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EMISSIONSREDUCTIONALBERTA-NEWDIRECTIONSShiftingthethinkingandinspiringthefuture

TECHNOLOGYROADMAPPURPOSEANDOBJECTIVES

EmissionsReductionAlberta(ERA)1hasamandatetoidentifyandaccelerateinnovativesolutionsthatsecureAlberta’ssuccessinalowercarboneconomy.ItsvisionisforAlbertatoberecognizedasaninnovationandtechnologyleaderinalowercarbonworld.Todeliveronthisvision,ERAinvestsintransformativetechnologiesthathelpbuildasustainableanddiversifiedeconomythatattractsinvestment;deliversimprovedenvironmentaloutcomes;andexpandsmarketaccess.

ERAisdevelopingaTechnologyRoadmap(TRM)toguideitsinvestmentdecisionsandinformitsportfoliomix.TheTRMwillalsocontributetothealignmentofthebroaderinnovationsystemaroundcommonclimatechangeandinnovationgoalsthatresultinmeaningfulgreenhousegasemissions(GHG)reductionsinAlberta.Ifsuccessful,theTRMwillassistthemultipleorganizationsthatrepresentERA’sstakeholderstofocusoncommongoals,technologypathways,prioritiesanddefinedimplementationtimeframes.AnillustrationforthedesignoftheTRMisprovidedinFigure1below,withthedetailsdiscussedinthisdocument.

1EmissionsReductionAlberta(ERA)isaregisteredtradenameoftheClimateChangeandEmissionsManagement(CCEMC)Corporation.

Figure1–ERATechnologyRoadmapDesign

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Morespecifically,theTRMwillseektodeliveronthefollowingobjectives:

1. Definepathways,opportunitiesandbarrierstoachievingAlberta’sclimatechangepolicyoutcomesthatcanbeachievedthroughinvestmentininnovationandtechnology,whichwillallowERAto:§ IdentifyopportunitiesforAlbertatodemonstrateclimatechangeleadershipthrough

highpotentialimpactinvestments.§ LeverageandaugmentAlberta’snaturalstrengthsandbuildonexistingcapacity.§ Demonstratethevalueandpotentialofdirectinggovernmentfundstowards

innovationandtechnologysolutionsandprovideaclearerlineofsightforwherefundingwillflowandtheassociatedoutcomes.

§ InvestexclusivelyinsolutionsthatalignwithAlberta’sneeds.§ LeverageAlberta’suniqueassetstoattractandretainbesttechnologiesand

innovators.§ ContributetoeconomicprosperityanddiversificationofAlberta’seconomythrough

facilitatingdevelopmentanddemonstrationofsuccessfultechnicalinnovationsandassociatedbusinesses.

2. Mapthepotentialtacticaloptionsfordeliveringneededsolutions,providing:§ Alignedandcoordinatedstrategiestodeliverrequiredsolutions.§ Aclearerunderstandingofthespecificresponsibilitiesandaccountabilitiesof

playersintheinnovationsystem.3. Identifymilestonesanddeliverablestowardsachievingouroutcomes,providing:

§ Measurablebenchmarksandopportunitiesforrealemissionsreductionsasweworktowardsachievingthedesiredoutcomes,includingeconomicgrowthandjobcreation.

§ Actualenvironmentalandeconomicperformancereportingagainstoriginallyidentifiedtargets.

§ Aneffectivecommunicationstoolforunderstandinganddemonstratingprogress.

KEYINFLUENCESONALBERTA’SCLIMATEANDINNOVATIONPRIORITIES

NationalCollaboration

BuildingoncommitmentsandmomentumfromCOP21inParis,theFederalGovernment,theProvincesandTerritoriesaremovingtowardaPan-Canadianframeworkfor“cleangrowthandclimatechange”.Canadahascommittedtoachievea30percentreductioninGHGemissionsfrom2030levelsandcontributingtolimitingtheglobaltemperatureincreasetolessthan2degreesCelsiusabovepre-industriallevels.Itsproposedapproachtocombatclimatechangeincludesputtingapriceoncarbon,workingwithinternationalpartners,andusingevidencebasedknowledgeindecisionmaking.In2015,theFederalGovernmentsignedonto“MissionInnovation,”committingtodoubleitscleanenergyresearchanddevelopmentinvestmentover

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fiveyears.Asaresult,Canadawillinvestmorethan$750millionperyearincleantechresearchanddevelopment.

