Canada is also known
for its successful development of its natural gas industry from exploration to end use.
Canada is also recognized for its sensible and efficient regulatory system, both provincially and
federally, ensuring conservation of resources while providing for a fair return on investment.
Canadian regulatory authorities are often consulted by foreign jurisdictions as they produce
and develop their own regulatory frameworks, legislation, technical skills and policies in the
petroleum sector.
The above are the strengths of Canada's oil and gas sector that create significant opportunities for
cooperation in the oil and gas sector. The Government of Canada involvement through its
bilateral and partnership branches(Canadian Industrial Cooperation and NGO Divisions) of the
Canadian International Development Agency (CIDA), provides the instrument for the
Canadian and oil and gas sector to play an important role in assisting developing countries.
Canada emphasis on sustainable development in supporting reforms, creation of new regulatory 11
institutions, and institutional capacity building within the oil and gas sector will continue. This
is vital if a number of broader objectives, most notably better environmental practices and
resource conservation are to be reached.
Capacity Building - Prospects for the Future
The energy mix in Canada will continue to evolve, as it has in the past, due to the relative prices
of various energy sources, advances in science, changes in technology, and demand for new fuels.
As sustainable energy development requires different approaches, Canada seeks to foster a wide
range of energy options, which should be assessed and compared against the criteria of
sustainable development with regard to opportunities under particular circumstances.
Fundamental to sustainable development is a common understanding among stakeholders that
development is essential to satisfying human needs and improving quality of life, but that it must
be based on the efficient and responsible use of natural, human and economic resources.
Sustainable development does not come down to a simple either/or equation. However, it does
demand a greater scientific understanding of our environment.
At a domestic level, the federal role in natural resources complements the work of the provinces,
which own and control much of Canada?s land and resources. Most Provinces have clearly set
as part of their mandate, the sustainable development of resources, including sustainable energy
development and use. At even the individual level, the concepts of sustainable development
present a very real challenge for Canadians. The increasing effect of energy costs and
consumption, are driving the markets toward cleaner, more efficient consumptive and supply
technologies. In the near term, promoting awareness and building capacity for technical
innovation in the areas of energy efficiency and alternative energy forms will have an important
part to play in their acceptance and recognition as a critical component in all aspects of
sustainable development while increasing the reliability and security of our energy supply and the
competitiveness of our industries.
Canada has been particularly active, both domestically (working with other levels of government,
academic institutions, and non-government organizations and agencies, including Aboriginal
organizations, environmental and community organizations) and as part of multilateral initiatives,
in assessing changes in energy needs and demands and looking ahead to identify new, more
efficient, effective, and environmentally acceptable approaches to providing energy services.
Canada has also excelled at taking new technology, applying and improving it. Technology
has been important at reducing costs and increasing effectiveness - 3D, seismic, computers and
horizontal drilling have been the most important technology developments in recent years.
Canadian technology have been in software development, drilling, all phases of heavy oil and oil
sands, sour gas operations, etc. The gas industry is one sector where Canada is fully
competitive and a world leader in knowledge and experience, including extensive experience and 12
skills in the petroleum policy development, administration, institutional requirements, taxation
and royalty regimes, and regulatory areas.
Canada?s wealth of experience and expertise, including our ability to use and develop energy
resources responsibly, to mitigate potential impacts from resource development, and to develop
technologies that increase economic and environmental performance, can benefit resource
managers worldwide. The Government of Canada demonstrates its leadership internationally
by sharing its state-of-the-art knowledge and transferring technology with its global neighbors.
Much is being done by the Government of Canada at a departmental level to build capacity in
creating knowledge via the development of enabling tools such as software, case studies and
training manuals (e.g. Renewable Energy Project Assessment course); information dissemination
(e.g. Web site and CD-ROMs) and training activities (e.g. professional workshops and university
courses). The Government of Canada enables innovation in the energy sector by providing the
coordination, knowledge, expertise and leadership required to accelerate progress on sustaining
development - both at home and abroad. There is specific effort directed at building Canada´s
capacity for innovation, strengthening the research training of Canadians and promoting
networking and collaboration among researchers through organizations and initiatives such as the
Canada Foundation for Innovation (CFI). The CFI is an independent corporation established by
the Government of Canada to strengthen the capability of Canadian universities, colleges,
research hospitals and other not-for-profit institutions to carry out world-class research and
technology development. Another, more sector-specific initiative is the Renewable Energy
Capacity Building Program (RECAP), at the CANMET Energy Technology Centre. This
initiative is directed towards sustainable development goals in seeking to promote the
deployment of renewable energy systems in Canada and abroad by building the capacity of
industry to implement more projects successfully.
