Home / Annual Report 2010-2011 – The Year in Review

Annual Report 2010-2011 – The Year in Review

The Round Table strives to ensure its activities are directly relevant to Canada’s national interest. In order to deliver sound recommendations and policy advice to governments, the NRTEE relies on two main strengths: the high quality of its research and its strong and unique convening power.

Through its research and convening activities, the Round Table is a catalyst for innovative and effective public policy in sustainability. The NRTEE offers independent advice to governments on how best to address the challenges and seize the opportunities associated with creating a sustainable, 21^st century economy for Canadians.

POLICY AND RESEARCH PROGRAMS

In terms of its policy initiatives in the 2010–2011 fiscal year, the NRTEE has focused its attention on a number of critical issues and research areas:

• The economic risks and opportunities of climate change;
• Water sustainability and Canada’s natural resource sectors;
• Oil sands dialogue;
• Partnership with the Royal Canadian Geographical Society; and
• Review of the Government of Canada’s implementation of the Kyoto Protocol.

CLIMATE PROSPERITY – THE ECONOMIC RISKS AND OPPORTUNITIES OF CLIMATE CHANGE FOR CANADA

Building on its previous work on climate change, the NRTEE launched its Climate Prosperity program in 2009–2010, focusing on the economic risks and opportunities for Canada related to climate change.

Climate Prosperity is a two-year policy initiative focusing on two principal research streams:

1. The economic implications for Canada resulting from a changing climate, how we should adapt, and its associated costs.
2. The economic implications for Canada resulting from the transition to a low-carbon economy, what this means for our future competitiveness, and what strategies are needed to succeed.

Work continues on both streams. The NRTEE has launched an ambitious research agenda involving original economic modelling and analysis, as well as extensive consultations with key environmental, industry and expert stakeholders.

In 2010–11, the Round Table published the first three reports of its Climate Prosperity initiative:

Report 01 (Released May 20, 2010) Measuring Up: Benchmarking Canada’s Competitiveness in a Low-Carbon World

Knowing where we stand is a key component in determining where we must focus if Canada is to compete and win in this new reality. This is the purpose of the first report entitled Measuring Up: Benchmarking Canada’s Competitiveness in a Low-Carbon World, released in May 2010. It assesses Canada’s low-carbon competitiveness against other G8 nations in areas such as emissions and energy, skills, investment, innovation, and governance.

Report 02 (released on December 16, 2010) Degrees of Change: Climate Warming and the Stakes for Canada

Climate change will affect Canada and Canadians differently depending upon where they live. Understanding what those impacts could be and planning ahead can help us all adapt and prosper through decades of climate change to come. The second report, Degrees of Change: Climate Warming and the Stakes for Canada, contains a unique illustration of how climate change could impact Canada over the 21st century if global warming trends continue. The diagram highlights 60 potential impacts of a changing climate, plotted at levels of warming ranging from today’s global temperature increase of 0.78 degrees Celsius above pre-industrialized levels, to 5 degrees Celsius over the course of this century. This report explains what we can expect from climate change across eight major categories of impacts ranging from ecosystems to water resources to human health and much more. It adds to the necessary conversation about what we can and must do to adapt to it, ensuring Canadians, communities and our economy are resilient through climate change.

Report 03 (released on January 25, 2011) Parallel Paths: Canada–U.S. Climate Policy Choices

Parallel Paths: Canada–U.S. Climate Policy Choices is the third report of the Climate Prosperity series that was released this year. The report offers new analysis, insight, and advice on the implications of harmonizing climate policies in Canada with those in the United States. It shows that harmonizing carbon targets is not the same as harmonizing carbon prices; each has different and important implications for Canada’s environment and economy. And it shows how we can still move forward even if there is delay and uncertainty in U.S. climate policy direction. In the report, the NRTEE recommended consideration of a Transitional Policy Option — a “made-in- Canada” climate policy approach that paves the way for eventual harmonization with the United States.

In 2010–2011, the Round Table worked extensively on three other reports of the Climate Prosperity series. A report on the economic impacts of climate change for Canada will be released in fall 2011. This report will provide, for the first time, national economic costings of the impact of climate change on Canada, together with a detailed look at three key sectors: coastal zones, human health, and forests, and the cost-benefits of adaptation measures.