TheleadershipdisplayedbytheGovernmentofAlbertaindevelopingacomprehensiveclimatechangeplanplacesitinastrongpositiontoworkwiththeFederalGovernmenttoleverageinvestmentsnotonlyingreeninfrastructureandthephaseoutofcoalbutalsoinresearchandinnovationtosupportclimatechangegoalsandtargets.ERA’sTRMcanserveasacatalystforbroadeningpartnershipswithorganizationslikeSustainableDevelopmentTechnologyCanada(SDTC)andfederaldepartmentslikeNaturalResourcesCanada(NRCan),whilebringingtogetherdiversestakeholderstodirectlypromoteandauthenticateAlbertaasagloballeaderonmitigatinggreenhousegasemissionsthroughtechnology.

Alberta’sindustriesalsohaveakeyroletoplayindeliveringonourclimatechangeobjectives.TheTRMcanhelpaligneffortstocollaboratewithindustrypartnersandensureweareinvestinginsolutionstotheproblemsthemarketisdemanding.OrganizationslikeCanada’sOilSandsInnovationAlliance(COSIA),whichbringstogetheroilsandsproducerstocollaboratearoundimprovingenvironmentalperformance,representstrongpartnershipopportunities.

Alberta’sClimateLeadershipPlan

Alberta’sClimateLeadershipPlan(CLP)representsimportantprogressforAlbertaandisanexampleofaggressiveactionsbytheprovinceinsupportofCanada’sobligationtomeetGHGreductiontargets.Albertahasearnedagreatdealofcredibilitynotonlyfordevelopingacomprehensiveclimatechangeplantoachievesubstantialreductionsfortheperiod2015to2030,butalsofortheprocessofbringingtogetherdiversestakeholderstostronglysupporttheplan,includingtheAlbertabusinesscommunity,theaboriginalandenvironmentalcommunity,academicinstitutionsandthegeneralpublic.

TheCLPisalignedwithGHGmitigationprioritiesforCanadaandNorthAmerica,aswellaswithinternationalagreements,andprovidesamixofpolicytoolswiththepotentialtodeliversignificantGHGreductions.However,theextenttowhichtheCLPwilldeliverongenerallyacceptedglobaltargetsrelatedtolimitingglobaltemperaturerisetolessthan2degreesCelsiusispredicatedonthegovernment’sabilityto“turnthedials”onthosetools(e.g.increasethecarbonprice).MeetingsuchglobaltargetswillrequireambitiousandcomprehensiveprogramsofGHGmitigationoptionsforAlbertaandCanadafortheperiodfrom2030to2050.TorealizethemostambitioustargetstheTRMmustestablishresearchandinnovationprioritiesthatnotonlysupporttheCLPinthe2017to2030timeframe,butalsopositionsAlbertatoachieveemissionsreductionsbeyond2030.

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Alberta’sevolvingclimateandinnovationsystem

Alberta’sinnovationsystemisgrowingandevolving(seeFigure2),withclimatechangeemergingasakeysystempriority.Tosupportdiversification,jobcreation,education,trainingandclimatechangeaction,ERAwillworkinclosealignmentwiththeevolvingAlbertainnovationsystemandtheseveralcomplimentarystrategiesbeingdevelopedbygovernmentdepartments.TheimplementationoftheTRMcanspurarigorousengagementprocessandfeedbacklooptoensureacommonandmutuallysupportiveapproachacrosskeycomponentsofthesystemincluding:

§ TheAlbertaClimateChangeOffice(CCO),whichismandatedtocoordinatetheimplementationoftheClimateLeadershipPlan(CLP).TheCCOandAlbertapolicymakerswillbeapproachedtoensurethatthereisagoodunderstandingoftheirneedsinimplementingtheCLPandshapingthenextphaseofmitigationoptionsandfuturedirections.ERAcanalsobeakeyinterfacepointtoprovideadviceintotheCCOrelatingtopotentialopportunitiesforinnovationtoplaykeyroles,andforpolicytosupportrapidadoptionofnovelsolutions.

