ENERGY AND SUSTAINABLE DEVELOPMENT

Canada - Energy in the Context of Sustainable Development

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Contents --------------------------------------------------------------------------------

PREFACE

INTRODUCTION The Concept of Sustainable Development Applied to Energy

CANADIAN FRAMEWORK FOR THE SUSTAINABLE DEVELOPMENT OF 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

SELECTED READINGS WEB SITES ANNEX 1 CASE STUDIES: CANADIAN ENERGY-RELATED SUSTAINABLE

DEVELOPMENT PROGRAMS AND INITIATIVES

ANNEX 2 CASE STUDIES: PROJECT OVERVIEW CANADA CLIMATE CHANGE DEVELOPMENT FUND CCD

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PREFACE 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.

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INTRODUCTION 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

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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 Mechanism;

· 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.

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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.

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CANADIAN FRAMEWORK FOR THE SUSTAINABLE DEVELOPMENT OF ENERGY 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 governments

Jurisdictional Division of Responsibility

Federal Government Provincial and Territorial Governments

* 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

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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

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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.

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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:

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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

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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

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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

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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 systems. 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

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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 scale. 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

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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

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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

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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 communities. 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 organizations. 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

SELECTED READINGS

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 http://nrcan.gc.ca/es/epb/eng/international.htm 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 http://nrcan.gc.ca/es/epb/eng/international.htm Energy in Canada 2000. Natural Resources Canada, Energy Sector, Ottawa. Available on the Internet at http://www.nrcan.gc.ca/es/ener2000 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.

WEBSITES http://nrcan.gc.ca/es/epb/eng/international.htm http://nrcan.gc.ca/es/epb/eng/international.htm http://www.climatechange.gc.ca/english/whats_new/pdf/gofcdaplan_eng2.pdf http://www.retscreen.net http ://www2.nrcan.gc.ca/es/oerd http://www2.nrcan.gc.ca/es/erb/erb/english/View.asp?x=68 http://www.fhio.gc.ca/default.asp?lang=En&n=A78D906F-11 http://www.canren.gc.ca/programs/index.asp?CaId=107&PgId=622 http://www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/funding_programs_retp_e.html. http://www.iisd.org/cgsdi/dashboard.asp

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atio

ns,

the

pro

vin

ces,

and u

niv

ersi

ties

)

Sta

tus:

On

goin

g

Fu

ndin

g:

Vari

ab

le

Des

crip

tion

: P

ER

D p

rovid

es f

unds

dir

ectl

y to

par

tner

dep

artm

ents

and a

gen

cies

to s

upport

ear

ly-s

tage

and a

ppli

ed e

ner

gy

R&

D i

n s

ix t

echnolo

gy

area

s: d

iver

sifi

ed o

il a

nd g

as p

roduct

ion;

clea

ner

tra

nsp

ort

atio

n;

ener

gy

effi

cien

t buil

din

gs

and c

om

munit

ies;

ener

gy-

effi

cien

t in

dust

ry;

reduci

ng t

he

envir

onm

enta

l im

pac

ts o

f C

anad

a’s

elec

tric

ity

infr

astr

uct

ure

; an

d c

lim

ate

chan

ge.

F

eder

al l

abora

tori

es a

cross

Can

ada

per

form

the

R&

D a

nd s

upple

men

t th

e m

oney

they

rec

eive

from

PE

RD

wit

h f

undin

g f

rom

thei

r ow

n

org

aniz

atio

ns.

P

ER

D a

lso w

ork

s in

par

tner

ship

wit

h a

nd l

ever

ages

addit

ional

funds

from

indust

ry a

nd i

ndust

ry a

ssoci

atio

ns,

the

Les

ley

Daw

es

Nat

ura

l R

esourc

es C

anad

a T

el.:

613-9

47-3

481

E

-mai

l:

Les

ley.

Daw

es@

NR

Can

.gc.

ca

Web

Sit

e:

htt

p :

//w

ww

2.n

rcan

.gc.

ca/e

s/oer

d

Α1−

IV

pro

vin

ces,

univ

ersi

ties

and o

ther

fundin

g p

rogra

ms.

Req

ues

ts f

or

PE

RD

fundin

g a

re r

efer

red t

o p

rogra

m m

anag

ers

work

ing i

n t

he

rele

van

t te

chnolo

gy

area

s re

ferr

ed t

o a

bove

and a

re

consi

der

ed i

n t

he

conte

xt

of

curr

ent

R&

D a

ctiv

itie

s an

d p

riori

ties

.

Ob

ject

ive:

to

incr

ease

R&

D f

undin

g a

n a

ctiv

itie

s to

enhan

ce:

· S

cien

tifi

c know

ledge

bas

e fo

r en

ergy-

rela

ted c

odes

, st

andar

ds,

tes

t pro

cedure

s an

d r

egula

tions

(incl

udin

g t

he

dev

elopm

ent

of

test

ing e

quip

men

t an

d p

lannin

g t

ools

);

· T

he

dev

elopm

ent

of

equip

men

t, s

yste

ms

and p

roce

sses

e.g

. en

gin

eeri

ng d

evel

opm

ent

and o

per

atio

nal

sy

stem

s dev

elopm

ent

- in

cludes

tec

hnic

al f

ield

tri

als,

pil

ot

pla

nts

and p

roto

types

; · A

ppli

ed s

cien

tifi

c re

sear

ch e

.g. fi

eld e

xper

imen

ts, ben

ch s

cale

, pil

ot

pla

nts

and t

echnic

al f

ield

tri

als;

· S

cien

ce a

nd t

echnolo

gy

asse

ssm

ent

(of

a sp

ecif

ic a

ctiv

ity/

tech

nolo

gy)

for

the

purp

ose

of

furt

her

ad

van

cem

ent

of

the

scie

nce

or

dev

elopm

ent

of

the

tech

nolo

gy

or

spin

off

appli

cati

ons;

and

· D

ata

coll

ecti

on a

nd l

iter

ature

rev

iew

s w

her

e th

ey a

re i

nte

gra

l an

d n

eces

sary

to t

he

rese

arch

pro

ject

.