Through work such as this, Canada is building its reputation as a world leader in sustainable
development, and a quality producer of innovative resource-related products, technologies,
services and research. In advancing the mandate of capacity building the Government of
Canada also continues to contributes by:
· Conducting scientific research and developing leading-edge technologies, to
maximize social and economic benefits for Canadians and our global neighbors
while minimizing environmental risks and impacts;
· Providing ideas and information to support wise and efficient management and
use of energy resources, reduce costs and create innovative products (e.g.
hydrogen fuel cells), to and services for the international marketplace;
· Working to enhance the contribution of energy to the global economy (e.g. finding
better ways to regulate while protecting the environment and encouraging
coordination among regulators);
· Encouraging and facilitating how the energy sector and governments incorporate
environmental, economic and social considerations into decision making through
environmental and life-cycle assessments and creating knowledge via the
development of enabling tools such as software (e.g. RETScreen®): 13
· Building knowledge infrastructure about geography and geology, including data
on energy resources on and below the land and beneath the sea floor;
· Developing technologies to access unconventional oil resources in a
sustainable/environmentally friendly manner;
· Water management for the Energy Industry;
· Maintaining access an improving uptake of energy efficient products, technologies
and services and sharing our expertise on a bilateral basis, especially with other
northern nations; and,
· Promoting Canada?s interests in areas affecting energy resources, by providing
technical support to Canadian organizations to help them implement more
sustainable and renewable energy projects in high-priority markets, such as
Canadian federal, provincial/territorial and municipal government facilities,
Canadian remote communities; and developing countries. The Government of
Canada is also promoting our national interests on an international scale through
cooperation with international agencies and other nations, to meet our global
commitments to assist in capacity-building.
In recognizing the needs of emerging economies and developing countries on the international
front, the Government of Canada, through CIDA, has focussed on assisting developing countries
in creating transparent legal, fiscal and credible regulatory frameworks to ensure sustainable
resource management and development. These frameworks are required to attract and secure
the type and level of investment needed to maximize recovery of existing oil and gas reserves
and explore for new ones, and to invest in the development or upgrading of processing plants,
refineries and transportation systems. Sound legal and regulatory frameworks and fiscal
regimes are vital prerequisites for increased private sector involvement, investment and
confidence in the sector. The focus is on CIDA providing technical assistance and consulting
services to help develop appropriate frameworks and policies to address not only international
demands, but also meet the social and economic needs of partner countries in a sustainable
manner. This includes creating an enabling environment for the oil and gas industry and
maximizing the benefits to the state including economic returns to the state in the form of
royalties and other revenue sources.
With the restructuring of the oil and gas sector in many countries, increased responsibility for the
implementation and monitoring of reforms affecting the industry falls on national organizations
and institutions. These institutions in many cases are recently created impartial entities that
require support to regulate the sector and carry out their mandate. These institutions must
optimize benefits from the sector to the state and ensure the highest standards possible in terms
of resource conservation. The Government of Canada has focussed on providing
management and technical support to such institutions and organizations. Through its CIDA
programs , the Government of Canada has also focussed on promoting the participation of
indigenous and local communities in energy development issues. A well balanced structure of
the distribution of revenues should enable communities to receive the benefits derived from the
hydrocarbon exploitation in their territory. It will also enable the local communities to live in
harmony with the oil industry without demanding the industry to play the role that corresponds to 14
the state. These regulatory institutions often act as mediators between the state and local
CIDA is also supporting activities relating to ethics and transparency in the oil and gas sector.
Support is being provided to state owned oil companies to ensure that their business activities
include ethical commitments, transparency policies, corporate social responsibility indicators,
development and sustainability reporting.
Key Themes and Challenges
Canada believes that several key challenges need to be addressed by both developed and
developing countries in pursuing sustainable energy paths. The range of issues within the
Energy for Sustainable Development category in the Request for Case Studies on CSD-14/15
Themes, serves to highlight this.
The themes within Energy for Sustainable Development include:
· Increasing access to energy for the poor
· Renewable energy including hydro power
· Energy efficiency and demand-side management
· Fuel efficiency and cleaner fuel for transportation
· Managing transportation demand (e.g. improved city planning, promotion of public
transit, intermodal shifts)
· Capacity-building in energy policy formulation and management
· Energy sector reforms (e.g. Energy laws, legal and regulatory initiatives)
· Advanced energy technologies
· Energy and rural development
· Consumer education and awareness-raising
· Innovative financing solutions and technology transfer (e.g. public-private
partnerships, pricing fiscal and financial incentives)
With these themes we are well aware that pursuing sustainable development as it relates to
energy will require significant technological changes in both developed and developing countries.