§ TheClimateTechnologyTaskForce,whichwascreatedbygovernmenttoleadstakeholderengagementandmakerecommendationsonaClimateChangeInnovationandTechnologyFrameworktohelpguideAlberta’sinvestmentsinclimatechangeinnovationandtechnology.ERAiswellpositionedtobealeadagencyforinvestingtoadvanceAlberta’sclimatechangeinnovationgoals.

Figure2-Alberta’sevolvinginnovationsystem

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§ TheAlbertaResearchandInnovationFramework,whichisbeingdevelopedbyEconomicDevelopmentandTrade(EDT)toprovidesharedoutcomesandaspirationaltargetsforprovincially-supportedresearchandinnovationorganizations.ERAcontinuestobenefitsignificantlybypartneringwithAlbertaInnovates.WiththeAlbertaInnovatesCorporationsrecentlyconsolidatedintoasingleentity,theTRMcanhelpdelineatetherolesandresponsibilitiesfordeliveringonclimateresearchandinnovationprioritiesandtimeframes.

§ TheCleantechRoadmap,whichisbeingdevelopedbyEDTtoidentifythestrategicoptionstoaccelerateAlberta’sCleantechindustrydevelopment.Theworkhasidentified“promisingsegmentsforAlberta”including:oilfieldenergyefficiency;watermanagementparticularlyinoilandgas;cleanerenergyincludingwind,solar,,biomass,geothermalenergy,biochemical,biomaterials,andbiofuels;municipalsolidwastemanagement;carboncaptureutilizationandstorageandenvironmentalproductsandservices.Thestudyassessedtheeconomicandenvironmentalimpactofthesesegments

Figure3-StrategicAreasfromCleanTechnologyRoadmap(draft)

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whichwillassistinthedevelopmentoftheTRM.Overall,theERAareasoffocusarewellalignedwiththemarketopportunitiesidentifiedbytheCleantechRoadmap(Figure3).

§ TheOilSandsAdvisoryGroup(OSAG),whichwasestablishedbyGovernmenttoexamineissuesonimplementationoftheprovince’snew100MTperyearemissionscaponoilsandsgreenhousegasemissions.TheOSAGwillalsoaddressland-useissuesintheregionandofferadviceonhowrevenuesfromthecarbonlevycanbeinvestedtoreduceper-barrelemissionsfromthesector,aswellasspecificopportunitiesthatcanbeaddressedbyinnovation.ConsultationwiththeOSAGwillbeimportanttorespondtotrendsintheTRMlikelyaffectingtheoilsandssectorby2030andbeyond.

§ EnergyEfficiencyAlberta(EEA)isanewprovincialagencythatwillpromoteandsupportenergyefficiencyandcommunityenergysystems(includingmicro-generationandsmall-scalegeneration)forhomes,businessesandcommunities.EEAwillreceivefundingof$645millionover5years.TheEnergyEfficiencyAdvisoryPanelwascreatedtoadvisethegovernmentonthetypesofenergysavingsprogramsthatEEAcanstarttodeliverintheshortandmedium-term,aswellashelpsetoutalong-termvision.ItwillbeimportantthatERAandtheTRMfocusondistinctenergyefficiencythemesthatarecomplimentarytothoseofEEA.

THETECHNOLOGYIMPERATIVE

UndertheCLP,theAlbertagovernmenthascommittedtotakingsignificantactiontoreduceGHGemissionsintheprovince.Alberta’sGHGemissionsprofileisshowninFigure4,which

Figure4-Alberta’sGHGEmissionsProfile

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illustratesthesectorswhereGHGreductionswillhavemaximumimpact.The2030estimateofpotentialreductionsthatmightbeexpectedtobedeliveredundertheCLPisshowninFigure5.

TheFederalgovernmenthascommittedtoa30percentreductioninGHGemissionsby2030.Areductionof30percentby2030frombusinessasusualinAlbertarequiresabout90MTreductions.Someeconomically-attractivenear-termGHGreductionscanbeachievedusingexistingtechnology,suchasenergyefficiency(seeFigure6).

