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A New Energy
Vision for Canada
A New Energy Vision for Canada newenergycanada.ca | 1
endorsements Government Clean Air Landscaping Equiterre Faith Organizations endorsements
More than 150 companies, City of North Vancouver, British Columbia Courtney Agencies Ltd. Fraserside Community Services Society Faith and the Common Good
organizations, and City of Burnaby, British Columbia Black River Hydro Falls Brook Centre Canadian Memorial United Church
governments support Gitga’at First Nation Black River Wind Sightline Institute Oikos Network
this document. District of Saanich, Victoria, British Columbia Sea Breeze Power Corp Ecotrust Canada Noor Cultural Centre
His Worship Mayor Ken Melamed, Resort Eclipse Awards International Inc. Ontario Sustainable Energy Association The Palyul Foundation of Canada
Municipality of Whistler, British Columbia Dynamic Cities Project Wildsight Orgyan Osal Cho Dzong Temple
His Worship Mayor Mike Bernier, Lanefab Design/Build Sustainable SFU and Retreat Centre
City of Dawson Creek, British Columbia C. Easton, Sustainability Centre for International Governance Innovation Touching the Earth Working Group, Shambhala
The Islands Trust Fairware Sierra Club of Canada Bishop of Trent-Durham Area & Suffragan
Communicopia Sierra Club of British Columbia Bishop, Diocese of Toronto
Companies and Industry Associations The Green Mama Sierra Club Canada – Atlantic Chapter United Church of Canada
Forest Products Association of Canada Rain City Strategies Inc. Nova Scotia Environmental Network The Green Awakening Network
AIR MILES For Social Change Chambar Restaurant Georgia Strait Alliance Ahavat Olam Synagogue
BluEarth Renewables Biro Creative Sustainable Prosperity Pax Gaia Educational & Retreat Initiatives
Electric Mobility Canada Anderson Greenplan Adam va-Adamah Environmental Society
One Earth Initiative Society
Canadian Hydrogen and Fuel Cell Association Agentic Communications Trinity College
Environment Northeast
Canadian Geothermal Energy Association Gobi Carbon Management Solutions Evangelical Lutheran Church in Canada
The Ivey Foundation
Clean Energy British Columbia Outlook Land Design The Interfaith Coalition for
The Borealis Foundation
DOCUMENT DESIGN & PRODUCTION: ANNABELLUZ.COM. cover photo ©iStockphoto.com/maliketh. INSET photo MARINA DODIS
Offsetters Quantum Lighting Climate Justice, Halifax
County Sustainability Group
Greengate Power The Good Planet Company goBEYOND Campus Climate Network
First Nations Engineering and LoCo
In Good Company
Conservation Voters of British Columbia
Technical Services Greengate Power Corporation
Friends of Wild Salmon
British Columbia Bioenergy Network King Pacific Lodge
Day4 Energy Whistler Center for Sustainability Academics
Aeolis Wind Junxion Strategy Inc. We developed
Andrew Weaver, University of Victoria,
Scotian WindFields A New Energy Vision
School of Earth and Ocean Sciences
Canadian Bioenergy Finance for Canada in mid-
Nancy Oweiller, Simon Fraser University,
Woodland Bio Fuels Chrysalix 2011. Since then,
School of Public Policy
EnerWorks Cleantech Group more than 150 civil-
Mark Jaccard, Simon Fraser University,
Seaforth Energy Investeco society organizations,
School of Resource and
Alterra Renewal2 companies, industry
Environmental Management
Big Green Island Transportation Strategic Sustainable Investments associations, academics,
John Robinson, University of British Columbia,
Integrated Power Systems Rudy North and local governments
Sustainability Initiative have lent it their support.
MD Energy Solutions
Enfinity Non-Government Organizations George Hoberg, University of British Columbia, Taken together, these
Exro Technologies Inc. World Wildlife Fund Canada Department of Forest Resources Management endorsers represent the
Lang Motors Canadian Association of Retired Persons Erica Frank, University of British Columbia, interests of more than 1.2
Quantum Wind Canadian Association of Faculty of Medicine, School of Population million Canadians. The
MaRS Discovery District Physicians for Environment and Public Health list is still growing. If you
Westcoast NRG Climate Action Network Canada James Tansey, University of British Columbia, would like to join their
Endurance Wind Power Cascadia Green Building Council ISIS, at the Sauder School of Business ranks and help champion
Borealis Geopower Environmental Defence David Keith, University of Calgary, a prosperous low-carbon
Climate Smart Eco Justice Department of Chemical and future, please reach out.
Kerr Wood Leidal Consulting The Pembina Institute Petroleum Engineering Thank you!
Stonebreaker Designs West Coast Environment Law
Merran Smith,
EC3 Initiative B.C. Sustainable Energy Association
Director, Energy Initiative
HB Lanarc Atlantic Canada Sustainable Energy Coalition Tides Canada
Roger Bayley Inc. Ecology Action Centre March 2012
Saul Good Gift Co. ForestEthics
SEA Sustainability Now Consulting University Neighbourhoods Association
2 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 3
Executive
The world presently executive
Leading economies are racing toward a bold meeting international commitments with
new vision of a future in which, by about respect to carbon, renewable energy, and the
Summary 2050, hydrocarbons have been supplanted
summary
phasing out of fossil-fuel subsidies.
stands on the by clean and plentiful alternatives. This
new era holds the promise of unprecedented
prosperity, abundance, and geopolitical
Any credible plan to transform Canada’s
economy must be rooted in objective
information informed by the best science,
brink of a new- stability. Companies will be building value
not on what they extract from the earth and
research, and economic modeling. We
recognize, however, that people approach
energy revolution
process, but on how creatively they innovate the energy conversation from different
a range of energy systems, technologies, and perspectives and assumptions, often based
services, in ways that improve environmental on competing information and analysis.