Α1−

V

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s T

ech

nolo

gy E

arl

y A

ctio

n M

easu

res

(TE

AM

) N

atu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g

Fu

ndin

g:

One

of

four

blo

cks

funded

under

the

Cli

mat

e C

han

ge

Act

ion F

und (

CC

AF

) -

the

$150-m

illi

on F

und es

tabli

shed

by

the

Gover

nm

ent

of

Can

ada

in t

he

1998-9

9 f

eder

al b

udget

and i

s buil

t in

to t

he

exis

ting f

isca

l fr

amew

ork

. In

itia

l al

loca

tion o

f $60 m

illi

on

for

TE

AM

.

Des

crip

tion

: A

s a

dem

onst

rati

on a

nd l

ate-

stag

e dev

elopm

ent

pro

gra

m, T

EA

M p

lays

a k

ey s

trat

egic

role

in t

he

tech

nolo

gy

innovat

ion p

roce

ss.

Pro

ject

s ar

e fu

nded

in f

ive

tech

nolo

gy

area

s: f

uel

cel

ls a

nd h

ydro

gen

; ad

van

ced e

nd u

se e

ffic

iency

; dec

entr

aliz

ed e

ner

gy;

cle

aner

foss

il

fuel

s; a

nd b

iote

chnolo

gy.

B

y su

pport

ing l

ate-

stag

e dev

elopm

ent

and f

irst

dem

onst

rati

on o

f G

HG

-red

uci

ng t

echnolo

gie

s, T

EA

M e

nab

les

the

feder

al g

over

nm

ent

to s

upport

a w

ide

range

of

tech

nolo

gy

opti

ons

and p

athw

ays

tow

ards

the

reduct

ion o

f G

HG

s. M

any

com

pan

ies

that

hav

e bee

n

involv

ed i

n T

EA

M p

artn

ersh

ips

hav

e su

bse

quen

tly

rece

ived

furt

her

pri

vat

e an

d p

ubli

c fi

nan

cing o

r hav

e co

mm

erci

ally

rep

lica

ted t

hei

r te

chnolo

gy

in t

he

mar

ket

pla

ce.

TE

AM

mea

sure

s a

pro

ject

's e

ligib

ilit

y fo

r fu

ndin

g a

gai

nst

the

foll

ow

ing c

rite

ria:

· th

e co

mpan

y's

com

mit

men

t to

val

idat

ing i

ts t

echnolo

gy

per

form

ance

and G

HG

ben

efit

s;

· th

e ri

sks

to s

ucc

ess;

· th

e pro

bab

ilit

y th

at t

he

tech

nolo

gy

can b

e re

pli

cate

d i

n C

anad

a or

inte

rnat

ional

ly;

· opport

unit

y to

lev

erag

e par

tner

ship

s w

ith o

ther

fed

eral

or

arm

's-l

ength

fundin

g a

gen

cies

or

oth

er l

evel

s of

gover

nm

ent;

· pote

nti

al e

nvir

onm

enta

l an

d h

ealt

h b

enef

its

to i

mple

men

ting t

he

tech

nolo

gy;

· th

e pro

ject

s’s

nee

d f

or

incr

emen

tal

gover

nm

ent

inves

tmen

t to

succ

eed;

· re

pay

men

t opti

ons

for

pro

fita

ble

pro

ject

s; a

nd

· ac

cess

ibil

ity

of

the

tech

nolo

gy

to s

mal

l- a

nd m

ediu

m-s

ized

ente

rpri

ses.

Ob

ject

ive:

T

o b

ring t

oget

her

pri

vat

e an

d p

ubli

c se

ctor

par

tner

s to

iden

tify

, dev

elop a

nd s

upport

pro

mis

ing e

nvir

onm

enta

l te

chnolo

gie

s th

at h

ave

Web

Sit

e:

htt

p:/

/ww

w.c

lim

atec

han

ge.

gc.

ca/e

ngli

sh/t

eam

_2004/

Bru

ce R

ingro

se

Nat

ura

l R

esourc

es C

anad

a T

el.:

613-9

47-8

772

E

-mai

l: B

ruce

.Rin

gro

se@

NR

Can

.gc.

ca

Duan

e S

mit

h

Nat

ura

l R

esourc

es C

anad

a T

el.:

613-9

47-8

682

E

-mai

l: D

uan

e.S

mit

h@

NR

Can

.gc.

ca

Mel

inda

Tan

N

atura

l R

esourc

es C

anad

a T

el.:

613-9

43-5

813

E

-mai

l: M

elin

da.

Tan

@N

RC

an.g

c.ca

Α1−

VI

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s H

yd

rogen

, F

uel

Cel

ls a

nd

Tra

nsp

ort

ati

on

En

ergy P

rogra

m

Natu

ral

Res

ou

rces

Can

ad

a (

in p

art

ner

ship

wit

h i

nd

ust

ry, p

rovin

cial

gover

nm

ents

, re

searc

h o

rgan

izati

on

s, u

niv

ersi

ties

, oth

er

fed

eral

dep

art

men

ts, th

e U

.S. D

epart

men

t of

En

ergy a

nd

th

e In

tern

ati

on

al

En

ergy A

gen

cy)

Sta

tus:

On

goin

g

Fu

ndin

g:

Des

crip

tion

:

Appli

ed R

&D

pro

gra

m w

hic

h w

ork

s in

cooper

atio

n w

ith s

takeh

old

ers

in t

he

dom

esti

c an

d i

nte

rnat

ional

tra

nsp

ort

atio

n i

ndust

ries

, in

cludin

g o

rigin

al e

quip

men

t m

anufa

cture

rs, in

dust

ry a

ssoci

atio

ns,

fle

et m

anag

ers,

tra

nsi

t au

thori

ties

, uti

liti

es, pro

vin

cial

gover

nm

ents

, re

sear

ch o

rgan

izat

ions,

univ

ersi

ties

, oth

er f

eder

al d

epar

tmen

ts, th

e U

.S. D

epar

tmen

t of

Ener

gy

and t

he

Inte

rnat

ional

Ener

gy

Agen

cy.

