Paying the Price of a Carbon-Based Economy
Summary
"Canadians can therefore expect to bear costs under the regulatory framework diat are not trivial." This understated fivealarm fire bell is buried deep in the Government of Canada's Regulatory Framework for Industrial Greenhouse Gas Emissions released on March 10, 2008 (GHG framework). It may become the perfect tag line for Canada's fight against climate change. All Canadians have a vested interest. Nodiing less dian the future of Canada's economy is at stake, given the strong link between fossil fuel production and use and economic growth, as well as the clear link between energy use and GHG emissions. Perhaps all Canadians should start to pay closer attention.
CCS technology would separate GHG emissions from the process or exhaust stream of large industrial facilities, compress the C02 and inject it underground into secure geological formations. Today, CCS is more theoretical than operational. According to a recent report by the ecoEnergy Carbon Capture and Storage Task Force appointed by the federal and Alberta governments, two billion dollars in new public funding should be invested soon by the federal and provincial governments to lever industrial investment and lead to phase-one CCS projects by 201 5.1 This lengthy time frame is indicative of the fragile nature of reliance on CCS technology working as planned and as a cost-effective solution to meet GHG emissions targets.What impact will the GHG framework have on Canadian citizens and businesses? The Government of Canada's economic modeling indicates that Canadians "can expect to bear real costs" as we move to lowering GHG emissions, primarily in the way of higher energy prices that will be felt throughout the economy. On average, national residential electricity prices are projected to be approximately four per cent higher than they would otherwise by 2020.2 It is expected that higher energy prices will lead to energy efficiencies and changes in production processes and consumer habits. The federal government's view is that moderation and improved efficiency in GHG-emitting energy consumption will serve as the principal driver of emissions reductions.Canadians can expect to bear high costs under Ottawa's latest regulatory framework designed to confront industrial greenhouse gas (GHG) emissions. This understated five-alarm fire bell is buried deep in the Government of Canada's Regulatory Framework for Industrial Greenhouse Gas Emissions released on Mar 10, 2008 (GHG framework). Nothing less than the future of Canada's economy is at stake, given the strong link between fossil fuel production and use and economic growth, as well as the clear link between energy use and GHG emissions. The GHG regulatory framework affects large emitters in most of Canada's major industrial sectors, including pulp and paper, iron and steel, smelting and refining, chemicals and fertilizer, and oil and gas. Carbon capture and storage technology plays a significant role in the government's approach to climate change, as evidenced by the GHG framework. Draft regulations capturing the essence of the GHG framework are expected to be published for comments some time in the fall 2008.See the full content of this document
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Paying the Price of a Carbon-Based Economy
"Canadians can therefore expect to bear costs under the regulatory framework diat are not trivial." This understated fivealarm fire bell is buried deep in the Government of Canada's Regulatory Framework for Industrial Greenhouse Gas Emissions released on March 10, 2008 (GHG framework). It may become the perfect tag line for C...
See the full content of this document
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