as significant to
quality and human quality of life. In this future, To this end, we propose using normative
cities will have transformed themselves for scenario analysis to inform the development
livability and efficiency, while nations will have and implementation of a national energy
this young century
stopped going to war to secure the energy strategy. The technique enables participants
they need. to assess different options and alternatives
This vision is not an idealistic dream nor in a collaborative manner, and can help
as the discovery of an abstract debate, but an entirely practical
scenario that is already unfolding. The process
of getting from here to there—we are calling it
provide decision makers with more objective
information. Scenario planning identifies
various frames and respects the differences
petroleum was to the new-energy transition—is underway and
rife with opportunities. Indeed, it represents
between them, rather than pushing them to
one side. We also propose some initial broad
the last.
an unprecedented opportunity for Canada to design parameters for a process to develop a
create wealth, build GDP, bolster the nation’s national energy strategy.
international credibility, and improve quality In March, we shared this vision and proposed
of life. This country has a leading role to play in approach to a national energy strategy
this transition—it has strong research capacity, with well over 100 leaders from multiple
a national character able to support deep sectors, from coast to coast to coast. We have
This new era
change, abundant renewable electricity and incorporated much of their feedback into this holds the
biomass resources, and, critically, the petroleum
reserves to finance the shift.
document, including a strong endorsement
promise of
that deep greenhouse-gas reductions must be
This document imagines a Canada that included in any proposed new energy policy unprecedented
has fully embraced the opportunities of a framework for Canada. prosperity,
new-energy future. Like other discussion
papers presently circulating the country, abundance,
it endorses the idea of a national energy and
strategy to guide the transition, and recognizes
the contributions that Canada’s oil and gas geopolitical
cover & inset photo ©iStockphoto.com/maliketh.
industry make to the economy. Unlike others, stability.
this document explicitly links prosperity with
deep greenhouse-gas reductions. It also
recommends Canada embrace the global
new-energy transition away from hydrocarbons
and toward an energy services model based
on renewable sources. This document also
proposes essential ingredients of a national
energy strategy, including a price on carbon,
sectoral and regional diversity, and indicators
to monitor progress toward our goals. The
authors and supporters of this document
seek to maximize economic prosperity while
4 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 5
TABLE OF
CONTENTS
1 Introduction 8
1.0 Purpose of this Document 9
2 Our Challenge 10
2.1 A Call for Action 12
2.1.1 Demand-Side Opportunities: Efficiency and Conservation 13
2.1.2 Supply-Side Opportunities: Renewables and Energy Services 14
2.1.3 The Five Drivers of Change 15
A New-Energy Vision for Canada in 2050 17
2.2 The Risks of Business as Usual 22
2.3 Benefits of a New-Energy Economy 24
3 A Call for Leadership 26
3.1 A National Energy Strategy 28
3.1.1 Guiding Principles 29
3.1.2 Essential Ingredients 30
3.1.3 Examples of Legal and Policy Tools 32
3.2 A Successful Energy-Strategy Design Process 34
3.2.1 Designed for Success 35
3.3 What Distinguishes Our Approach 36
4 Next Steps 38
4.1 How to Get Involved 40
4.2 About Tides Canada 41
Endnotes 42
6 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 7
intro First came the arms race. Then, the space We also have the hydrocarbons necessary to For much of the past year we have been intro
race. Now, the nations of the world are in support us through this shift, tremendous working to assess the Canadian energy
the throes of a different competition—the efficiency potential, technologies needed to landscape, with the goal of identifying
1.0 new-energy race—and the stakes are no provide energy services with much less input potential components and policies of a 1.1
dare to less dramatic. The winners will effectively lead energy, myriad sources of clean energy, and new-energy vision. We have drafted and revised purpose
dream their economies into an era of unprecedented the research capacity to create the innovations the enclosed vision with the input of more than of this
prosperity, security, and abundance—with that will ultimately become some of our leading 100 leaders from business, academia, non-
big strong employment, strengthened ecosystems, export products. Further, we have a favorable government, local government, and aboriginal document
lowered public-health costs, and improved national character to embrace transformation; organizations organizations, from coast to coast
quality of life, among other benefits. we are one of the few jurisdictions in the world to coast. The result is an inspiring snapshot of a
The United States, China, Great Britain, with a demonstrated ability to find common future Canada that has largely moved on from
and many other nations are working today ground on complex challenges. Come crunch fossil fuels. We hope the document will serve as
to rapidly transition off hydrocarbons and time, Canadians have a proven ability pull a catalyst for conversations between Canadians
reorganize their cities and societies to together and get the job done. and their leaders about the best path forward
We must
provide energy services in ways that are However, while Canada has an enviable to this future. identify our
environmentally and socially benign. These opportunity to thrive in this new energy era, To this end, we have also identified a few strengths,
countries are making big investments, training we have some catching up to do. We must of the key elements of the pathway needed to
the brightest, hiring the best, incubating new activate our considerable potential to achieve realize the vision. As a first step, we propose dare to dream
technologies, and moving rapidly into a future this opportunity. The world is moving quickly, a collaborative engagement process that big, then roll
that will look very different than the present. and we risk being left behind. We can no longer would develop a national energy vision,
All are pursuing an immense opportunity. The afford to stand on the sidelines. framework, strategy, or accord. We do not up our sleeves
International Energy Agency is calling for global In January, President Obama instructed his underestimate the complexity of this task, but and get
renewable-energy investments of $430 billion nation’s scientists and engineers to focus on we do know that Canadians will not embrace
by 2020 and $1.2 trillion by 2030. the most difficult clean energy problems, and such an agreement or set of agreements
started.