Governments need to foster the early adoption of energy-efficient and clean energy technologies,
since energy infrastructure and equipment can affect patterns of energy production and use for
many years and even decades. Enhanced R&D and the transfer of energy-related technologies
between and among countries are essential and can be implemented through strategic
partnerships, joint pilot projects, and training.
Developing transparent legal, fiscal and regulatory frameworks to ensure sustainable natural
resource management and development an underlying requirement. These frameworks are need
to attract and secure the type and level of investment needed to maximize recovery of existing
oil and gas reserves and explore for new ones, or to invest in the development or upgrading of 15
processing plants, refineries and transportation systems. Sound legal and regulatory
frameworks and fiscal regimes will also be needed as pre-requisites for increased private sector
involvement and investment in the sustainable development of energy.
Developing and strengthening the capacity of institutions and organizations charged with the
responsibility of regulating energy and implementing reforms in developing countries is also
important. With the restructuring of the energy sector in many countries, increased
responsibility for the implementation and monitoring of reforms affecting the industry will fall
on national and regional organizations and institutions. These institutions in many cases are
relatively new, recently created entities that require support to regulate the sector and carry out
their mandate. This is vital in ensuring the state can optimize benefits from the sector and ensures
the highest standards possible in terms of resource conservation. Through CIDA Canada?s
focus will be in providing management and technical support to such institutions and
The 1990s were marked by an evolution in development thinking on linkages between energy
and the environment. They were also marked by increased recognition for the need to
transfer environmental management skills and technologies to developing countries. Many
countries, and the international community as a whole, are rapidly adopting more stringent
environmental regulations and guidelines governing the oil and gas sector and how
hydrocarbons are recovered and consumed. Other countries are harmonizing their
environmental standards. The focus will be on increasing the knowledge base on
environmental-energy management related issues and how the capacity of countries can be
strengthened to develop and enforce appropriate policies and practices. A growing priority will
be supporting greenhouse gas mitigating measures as a means of curbing the impacts of climate
change. Canada has developed considerable expertise related to natural gas and has wide
spread infrastructure and technical ability. Supporting the advancement of the natural gas
capacity of the developing world is critical in terms of ensuring better environmental standards
are in place. The reduction of natural gas flaring is also of considerable importance.
Strengthening institutional and commercial linkages between developed and developing
countries continues to be important. Canada has an international reputation for the development,
application and transfer of advanced environmental protection and conservation technologies
applicable to oil and gas recovery, processing and transportation, as well as in the the creation of
the necessary regulatory statutes and structures for their enforcement. Canada is also
recognized, through its various training and research institutions and regulatory bodies, as having
the type of expertise needed to develop and implement sustainable-based policies and reforms
that govern the energy sector, including how state-owned enterprises can be privatized.
Canada is looking to focus on supporting the development and strengthening of linkages between
Canadian private sector firms and institutions and their counterparts overseas for the purposes of
increased institutional and commercial relations and technology transfer.
The energy sector has strong links to poverty reduction through increasing income, improving
health, supporting education, improving women's quality of life and reducing environmental 16
impact. There are very specific challenges with respect to Canada?s contribution toward
meeting the UN Millennium Development Goals (MDGs). Today, two billion people rely on
traditional fuels such as wood, dung and agricultural residues to meet their heating and cooking
needs, entrenching poverty and limiting opportunities. Access to energy is one of the key pre
requisites for achieving the 8 MDGs. Though 800 million people have been connected to
power grids in the last twenty years in developing countries, two billion people, mostly in rural
areas, still do not have access to electricity and the services that electricity provides (lighting,
mechanization, refrigeration, small agro-industries, SME activities etc). Support will be needed
to ensure availability of energy services to areas without services. Many developed and
developing countries are having increased interest in renewable energy, such as wind, solar,
biomass and mini-hydro to improve the level of energy services to their citizens.
Working with indigenous groups and local communities to develop local energy strategies
is an emerging priority. This relates to the broader objective of encouraging more
programming that makes a direct link between the relationship between energy and poverty
reduction. Access to dependable and affordable energy is a critical element in the fight against
poverty. Better energy infrastructures and services for the poor is one of the major
challenges of development. Growth in the oil and gas sector can lead to economic growth and
more resources for social spending. Hence, the aim is to encourage growth in the oil and gas and
to ensure that all initiatives occur in the most environmentally and socially sound manner
possible. CIDA's work on energy (Ref Annex 2) will increasingly form an integral part of
country and regional strategies to address poverty and promote access.