Pro

gra

m a

reas

incl

ude

alte

rnat

ive

fuel

s an

d a

dvan

ced p

ropuls

ion s

yste

ms,

advan

ced e

ner

gy

stora

ge

syst

ems,

em

issi

ons

contr

ol

tech

nolo

gie

s, v

ehic

le t

ransp

ort

atio

n s

yste

ms

effi

cien

cy, an

d fu

elin

g i

nfr

astr

uct

ure

. P

rogra

m a

ctiv

itie

s el

igib

le f

or

fundin

g i

ncl

ude:

R

&D

tow

ard t

he

dev

elopm

ent

of

tech

nolo

gie

s w

ith s

hort

- to

med

ium

-ter

m c

om

mer

cial

and m

arket

pote

nti

al;

Tec

hnolo

gy

asse

ssm

ents

conduct

ed i

n t

he

lab a

nd t

hro

ugh t

echnic

al d

emonst

rati

on p

roje

cts

and f

ield

tri

als

to p

rovid

e dat

a on

fact

ors

such

as

fuel

eco

nom

y, r

elia

bil

ity,

saf

ety,

envir

onm

enta

l im

pac

ts a

nd c

ost

ben

efit

s;

Dev

elopm

ent

of

tech

nic

al a

nd s

afet

y st

andar

ds;

and

Tec

hnolo

gy

tran

sfer

thro

ugh s

ponso

rship

of

work

shops

and s

emin

ars,

publi

cati

on o

f te

chnic

al r

eport

s, a

nd i

nfo

rmat

ion

exch

anges

wit

h p

ubli

c an

d p

rivat

e se

ctor

org

aniz

atio

ns.

C

rite

ria

for

pro

ject

fundin

g i

ncl

ude:

envir

onm

enta

l co

nsi

der

atio

ns;

tec

hnolo

gic

al m

erit

; le

ver

agin

g;

Can

adia

n c

onte

nt;

and

pote

nti

al f

or

wid

espre

ad a

dopti

on.

Obje

ctiv

e:

to d

evel

op a

nd d

eplo

y le

adin

g-e

dge

tran

sport

atio

n t

echnolo

gie

s th

at m

inim

ize

envir

onm

enta

l im

pac

ts, in

crea

se t

he

pote

nti

al f

or

job a

nd

wea

lth c

reat

ion a

nd e

xte

nd t

he

life

span

of

the

ener

gy

reso

urc

e bas

e.

Web

Sit

e:

htt

p:/

/ww

w.c

etc.

nrc

an.g

c

Nic

k B

eck

N

atura

l R

esourc

es C

anad

a T

el.:

613-9

96-6

022

E

-mai

l: N

ick.B

eck@

NR

Can

- R

NC

an.g

c.ca

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s W

eb S

ite:

htt

p:/

/ctf

ca.n

rcan

.gc.

ca

Α1−

VII

Can

ad

ian

Tra

nsp

ort

ati

on

Fu

el C

ell

All

ian

ce (

CT

FC

A)

Natu

ral

Res

ou

rces

Can

ad

a &

Part

ner

s (i

ncl

ud

es t

ech

nolo

gy d

evel

op

ers,

fu

el p

rovid

ers,

au

to m

an

ufa

ctu

rers

, fe

der

al

an

d

pro

vin

cial

gover

nm

ents

, aca

dem

ia a

nd

non

-gover

nm

enta

l org

an

izati

on

s).

Sta

tus:

On

goin

g

Fu

nd

ing:

$33 m

illi

on, se

ven

-yea

r dem

onst

rati

on p

rogra

m f

or

hyd

rogen

infr

astr

uct

ure

(fu

nded

to 2

008).

Des

crip

tion

: T

he

Can

adia

n T

ransp

ort

atio

n F

uel

Cel

l A

llia

nce

(C

TF

CA

) dem

onst

rate

s an

d e

val

uat

es t

he

tech

nic

al f

easi

bil

ity

as w

ell

as t

he

econom

ic

and e

mis

sions

impli

cati

ons

of

hyd

rogen

ref

uel

ing o

pti

ons

for

fuel

cel

l veh

icle

s. T

he

init

iati

ve

also

est

abli

shes

a s

upport

ing

fram

ework

for

hyd

rogen

ref

uel

ing b

y as

sist

ing i

n t

he

dev

elopm

ent

of

codes

and s

tandar

ds

as w

ell

as c

erti

fica

tion a

nd t

rain

ing

pro

gra

ms.

E

val

uat

ion c

rite

ria

for

fundin

g d

emonst

rati

on p

roje

cts

incl

ude:

· C

anad

ian c

onte

nt

and l

ever

agin

g;

· te

chnic

al m

erit

; · m

anag

emen

t an

d t

echnic

al c

apab

ilit

ies

of

pro

ject

tea

m;

· ec

onom

ic c

onsi

der

atio

ns

e.g. ben

efit

s to

Can

ada,

bar

rier

s to

com

mer

cial

izat

ion;

· co

mm

unit

y im

pac

ts;

and

· uniq

uen

ess/

firs

t of

its

kin

d i

n C

anad

a.

Ob

ject

ive:

T

o d

emonst

rate

and e

val

uat

e var

ious

opti

ons

for

pro

vid

ing t

he

hyd

rogen

to p

ow

er f

uel

-cel

l veh

icle

s in

Can

ada.