Work has also started on an advisory report that will spur Canadian businesses to prepare more and act further to adapt to climate change. The NRTEE has undertaken initial research this year and will engage further with businesses during fiscal year 2011–2012.

The NRTEE has also undertaken a comprehensive initiative aimed at developing a low-carbon growth plan for Canada. This report will provide analysis on Canada’s global low-carbon opportunity and consider policy pathways and actions necessary for Canada’s economy to be resilient through the inevitable global low-carbon transition. It will focus on such areas as energy, innovation, skills, investment, and governance. Efforts in 2010–2011 have focused on preliminary research and the initial engagement of regional partner organizations that will work with the NRTEE to ensure that the report benefits from regional strengths and insights resulting in recommendations of true national relevance.

Copies of the published reports, as well as more information on the Climate Prosperity program can be found at http://nrt-trn.ca/climate/climate-prosperity

WATER SUSTAINABILITY AND CANADA’S NATURAL RESOURCE SECTORS

The NRTEE program on Water Sustainability and Canada’s Natural Resource Sectors is designed to examine the relationship between the energy, mining, forestry, and agriculture sectors and water sustainability. It evaluates the best policies, approaches, and mechanisms that governments, industry, and water-management authorities can use to manage water and foster both ecosystem health and the economic sustainability of the various resource sectors.

Building on extensive consultations with industry and other stakeholders, a first report, Changing Currents: Water Sustainability and the Future of Canada’s Natural Resource Sectors, was released on June 17, 2010, in conjunction with the inaugural Canadian Water Summit in Mississauga, Ontario. This report described the key water issues for those sectors and highlighted areas for recommendations and action.

In 2010–2011, the NRTEE investigated those key issues further, which will lead to the publication of a second report in fall 2011. This report will focus on policy recommendations to improve water governance and management in Canada and foster long-term sustainable use of water by the natural resources sectors.

Specifically the Round Table has examined the following:

• forecasts of future water demands by natural resource sectors;
• policy instruments for water, including pricing;
• water use information and accounting; and
• governance structures and processes including collaborative governance.

A sub-committee of members of the NRTEE played a strategic guidance role for the program and was deeply involved throughout 2010–2011. This group was complemented by an Expert Advisory Committee, made up of leading Canadian water experts and a Technical Advisory Committee including representatives from the natural resources sectors. The NRTEE’s research was also supplemented by a number of discussions with key industry organizations, a series of watershed-based workshops in British Columbia, Alberta, Québec, and Nova Scotia, and a final round of regional consultations.

Information on the Water Sustainability and Canada’s Natural Resource Sectors can be found at http://nrt-trn.ca/water/water-sustainability-and-the-future-of-canadas-natural-resource-sectors-2

OIL SANDS: FROM DEBATE TO DIALOGUE

In the late summer of 2010, a ground-breaking meeting was held in Fernie, British Columbia, organized by the NRTEE and the Public Policy Forum (PPF). A small group of thoughtful Canadian leaders from all sides of the oil sands debate met to exchange views and perspectives on creating the conditions for a positive dialogue on the sustainable development of the industry. Essentially, it was a meeting to consider whether and how a more positive form of dialogue could occur among all parties.

The Fernie meeting led to the publication of Oil Sands: From Debate to Dialogue in November 2010. In this report, the NRTEE and PPF recommend that industry, government, ENGOs, and the First Nations communities proceed now on advancing a dialogue on the issue of oil sands performance. Acknowledging the multiple facets of the oil sands issue and different scales at which they have an impact, what became clear is that the proposed “dialogue” is not one but actually three related and ultimately linked dialogues: oil sands performance, Canada’s clean energy strategy and the role of oil sands within it, and Canada’s climate change policy. There are clear policy linkages between them, and the timing and progress of each dialogue could have effects on the others.

In their report, the NRTEE and PPF stress the need for these dialogues to start taking shape: in fact, the dialogues are imperative if Canada is to better position itself globally for both climate change and a clean-energy future. And, properly done, the dialogues will reinforce progress on the oil sands performance. Doing so would enable action on the ground immediately and help build trust and momentum.