In the promotion of access to safe, reliable and affordable energy, Governments can establish an
enabling environment for R&D for technology transfer by eliminating economic and institutional
barriers in both supplier and recipient countries. A vital starting point for creating a successful
R&D/technology transfer strategy is a fundamental assessment of a given country's particular
energy and technology needs and circumstances and a willingness to explore new approaches to
providing energy and energy services. This fundamental needs assessment is critical to
establishing long-term strategies and approaches to sustainable development.
Canada believes that technology transfer is an additional complimentary area essential to global
improvements in energy-related sustainable development in which increased international
cooperation is called for, particularly between the private sector (which develops most
technologies) and governments (which can help to facilitate the transfer process). 17
Government of Canada. 2000. Energy and Sustainable Development: Canada's Submission to
Preparations for the Ninth Session of the United Nations Commission on Sustainable
Development. Government of Canada, Ottawa. Available on the Internet at
International Energy Agency. 2000. Energy Policies of IEA Countries: Canada 2000 Review.
Organisation for Economic Co-operation and Development/International Energy Agency, Paris.
Summary available on the Internet at
Energy in Canada 2000. Natural Resources Canada, Energy Sector, Ottawa. Available on the
Internet at
National Round Table on the Environmental and the Economy. 2005. The State of the debate on
the environment and the economy: economic instruments for long-term reductions in
energy-based carbon emissions.
International Energy Agency. 2004. Energy Policies of IEA Countries: Canada 2004 Review.
OECD Publications, Paris.
Organisation for Economic Co-operation and Development. 2004. Environment Performance
Reviews: Canada. Organisation for Economic Co-operation and Development/International
Energy Agency, Paris.
http :// ANNEX 1 I Α1−
Website/Contact Information PROGRAM/INITIATIVE
gy policy formulation and management ENERGY FOR SUSTAINABLE DEVELOPMENT - Capacity-building in ener
RETScreen International Clean Energy Decision Support Centre
rts from domestic (CETC-Varennes), in partnership with technical support from a large network of expe Natural Resources Canada
and international industry, government and academia.
Ongoing Status:
reen International and Since 1996, CETC-Varennes (54%) and its? partners (46%) have invested $5.8 million in RETSc Funding:
related activities.
ment renewable energy and energy efficiency The Centre seeks to build the capacity of planners, decision-makers and industry to imple
nalysis Software. The Project Analysis Software projects through a core tool - the RETScreen International Clean Energy Project A
ed world-wide to evaluate the energy production, consists of a standardized and integrated project analysis software which can be us
nergy efficient and renewable energy life-cycle costs and greenhouse gas emission reductions for various types of proposed e
technologies compared to conventional energy projects.
nergy and energy efficiency projects by: To build the capacity of planners, decision-makers and industry to implement renewable e
developing decision-making tools that reduce the cost of pre-feasibility studies;
disseminating knowledge to help people make better decisions; and by
projects. training people to better analyse the technical and financial viability of possible
Excellent transferability. Α1−
gy policy formulation and management ENERGY FOR SUSTAINABLE DEVELOPMENT - Capacity-building in ener
Energy Indicators for Sustainable Development
Natural Resources Canada
Ongoing Status:
N/A Funding:
ns to integrate sustainable development into policies, Sustainable development strategies outline departmental objectives and action pla
h the Government of Canada's in-house operations programs, legislation, and operations. These strategies are useful in guiding bot
inable Development Strategy, undertook to develop and its services to Canadians. Natural Resources Canada, in its first Susta
indicators are individually tailored to reflect the unique objective means to assess progress towards sustainability in energy. These
ime. As progress is assessed against the mandates of the energy sector and thus cover a broad range of interests that change over t
bility and setting the stage for continuous improvement. targets outlined in each strategy, new issues may arise, calling for flexi
l Well-being) that taken together Monitor a suite of indicators (Economic Development, Environmental Stewardship, and Socia
ssues that will likely require attention from decision highlight progress towards sustainability in energy, and serve as guideposts to the i
makers as energy policy is developed.
CLIMATE CHANGE - Technology innovations and transfer
Technology and Innovation Research and Development (T&I R&D)
(in partnership with provinces, private sector and universities) Natural Resources Canada
Ongoing Status:
Variable Funding:
cient technologies; decentralized energy This applied R&D program supports five (cleaner fossil fuels; advanced end-use effi
ogy areas where significant gains in production; biotechnology; and hydrogen and fuel cell-related technologies priority technol
Liza Tanczyk
Natural Resources Canada
Tel.: 613-996-7836
Lesley Dawes
Natural Resources Canada
Tel.: 613-947-3481
E-mail:Lesley.Dawes@NRCan.gc.caIII Α1−
greenhouse gas reduction can be obtained by further developing S&T.
vant technology areas referred to above and are Requests for T&I R&D funding are referred to program managers working in the rele
considered in the context of current R&D activities and priorities.