In

ves

tmen

ts i

n

hyd

rogen

and f

uel

-cel

l te

chnolo

gie

s ar

e hel

pin

g C

anad

a re

duce

gre

enhouse

gas

(G

HG

) em

issi

ons

and b

uil

d a

more

innovat

ive,

eff

icie

nt

and s

ust

ainab

le e

conom

y pois

ed f

or

futu

re g

row

th.

Ric

har

d F

ry

Nat

ura

l R

esourc

es C

anad

a T

el.:

613-9

43-2

258

E

-mai

l: R

ichar

d.F

ry@

NR

Can

- R

NC

an.g

c.ca

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s C

om

mu

nit

y E

ner

gy S

yst

ems

Pro

gra

m (

CE

S)

htt

p:/

/ww

w.n

rcan

.gc.

ca/e

s/et

b/c

etc/

cetc

01/h

tmld

ocs

/res

earc

h_pro

gra

ms_

ces_

e.htm

l.

Chri

s S

noek

Α1−

VII

I

Natu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g

Fu

ndin

g:

On

a r

evolv

ing, re

payab

le b

asi

s.

Des

crip

tion

: T

he

Com

munit

y E

ner

gy

Sys

tem

s P

rogra

m (

CE

S)

hel

ps

Can

adia

n c

om

munit

ies

mee

t th

eir

ener

gy

nee

ds

more

eff

icie

ntl

y an

d

cost

-eff

ecti

vel

y. T

he

pro

gra

m i

den

tifi

es a

nd d

evel

ops

opport

unit

ies

for

the

use

of

dis

tric

t hea

ting a

nd c

ooli

ng, co

mbin

ed h

eat

and

pow

er (

co-g

ener

atio

n),

was

te h

eat

reco

ver

y, t

her

mal

sto

rage,

and l

oca

l so

urc

es o

f re

new

able

ener

gy,

par

ticu

larl

y bio

mas

s. In

tere

sts

incl

ude:

pla

nnin

g a

nd i

mple

men

ting p

roje

cts

in b

oth

urb

an c

entr

es a

nd r

emote

com

munit

ies;

dev

elopin

g s

oft

war

e fo

r sy

stem

des

ign;

impro

vin

g p

erfo

rman

ce o

f dis

tric

t co

oli

ng s

yste

ms;

and p

rom

oti

ng a

nd f

ost

erin

g t

he

adopti

on o

f in

tegra

ted e

ner

gy

syst

ems.

C

ES

oper

ates

a l

abora

tory

to t

est

and d

evel

op d

istr

ict

ener

gy

tech

nolo

gie

s. T

his

enab

les

syst

ems

to b

e si

mula

ted a

nd q

uic

k r

esponse

s to

cli

ents

' pro

ble

ms.

In

addit

ion t

o s

ervin

g a

ll t

hre

e le

vel

s of

gover

nm

ent,

the

CE

S's

cli

ents

als

o i

ncl

ude

engin

eeri

ng f

irm

s, e

ner

gy

equip

men

t m

anufa

cture

rs a

nd u

tili

ties

.

Obje

ctiv

e:

To d

evel

op a

nd t

ransf

er t

echnolo

gy

and t

o s

tim

ula

te i

nte

rest

in c

om

munit

y-bas

ed e

ner

gy

syst

ems.

Nat

ura

l R

esourc

es C

anad

a

Tel

.: 6

13-9

92-1

832

E

-mai

l: C

hri

s.S

noek

@N

RC

an-

RN

Can

.gc.

ca

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s E

mer

gin

g T

ech

nolo

gie

s P

rogra

m (

ET

P)

Natu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g

Fu

ndin

g:

Rep

ayab

le f

rom

rev

enu

e or

cost

savin

gs

resu

ltin

g f

rom

th

e p

roje

ct.

Des

crip

tion

: E

TP

support

s th

e dev

elopm

ent

and i

mple

men

tati

on o

f te

chnolo

gic

al s

olu

tions

that

contr

ibute

to a

cle

aner

envir

onm

ent,

im

pro

ved

en

ergy

effi

cien

cy a

nd p

roduct

ivit

y, h

igher

qual

ity

pro

duct

s, r

educe

d w

aste

, an

d a

str

onger

mar

ket

posi

tion f

or

Can

adia

n c

om

pan

ies.

In p

arti

cula

r, t

he

pro

gra

m f

ocu

ses

on e

ner

gy-

effi

cien

t te

chnolo

gie

s th

at o

ffer

the

hig

hes

t ra

te o

f re

turn

on R

&D

inves

tmen

t fo

r C

anad

a's

indust

rial

sec

tor.

In

dust

ry s

ets

the

stra

tegic

dir

ecti

on a

nd E

TP

pro

vid

es c

oord

inat

ion, bri

ngin

g t

oget

her

inte

rest

ed c

om

pan

ies

and i

ndust

rial

sta

keh

old

ers.

A

ctiv

itie

s ar

e dev

eloped

, m

anag

ed a

nd f

unded

in c

ooper

atio

n w

ith i

ndust

ry a

nd o

ther

par

tner

s, i

ncl

udin

g g

as a

nd e

lect

ric

uti

liti

es, oth

er

htt

p:/

/ww

w.n

rcan

.gc.

ca/e

s/et

b/c

etc/

cetc

01/h

tmld

ocs

/fundin

g_p

rogra

ms_

etp_e.

htm

l N

orm

Ben

oit

N

atura

l R

esourc

es C

anad

a T

el.:

613-9

96-6

165

E

-mai

l: N

orm

.Ben

oit

@N

RC

an-

RN

Can

.gc.

ca

Α1−

IX

level

s of

gover

nm

ent,

and e

quip

men

t m

anufa

cture

rs.

ET

P p

rovid

es f

undin

g a

ssis

tance

for:

· se

ctor

studie

s;

· te

chnic

al a

sses

smen

ts;

· pro

toty

pe

dev

elopm

ent;

· fi

eld t

rial

s; a

nd

· fo

llow

-on R

&D

act

ivit

ies.