SinceasubstantialshareofAlberta’semissionsisfromoilandgasandotherlargeindustrialsources,Alberta’schallengeistodriveemissionreductionswithoutdamagingtheprovince’seconomy.A50MTreductionby2030frombusiness-as-usualrequiresthatweidentifythecriticalinnovationpathways,challenges,andopportunitiestoachievethistargetwhilesupportingAlberta’sjobcreationanddiversificationimperative.Near-termactioncanpotentiallyleadtoabout30MTofannualreductionsby2030.Evenwiththisoptimisticgoal,therestillremainsagapofabout60+MT.

RegardlessofthespecificGHGtarget,technologymustbepartoftheanswertoachievingsignificantemissionsreductions.Achievinglonger-termGHGtargetsrequiresnewbreakthroughtechnologyoptionsandinvestmentinhigher-risk,high‑potentialtechnologydevelopment.

TRMDESIGNANDFOCUS

TheTRMisintendedtoinformERA’sportfoliomixandguideitsinvestmentdecisions.Indoingso,itshoulddefinepriorityareasoffocusforinvestmentthatwill:

Figure5-IllustratingthepotentialemissionreductionsthatresultfromtheimplementationofthestrategicdirectionsofAlberta’sClimateLeadershipPlan.

Potentialemissionsgoal

Businessasusual

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§ AchieveGHGreductionsinmultipletimeframes(2020and2030+).Investmentacrossmultipletimescalesisrequiredtobesuccessfulinaddressingtheclimatechangechallenge.Nearer-termGHGreductionsaretypicallyachievedthroughwidespreaddeploymentofcommerciallyavailable,ornearlyavailable,technologies,atthehighestreadinesslevels(TRL7through9)(seeFigure7).Longer-termreductionsrequirefocusedandsustainedinvestmentinbreakthroughsolutions,whichinvolvesinvestmentintechnologieslowerontheTRLscale.Achievingcommercializationofsuchtechnologiesissubstantiallymoreriskybutpotentiallyhighreward.

§ IdentifyIndustryneedormarketpull.InvestmentisrequiredinGHGreductiontechnologiesthatarebold,ambitious,anddemandedbythemarket.TheconceptofdirectedinnovationinvolvesdefiningkeystrategicGHGreductiontechnologydevelopmentoutcomes,whichareunpackedintoaseriesofsmallerstepsordeliverablesthatinsumallowattainmentofthebolderoutcome.KeytodefiningandunpackingtheseGHGreductioninitiativesisanunderstandingofwhatsolutionsarebeingdemandedbythemarketplace.Directedinnovationhelpstodefineinnovationchallengesinthemarketplacesotheycanbemoreeasilyunderstoodandsolvedbyinnovationproviders.Whilerealizingthesolutionsrequiredtomeettheneedsofindustryisimportant,tobecommerciallysuccessfulthesesolutionsmustfindmarketsfirstwithin,thenbeyondAlberta.Itisimportanttoacknowledge,encourage,andmeasureexternalimpacts,botheconomic(intermsofexport-derivedrevenues)andenvironmental(tonnesCO2reductionfromotherjurisdictions).

Lower risk, Lower reward, Near-term solutions

Figure6-TechnologyReadinessLevels,RiskandReward

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§ BuildonAlberta’sexistingstrengthsandcreatenewopportunities.ThereisanopportunitytoinvestinGHGreductiontechnologiesinsupportofgreeningAlberta’sexistingindustriesandhistoricalareasofstrength,suchasouroilandgassectors,aswellashelpidentifyandsupporttechnologiesinnewindustriesinsupportofeconomicdiversification,suchasourgrowingrenewableandbioenergyindustries.Indoingsowecancreateamoresustainableeconomy,createnewmarkets,andencouragejobandeconomicgrowth.Thisrequiresalignmentoftheinnovationswiththepurchasingintentofprospectiveindustrialbuyers,notsimplywithabstractconceptsofpotentialimpact.BreakthroughsmayoriginateinotherjurisdictionsthencometoAlbertaatalaterstage.Inpartthiscanbeduetosystemicbarriersandlackofaccesstoearlycapitalforinnovative/entrepreneurialcompanies.Itisimportanttoexploremechanismstoreducebarrierstoearlydevelopmentofinnovativetechnologies,andtoincreaseadoptionoftechnologiesthatmayinitiallyemergeinothermarkets.