Key Features:
Programs must meet the following criteria to receive funding:
· support climate change technology development;
· work in partnership with provinces, private sector and universities;
· leverage cash or in-kind resources; and
· have deployment/dissemination strategies.
: Objective
pacity on emerging issues and opportunities Create a collaborative approach to investing in research in order to focus federal ca
To support fundamental S&T activities, as well as market uptake.
Program of Energy Research and Development (PERD)
sociations, the (in direct conjunction with 12 partner departments and agencies, as well as industry as Natural Resources Canada
provinces, and universities)
Ongoing Status:
Variable Funding:
age and applied energy R&D in six technology PERD provides funds directly to partner departments and agencies to support early-st
ient buildings and communities; energy-efficient industry; areas: diversified oil and gas production; cleaner transportation; energy effic
and climate change. reducing the environmental impacts of Canada?s electricity infrastructure;
ceive from PERD with funding from their own Federal laboratories across Canada perform the R&D and supplement the money they re
om industry and industry associations, the organizations. PERD also works in partnership with and leverages additional funds fr
Lesley Dawes
Natural Resources Canada
Tel.: 613-947-3481
Web Site:
:// httpIV Α1−
provinces, universities and other funding programs.
technology areas referred to above and are Requests for PERD funding are referred to program managers working in the relevant
considered in the context of current R&D activities and priorities.
to increase R&D funding an activities to enhance:
nd regulations · Scientific knowledge base for energy-related codes, standards, test procedures a
(including the development of testing equipment and planning tools);
onal · The development of equipment, systems and processes e.g. engineering development and operati
; systems development - includes technical field trials, pilot plants and prototypes
echnical field trials; · Applied scientific research e.g. field experiments, bench scale, pilot plants and t
purpose of further · Science and technology assessment (of a specific activity/technology) for the
advancement of the science or development of the technology or spinoff applications; and
ry to the research project. · Data collection and literature reviews where they are integral and necessaV Α1−
Technology Early Action Measures (TEAM)
Natural Resources Canada
Ongoing Status:
ablished by the One of four blocks funded under the Climate Change Action Fund (CCAF) - the $150-million Fund est Funding:
ework. Initial allocation of $60 million Government of Canada in the 1998-99 federal budget and is built into the existing fiscal fram
for TEAM .
ic role in the technology innovation process. As a demonstration and late-stage development program, TEAM plays a key strateg
ficiency; decentralized energy; cleaner fossil Projects are funded in five technology areas: fuel cells and hydrogen; advanced end use ef
fuels; and biotechnology.
ogies, TEAM enables the federal government By supporting late-stage development and first demonstration of GHG-reducing technol
companies that have been to support a wide range of technology options and pathways towards the reduction of GHGs. Many
or have commercially replicated their involved in TEAM partnerships have subsequently received further private and public financing
technology in the marketplace.
teria: TEAM measures a project's eligibility for funding against the following cri
; · the company's commitment to validating its technology performance and GHG benefits
· the risks to success;
· the probability that the technology can be replicated in Canada or internationally;
ies or other levels of government; · opportunity to leverage partnerships with other federal or arm's-length funding agenc
· potential environmental and health benefits to implementing the technology;
· the projects?s need for incremental government investment to succeed;
· repayment options for profitable projects; and
· accessibility of the technology to small- and medium-sized enterprises.
that have nvironmental technologies To bring together private and public sector partners to identify, develop and support promising e
Web Site:

Bruce Ringrose
Natural Resources Canada
Tel.: 613-947-8772
Duane Smith
Natural Resources Canada
Tel.: 613-947-8682
Melinda Tan
Natural Resources Canada
Tel.: 613-943-5813
E-mail: VI Α1−
Hydrogen, Fuel Cells and Transportation Energy Program
ents, research organizations, universities, other Natural Resources Canada (in partnership with industry, provincial governm
nergy Agency) federal departments, the U.S. Department of Energy and the International E
Ongoing Status:
tional transportation industries, Applied R&D program which works in cooperation with stakeholders in the domestic and interna
s, transit authorities, utilities, provincial governments, including original equipment manufacturers, industry associations, fleet manager
ment of Energy and the International Energy Agency. research organizations, universities, other federal departments, the U.S. Depart
gy storage systems, emissions control Program areas include alternative fuels and advanced propulsion systems, advanced ener
tructure. technologies, vehicle transportation systems efficiency, and fueling infras
Program activities eligible for funding include:
nd market potential; R&D toward the development of technologies with short- to medium-term commercial a
nd field trials to provide data on Technology assessments conducted in the lab and through technical demonstration projects a
benefits; factors such as fuel economy, reliability, safety, environmental impacts and cost
Development of technical and safety standards; and
ts, and information Technology transfer through sponsorship of workshops and seminars, publication of technical repor
exchanges with public and private sector organizations.