Copies of the report can be found at: http://nrt-trn.ca/wp-content/uploads/2011/06/oil-sands-from-debate-to-dialogue-eng.pdf

NRTEE/Royal Canadian Geographical Society (RCGS) collaboration

In October 2010, the National Round Table on the Environment and the Economy launched a new collaborative initiative with the Royal Canadian Geographical Society raising awareness of the physical impacts of climate change in Canada.

Central to this initiative was a unique national poster-diagram called Degrees of Change that was included in the October editions of the Canadian Geographic and Géographica magazines. The diagram illustrates the likely physical impacts of climate change on our country from today’s levels of warming to over 5 degrees Celsius.

You can see in one place, for the first time, how and where Canada and Canadians could be affected by warming temperatures and changing precipitation across a spectrum of impact areas, ranging from ecosystems to human health to water resources and more.

The website features videos and photos from the official events, including video remarks by His Excellency the Right Honourable David Johnston, Governor General of Canada, the honourable Jim Prentice, Minister of the Environment, and astronaut Dr. Robert Thirsk.

The NRTEE and RCGS also initiated a national conversation on what climate change could mean to Canada and how we could successfully adapt. We held six national and regional expert panel discussions in October 2010 in Ottawa, Halifax, Montréal, Toronto, Vancouver, and Saskatoon to engage Canadians on this important topic.

In addition, the NRTEE collaborated with the Royal Canadian Geographical Society’s Canadian Council for Geographic Education to develop 13 lesson plans — one for each province and territory — which are being taught to hundreds of thousands of young Canadians in over 12,000 schools. The RCGS Canadian Atlas Online (CAOL) also dedicated a module to the NRTEE’s Climate Prosperity program complete with videos, interactive maps, and diagrams.

In support of this initiative, the National Round Table developed a new website where visitors can learn more about how Canada can prosper in the face of global climate change. To learn more about the NRTEE’s Climate Prosperity program and Degrees of Change, visit http://nrt-trn.ca/climate/climate-prosperity.

KYOTO PROTOCOL IMPLEMENTATION ACT

The Kyoto Protocol Implementation Act (KPIA) was passed by Parliament in June 2007 and calls on Canada to meet its international commitment under the Kyoto Protocol by reducing greenhouse gas emissions to six per cent below 1990 levels by 2012.

Every year, the government must prepare a Climate Change Plan describing the measures and policies it enacted to ensure that Canada meets its obligations under the Protocol. This plan must also detail the expected emission reductions resulting from the government’s measures and policies.

Subsection 10(1) of C-288 requires the NRTEE to:

1. Undertake research and gather information and analyses on the Plan or statement in the context of sustainable development; and
2. Advise the Minister on issues that are within its purpose, including the following:
   1. The likelihood that each of the proposed measures or regulations will achieve the emission reductions projected in the Plan or statement;
   2. The likelihood that the proposed measures or regulations will enable Canada to meet its obligations under Article 3, paragraph 1, of the Kyoto Protocol, and
   3. Any other matters that the Round Table considers relevant.

The NRTEE undertook the required analysis to comply with our obligations under the KPIA and our findings were provided in our fourth written response to the Minister of the Environment in July 2010.

In its 2010 report to the Minister, the NRTEE applauded the continued improvement in forecasting, methodology, and additional transparency provided by the government in the 2010 Plan. The integrated modelling in the 2010 Plan uses a consistent definition for emissions reductions and more transparently accounts for provincial policies by including them in the reference case. These changes led the NRTEE to conclude that the integrated modelling in the Plan is a reliable estimate of likely emissions reductions in the KPIA period. To continue this cycle of improvement, the NRTEE made the following recommendations:

• That emissions reductions projections for each program and measure in the Plan be consistently estimated as the difference in expected GHG inventory emissions between a reference case without the measure in place and a policy case with the measure in place.
• That consistent assumptions be used to define the reference case across all estimates.
• That the government make publicly available the details and underlying assumptions for both a consistent reference case and a policy scenario. These forecasts should be updated regularly and include details such as sector-level emissions projections.
• That the current public process for evaluating climate policies be broadened beyond the context of the KPIA and focus on progress toward the government’s stated 2020 emissions reductions targets based on a set of actual emission milestones. This is consistent with previous NRTEE recommendations that recognized that emissions reductions are a long-term policy goal and that policy measures need to be judged over time in terms of their effectiveness in delivering desired emission levels.
• That the federal government continue to cooperate with provincial and territorial governments in determining how the Trust Fund dollars are being invested and that provinces and territories provide necessary details, so it may be more fully determined how those investments and provincial policies are contributing to Canada’s national emissions reductions objectives.