§ GuidancefromAlberta'sclimateandinnovationsystem.TheAlbertaForumoftheTrottierTransformationProjectwasheldinJuly2016andbroughttogethertechnicalexpertsfromgovernment,academia,theenvironmentalcommunityandindustryrepresentingtheoilandgas,renewablesandpowersectorsaroundgoals.ThisincludedanalyzingdecarbonizationpathwaystoguidedecisionmakersonevidencebasedoptionsformitigatingclimatechangeimpactsandassessingthemostimportantshorttermandlongtermGHGmitigationtransformationoptionsforAlberta.ERApriorityareasoffocus(seebelow)wereguidedinpartbytheForum’spathways.

ERATRMEmergentAreasofFocus

ItisrecommendedthatERA’semergentareasoffocusincludethefourstrategicareassummarizedbelow,withemphasisontheTRLindicatedinordertodelivermaximumGHGreductionsinthe2020and2030+timeframes:

1. TransformativetechnologiesandinnovationtoreduceGHGfootprintoffossilfuelsupplyandreducemethaneemissionswhilereducingproductioncosts(TRL4-8);

2. TechnologyandinnovationtoreducetheGHGfootprintofAlberta’selectricitysupplymixandaddmorenon-emittingsupplytomeetoveralldemand(TRL5-8);

3. Innovationandearlystagetechnologiesforbiologicalresourceoptimizationinsupportingenergysystemtransformation,suchasbiofuels/bioproductsandcarbonretentionopportunities(TRL3–7);

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4. IndustrialprocessefficiencytechnologiestodeliverGHGreductionsandcostcompetitivenessthroughopportunitiessuchasprocessimprovementandenergyefficiency(TRL8-9).

Figure7showsexamplesofpotentialtechnologyinitiativeswithineachfocusarea.

BalancingthePortfolio

GiventheprevalenceoffossilfuelsintheAlbertaenergymixitisnotsurprisingthatemissionsfromthecombustionoffossilfuelsaccountforsome90%ofAlberta’sGHGemissions.Thefourstrategicareasare,therefore,plannedtofocusprimarilyoninnovationthatwill:

§ Significantlyreducetheemissionsfromfossilfueluseintheelectricitysector,inoilandgasproductionandrefiningandinheating(thermalenergyload).

§ DisplacehighemittingfossilfuelswithrenewablesandotherlowemittingsourcesfromthemajorsectorsofAlberta’seconomy.

§ Enabletechnologiesthatwilllikelybecommercializedinthemedium-tolong-termincludinglow-cost,efficientelectricalstorage,carboncaptureandutilization,andnon-combustionproductsoffossilfuels.

Figure7-StrategicFocusAreasandPotentialInitiatives

Note:Someinitiativescouldfallundermultipleareasoffocus.

Reduced GHG Footprint of Fossil Fuel Supply

AREAS OF FOCUS POTENTIAL INITIATIVES

Low EmittingElectricitySupply

BiologicalResourceOptimization

IndustrialProcessEfficiency

• Advanced recovery • Electricity- oil sands integration • Fugitive emissions • Beyond combustion • Partial Upgrading • CCUS

• Co-generation • Wind, Solar• Coal phase out • Storage• Geothermal • Hydropower

• Biofuels • Carbon retention• Bio-products - materials • N2O & CH4 emissions• BioPower • Waste management

• Industrial efficiency • Low grade heat utilization • Process improvements • Products of CO2

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ConsideringAlberta’sCLPandtheamountofemissionsemittedbyvarioussectors,apossiblebreakdownofERA’sinvestmentportfolioisprovidedinTable1.ERA’sportfolioshouldgiveconsiderationtobalancenotonlywithrespecttoareasoffocus,butalsointermsoftimescaleanddevelopmentrisks.TimescaleandrelativeriskcanbecorrelatedroughlytotheTRLlevels.InvestmentinsolutionsofTRL1-3aretypicallyhighriskbutpotentiallyofferhigherlong-termreward;solutionsofTRL3-6representmoremoderateriskandacorrespondinglymoremoderatereward;andfinallyinvestmentinsolutionsofTRL6-9arelowerriskandoffernearterm,butusuallymoremodest,results.