Ob

ject

ive:

T

o i

den

tify

and d

evel

op e

mer

gin

g e

ner

gy-

effi

cien

t te

chnolo

gie

s w

ith s

ignif

ican

t pote

nti

al t

o r

educe

ener

gy

consu

mpti

on, li

mit

em

issi

ons

of

gre

enhouse

gas

es, im

pro

ve

man

ufa

cturi

ng c

om

pet

itiv

enes

s an

d r

educe

the

envir

onm

enta

l im

pac

t of

man

ufa

cturi

ng

pro

cess

es.

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- A

dvan

ced

En

ergy T

ech

nolo

gie

s C

AN

ME

T E

ner

gy T

ech

nolo

gy C

entr

e (C

ET

C)

Natu

ral

Res

ou

rces

Can

ad

a (

CE

TC

work

s in

par

tner

ship

wit

h o

ther

fed

eral

, pro

vin

cial

, te

rrit

ori

al a

nd m

unic

ipal

gover

nm

ent

dep

artm

ents

and a

gen

cies

, as

wel

l as

indust

ry, univ

ersi

ties

, uti

liti

es, as

soci

atio

ns,

and a

wid

e var

iety

of

pri

vat

e se

ctor

com

pan

ies

in C

anad

a an

d a

bro

ad).

Sta

tus:

On

goin

g

Fu

ndin

g:

T

he

Pro

gra

m o

f E

ner

gy

Res

earc

h a

nd D

evel

opm

ent

(PE

RD

) pro

vid

es a

bout

hal

f of

its

fundin

g t

o C

ET

C. C

ET

C a

lso

rece

ives

R&

D f

undin

g f

rom

NR

Can

’s T

echnolo

gy

and I

nnovat

ion R

esea

rch a

nd D

evel

opm

ent

(T&

I R

&D

) in

itia

tive

(des

crib

ed a

bove)

.

CE

TC

's t

echnolo

gy

dev

elopm

ent

acti

vit

ies

are

per

form

ed o

n a

cost

-shar

ed b

asis

thro

ugh e

ither

in-h

ouse

R&

D w

ork

at

CE

TC

lab

ora

tori

es o

r by

pro

vid

ing f

undin

g s

upport

to t

hei

r te

chnolo

gy

par

tner

s.

Des

crip

tion

: N

atura

l R

esourc

es C

anad

a’s

CA

NM

ET

Ener

gy

Tec

hnolo

gy

Cen

tre

(CE

TC

) is

one

of

the

mai

n e

ner

gy

scie

nce

and t

echnolo

gy

arm

s of

the

Gover

nm

ent

of

Can

ada.

CE

TC

dev

elops

and d

eliv

ers

know

ledge

and t

echnolo

gy-

bas

ed p

rogra

ms

for

the

sust

ainab

le p

roduct

ion

and u

se o

f C

anad

a's

ener

gy

supply

.

Web

Sit

e:

htt

p:/

/ww

w.n

rcan

.gc.

ca/e

s/et

b/

Rudy

Lubin

N

atura

l R

esourc

es C

anad

a T

el.:

613-9

96-6

220

E

-mai

l: R

udy.

Lubin

@N

RC

an-

RN

Can

.gc.

ca

Α1−

X

CE

TC

's n

atio

nal

ener

gy

S&

T p

rogra

ms

and s

ervic

es a

re d

eliv

ered

thro

ugh t

hre

e la

bora

tori

es l

oca

ted i

n D

evon, A

lber

ta, O

ttaw

a,

Onta

rio, an

d V

aren

nes

, Q

ueb

ec. K

ey R

&D

are

as i

ncl

ude:

advan

ced c

om

bust

ion;

gre

ener

buil

din

gs;

sust

ainab

le h

ydro

carb

ons;

en

ergy-

effi

cien

t in

dust

rial

tec

hnolo

gie

s; s

ust

ainab

le c

om

munit

ies;

ren

ewab

le e

ner

gy;

and d

istr

ibute

d p

ow

er.

Obje

ctiv

e:

CE

TC

act

ivit

ies

focu

s on r

educi

ng t

he

cost

s of

exis

ting t

echnolo

gie

s by

per

form

ing a

ppli

ed r

esea

rch o

r by

under

takin

g m

ore

fu

ndam

enta

l re

sear

ch w

her

e new

tec

hnolo

gie

s an

d c

once

pts

off

er s

ignif

ican

t fu

ture

mar

ket

pote

nti

al.

D

eplo

ymen

t an

d

com

mer

cial

izat

ion a

ctiv

itie

s se

rve

to i

ncr

ease

mar

ket

pen

etra

tion o

f pro

ven

, co

st-e

ffec

tive

tech

nolo

gie

s, t

hro

ugh s

upport

for

stan

dar

ds

dev

elopm

ent,

tec

hnic

al w

ork

shops,

tra

inin

g a

nd f

ull

-sca

le i

mple

men

tati

on. T

he

resu

lt o

f th

ese

tech

nolo

gie

s is

red

uce

d e

nvir

onm

enta

l im

pac

t, i

ncr

ease

d p

roduct

ivit

y an

d g

ener

ated

eco

nom

ic g

row

th i

n C

anad

a.

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- R

enew

ab

le H

eati

ng a

nd

Cooli

ng

Th

e R

enew

ab

le E

ner

gy D

eplo

ym

ent

Init

iati

ve

(RE

DI)

N

atu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g s

ince

Ap

ril

1998

Fu

ndin

g:

$51-m

illi

on

, n

ine-

yea

r p

rogra

m.

