Climate Change The British Columbia Plan

Overview 1. Introduction: International and National Setting 2. British Columbia Policy Framework 3. Elements of the Climate Change Action Plan 4. The Way Forward and Summary

Climate Change Issues Global, long term problem—issue must be managed Strong, well-financed action by US jurisdictions Significant initiatives by federal and BC local governments BC business community asks for provincial response Public expectations for environmental quality/action high Links made between extreme weather/events and climate change Provincial role constrained—budget; de-regulation Must tightly link economic development and climate change plans Economic opportunities can be tapped

United States Response US will not ratify Kyoto, but Bush committed to reducing U.S. GHG intensity by 18% by States (including Washington, Oregon, California and Montana) have completed climate change plans

Canadian Response 2002 Climate Change Plan proposes emission reductions through regulatory measures, information and financial incentives 2003 budget allocated $1.7 billion over five years – $160 million specifically allocated for provincial initiatives – $1.1 billion allocated on sector basis Bilaterals to be negotiated with each Province to collaborate on projects or initiatives

Provincial Responses Provinces see climate change as a serious global issue requiring immediate and continuing action Alberta 2002 action plan commits to reducing GHG emissions intensity by 50% below 1990 levels by 2020 Saskatchewan, Manitoba, Quebec, and Nova Scotia have plans

BC Economic Context Economic revitalization is fundamental priority of BC Climate Change Plan Need to combine economic and environmental planning—avoid false trade-offs BC Plan must integrate with all Provincial competitiveness and policy strategies

Challenges and Opportunities BC has already taken substantive actions, e.g. Power Smart, Energy Plan and fuel cells Growth in population and related infrastructure needs pose challenges to BC Significant economic opportunities arise: – Industrial energy saving and strategic positioning for markets – Financial savings and industry growth in buildings sector – Technology strengths in fuel cells and enviro-tech sectors

BC GHG Emissions Profile, 2001 (sector allocation of 65 million tonnes GHG emissions)

Provincial GHG Comparison

Large Industrial Emitters Federal Government has set 55 MT reduction target for Large Industrial Emitters The Province will: – Provide support to BC industrial sectors in their negotiations with the federal government – Not put BC industry into double jeopardy by setting provincial GHG regulatory requirements

Climate Change Objectives 1. Take responsible action to address long term environmental and economic risks 2. Contribute to BC’s economic turn-around, create business certainty for investment and build on competitive advantages 3. Engage the federal government, and get a fair deal

Plan Development Criteria No net new spending Budget neutrality over long term Improved regulations Catch up with neighbouring provinces and states Actions aimed at long term benefits Actions coordinated across sectors Joint undertakings with other jurisdictions when beneficial to BC Plan applies Province’s draft Sustainability Principles

Targets Complications in setting target for BC as a whole: – Economic output must be forecast – Interaction with uncertain federal measures & future commitments – Technological breakthroughs and deployment unknown Target proposal uses multiple approach: – BC will work to retain or improve upon current per capita emissions ranking-3 rd best in Canada (Progress Board’s target) – Sectoral targets will be set where benefits maximized (agriculture, buildings, government operations)

Costs Plan proposes no new government expenditures Implement plan by reallocating existing ministry budgets according to priorities Climate Change Plan will: – Help reduce costs in certain sectors, e.g. buildings – Increase long term business competitiveness, e.g. reduce risks – Minimize impacts of federal regulation, e.g backstop/covenant system – Maximize opportunities associated with federal and other provincial/state actions, e.g. Alberta’s clean hydrocarbon research – Increase capacity to respond to weather-related events, e.g. drought

Forestry, Agriculture & Carbon Sinks Actions 1. Continue to assert ownership of BC’s forest and agricultural sinks 2. Continue to manage forests in sustainable manner 3. Develop policy for managing incremental forestry sinks 4. Identify opportunities for further fuel switching 5. Continue research on BC’s forest carbon sink 6. Support BC Agriculture Council implementation of beneficial management practices 7. Work towards reduction of GHG farm emissions by 8% by 2008

Energy Actions 1. Achieve goal of 50 percent clean new power by Energy Plan to encourage energy conservation and efficiency through rate redesign 3. Work with partners to maintain BC leadership in hydrogen and fuel cell technology 4. Develop strategies to encourage conservation, efficiency and alternative energy 5. MEM working on technology roadmaps to enhance BC’s competitive advantage in clean hydrocarbons, hydrogen and fuel cells, biomass, methanol and ethanol

Industry & Small Business Actions 1. Support BC large industrial sectors in negotiations with the federal government 2. Establish an industry-government table to identify opportunities to lower carbon emissions 3. Push for broader application of relevant federal income tax incentives 4. Work with small and medium businesses to develop venues for exchange of best practices 5. Develop guideline documents to assist small businesses to become more eco-efficient

Transportation Actions 1. Incorporate climate change issues into the provincial Transportation Plan 2. Implement provincial transportation demand management initiative 3. Invest in border crossing and other lower mainland transportation infrastructure 4. Consider further incentives for alternative fuels and fuel efficient vehicles 5. Driver information outreach to stakeholders and public 6. Support development of new transportation technologies and fuels

Community and Buildings Actions 1. Support adapting US Leadership in Energy and Environmental Design (LEED TM ) rating system to BC 2. Review energy performance requirements for buildings and update energy efficiency standards for equipment 3. Work with local governments to encourage improved development and building practices 4. Option for expanding scope of provincial infrastructure planning grants 5. Find alternatives to diesel power in BC’s remote communities 6. Economic analysis of policies to promote more efficient buildings and communities 7. Partner in zero energy residential development demonstration

Provincial Leadership Actions 1. Conduct energy audits and retrofits, and establish performance targets for new public buildings and P3s 2. Develop guidelines and ministry targets to encourage cleaner fleet vehicles and fuels 3. Review policy options to increase transportation choices for employees 4. Integrate climate change into Ministry and agency Service Plans 5. Outreach strategies supporting actions in this Plan

Data Collection, Climate Impacts & Adaptation to Weather Changes 1. Include adaptation planning in government risk management activities and Service Plans 2. Monitor and report to public on climate change and its impacts 3. Develop regional climate modeling and other adaptation tools with stakeholders 4. Build provincial understanding and research capacity on impacts and adaptation 5. Develop BC capability in adaptation

Way Forward Meet with key stakeholders during summer/fall Develop performance measures and approach for monitoring effectiveness and impacts of actions Seek approval for release to public in early fall Negotiate with Canada for federal dollars for Provincial projects and initiatives Collaborate with Alberta and western states on projects or issues of mutual interest and benefit Consult with business and consumer groups on potential additional actions

Summary – Policy Development Policy to do: – Incremental forest and agricultural sinks – Hydrogen and fuel cells – Energy conservation/efficiency/alternatives – Technology roadmaps for alternative energy – Incentives for alternative energy – Urban transportation choices – Improved urban development and buildings – Performance targets for public buildings – Provincial staff transportation choices

Summary - Legislative Legislative to do: – No new legislation Regulatory to do: – Potential small incentive changes for alternative fuels and efficient vehicles – Energy performance standard for buildings to replace prescriptive regulations – Update energy efficiency standards for appliances/equipment