Copies of the NRTEE’s KPIA reports can be found at http://www.nrt-trn.ca/eng/issues/programs/KPIA

NRTEE CONVENING ROLE

The NRTEE’s independent role and credibility make it a natural and effective convener for matters related to sustainable development. In 2010–2011, the NRTEE used its convening ability on a regular basis, generating lively and productive roundtable discussions on a broad range of interests across sectors and regions of Canada. NRTEE staff and members are regularly asked to meet with or present to various government officials, industry groups, and other stakeholders. The NRTEE exercises its convening power through consultation sessions, outreach on published materials, and a number of other events that include a speaking or facilitating role.

We released several reports related to our work in 2010–2011. We also held a number of consultation sessions across the country on various issues. These consultations were held to ensure stakeholder engagement in various phases of our initiatives (program scoping, sharing of information, review of results, and discussion of recommendations).

The NRTEE was more engaged in such external activities than ever before in 2010–2011, either by hosting or participating in over 60 stakeholder sessions and speaking engagements in Canada and abroad. Most of these events were organized as part of the NRTEE’s main research programs. On a few occasions, the NRTEE convened stakeholders to roundtable discussions on other related topics. In late February and early March, the NRTEE collaborated with the Water Policy and Governance Group on a series of workshops designed to explore the changing landscape of water governance in Canada, focusing on implications for industries in the natural resource sectors.

During the same period, the National Round Table also hosted a series of half-day dialogue sessions across the country that brought together thought leaders to review the NRTEE’s recent Parallel Paths report and discuss its findings and their implications for Canadian climate policy. The insights and advice generated through these sessions were combined into a synthesis report submitted to the Minister of the Environment in June 2011.

In April 2010, the NRTEE, along with other Canadian think tanks, convened a unique group of individuals in Banff to discuss whether Canada needs an Energy Strategy now and if so, what would it look like. Representatives of major Canadian corporations involved with all forms of energy, members of the Energy Policy Institute of Canada, the Energy Framework Initiative, the Canada Council of Chief Executives, and the Canadian Chamber of Commerce all participated.

The NRTEE also travelled to Calgary, London (ON), and Halifax in late May and early June as part of a national initiative looking into the sustainable use of water by the natural resource sectors, namely energy, agriculture, forest products, and mining. The purpose of these meetings was to seek input into the NRTEE’s research findings and conclusions, with a view to inform the recommendations in its upcoming water report this fall.

In June 2010, the NRTEE collaborated with the Standards Council of Canada (SCC) to host a one-day workshop with representatives from the federal and territorial governments, as well as some representatives from the standards industry. The overarching goal for the session was to determine demand and promising avenues for the SCC to move forward on the NRTEE’s True North report’s recommendation to lead efforts to ensure integration of climate risks into codes, standards, and related instruments.

Additional information about the NRTEE’s convening role, meeting photos and lists of participants can be found on the NRTEE website at: http://nrt-trn.ca/event

CORPORATE MANAGEMENT INITIATIVES

Greening the NRTEE

The Secretariat completed its third assessment of the NRTEE’s carbon footprint as part of its Think Green; Act Green initiative. The Secretariat has instituted a process to conduct an annual inventory of the GHG emissions from its operations, calculating its carbon footprint according to recognized standards and methods, and making it public on its website.

From January 1 to December 31, 2010 (inclusive), the NRTEE’s carbon footprint was 159 metric tonnes CO₂e (carbon dioxide equivalents). This represents a reduction in emissions from 2009 levels.

More information about this initiative can be found on the NRTEE website at http://nrt-trn.ca/think-green-act-green.