Des

crip

tion

:

The

Ren

ewab

le E

ner

gy

Dep

loym

ent

Init

iati

ve

(RE

DI)

is

a uniq

ue

pro

gra

m t

hat

focu

ses

on g

reen

hea

ting a

nd c

ooli

ng (

GH

&C

) an

d i

ts

ben

efit

s to

Can

adia

ns,

the

GH

&C

indust

ries

and a

ll l

evel

s of

gover

nm

ent.

It

s vis

ion i

s to

bec

om

e a

lead

ing c

atal

yst

for

GH

&C

dep

loym

ent

in C

anad

a. R

ED

I co

ntr

ibute

s to

red

uct

ions

in a

ir p

oll

uti

on a

nd g

reen

house

gas

(G

HG

) em

issi

ons

as w

ell

as t

o s

ust

ainab

le

ener

gy

use

, su

stai

nab

le j

obs

and a

bet

ter

qual

ity

of

life

. R

ED

I ai

ms

to r

educe

0.2

84 m

egat

onnes

of

carb

on d

iox

ide

bet

wee

n 2

004 a

nd

2007 i

n a

ddit

ion t

o t

he

0.0

86 M

t av

oid

ed b

etw

een 1

998 a

nd 2

004.

T

his

wil

l tr

ansl

ate

into

a t

ota

l of

0.3

7 M

t fr

om

1998 t

o 2

007.

Obje

ctiv

e:

To s

tim

ula

te r

enew

able

ener

gy

dep

loym

ent

from

GH

&C

sourc

es, w

hic

h c

an h

elp C

anad

a div

ersi

fy i

ts e

ner

gy

supply

mix

, re

duce

its

gre

enhouse

gas

em

issi

ons

and c

ontr

ibute

to a

futu

re o

f su

stai

nab

le e

ner

gy.

htt

p:/

/ww

w2.n

rcan

.gc.

ca/e

s/er

b/e

rb/e

ngli

sh/V

iew

.asp

?x=

455

htt

p:/

/ww

w2.n

rcan

.gc.

ca/e

s/er

b/C

MF

iles

/EN

_R

ED

I173JW

L-3

1082005-6

991.p

df

Eugèn

e O

mboli

R

enew

able

and E

lect

rica

l E

ner

gy

Div

isio

n

Ele

ctri

city

Res

ourc

es B

ranch

N

atura

l R

esourc

es C

anad

a T

el.:

(613)

995

-3051

E

-mai

l: e

ugen

e.om

boli

@nrc

an.g

c.ca

T

oll

fre

e 1 8

77 7

22

-6600

Α1−

XI

RE

DI

wil

l purs

ue

its

vis

ion, m

issi

on a

nd t

arget

for

GH

&C

mar

ket

tak

e-off

th

rough t

he

foll

ow

ing f

our

stra

tegic

thru

sts:

1. M

arket

Sti

mula

tion a

s th

e hig

h p

riori

ty a

imed

at

stim

ula

ting d

eman

d f

or

GH

&C

pro

duct

s am

ong e

nd-u

sers

wit

hin

tar

get

ed m

arket

se

gm

ents

; ·

Str

ateg

ic P

artn

ersh

ips/

All

iance

s as

the

med

ium

to h

igh p

riori

ty a

imed

at

sust

ainin

g c

oll

abora

tion w

ith e

xis

ting G

H&

C

indust

ry p

artn

ers

and f

ost

erin

g s

trat

egic

all

iance

s w

ith t

arget

audie

nce

s in

cludin

g N

ort

her

n c

om

munit

ies;

3. In

fras

truct

ure

Support

as

the

med

ium

pri

ori

ty a

imed

at

stre

ngth

enin

g t

he

capac

ity

of

indust

ries

in t

he

supply

, del

iver

y an

d s

ervic

ing

of

GH

&C

pro

duct

s; a

nd

· In

form

atio

n, K

now

ledge

and O

utr

each

as

the

low

to m

ediu

m p

riori

ty a

imed

at

impro

vin

g t

he

under

stan

din

g o

f th

e m

arket

s an

d b

enef

its

of

GH

&C

tec

hnolo

gie

s.

The

above

four

stra

tegic

thru

sts

wil

l be

com

ple

ted t

hro

ugh R

ED

I’s

oper

atio

nal

act

ion p

lan. T

he

latt

er c

om

bin

es k

ey a

ctiv

itie

s, r

elev

ant

and t

arget

ed o

utp

uts

, an

d o

utc

om

es f

or

the

per

iod o

f A

pri

l 1, 2004 t

o M

arch

31, 2007, as

art

icula

ted i

n t

he

RE

DI

Str

ateg

ic B

usi

nes

s P

lan.

Α1−

XII

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- R

enew

ab

le E

ner

gy

Win

d P

ow

er P

rod

uct

ion

In

cen

tive

(WP

PI)

Natu

ral

Res

ou

rces

Can

ad

a (

in c

on

jun

ctio

n w

ith

in

du

stry

an

d t

he

pro

vin

ces)

S

tatu

s: O

ngoin

g

Fu

ndin

g:

The

ori

gin

al W

PP

I pro

vid

ed f

inan

cial

support

for

the

inst

alla

tion o

f 1,0

00 M

W o

f new

win

d-e

ner

gy

capac

ity

by

Mar

ch 2

007.

In

the

Feb

ruar

y 2005 B

udget

, th

e G

over

nm

ent

of

Can

ada

quad

ruple

d t

he

WP

PI

targ

et t

o 4

,000 M

W, an

d a

lso p

rovid

ed $

200 m

illi

on

over

5 y

ears

2005-2

010 (

tota

l of

$920 m

illi

on o

ver

15 y

ears

). W

PP

I is

curr

entl

y co

nsu

ltin

g s

takeh

old

ers

on t

he

expan

sion o

f th

e pro

gra

m.