Where is Canada situated in this global assured them his government would fund without first engaging in deep and meaningful
race? With outstanding universities, a proud what he called “the Apollo projects of our age.” conversations on the issues, opportunities, and
history of innovation, and a wealth of natural A new U.S. Department of Energy program tradeoffs. Such a process requires extensive
Come resources, we have assets that position us called SunShot is working to bring the price consultation—not only among thought leaders
well as leaders, and a stable financial system of solar photovoltaics down to $1 per watt— and elites—but among all Canadians, including
crunch time, to manage the transition. Ernst & Young cited competitive with natural gas—within six years. aboriginal people. We are committed to such
Canadians this latter quality last year, when the firm Meanwhile, Shanghai recently minted the an approach, and will be willing contributors to
ranked Canada 9th out of 27 economies for world’s first wind-energy billionaires. In 2009, the hard work that lies ahead.
have a proven renewable-energy investment attractiveness. Chinese investments in new energy topped
ability to pull $34.6 billion, almost double those of the
together and United States.
For its part, Canada has invested little
get the job in new energy. Others are looking to wind,
done. solar, enhanced geothermal and more, but
we haven’t yet meaningfully embraced these
energy solutions of the future. Before we can
join this vanguard and occupy a position of
leadership on the world energy stage, we
must fully embrace the possibilities of a post-
petroleum era. We must identify our strengths,
dare to dream big, then roll up our sleeves
and get started.
photo james Glave
8 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 9
2 As leading economies work to Canada is doing little to join this
OUR reduce their reliance on imported race and take advantage of the
CHALLENGE petroleum, Canada’s deepening many opportunities presented
commitment to hydrocarbons by the new-energy transition.
could leave our economy Instead, our economic strategy
vulnerable and exposed in the appears to be rooted in an
coming decades. Spurred by a assumption of ever-increasing
range of factors (see “The Five global demand for our petroleum
Drivers of Change,” page 13) products. In this respect, we
our nation’s two largest export are concerned that we may be
markets—the United States and sacrificing Canada’s long term
China—are competing to develop stability for short term gain. When
energy services and solutions everyone else has moved ahead
based on clean and abundant in the new-energy transition,
sources that will never run out. we may well find ourselves
scrambling to assemble the
necessary talent, incubators, and
research facilities to compete on
the world stage and uphold our
reputation as responsible
global citizens.
OUR CHALLENGE
If we settle for an approach,
strategy, or suite of policies that
does not drive deep change with
the appropriate scope, scale, and
We may find
speed—we will leave our nation
ourselves
vulnerable to forces beyond our
scrambling
control, and ultimately endanger
to assemble
Canada’s economic future.
the necessary
photo courtesy Lignol Innovations
talent,
incubators,
and research
facilities.
10 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 11
our In Canada, energy resource development Canadians are some of the highest per- our
is presently a strong economic driver. capita energy users in the world. In a recent
challenge Hydrocarbon export revenues contribute
challenge
OECD survey of 31 economies, using total
to GDP and help fund public services such primary energy supply per capita—which
2.1 as healthcare and education. But profound accounts for climate and distance factors— 2.1.1
change is coming, and we must be ready for it. Canada ranks as the third least-efficient
a call DEMAND -SIDE
We must prepare for a day when we fund these country, slightly less efficient than the United
FOR action critical public services with alternative States.3 Cold countries such as Sweden and OPPORTUNITIES:
revenue sources. Finland use a fraction of the energy that EFFICIENCY AND
Canadians already sense this to be the case. Canada does.4 While discouraging on its CONSERVATION
A recent Decima Research poll produced for surface, the statistic points to the tremendous
Natural Resources Canada found that a majority opportunities to be found on the demand side
of citizens believe the energy sector is one of of the spectrum. Conservation opportunities
the most important parts of Canada’s economy, are largely driven by behavioral and social
and that the federal government should lead factors, while efficiency wins are largely an
the way in finding alternatives to oil.2 outcome of how we design and manage our
“There is not an expectation that Canada appliances, cars, homes, neighborhoods,
should transition overnight, but rather and entire cities.
start the process of moving toward more Opportunities in the efficiency sector
environmentally friendly (but still reasonably include technical solutions such as efficient
cost-effective and reliable) sources in the building-envelope materials and software
medium term, and then further up the solutions that continually audit buildings for
environmental continuum in a longer energy anomalies. Others exist in professional
term future,” the report’s summary states. services such as planning, architecture, and
“[Canadians] believe that this may not happen design, and the skilled trades needed to
The transition
without some form of leadership, with retrofit, redesign and rebuild our homes and
objectives and time frames in place for this communities to make them more complete,
transitional process, and ideally, investments compact, and livable. If we drastically reduce
will take time made in facilitating this transition.”
Indeed, the transition will take time.
Reinventing our approach to something so core
our overall need for energy through design
improvements, compact, transit-oriented
communities, and innovations in building
and will likely
screenshot courtesy pulse energy. photo ©iStockphoto.com/deepblue4you.
to our lives and economy will likely prove one materials, we build-in resilience to future
of the most difficult tasks we have ever tackled energy price increases.
prove one of the
as a nation—similar in ambition to building When it comes to building-envelope
the transcontinental railway. But like that design, Canadians have a reputation as
project, this one must be undertaken if we are pioneers. In 1977, Canadian ingenuity built
most difficult
to remain strong as a nation and competitive in the Saskatchewan Conservation House—a
tomorrow’s marketplace of resources and ideas. prototype home that required only a bare
The longer we wait, the more it will cost us. minimum amount of energy for heating and
tasks we have cooling. Eventually, the design informed the
development, in Austria, of the Passivhaus
performance standard. We can lead in this
ever tackled as innovation again.
a nation.
