1. Environmental Fundamentals of Alternatives Presentation for CEA/NRCan Workshop: Diversifying the Mix - Alternatives to Conventional Generating Technology November 25, 2002 Andrew Pape-Salmon, PEng, MRM andrewp@pembina.org http://www.pembina.org

2. November 2002, Environmental Fundamentals Pembina Institute  Pembina Institute Policy research and analysis Confidential consulting services Public interest advocacy and intervention Public and school education  Sustainable Energy Program Aims to shift Canadian energy policy to support a significant expansion of sustainable energy (energy efficiency & low-impact renewable energy) Advocates fiscal and legislative reforms which provide market recognition for the social and environmental benefits of sustainable energy

3. November 2002, Environmental Fundamentals Environmental Issues for Canadian Energy Supplies  Climate Change  Ground level ozone  Acid deposition  Reduction of biodiversity  Watershed and fish impact  Land-use – human and wildlife issues  Toxic waste buildup  Resource depletion  Other social impacts  Life-cycle evaluation is critical

4. November 2002, Environmental Fundamentals Greenhouse Gases  Includes CO 2, N 2 O, CH 4, SF 6, PFCs, HFCs, others  Known link to global climate change  Potential impacts: Climate Change Sea level rise Increased intensity of weather events (rain, snow, wind) Increased forest fire events Arctic melt Reduced biodiversity Tropical diseases moving north  Significant impacts on people, society, economy, biodiversity

5. November 2002, Environmental Fundamentals Greenhouse Gases

6. November 2002, Environmental Fundamentals

7. Greenhouse Gases  Kyoto Protocol: Canada committed to a 6% reduction below 1990 levels: to 571 Mt  Required reductions of about 29% or 238 Mt below expected levels of 809 Mt  Climate Change Plan for Canada sets out several concrete measures to reduce emissions  Immense opportunity for zero- or low- emission energy resources, energy efficiency and conservation

8. November 2002, Environmental Fundamentals Environmental Assessment  Need to compare energy options on their site- specific environmental performance rather than arbitrary scale criteria or other generalizations  Indirect and direct impacts; varies by geography  Life Cycle Value Assessment: multi-disciplinary, systems-based business analysis and decision-making process considers the full life cycle of a project enhances the design-for-sustainability Pembina Institute service to the private and public sectors

9. November 2002, Environmental Fundamentals Environmental Assessment

10. November 2002, Environmental Fundamentals Environmental Assessment  Ground level ozone: 0.03kg/MWh  Acid deposition: 0.03kg SO x /MWh  Reduction of biodiversity: minimal  Watershed and fish impact: negligible  Land-use: 1% footprint  Toxic waste buildup: none  Resource depletion: renewable  Other social impacts: visual impact, enhancement of agricultural income  All categories: indirect displacement of more impacting energy resources

11. November 2002, Environmental Fundamentals Environmental Benefits  100MW Wind Farm  300 GWh/yr, Energy for 30,000 homes  Permanent GHG Emissions Reductions: 150-300 kilotonnes per year  Reductions equivalent to taking up to 100,000 small motor vehicles off the road  Reduced smog, acid deposition, particulate matter, mercury, other heavy metals  No impact on watersheds  Reduced toxic waste  Non-depleteable resource

12. November 2002, Environmental Fundamentals Environmental Certification  Aims to establish a transparent standard for labeling energy products which protect the environment  Canadian standards: Environmental Choice Program “EcoLogo” for Renewable Low-Impact Electricity BC Hydro “Green Criteria” Low-Impact Hydropower Institute guidelines being adapted to Canadian context  Ownership of environmental attributes under debate

13. November 2002, Environmental Fundamentals Drivers for Certification  Green Power Marketing Consumers pay a price premium for electricity that demonstrates superior environmental performance Highest quality product required  Portfolio Standards Legislated or voluntary targets for renewable energy to support environmental and social objectives Cost competitive products which satisfy jurisdictional objectives for environmental performance E.g., BC Hydro 10% commitment

14. November 2002, Environmental Fundamentals Drivers for Certification  Environmental Regulations Investments in green power driven by greenhouse gas or local emission standards (e.g., Kyoto Protocol, Ontario emissions trading system) Products which demonstrate a net improvement in environmental quality  Debate: Role of Eco-Logo Guidelines Different stakeholders have presented different cases for the role of the eco-logo Need to clearly identify social purpose for certification

15. November 2002, Environmental Fundamentals “Shades of Green” Proposal  Bright green resource Best overall environmental performance Suitable for green power marketing purposes Bundling many environmental attributes  Forest green resource Demonstrate broad environmental benefits Suitable for portfolio standards for renewable energy  Olive green resource Resource which demonstrate net reductions in GHGs Suitable for meeting emission regulations  Must clearly communicate differences to consumers

16. November 2002, Environmental Fundamentals Differentiation  Goal is to clearly differentiate resources based on their social purpose – to meet emission regulations, contribute toward resource acquisition goals, or to market to consumers as a premium product

17. November 2002, Environmental Fundamentals Summary  Several critical environmental issues facing Canadian energy sector  Kyoto ratification could create an immense opportunity for alternative energy  Evaluation of environmental attributes should be done on a life-cycle basis  Certification of environmental performance should be driven by specific social purposes