Des

crip

tion

: T

he

Gover

nm

ent

of

Can

ada'

s W

ind P

ow

er P

roduct

ion I

nce

nti

ve

(WP

PI)

, an

nounce

d i

n t

he

Dec

ember

2001 b

udget

, is

inte

nded

to

enco

ura

ge

elec

tric

uti

liti

es, in

dep

enden

t pow

er p

roduce

rs a

nd o

ther

sta

keh

old

ers

to g

ain e

xper

ience

in t

his

em

ergin

g a

nd p

rom

isin

g

ener

gy

sourc

e.

As

of

Oct

ober

2005,

C

anad

a has

inst

alle

d a

bout

590 m

egaw

atts

of

win

d e

ner

gy

capac

ity.

W

PP

I w

ill

pro

vid

e fi

nan

cial

support

for

the

inst

alla

tion o

f new

cap

acit

y over

the

nex

t fi

ve

year

s. T

his

ince

nti

ve

wil

l be

avai

lable

to e

lect

rici

ty p

roduce

rs f

or

the

firs

t te

n y

ears

of

a pro

ject

. T

he

ince

nti

ve

wil

l co

ver

appro

xim

atel

y hal

f of

the

curr

ent

cost

of

the

pre

miu

m f

or

win

d e

ner

gy

in C

anad

a co

mpar

ed t

o

conven

tional

sourc

es.

T

o e

nco

ura

ge

regio

nal

par

tici

pat

ion, th

e pro

gra

m h

as s

et a

min

imum

and m

axim

um

cap

acit

y fo

r ev

ery

pro

vin

ce a

nd t

erri

tory

, w

hic

h w

ill

be

revie

wed

on a

n o

ngoin

g b

asis

. T

o b

e el

igib

le f

or

the

ince

nti

ve,

the

pro

spec

tive

pro

duce

r m

ust

neg

oti

ate

and s

ign a

contr

ibuti

on a

gre

emen

t w

ith N

RC

an. T

he

agre

emen

t co

nta

ins

the

foll

ow

ing c

rite

ria,

am

ong o

ther

s, f

or

sett

ing u

p a

win

d f

arm

: T

he

win

d f

arm

must

be

com

mis

sioned

bet

wee

n A

pri

l 1, 2002, an

d M

arch

31, 2007;

T

he

win

d f

arm

must

be

indep

enden

tly

met

ered

at

the

poin

t of

inte

rconnec

tion w

ith t

he

elec

tric

ity

gri

d;

and

T

he

win

d f

arm

must

hav

e a

min

imum

nam

epla

te c

apac

ity

of

500 k

ilow

atts

(m

inim

um

cap

acit

y of

20 k

ilow

atts

in n

ort

her

n a

nd

rem

ote

loca

tions.

) O

bje

ctiv

e:

The

WP

PI

was

cre

ated

to h

elp C

anad

a re

duce

its

dir

ect

gre

enhouse

gas

(G

HG

) em

issi

ons

by

enco

ura

gin

g t

he

dev

elopm

ent

of

win

d

ener

gy,

whic

h d

oes

not

pro

duce

em

issi

ons.

T

he

ince

nti

ve

is a

lso d

esig

ned

to h

elp e

stab

lish

win

d e

ner

gy

as a

full

-fle

dged

com

pet

itor

in t

he

elec

tric

ity

mar

ket

pla

ce.

By

dis

pla

cing o

ther

ele

ctri

city

sourc

es a

nd t

hro

ugh c

onti

nued

mom

entu

m, w

ind p

ow

er c

apac

ity

inst

alle

d u

nder

WP

PI,

is

pro

ject

ed t

o

reduce

GH

G e

mis

sions

by

thre

e m

egat

onnes

annual

ly b

y 2010.

htt

p:/

/ww

w.c

anre

n.g

c.ca

/pro

gra

ms/

index

.asp

?CaI

d=

107

Den

is B

erger

on

N

atura

l R

esourc

es C

anad

a T

el.:

1 8

77 7

22

-6600 (

toll

-fre

e)F

ax:

(613)

992

-8738E

-mai

l: w

ppi@

nrc

an.g

c.ca

htt

p:/

/ww

w.c

anre

n.g

c.ca

/pro

gra

ms/

index

.asp

?CaI

d=

107&

PgId

=622

Α1−

XII

I

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- I

nn

ovati

ve

Fin

an

cin

g S

olu

tion

an

d T

ech

nolo

gy T

ran

sfer

R

enew

ab

le E

ner

gy T

ech

nolo

gie

s P

rogra

m (

RE

TP

) N

atu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g

Fu

nd

ing:

Rep

ayab

le

Des

crip

tion

: T

he

Ren

ewab

le E

ner

gy

Tec

hnolo

gie

s P

rogra

m (

RE

TP

) is

an a

ppli

ed R

&D

pro

gra

m t

hat

support

s th

e co

nti

nued

im

pro

vem

ent

of

the

econom

ics

and e

ffic

iency

of

renew

able

ener

gy

tech

nolo

gie

s. T

echnolo

gie

s in

clude:

bio

ener

gy

(com

bust

ion, bio

chem

ical

conver

sion o

f bio

mas

s to

eth

anol,

ther

moch

emic

al c

onver

sion o

f bio

mas

s to

bio

oil

and b

iogas

, an

d b

iom

ass

pre

par

atio

n a

nd h

andli

ng);

sm

all

hyd

ro

pro

ject

s (l

ess

than

20 m

egaw

atts

); a

ctiv

e so

lar

appli

cati

ons;

and w

ind e

ner

gy.

Tec

hnolo

gy

tran

sfer

is

also

a k

ey c

om

ponen

t, w

ith w

ork

shops

and s

emin

ars

hel

pin

g t

o r

aise

indust

ry's

aw

aren

ess

of

new

tec

hnolo

gie

s.

Tec

hnic

al s

upport

and a

dvic

e is

pro

vid

ed t

o i

ndust

ry a

ssoci

atio

ns

and g

over

nm

ent

pro

gra

ms

that

pro

mote

the

incr

ease

d u

se o

f re

new

able

ener

gy.