12 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 13
our Economists One of the more subtle, but critical, The vision offered in this paper presents our
characteristics of the new energy era is that exciting new opportunities for innovation,
challenge often speak it requires a philosophical shift from thinking global cooperation, and trade. Each
challenge
about of energy not as a product, but as an enabler year, investors pour some $120 billion into
2.1.2 “demand for of services. renewable energy5 representing a total market 2.1.3
Consider transportation. Economists often value of more than $1 trillion.6 A recent HSBC
supply-side the five
oil.” But the speak about “demand for oil.” But the truth assessment of stimulus packages notes that
opportunities: is, there is no demand for oil. Instead, there global governments invested $430 billion in drivers of
renewables and truth is, there is an appetite for the energy service of safe, climate-change related infrastructure projects change
energy services is no demand affordable, and reliable mobility, or whatever in recent years.7 (See Table 1 for a country-by-
country comparison.) But while these benefits
for oil. other service oil consumption currently When the Experts
entice us to join this new race to the future,
“With over fifteen types of “There is practically no chance
provides. Despite the headlines, China doesn’t Tell Us It Can’t Be Done foreign cars already on sale communications space satellites
have a growing thirst for petroleum; it has there are also drivers in the form of larger shifts,
Many with a big stake in the here, the Japanese auto will be used to provide better
an increasing need for the energy service trends, and pressures that we can no longer
status quo may call A New industry isn’t likely to carve telephone, telegraph, television,
of transportation, and is presently making afford to ignore.8 We have identified five of
Energy Vision for Canada out a big share of the market or radio service inside the
unparalleled new energy investments to these drivers:
unrealistic. A number for itself.” —Business Week, United States.”
address it. It is increasingly plausible that
1. Increasing demand for energy of current reports and August 2, 1968. —T.A.M. Craven, U.S.
China’s solution to meeting the demand for
services as world population grows, frameworks authored by these Federal Communications
personal mobility will not require imported oil. interests typically characterize “There is no reason anyone Commissioner, in 1961.
while petroleum and other non-
There are numerous ways to meet the the coming transition as would want a computer in their
demands for energy services from renewable
renewable energy sources become
increasingly challenging, risky, and “gradual,” and position home.” “Television won’t last,
sources. The nations that invest today to find aggressive timeframes as —Ken Olson, president, because people will soon get
new ways to fulfill these demands tomorrow via costly to find, extract, and transport;
plainly impractical. It is chairman and founder of tired of staring at a plywood
clean, abundant, and non-polluting sources will 2. The growing global interest in energy valuable to remind ourselves Digital Equipment Corp. box every night.”
dominate the global new-energy economy. independence and security, including just how wrong experts that (DEC), maker of mainframe —Darryl Zanuck,
the desire to become less reliant on are the most invested in a computers, arguing against movie producer,
foreign sources of energy; given paradigm can the personal computer 20th Century Fox, 1946.
actually be. in 1977.
3. The pressure to reduce the risks
and impacts of fossil fuel extraction,
distribution, and consumption, TABLE 1: Green Stimulus Investment
particularly with respect to greenhouse Jurisdiction 2009 Investment
gases and climate disruption;
China $221 billion
4. The imperative to maintain Canadian United States $112 billion
competitiveness in the coming decades South Korea $31 billion
as other major economies increasingly
European Union $23 billion
shift to non-hydrocarbon energy
Germany $14 billion
sources; and
Japan $12 billion
5. The increasing demand from the France $7 billion
world’s most vulnerable populations to
Canada $3 billion
address energy poverty and inequity,
Australia $2 billion
while simultaneously minimizing the
photo courtesy bernie stelzer.
risk of climate-change impacts on United Kingdom $2 billion
Source: HSBC
those same peoples.
Whether it suits Canada’s present business
interests or not, these drivers are inexorably
pushing us to an energy future that will be
markedly different from the one we
have today.
14 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 15
A new
To follow, we
outline several of
the key components
of a proposed
energy
energy vision for
Canada in 2050.
The picture we
begin to paint here
vision
sounds ambitious—
and it is. Some may
scoff and dismiss it
outright. And yet
almost everything
for
we describe already
exists somewhere in
the world, in one form
or another.
Our challenge will
canada
be to select the best
of these examples
and models, and
adapt them to our
photo ©iStockphoto.com/DanDriedger.
unique circumstances
and needs.
What might the new-energy
transition look like on the ground?
16 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 17
NEW NEW CONNECTed,
RENEWABLE,
HOMES TRANSPORT
Efficient Modes of Transportation
RELIABLE
A business trip between Toronto and Quebec City could take just under
two-and-a-half hours, from office to office, aboard a comfortable,
reliable, and Canadian-built high-speed train. We expect virtually
all passenger cars would be powered by electricity generated from
renewable sources, while buses might be powered by hydrogen fuel
cells or other alternative low carbon sources of energy. Clean, efficient,
New Models of Home and Neighborhood
photos from top: ©iStockphoto.com/Trout55; courtesy Nexterra Green Homes, www.nexterra.com; courtesy urban advantage.
and reliable public transportation, such as streetcars, could connect
By 2050, the average Canadian home could become a net producer of neighborhoods with schools, shops, and services.
renewable energy. Once retrofitted for performance and connected As a trading nation, we could also realize significant opportunities in
to a sophisticated and reliable grid, homes could be providing energy freight. We might move far more of our shipments via efficient rail and
for comfort, illumination, entertainment, and other needs. They could marine modes, while trucks might be powered with liquid renewable
also provide their owners with a measure of security against energy biofuels. In urban areas, fleets of electric delivery vehicles might help
price increases, because the renewable “fuel” to heat, cool and power move commercial goods to market. Aviation will likely remain one of the
such a home would be free. In our vision, Canadian homes would be last sectors to transition off fossil fuels.
at once beautiful, accessible to a wide range of ages and lifestyles, and
straightforward to operate and maintain.
