“Wind energy can also ensure that greenhouse gas emission reductions in electricity generation are sustainable and long-term and can contribute to the creation of a low carbon electricity grid that can ultimately help reduce emissions in other sectors of the economy”.
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They say it strikes the right balance between developing the resource while addressing global concerns about climate change.
Today’s announcement also presents an opportunity to use more natural gas to generate electricity in Alberta as the province accelerates the phase-out of coal-fired electricity generation. While Alberta’s new renewable energy targets are ambitious, they are achievable and can be met while maintaining a reliable electricity grid.
A carbon tax of CA$20 a tonne will take effect from 2017, rising to $30 in 2018. This captures approximately 45% of provincial emissions. He urged “bold” leadership from Trudeau on this file, noting that Alberta “just leapfrogged” the federal government on climate ambition. “Under the current royalty regime this translates into roughly $140 million per year in new royalties for the province, because natural gas pays much higher royalties than coal based on price and production”.
A new set of renewable energy guidelines and targets set down by the government of Alberta, known as the Climate Leadership Plan, has been introduced in order to push the province’s transition from coal to new green energy options.
Emissions from transportation and heating fuels will be priced at the distributor and importer stage.
Energy efficiency and energy-resilient communities: A new community-scale energy and efficiency program; boosted building codes and standards; municipal partnerships to encourage public transportation and transit-oriented development.
“In my estimation the timing is ideal”, said Steve Price, CEO of Alberta Innovates Bio Solutions about the bio-economy summit at the Shaw Conference Centre. However, I also expect some of this fund to be put in general revenue to reduce a budget deficit that is estimated at $6.1-billion for 2015-2016. Household bills will rise by $320 a year for the average family in 2017 and hit $470 by 2018.
Finally, this strategy raises the overall emissions ceiling for the oil sands from 70 to 100 megatonnes.
The six-month-old government says the previous weak climate policies hampered efforts to persuade the United States and other trading partners to accept more shipments of crude from the carbon-intensive oil sands.
A legislated maximum emissions limit of 100Mt in any year will be implemented, with provisions for cogeneration and new upgrading capacity, with the goal of driving technological progress and ensuring operators have time to develop and implement new technology.
Despite the regulatory shake-up, industry representatives offered support.
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National Bank Financial analyst Kyle Preston called Alberta’s climate change policy announced “fair and accommodating” for oil and gas companies, adding the impact was neutral for the industry.