erit; leveraging; Canadian content; and Criteria for project funding include: environmental considerations; technological m
potential for widespread adoption.
l impacts, increase the potential for job and to develop and deploy leading-edge transportation technologies that minimize environmenta
wealth creation and extend the lifespan of the energy resource base.
Web Site:
Nick Beck
Natural Resources Canada
Tel.: 613-996-6022
E-mail: Nick.Beck@NRCan- Web Site: ENERGY FOR SUSTAINABLE DEVELOPMENT - Advanced Energy TechnologiesVII Α1−
Canadian Transportation Fuel Cell Alliance (CTFCA)
providers, auto manufacturers, federal and Natural Resources Canada & Partners (includes technology developers, fuel
provincial governments, academia and non-governmental organizations).
Ongoing Status:
$33 million, seven-year demonstration program for hydrogen infrastructure (funded to 2008). Funding:
tes the technical feasibility as well as the economic The Canadian Transportation Fuel Cell Alliance (CTFCA) demonstrates and evalua
initiative also establishes a supporting and emissions implications of hydrogen refueling options for fuel cell vehicles. The
well as certification and training framework for hydrogen refueling by assisting in the development of codes and standards as
Evaluation criteria for funding demonstration projects include:
· Canadian content and leveraging;
· technical merit;
· management and technical capabilities of project team;
· economic considerations e.g. benefits to Canada, barriers to commercialization;
· community impacts; and
· uniqueness/first of its kind in Canada.
es in Canada. Investments in To demonstrate and evaluate various options for providing the hydrogen to power fuel-cell vehicl
emissions and build a more innovative, efficient hydrogen and fuel-cell technologies are helping Canada reduce greenhouse gas (GHG)
and sustainable economy poised for future growth.

Richard Fry
Natural Resources Canada
Tel.: 613-943-2258
E-mail: Richard.Fry@NRCan-
Community Energy Systems Program (CES)
esearch_programs_ces_e.html .
Chris Snoek VIII Α1−
Natural Resources Canada
Ongoing Status:
On a revolving, repayable basis. Funding:
their energy needs more efficiently and The Community Energy Systems Program (CES) helps Canadian communities meet
strict heating and cooling, combined heat and cost-effectively. The program identifies and develops opportunities for the use of di
f renewable energy, particularly biomass. Interests power (co-generation), waste heat recovery, thermal storage, and local sources o
veloping software for system design; include: planning and implementing projects in both urban centres and remote communities; de
ion of integrated energy systems. improving performance of district cooling systems; and promoting and fostering the adopt
enables systems to be simulated and quick responses CES operates a laboratory to test and develop district energy technologies. This
s clients also include engineering firms, energy to clients' problems. In addition to serving all three levels of government, the CES'
equipment manufacturers and utilities.
systems. To develop and transfer technology and to stimulate interest in community-based energy

Natural Resources Canada
Tel.: 613-992-1832
E-mail: Chris.Snoek@NRCan-
Emerging Technologies Program (ETP)
Natural Resources Canada
Ongoing Status:
Repayable from revenue or cost savings resulting from the project. Funding:
o a cleaner environment, improved ETP supports the development and implementation of technological solutions that contribute t
r market position for Canadian companies. energy efficiency and productivity, higher quality products, reduced waste, and a stronge
the highest rate of return on R&D investment for Canada's In particular, the program focuses on energy-efficient technologies that offer
industrial sector.
interested companies and industrial stakeholders. Industry sets the strategic direction and ETP provides coordination, bringing together
luding gas and electric utilities, other Activities are developed, managed and funded in cooperation with industry and other partners, inc
Norm Benoit
Natural Resources Canada
Tel.: 613-996-6165
E-mail: Norm.Benoit@NRCan-
RNCan.gc.caIX Α1−
levels of government, and equipment manufacturers.