Leadership in Renewables and Energy Services
Canada’s cities and towns could become integrated energy systems
In the new energy economy of 2050, we envision that Canada will
that enjoy remarkable efficiencies by considering together the needs
overwhelmingly derive its energy from clean and renewable sources—
and opportunities of services such as water and resource recovery with
wind, solar, water, biomass, and geothermal resources—instead of
those of buildings and transportation. Unobtrusive and non-polluting
fossil fuels. Our industrial sector will remain vibrant while significantly
district heat and power plants could provide resilience and a sense
photos from top: courtesy zenn motor company; ©iStockphoto.com/nuno.
different from that of 2011. When Canadians extract resources from
of community ownership over energy. In the neighborhoods of 2050,
their land and water base, they might do so with the smallest possible
we envision all the pieces of urban infrastructure working together,
impacts and maximum possible value. Canadians could be key
dynamically and seamlessly sharing resources and information for
players in the closed loop of recovery and re-use of materials such as
maximum efficiency. (See “Inside Tomorrow’s Integrated City,” page 19)
aluminum, steel, and asphalt. The nation’s commercial infrastructure
might itself be part of the integrated energy system, and produce its
own heat, electricity, and mobility.
We expect petroleum companies will, by 2050, have transformed into
predominantly renewable energy and energy-services companies. They
IN THE cities OF 2050 will no longer be selling energy commodities, but will instead deliver a
wide range of energy services to Canadians.
WE ENVISION ALL
THE PIECES WORKING
small footprint,
big impact NEW
TOGETHER
18 | A New Energy Vision for Canada newenergycanada.ca
LEADERSHIP A New Energy Vision for Canada newenergycanada.ca | 19canadians could be global
leaders in energy services
NEW Changing Attitudes Starts
Inside Tomorrow’s Integrated City
The new energy transition can be realized when a given
PROSPERITY
with the Citizen will unfold first in Canada’s community considers all of its
By the middle of this century, we expect cities. That’s because major energy and electricity needs
Canadians will have completely transformed population centers bring together as a single system,
their relationship with energy. In our vision, people together in dense, managed by an intelligent
they would no longer assume that energy livable communities that network.
is free and ubiquitous, nor take the services can support sustainable Enter the “integrated
our sense of
Economic Prosperity it provides for granted. Instead, they would transportation, micro community energy
In 2050, Canada could be enjoying a vibrant, diverse economy and prioritize conservation and efficiency above electricity grids, district energy system”—a way of
an international reputation as a developer of energy production and all other considerations when making a systems, and other innovations planning and administering
self, revisited
conservation technologies, innovative transportation products, and decision in the home or marketplace. When to deliver low-carbon neighborhoods to consider
other value-added innovations. Our economy would produce a much Canadians do require power and heat for energy services. all the energy needs and
higher rate of GDP per unit of energy consumed, drastically improving buildings, transportation, communication, Canadian local governments opportunities of electricity,
NEW
our energy productivity. Rather than bulk exporters of hydrocarbons, entertainment, and so on, we envision they are already turning to a range heating and cooling, and
Canadians could be global leaders in the design, engineering, and would be generating it from renewable sources. of bylaws, regulations, and perhaps even mobility, with
manufacturing of sophisticated energy services. This prosperity could They might also be producing this heat and financial instruments to do other traditional municipal
be the direct outcome of a joint industry-government innovation fund power closer to where they use it, and use it so, and are saving residents services such as water and
identity
that might set aside a portion of oil and gas revenues. Such a fund sparingly—not because they would somehow money while improving wastewater. Though the
could establish leading-edge research facilities and support job training be compelled to sacrifice their lifestyles, but health and quality of life. barriers to this approach
programs across the country. because they would simply need less energy to But work now underway are not trivial, we believe
conduct the business of daily life. They would through Quality Urban Energy it will not only position
quite literally be doing more, with far less. Systems of Tomorrow (QUEST) our population centers for
Similar to this country’s success in largely
photos from top: ©iStockphoto.com/ mtrommer; coutesy bernie stelzer.
and the University of British prosperity, but also offer
eliminating illiteracy, by 2050 Canadians could Changing National Identity Columbia—among other myriad opportunities for
become very knowledgeable about the close As a country that built its wealth and institutions—suggests that Canadian private sector
connections between our energy system, power on the back of its substantial natural truly deep emissions cuts innovation and export.
economy, and ecosystems. We imagine they resources, Canadians have long seen
might cultivate a strong sense of stewardship themselves as hewers of wood and drawers
and pride of ownership over their of water. But our leadership in sectors such
energy services. as telecommunications and transportation
point the way to a different kind of national
NEW
photo: ©iStockphoto.com/sharply_done.
identity—one based less on extraction
and more on the potential of adding value
and delivering a range of energy services
innovations to domestic and export markets.
attitudes
While we will still be exporting raw materials
for decades to come, we could also be offering
the world an increasingly sophisticated and
diversified portfolio of energy innovations.
