Enhancing Sustainable Economic Development with Low-Impact Renewable Energy

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Enhancing Sustainable Economic Development with
Low-Impact Renewable Energy Clean Air Renewable
Energy Coalition Andrew Pape-Salmon, Pembina
Institute Mark Rudolph, Rudolph and
Associates http//www.cleanairrenewableenergycoali
tion.com
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Why Renewable Energy Makes Sense

• Massive energy resource potential in Canada

• Energy source diversification

• Technology advancement of renewables

• New capital investment

• Regional creation of jobs

• Improved air quality and related benefits

• Greenhouse gas reductions

? enhance Canadas efforts to participate in
the 21st century global energy economy
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Renewable Energy Worldwide

• Explosive growth in investment in low-impact
  renewables (30/yr for wind and solar PV)
• Strong commitment from governments to growth
• ? Denmark 20 of electricity by 2003, 50 in
  2020
• ? Spain 12 of electricity by 2010
• ? Germany, UK, Netherlands 10 of energy by 2010
• International competitors ahead of Canada in
  terms of policy, production and export of
  technology and services
• Investors targeting leading policy regimes

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Wind Energy Capacity
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Barriers to Renewable Energy Investment in Canada

• Low electricity prices
• Little market recognition of environmental and
  social benefits of renewables
• ? financial gap on supply side
• Low consumer engagement and awareness
• ? financial gap for retail and marketing
• Canadian incentives significantly lower than U.S.
  and other trade partners

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Response to BarriersBusiness - NGO partnerships

• Growing convergence of interests

• Aligned concept of sustainable development

• Collaborative approaches to environmental,
  economic and social issues

• Opportunity for new partnerships between business
  and NGOs
• Clean Air Renewable Energy Coalition formed
  December, 2002

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Clean Air Renewable Energy Coalition
Who we are
Members Axor BC Hydro BP Canada Energy
Company Benign Energy Canada Inc. Dofasco Enbridge
Federation of Canadian Municipalities Friends of
the Earth
International Institute for Sustainable
Development Ontario Power Generation Inc. Pembina
Institute Pollution Probe Shell Canada
Limited Suncor Energy Toronto Environmental
Alliance Toronto Hydro
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Clean Air Renewable Energy Coalition
Developing and Implementing our Strategy

• Jointly identified desired policy changes
• ? 2000/01 new tax incentives for renewable
  energy supply and demand
• ? 2001/02 comprehensive package of measures to
  compliment the WPPI, CRCE, MIP
• Tested proposed changes with prospective partners
  to ensure alignment between energy companies and
  environmental NGOs
• Pursued active dialogue with all levels of
  government, delivered coordinated messages to key
  government bodies

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Clean Air Renewable Energy Coalition
Multi-stakeholder partnerships lessons learned

• Importance of the right partners
• Importance of broad-based advocacy
• Importance of targeted and focused messages
• Importance of evolutionary change

Sustainability is not a solitary pursuit its
a collaborative effort
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Clean Air Renewable Energy Coalition
Recommendations to Government

• Establish Renewable Energy Target for Canada
• ? Establish national certificates trading
  system to equalize costs across Canada and
  provide flexibility
• ? Example 10 target by 2012 would result in
  emission reductions of 32 Mt, or 13 of Canadas
  Kyoto gap
• Increase the Wind Power Production Incentive to
  be competitive with US levels
• ? Level the playing field in North America
  currently U.S. Production Tax Credit worth
  2.7/kWh after tax, WPPI only 0.67 /kWh,
  assuming 33 marginal tax rate

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Clean Air Renewable Energy Coalition
Recommendations to Government

• Establish Production Incentives for other
  Resources (solar PV, low-impact hydropower,
  low-emission biomass, tidal and wave power)
• Work with Provinces and Territories to Establish
  Complimentary Mechanisms to Support Target
• ? Renewable portfolio standards
• ? System benefits charges and investment programs

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Clean Air Renewable Energy Coalition
Recommendations to Government

• Expand Market Incentive Program to 30m/yr to
  support broader-based consumer rebate and
  education plans
• ? Expand beyond pilot project status
• ? Extend deadline to 2012
• Identify a Meaningful Role for Renewable Energy
  in Canadas Climate Change Strategy
• Develop Wind Energy Resource Mapping and
  Measurement Program across Canada

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