ETP provides funding assistance for:
· sector studies;
· technical assessments;
· prototype development;
· field trials; and
· follow-on R&D activities.
nt potential to reduce energy consumption, limit To identify and develop emerging energy-efficient technologies with significa
nvironmental impact of manufacturing emissions of greenhouse gases, improve manufacturing competitiveness and reduce the e
CANMET Energy Technology Centre (CETC)
government (CETC works in partnership with other federal, provincial, territorial and municipal Natural Resources Canada
ations, and a wide variety of private sector departments and agencies, as well as industry, universities, utilities, associ
companies in Canada and abroad).
Ongoing Status:
ng to CETC. CETC also The Program of Energy Research and Development (PERD) provides about half of its fundi Funding:
I R&D) initiative receives R&D funding from NRCan?s Technology and Innovation Research and Development (T&
(described above).
ough either in-house R&D work at CETC's technology development activities are performed on a cost-shared basis thr
CETC laboratories or by providing funding support to their technology partners.
the main energy science and technology arms of Natural Resources Canada?s CANMET Energy Technology Centre (CETC) is one of
or the sustainable production the Government of Canada. CETC develops and delivers knowledge and technology-based programs f
and use of Canada's energy supply.
Web Site:
Rudy Lubin
Natural Resources Canada
Tel.: 613-996-6220
E-mail: Rudy.Lubin@NRCan- X Α1−
boratories located in Devon, Alberta, Ottawa, CETC's national energy S&T programs and services are delivered through three la
ngs; sustainable hydrocarbons; Ontario, and Varennes, Quebec. Key R&D areas include: advanced combustion; greener buildi
able energy; and distributed power. energy-efficient industrial technologies; sustainable communities; renew
applied research or by undertaking more CETC activities focus on reducing the costs of existing technologies by performing
market potential. Deployment and fundamental research where new technologies and concepts offer significant future
ost-effective technologies, through support for standards commercialization activities serve to increase market penetration of proven, c
these technologies is reduced environmental development, technical workshops, training and full-scale implementation. The result of
impact, increased productivity and generated economic growth in Canada.
The Renewable Energy Deployment Initiative (REDI)
Natural Resources Canada
Ongoing since April 1998 Status:
$51-million, nine-year program. Funding:
es on green heating and cooling (GH&C) and its The Renewable Energy Deployment Initiative (REDI) is a unique program that focus
s to become a leading catalyst for GH&C benefits to Canadians, the GH&C industries and all levels of government. Its vision i
HG) emissions as well as to sustainable deployment in Canada. REDI contributes to reductions in air pollution and greenhouse gas (G
gatonnes of carbon dioxide between 2004 and energy use, sustainable jobs and a better quality of life. REDI aims to reduce 0.284 me
2007 in addition to the 0.086 Mt avoided between 1998 and 2004. This will translate into a total of 0.37 Mt from 1998 to 2007.
versify its energy supply mix, reduce its To stimulate renewable energy deployment from GH&C sources, which can help Canada di
greenhouse gas emissions and contribute to a future of sustainable energy.
Eugène Omboli
Renewable and Electrical Energy Division
Electricity Resources Branch
Natural Resources Canada
Tel.: (613) 995-3051
Toll free 1 877 722-6600XI Α1−
h the following four strategic thrusts: REDI will pursue its vision, mission and target for GH&C market take-off throug
ts among end-users within targeted market 1. Market Stimulation as the high priority aimed at stimulating demand for GH&C produc
ustaining collaboration with existing GH&C Strategic Partnerships/Alliances as the medium to high priority aimed at s ·
including Northern communities; industry partners and fostering strategic alliances with target audiences
y of industries in the supply, delivery and servicing 3. Infrastructure Support as the medium priority aimed at strengthening the capacit
of GH&C products; and
rstanding of the Information, Knowledge and Outreach as the low to medium priority aimed at improving the unde ·
markets and benefits of GH&C technologies.
on plan. The latter combines key activities, relevant The above four strategic thrusts will be completed through REDI?s operational acti
Strategic Business I and targeted outputs, and outcomes for the period of April 1, 2004 to March 31, 2007, as articulated in the RED
Plan.XII Α1−
Wind Power Production Incentive (WPPI)
) Natural Resources Canada (in conjunction with industry and the provinces
Ongoing Status:
energy capacity by March 2007. The original WPPI provided financial support for the installation of 1,000 MW of new wind- Funding:
ovided $200 million In the February 2005 Budget, the Government of Canada quadrupled the WPPI target to 4,000 MW, and also pr
ders on the expansion of the over 5 years 2005-2010 (total of $920 million over 15 years). WPPI is currently consulting stakehol
2001 budget, is intended to The Government of Canada's Wind Power Production Incentive (WPPI), announced in the December
n experience in this emerging and promising encourage electric utilities, independent power producers and other stakeholders to gai
energy source.