energy + economy + ecosystems
20 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 21our As the world’s large economies jockey for Several recent assessments suggest that While some argue that our greenhouse-gas our
position in the race to a new-energy future, potential exists for a very different global emissions are relatively low compared to those
challenge Canada is languishing near the back of the energy system by the middle of this century.11 of other countries, the fact is, every nation
challenge
pack. By one account, this nation has in recent One recent study, conducted by Stanford must do its fair share. Our nation’s contribution
2.2 years missed out on approximately 66,000 jobs University and the University of California, to climate disruption more than doubled 2.2
because the federal government has failed concludes that the world can meet all of its between 1990 and 2008—increasing by 121
THE RISKS THE RISKS
to match the United States in clean-energy new-energy needs with wind, water, and solar percent. One of the largest areas of growth
OF BUSINESS investments.9 by 2030, and can replace all pre-existing energy is in the fossil-fuel sector, including Alberta’s OF BUSINESS
AS USUAL But while Canada is overlooking sources with these renewable sources by 2050.12 oil-sands projects. According to Environment AS USUAL
employment opportunities today, these We are concerned that, if Canada continues Canada data, emissions from these operations
losses are minor compared to the risk of to place petroleum at the center of its energy- have tripled since 1990. If all oil sands projects
serious economic disruption in the coming planning future, that a rapid global shift that are currently seeking approval or have
decades. A number of presently circulating away from hydrocarbons could ultimately been announced by companies proceed,
Canadian energy-policy frameworks appear jeapoardize our long term economic stability, production will more than quadruple today’s
to assume an ever-increasing domestic and public services, and quality of life. Further, any levels.16 Without widespread and aggressive
international demand for our raw carbon based economy that grows too dependent on any deployment of carbon-capture and storage
energy commodities—particularly in rapidly one commodity or sector stands to undermine technology, which, despite significant federal
developing and urbanizing nations of the other sectors. Canada has already lost subsidies, remains in its infancy, emissions will
Pacific Rim.10 manufacturing jobs as a consequence of our follow on a similar scale.
However, the recent dramatic surge in low- currency’s close link to the price of oil.13 As a northern nation, Canada is already
China, for carbon infrastructure investments in these Beyond these economic vulnerabilities, witnessing the impacts of climate change in the
example, nations—particularly in the transportation there are numerous security, stability, and Arctic. Our northern residents are particularly
sector—point to an increasing push to sharply reputational risks associated with Canada’s vulnerable, especially indigenous peoples who
recently reduce dependence on imported oil. China, current path of increasing fossil-fuel reliance. have done little to contribute to the problem
committed for example, recently committed to place one Though Canada generates much of its but who are now observing massive changes
to place million electric cars on the road per year. By electricity through hydropower, for the most in weather, ice formation and movement, game
2020, that nation’s high-speed rail network part this nation meets its energy needs through migration, and more. These residents are also
one million is expected to connect all provincial capitals fossil fuels, and helps other economies do the grappling with the opportunities and risks
electric cars and cities with populations over a half-million, same. About 80 percent of our greenhouse- inherent in increased marine traffic through Communities Lead the Way
significantly offsetting domestic aviation and gas emissions are a direct consequence of the an ice-free northwest passage, including the A number of local governments around the world have shown that, with the right mix of policies
on the road the petroleum it requires. hydrocarbons we burn to make electricity, possibility of increased petroleum exploration. and the support of residents, it is possible to grow economies while reducing greenhouse gas
per year. While China and other markets will, in heat our buildings, power our transportation, As detailed in Section 3.1.2 of this document, emissions. Here are just three of many examples from around the world.
the short term, increase their demand for and extract, upgrade, and refine petroleum.14 Canada has made a range of international
Since the early 1990s, In the late 1990s, the town of In the span of a decade,
oil, real risk exists that these economies Canada is the world’s 9th largest overall carbon commitments to reduce its own emissions and
Güssing, Austria—a town of Övertorneå, Sweden, grappled Samsø, Denmark, transformed
will eventually leapfrog over 20th-century emitter, 8th most polluting on a per-capita limit average surface temperature warming
3,800 near the border with with high unemployment itself from a coal- and
energy sources, and take advantage of the basis, and 10th with respect to total to 2º above the pre-industrial era. To date, our
Hungary—has reduced its and had lost 20 per cent of petroleum-dependent island
inevitable mass commercialization of more cumulative emissions.15 governments have done little to meet these
greenhouse-gas emissions its population during the community of 4,300 to one
nimble, scaleable, and sustainable innovations commitments. Despite well-documented
by 90 percent while creating preceding decades. Town entirely run on renewable
brought to the global market by nations that economic benefits, this country is investing
hundreds of new jobs. A planners created a shared energy. Without any direct
are investing today in cleantech research and relatively little in new energy technologies,
visionary local council set the vision of a local economy subsidy from the Danish
development. By 2030 or so, we expect many and is not committing significant resources
tone early on by committing based on renewable energy, government, the islanders
nations will have reinvented their economies to helping Canadians shape their future and
to replace fossil fuels with public transportation, organic built a CAD$70M wind, solar,
photo courtesy www.irri.org.uk.
and retrofitted their cities to become more understand the role of energy in their lives,
renewable sources of energy, agriculture, and rural land and biomass community
complete, compact, and liveable. These cities and the many benefits of conservation
and did so largely through preservation. In 2001, the energy system. Local investors
will use dramatically less energy in general, and and efficiency.
combined heat-and-power community declared itself raised 80 percent of
far fewer hydrocarbons in particular.
plants powered by locally fossil-fuel free. The region the capital.
grown biomass. The town is now the largest organic
is now a regional hub of farming area in Sweden and
biogasification research. more than 200 new businesses
have sprung up.
22 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 23our Although profound change is daunting, Ecosystem Benefits We do not our
Canadians have made such dramatic We can live within our means while
challenge adjustments before17 and the potential safeguarding our air, lands, and oceans, and need to seek challenge
rewards are great. The transition to a new- the services they provide. By embracing a a “balance”
2.3 energy future promises benefits for a generous new-energy future, we will eliminate our 2.3
cross-section of Canadian society. Researchers, contribution to the buildup of heavy metals, between the
BENEFITS BENEFITS
OF A NEW
engineers, and financial sector professionals fossil fuels, and toxics in our ecosystems, environment OF A NEW
will follow the flow of new-energy investment, while dramatically reducing and eventually
ENERGY building up Canada’s own brain trust while eliminating our contributions to climate
and the ENERGY
ECONOMY attracting the best and brightest from beyond change. In this new energy vision, we do economy; we ECONOMY
our borders. The transition also presents not need to seek a “balance” between the
new possibilities for partnerships with First environment and the economy; we strengthen
strengthen
Nations, Inuit, Métis, and other aboriginal both at the same time. both at the
groups. Meanwhile, the transition will enable same time.