Assuch,ERAshouldconsiderattributingsmallaportionofitsinvestmentsacrossitsportfolio(e.g.10-15percent)tolowTRL,disruptiveandemergenttechnologies.Thiswouldincludeearlystagetechnologieswithpotentialtobehighlytransformative,orlow-costpre-demonstrationandfeasibilitystudies.ERAshouldworkcloselywiththepost-secondarysystemandAlbertaInnovatestoalignandcoordinatesuchefforts.

ERAmayalsoconsiderdedicatingasmallportionofitsinvestmentstopilotingordemonstrationofprospectivesystem-levelinnovationsthatmayshiftthecostcurveforbroaderpenetrationofkeytechnologies.Suchinvestmentswouldenableprovingoutofalternativeapproachestoinfrastructureorsystemconfiguration,suchasnext-generationsmartgrid/microgriddemonstrations.

Opportunitiesshouldbesoughttoidentifyalignmentwithotherprovincialandfederalgovernmentinitiativestocoordinatereportingofthoseareascurrentlyalignedandadjustfromtimetotimetomaximizesynergies.ExamplesincludeworkoftheEnergyDiversificationAdvisoryCommitteeandCleanTechnologyRoadmap.

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Table1–PotentialERAportfoliomix

StrategicAreaPossibleERAInvestment,%

Description

1. ReducingtheGHGFootprintofFossilFuelSupply(TRL4–8)

30–50%

§ VastmajorityofGHGemittedandgrowingemissions

§ 100Mtcaponoilsandsemissions§ Costlytopilotnoveltechnologies§ Focusonmonetizingventedandflarednaturalgasfromoilandnaturalgasproduction,gasprocessing,pipelinecompressorstations

2. LowEmittingElectricitySupply(TRL5–8)

20–30%

§ Focusonnoveltechnologiesthatarenotalreadycommercialsuchaspumpedhydro,electricalstorage,geothermal

§ CCS(CCUS)andco-gen(alsocapturedin3)

3. BiologicalResourceOptimization(TRL3–7)

10-15%

§ Earlierstagetechnologiesexploringthebestusesfortheland(reforestation,forestandagriculturalmanagement)andbiologicalresources

§ Laterstagebioenergyandbiocleantechopportunities

§ Needfortechnologiestosupportimprovedmeasurementandquantification

4. IndustrialProcessEfficiencyforIndustry(TRL8–9)

15-20%

§ Focusondemonstrationatthefacilitylevelofnovelprocessandenergyefficiencytechnologies

§ Technologiestoaddressfugitiveleaksfrompumps,valves,pipes,pneumaticdevices

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PERFORMANCEMEASUREMENT

ERAwilldefinesuccessasaTRMthatdeliversonthepurposeandobjectivesdescribedinthefirstsectionofthedocument.

DuetothevaryingmagnitudesofriskandrewardassociatedwithinvestmentacrosstimescalesandTRLs,ERAshouldconsidervaryingitsperformancemetricsdependingontheTRLfocus.Figure9belowisthe“opportunityradar”fortheFossilFuelSupplyDecarbonizationStrategicAreaasanexampleoftheevaluationprocessfornewtechnologiesthatisrepresentedbytheTRM.AtthehigherTRLlevels(typically6-9)ERA’sperformancemeasureswillbebasedonabsoluteGHGreductions(tonnesdelivered)orGHGbenefits.AtthelowerTRLlevels(typically2-5)thesuccessfactorswillbebasedonindicatorssuchTRLleveladvancement,successrate,estimatesofpotentialimpact,partner’sinterestandinvestments(leverage).Itshouldbenotedthateachofthesepointsrepresentabasketofspecifictechnologies,individualexamplesofwhichmaydeviatesignificantlyinriskanddevelopmenttimefromthenotionaldistributionillustratedinFigure8.