WPPI will provide financial support for As of October 2005, Canada has installed about 590 megawatts of wind energy capacity.
vailable to electricity producers for the first ten years of the installation of new capacity over the next five years. This incentive will be a
mium for wind energy in Canada compared to a project. The incentive will cover approximately half of the current cost of the pre
mum and maximum capacity for every conventional sources. To encourage regional participation, the program has set a mini
province and territory, which will be reviewed on an ongoing basis.
bution agreement with NRCan. The To be eligible for the incentive, the prospective producer must negotiate and sign a contri
: agreement contains the following criteria, among others, for setting up a wind farm
The wind farm must be commissioned between April 1, 2002, and March 31, 2007;
ricity grid; and The wind farm must be independently metered at the point of interconnection with the elect
ity of 20 kilowatts in northern and The wind farm must have a minimum nameplate capacity of 500 kilowatts (minimum capac
remote locations.)
ssions by encouraging the development of wind The WPPI was created to help Canada reduce its direct greenhouse gas (GHG) emi
h wind energy as a full-fledged competitor energy, which does not produce emissions. The incentive is also designed to help establis
in the electricity marketplace.
ty installed under WPPI, is projected to By displacing other electricity sources and through continued momentum, wind power capaci
sions by three megatonnes annually by 2010. reduce GHG emis
Denis Bergeron
Natural Resources Canada
Tel.: 1 877 722-6600 (toll-free)Fax: (613)
07&PgId=622XIII Α1−
and Technology Transfer ENERGY FOR SUSTAINABLE DEVELOPMENT - Innovative Financing Solution
Renewable Energy Technologies Program (RETP)
Natural Resources Canada
Ongoing Status:
Repayable Funding:
t supports the continued improvement of the The Renewable Energy Technologies Program (RETP) is an applied R&D program tha
oenergy (combustion, biochemical conversion of economics and efficiency of renewable energy technologies. Technologies include: bi
ation and handling); small hydro biomass to ethanol, thermochemical conversion of biomass to biooil and biogas, and biomass prepar
projects (less than 20 megawatts); active solar applications; and wind energy.
ndustry's awareness of new technologies. Technology transfer is also a key component, with workshops and seminars helping to raise i
promote the increased use of Technical support and advice is provided to industry associations and government programs that
renewable energy.
ities, provincial Stakeholders in the energy industry, such as manufacturers, developers, consultants, util
a include: governments and other federal departments are all eligible. Some of the criteri
· innovativeness;
· environmental impact;
· societal benefits; and
· contributions toward meeting Canada's clean energy requirements.
gy technologies, such as active solar, Support efforts by Canadian industry to develop and commercialize advanced renewable ener
nd environmentally responsible alternatives to wind power, bioenergy and small hydro with industry that can serve as cost-effective a
conventional energy generation.
Mark Riley
Natural Resources Canada
Tel.: 613-996-8151
E-mail: Mark.Riley@NRCan-
and Technology Transfer ENERGY FOR SUSTAINABLE DEVELOPMENT - Innovative Financing Solution
Industry Energy Research and Development (IERD)
Web Site:
actsheet_industry_energy_research_and_developmenXIV Α1−
Natural Resources Canada
Ongoing Status:
ated allowable cost of an approved project. Funding: Repayable financial assistance up to 50 per cent of the total estim
esses, products, systems and An applied R&D program, IERD supports the development and use of new energy-efficient proc
n companies increase their market equipment proposed by industry. Projects contribute to a cleaner environment and help Canadia
ncluding the transportation and buildings sectors. competitiveness. Technologies can be applied to all Canadian industrial sectors, i
IERD's funding assistance is repayable.
dest possible application of technologies. The program forges links between technology developers and end-users to encourage the wi
Project criteria include:
· a sound technical basis and a reasonable chance of success;
· a significant amount of development work;
· general applicability of the technology to one or more industrial sector; and
· sufficient potential energy savings.
Funding is dependent on technical risk, The cost of technology development is shared with industry and other project participants.
onomic competitiveness. Overall, the potential energy savings, and the degree to which the technology can improve Canada's ec
average level of IERD's repayable contribution is 35 per cent of total project costs .
ficiency of energy use throughout industry, and To promote the development of products, processes or systems that will increase the ef
encourage the use of technologies developed under the IRED program.
t_program_e.html .
IERD SecretariatCANMET Energy Technology
Centre - OttawaNatural Resources Canada1 Haanel
DriveNepean, OntarioK1A 1M1Tel: (613)
995-2698Fax: (613) 995-7868
United Nations