the training, retraining, and advancement of Personal Benefits
many thousands of Canada’s trades workers. We will retrofit and densify our communities
Our success will leverage Canada’s to lessen our dependence on motor vehicles
innovative spirit, collaborative values, and our and encourage walkability and other active-
global diversity in culture and experience. It transportation modes, triggering multiple
will also build upon our northern climate—our physical health and personal wellness benefits.
agricultural exports may become critical to help A considerable body of research details
feed a warming world—and our vast reserves the present public health costs of airborne
of renewable biomass. We expect myriad other particulates and smog on our communities.
benefits will flow from this transition, including: In a new energy vision of steadily decreasing
fossil fuel combustion, the incidence of such
Socio-Economic Benefits respiratory-related illnesses—the result of
The drive to redesign, retrofit, and rebuild gasoline- and diesel-based transportation—
Canada’s cities and towns will create new will be dramatically reduced. This will offer
photo opposite ©iStockphoto.com/ryersonclark. this page courtesy dockside green.
jobs in design and planning, construction myriad health benefits to Canadians and a
trades, building-material manufacturing and corresponding reduced burden on public
reclamation. The shift to decentralized and health care. Canadians would see a dramatically
community-based energy systems will also improved quality of life, and have more money
The transition generate local employment to manage and to spend on things other than energy.
maintain those systems. Local stewardship
also presents of integrated energy systems will enhance a Reputational Benefits
new possibilities sense of overall community in how Canadians Good things come to those who lead. As our
for partnerships work, play, learn, and care for our children investments begin to pay dividends—as we
and elders. We will eliminate energy poverty, offer the global community Canadian-made
with First particularly in aboriginal communities, many and designed new energy innovations—this
Nations, Inuit, of which presently rely on polluting and country will strengthen its reputation on the
expensive diesel generators. No longer will a world stage as a leader and innovator. As
Métis, and million Canadians have to choose each month international standing and respect flourish,
other aboriginal whether to pay for their rent or their utilities. multiple benefits and opportunities will flow
Through a national energy strategy, Canada will our way, including further investments and
groups. identify its competencies and niche strengths potential new-energy trade alliances.
in energy-services innovation. We will become
global traders of energy solutions, rather than
raw materials.
24 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 253 In the first part of
a call for
leadership this section, we call
for a national energy
strategy that includes
a set of guiding
principles and
necessary ingredients, PRINCIPLES
such as hard caps
on emissions. We
TRANSPARENCY
also describe some
of the tools and
approaches to build
and maintain trust
between participants
as this strategy
is developed—
strategies that can
help the parties
navigate potentially
contentious issues, FAIRNESS
such as nuclear
power. We’ll also
highlight the need
photo courtesy the pembina institute.
for transparency and
fairness, adequate
funding support,
and necessary
regulatory reform. a call for leadership
26 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 27a call for The fact that Canada does not have a As the costs of maintaining this standoff We propose that a a call for
national energy strategy is surprising given between Ottawa and the provinces in a world
leadership now consumed by energy issues has become national energy strategy must: leadership
that the country is so dependent on natural
resources and that energy commodities are more apparent, the political incentive to find
3.1 by far the most valuable of those resources. our new ways to push past the impasse has grown.
1. Provide accessible, fair, 3.1.1
nation is well endowed with abundant As a result, over the past 18 months we have
a national GUIDING
sources of energy, including oil and gas, coal, seen a flurry of new activity by many groups, and efficient energy services
energy hydroelectricity, nuclear, wind, solar, hydrogen, particularly industry and government, to PRINCIPleS
to Canada’s present and future
strategy biofuels and geothermal. Canada is ranked as address this situation.
the world’s fifth-largest energy producer, and is Although these initiatives represent populations with minimal risk to
home to the world’s second-largest oil constructive contributions to a national future generations;
reserves and the world’s third-largest natural consensus on Canada’s energy future, many
gas reserves. overlook issues such as a market price on 2. Create new jobs while ensuring
As stated earlier in this paper, Canada is carbon, which will internalize the now-hidden
currently not well positioned in the transition costs of fossil fuels with respect to their the country remains competitive
to a new energy future. The ongoing leadership impact on ecosystems, human health, and in the global market for new-
vacuum on energy issues in Canada is a the atmosphere. Many of the dialogues and
product of a longstanding power struggle discussion papers also neglect the required energy technologies, systems,
between Ottawa and the provinces that began deep reductions in greenhouse gases and and services;
in 1980 when the federal government of the a timeline for the new-energy transition,
day attempted to impose a National Energy including binding emissions reduction targets. 3. Reduce the risk of climate
Policy that would have restricted the province Given the sheer complexity of the task at
of Alberta’s ability to make decisions on hand and the central role that oil, gas, and coal change by lowering carbon
energy resource development within its own presently play in the Canadian economy, a shift emissions 80 percent below 1990
boundaries. Many elections and governments of this magnitude will not happen overnight. In
fact, it probably will not happen within the next
levels by the year 2050;
later, key jurisdictional issues on energy policy
in Canada remain unresolved. This complexity decade. While transformation needs to start TABLE 2:
currently hinders our ability to make effective immediately, it won’t happen at all without a
4. Protect and restore Canada’s Jurisdictional Comparison - Installed Capacity
and timely change. broad consensus that such profound change is air, land and water resources Jurisdiction Examples of Investments in
needed, and a commitment to an
Opportunities in Asia
by setting hard caps on Renewable Energy Solutions
aggressive strategy.