Whilecommittedtodeliveringagainstastrongvisionforthefuture,ERAistransparentandaccountabletoAlbertans.Forthisreason,inadditiontoforward-lookingperformancemeasuresusedinselectionofinvestmentdecisions,aprogramofongoingretrospectiveperformancemeasures,includinghowcloselyactualinvestmentperformancetracksprojectionsusedduringprojectselection.Thisreportingwillbedoneinthecontextthat

Figure8-OpportunityRadar–FossilFuelDecarbonization

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investmentininnovationcarriesanintrinsiclevelofrisk,andtheroleofthisfundistosupportde-riskingprospectivefuturecontributorstotheAlbertaeconomy.

Assuch,impactsonemissionsandeconomicactivity,includingleveragedinvestmentwillbemonitoredduringthecourseoftheprojects.Inaddition,longertermimpactsfollowingcompletionofthefundedprojectwillalsobetracked.Theseincludeenvironmentalimpacts(domesticandinternational)aswellaseconomicimpacts,suchasemployment,attractedinvestment,domesticandexportsales.Outcomeswillthenbecomparedandreportedagainstforward-lookingprojectionsmadeatthetimeofinvestment.

CourseCorrection

Theunprecedentedpaceoftechnologicalchange,aswellasthebreadthandthedepthofmanyradicalchangesunleashedbyboththenewdigitalageandenergyproductiontechnologies(example,fracking)representmajoruncertaintiesforthedirectionofinnovation.Atthesametime,globalandCanadianclimatepoliciesremainuncertainandcouldevolverapidlyandwouldlikelybecomegreaterdriversfortechnologicalinnovationandchange.

Inviewoftheabove,ERA’sTRMshouldbeviewedasacontinuousprocessdesignedtopositionERAasaflexibleandnimbleorganizationthatcanadjusttonewinformation,newchallengesandnewopportunities.ToensurethatERAhasthebestavailableinformationforinvestmentdecisions,theTRMprocesswillexploreopportunitiestoworkwithotherorganizationsontechnologyscouting(e.g.AlbertaInnovates),marketintelligence(e.g.MaRSintheCleantechsector),policyleadership(e.g.Alberta’sClimateChangeOffice)andrigorousprocessmodelingtoassesstechnologypathways(e.g.UniversityofCalgary;UniversityofAlberta;DeepDecarbonizationPathwaysProject).

RECOMMENDATIONANDNEXTSTEPS

TheprocessfordecisionmakingontheGHGmitigationoptionsandtheunderstandingofhowsuchmitigationprogramscanbeimplementediscomplex.WhiletheTRMultimatelybelongstoERAandwillbeusedfirstandforemosttoguideitsinvestmentdecisions,itwillbeimportanttoengagebroadlytoseekadviceonandvalidatetheprioritiesanddirectionsoftheTRM,toensurethatkeystakeholdersarefamiliarwithERA’srenewedmandate,andtodemonstratethatERAisdrivenbyacompellingvisionactingonprinciplesofinnovation,integrationandcollaboration.ItisalsoimportanttostressthatERA’sTRMandinnovationpathwayswillhelpchartacoursetowardsinvestmentininnovativesolutionsthatreduceGHGemissionswhilegrowingadiversifiedeconomyinalowcarbonworld.This,alongwithotherroadmapsthathavebeenorarecurrentlyunderdevelopmentmayhelptoincreasethecoherenceacrosstheinnovationecosystem.

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ItisrecommendedthatanengagementplanbedevelopedleadingtotheconveningofaseriesofdialoguesessionswiththeERABoardmembers,government&itsagencies,industry,environmentalgroupsandtechnologyexpertsto:

§ BetterdefinethespecifictechnologiessupportinglowGHGpathwaysandtheirtimeframes,assessthetrade-offsassociatedwithalternativepathwaysandidentify/validatethegapsandbarriersthatneedtobeaddressedand,ingeneral,thedirectionsoftheTRM.

§ Conferontheemergingbusinessmodel,portfolioapproachandthesequencingofcallsforproposalsinthedeliveryofGHGemissionreductions.

§ SeekadviceonwhatsuccessforERAwouldliketoassistindevelopingperformancemeasuresforERAdirectionandinvestments.

§ Identifywaysinwhichgreaterimpactmightbeachievedthroughbi-directionalinfluenceandsynergiesbetween/amongorganizations.Forexampleseekingtoensurethatregulatoryand/orprocurementpoliciesareresponsivetopositiveresultsfromERAprojects.