S

takeh

old

ers

in t

he

ener

gy

indust

ry, su

ch a

s m

anufa

cture

rs, dev

eloper

s, c

onsu

ltan

ts, uti

liti

es, pro

vin

cial

gover

nm

ents

and o

ther

fed

eral

dep

artm

ents

are

all

eli

gib

le. S

om

e of

the

crit

eria

incl

ude:

·

in

novat

iven

ess;

·

en

vir

onm

enta

l im

pac

t;

· so

ciet

al b

enef

its;

and

· co

ntr

ibuti

ons

tow

ard m

eeti

ng C

anad

a's

clea

n e

ner

gy

requir

emen

ts.

Obje

ctiv

e:

Support

eff

ort

s by

Can

adia

n i

ndust

ry t

o d

evel

op a

nd c

om

mer

cial

ize

advan

ced r

enew

able

ener

gy

tech

nolo

gie

s, s

uch

as

acti

ve

sola

r,

win

d p

ow

er, bio

ener

gy

and s

mal

l hyd

ro w

ith i

ndust

ry t

hat

can

ser

ve

as c

ost

-eff

ecti

ve

and e

nvir

onm

enta

lly

resp

onsi

ble

alt

ernat

ives

to

conven

tional

ener

gy

gen

erat

ion.

htt

p:/

/ww

w.n

rcan

.gc.

ca/e

s/et

b/c

etc/

cetc

01/h

tmld

ocs

/fundin

g_pro

gra

ms_

retp

_e.

htm

l.

Mar

k R

iley

N

atura

l R

esourc

es C

anad

a T

el.:

613-9

96-8

151

E

-mai

l: M

ark.R

iley

@N

RC

an-

RN

Can

.gc.

ca

EN

ER

GY

FO

R S

US

TA

INA

BL

E D

EV

EL

OP

ME

NT

- I

nn

ovati

ve

Fin

an

cin

g S

olu

tion

an

d T

ech

nolo

gy T

ran

sfer

In

du

stry

En

ergy R

esea

rch

an

d D

evel

op

men

t (I

ER

D)

Web

Sit

e:

htt

p:/

/ww

w.n

rcan

.gc.

ca/e

s/et

b/c

etc/

cetc

01/h

tmld

ocs

/fac

tshee

t_in

dust

ry_en

ergy_

rese

arch

_an

d_dev

elopm

en

Α1−

XIV

Natu

ral

Res

ou

rces

Can

ad

a

Sta

tus:

On

goin

g

Fu

nd

ing:

Rep

ayab

le f

inan

cial

ass

ista

nce

up

to 5

0 p

er c

ent

of

the

tota

l es

tim

ate

d a

llow

ab

le c

ost

of

an

ap

pro

ved

pro

ject

. D

escr

ipti

on

: A

n a

ppli

ed R

&D

pro

gra

m, IE

RD

support

s th

e dev

elopm

ent

and u

se o

f new

ener

gy-

effi

cien

t pro

cess

es, pro

duct

s, s

yste

ms

and

equip

men

t pro

pose

d b

y in

dust

ry.

P

roje

cts

contr

ibute

to a

cle

aner

envir

onm

ent

and h

elp C

anad

ian c

om

pan

ies

incr

ease

thei

r m

arket

co

mpet

itiv

enes

s. T

echnolo

gie

s ca

n b

e ap

pli

ed t

o a

ll C

anad

ian i

ndust

rial

sec

tors

, in

cludin

g t

he

tran

sport

atio

n a

nd b

uil

din

gs

sect

ors

. IE

RD

's f

undin

g a

ssis

tance

is

repay

able

. T

he

pro

gra

m f

org

es l

inks

bet

wee

n t

echnolo

gy

dev

eloper

s an

d e

nd-u

sers

to e

nco

ura

ge

the

wid

est

poss

ible

appli

cati

on o

f te

chnolo

gie

s.

Pro

ject

cri

teri

a in

clude:

· a

sound t

echnic

al b

asis

and a

rea

sonab

le c

han

ce o

f su

cces

s;

· a

signif

ican

t am

ount

of

dev

elopm

ent

work

; · gen

eral

appli

cabil

ity

of

the

tech

nolo

gy

to o

ne

or

more

indust

rial

sec

tor;

and

· su

ffic

ient

pote

nti

al e

ner

gy

savin

gs.

The

cost

of

tech

nolo

gy

dev

elopm

ent

is s

har

ed w

ith i

ndust

ry a

nd o

ther

pro

ject

par

tici

pan

ts.

F

undin

g i

s dep

enden

t on t

echnic

al r

isk,

pote

nti

al e

ner

gy

savin

gs,

and t

he

deg

ree

to w

hic

h t

he

tech

nolo

gy

can i

mpro

ve

Can

ada'

s ec

onom

ic c

om

pet

itiv

enes

s. O

ver

all,

the

aver

age

level

of

IER

D's

rep

ayab

le c

ontr

ibuti

on i

s 35 p

er c

ent

of

tota

l pro

ject

cost

s.

Ob

ject

ive:

T

o p

rom

ote

the

dev

elopm

ent

of

pro

duct

s, p

roce

sses

or

syst

ems

that

wil

l in

crea

se t

he

effi

cien

cy o

f en

ergy

use

thro

ughout

indust

ry, an

d

enco

ura

ge

the

use

of

tech

nolo

gie

s dev

eloped

under

the

IRE

D p

rogra

m.

t_pro

gra

m_e.

htm

l.

IER

D S

ecre

tari

atC

AN

ME

T E

ner

gy

Tec

hnolo

gy

Cen

tre

- O

ttaw

aNat

ura

l R

esourc

es C

anad

a1 H

aanel

D

riveN

epea

n, O

nta

rioK

1A

1M

1T

el:

(613)

995

-2698F

ax:

(613)

995

-7868