Germany Wind power installed: 26,000 MW (2010)
According to the World Energy 2035. India is responsible for There is already widespread agreement cumulative ecosystem and PV installed: 5,400 MW (2008)
Congress, global demand for the second-largest increase in that a centralized, top-down solution is atmospheric impacts; and Spain Wind power installed: 19,000 MW (2010)
all forms of energy is expected global demand, accounting not the answer. Instead, a national energy
to grow 36 percent between for 18 percent of the expected PV installed: 3,300 MW (2008)
strategy, framework, agreement, or accord 5. Create a new reputation for
2008 and 2035. The lion’s share increase, and doubling its must reflect the varied interests of Canada’s Texas Wind power installed: 9700 MW (2010)
of this growth is expected energy use over the regional jurisdictions and sectors, and provide Canada in the international China Wind power installed: 35,000 MW (2010)
to occur in China, which— same period. the incentives, guidance, coordination, and marketplace as an energy U.S. Wind provided 40% of all new capacity in 2008 and 2009.
owing to a combination Canada’s present response consistency necessary to achieve our energy overall Total installed wind power capacity: 36,000 MW (2010)
of rising population, rapid to this trend appears to be vision and compete in the global leader, innovator, and Solar power capacity: 1,687 MW (2009)
industrialization, and largely limited to ensuring our new-energy economy. solutions provider. Ethanol production: 34 billion liters (2008)
urbanization—in 2009 oil and gas producers have EU overall Wind power installed: 75,000 MW (2010)
overtook the United States ready access to these markets.
Canada Wind power installed: 3,250 MW (2010)
as the world’s top A new energy vision for the
PV installed: 94 MW (2009)
energy consumer. nation would develop a more
Ethanol production: 0.9 billion liters (2008)
The International Energy diversified response, and
Agency expects that China will identify export opportunities
contribute 36 percent of the for Canadian innovation in
increase in global energy use, energy services, renewables,
its demand rising an estimated and related technologies
75 percent between 2008 and and products.
28 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 29a call for A number of organizations and coalitions We must set these targets based on best Regional & Sectoral Diversity Our present a call for
are presently circulating draft national available research and evidence, and stretch Canadians take pride in their diversity, and
leadership them to stimulate innovation. We must draw system leadership
energy frameworks and hosting a variety our national energy strategy must respect
of dialogues on energy issues in Canada.18 from the performance in other jurisdictions and leverage this core value. Any strategy regards
3.1.2 Many of these documents and discussions to ensure we remain competitive while taking must support a range of approaches to realize 3.1.2
capture much of the language of a new- into account our own unique situation. Targets the vision. Provinces and municipalities will ecosystem
essential essential
ingredients
energy economy, with calls for leadership and should be set for five years, 10 years, and the draw upon a portfolio of laws and policies, impacts as ingredients
innovation to ensure competitiveness. They year 2050. The 2050 target defines the ultimate economic instruments and tools that best allow
also recommend extensive new investments vision and sets direction, while the five and them to translate the national energy strategy
“externalities”
in energy services and renewables, smart grids 10-year targets represent short-term milestones into effective action. Different regions and that are not
and smart meters, as well as energy literacy to which today’s decision-makers can be held jurisdictions have distinct needs and potential
programs and demand-side conservation accountable. contributions, and any national strategy must
factored into
measures. We agree that these are all important As a starting point*, any strategy must recognize and build upon—rather than detract the cost of
components of Canada’s energy future. reinforce our existing domestic and from—these various strengths. Though the business.
However, many of these frameworks and international commitments, including: vision will be national, implementation will
dialogues overlook a number of core tenets • An absolute reduction of Canada’s inevitably unfold at the local and regional level.
greenhouse-gas emissions to at least 17
that are essential to any credible discussion of a
future energy vision, as set out below. percent below the 2005 level by 2020, Canada’s A Market Price on Carbon
commitment under the Copenhagen Accord;22 and Full-Cost Accounting
Clear Targets and Mechanisms • Limiting global average surface The policies that will make up a national
to Measure Progress temperature increase to 2˚ Celsius above the energy strategy, agreement, or accord must
Any national energy strategy must establish pre-industrial level, as committed to under the account for the full costs of a given fuel or
clear, measurable, and binding targets.19 Copenhagen Accord;22 energy generation scheme across its life cycle,
Application of such targets is appropriate, at • Generating 90 percent of Canada’s from extraction, through manufacturing,
minimum, for gross reductions of greenhouse- electricity from zero-emitting sources; use, and eventual recovery of materials. Our
gas emissions, carbon intensity of electricity, • Phasing out fossil fuel subsidies, as present system regards ecosystem impacts as
fuel efficiency for vehicles, energy consumption committed under the G20 process.23 “externalities” that are not factored into the
standards for appliances, and performance- • Commitments under the United Nations cost of doing business. Chief among these
based standards for buildings. A strategy Convention on Biological Diversity relating to are the emissions associated with fossil-fuel
photo opposite courtesy mitsubishi motors. this page courtesy city of vancouver.
would establish such targets for each sector the preservation of biodiversity and ecosystem combustion. Any national energy strategy
and sub-sector of our energy system, including services. must fully account for these impacts, primarily
transportation, the built environment, through a market price on carbon. Such a
electricity production, energy utilization, and *These commitments, including the obligation to limit policy will bring the price of fossil fuels more in
global average surface temperature rise to 2º above the pre-
so on. It must also measure, track, and report line with their cleaner counterparts, and drive
industrial period, are political in nature. Targets should be
impacts to water, air, land, and the atmosphere. driven by science, not politics. We expect these commitments market innovation towards cleaner
Further, a strategy must define and track will be strengthened to reflect the growing scientific certainty energy services.
socio-economic indicators, to ensure that, for with respect to the impacts of climate change.
example, the new strategy is creating more
jobs than it renders obsolete, and that we are
providing aboriginal communities with equal
access to new-energy solutions.
30 | A New Energy Vision for Canada newenergycanada.ca A New Energy Vision for Canada newenergycanada.ca | 31You can also read
