Home / Corporate Reporting / DPR – 2004-2005 – Index / DPR – 2004-2005 – Section 1-4

DPR – 2004-2005 – Section 1-4

2004-2005 - NRTEE Departmental Performance Report Previous - Table of Content - Next

Section I: Overview

1.4 Overall Performance

1.4.1 Context for the NRTEE’s performance

The NRTEE was established by legislation in 1994 as a publicly funded, independent agency to explain and promote principles and practices of sustainable development. The agency interprets this broad mandate through a strategic focus on issues at the intersection of the environment and the economy. The agency reports to the Prime Minister and consists of a membership of distinguished Canadians supported by a secretariat in Ottawa. Members represent a broad range of sectors, including business, labour, academia, environmental organizations and Aboriginal peoples, as well as diverse regions across the country. (See Section IV for list of members.) The secretariat, headed by a President and CEO, provides program management, analysis, communications and administrative services to the NRTEE members. (See Section IV for organization chart.) General information about the NRTEE and its membership can be found on the agency’s website (www.nrt-trn.ca).

1.4.2 Major milestone in 2004-2005: Advice on developing a long-term energy and climate change strategy for Canada

On February 16, 2005, as the Kyoto Protocol took effect, the Prime Minister requested that the NRTEE consider the energy and climate change issues faced by Canada and develop long-term strategies to address these matters. The NRTEE was asked to provide its perspective on two aspects in particular:

• Examining potential environmental risks, and economic risks and opportunities associated with climate change, and by examining these;
• Defining how Canada’s national interest can best be advanced in a carbon-constrained world economy, with a particular emphasis on examining the period of 2030-2050.

Specifically, the NRTEE was asked to provide advice on a long-term energy and climate change strategy. Most of the recommendations applying to the long-term, 2030-2050 time frame, will be completed in April 2006. However, other issues included in the Prime Minister’s reference are of a shorter term nature and require recommendations quickly, as they relate to options to be discussed in the fall of 2005 during the Conference of Parties (CoP11). Additional advice is to be delivered in April 2006. (More details about the Prime Minister’s request and the Round Table’s response are available on the NRTEE website at http://www.nrt-trn.ca/eng/programs/Current_Programs/Energy-Climate-Change/ECC_e.htm.) The implications of this referral from the Prime Minister are significant for the Round Table, both in terms of their scale and implications for Canada. With this request, the Prime Minister has signalled enormous confidence in the NRTEE’s credibility, as well as its ability to provide the required information in a timely manner.

1.4.3 The NRTEE’s contribution to Canada’s Performance

Canada’s Performance, an annual report to Parliament, sets out the context for assessing the performance of federal government programs. As shown in the table below, the NRTEE’s work relates to several chapters in the 2005 report and, as such, contributes to Canada’s performance.

Canada’s Performance Report (2005)		NRTEE Contribution to Government of Canada Outcomes in 2004-2005
Chapter Title	Relevant Government. of Canada Outcome
Sustainable Economy	1. Sustainable economic growth [where environmental sustainability is a key determinant of economic performance and quality of life] 2. A clean and healthy environment [the foundation for health and the economy; important to the quality of life of all Canadians] 3. A secure and fair marketplace	1. The NRTEE’s work on Conserving the Boreal Forests and on Climate Change and Energy is relevant to natural resource sustainability and to reducing greenhouse gas emissions. 1. & 3. The NRTEE’s work on Ecological Fiscal Reform and on Capital Markets and Sustainability is particularly relevant to integrating environmental considerations into economic decision-making. 2. The NRTEE’s preliminary examination of movement of urban goods and waste management policies addresses this outcome. 2. The NRTEE’s recommendations from the Boreal Forest program (together with earlier work on Canada’s natural capital) promote healthy ecosystems in Canada. 2. The NRTEE’s earlier work on Environment and Sustainable Development Indicators provides a framework against which to track progress.

1.4.4 Contribution to government priorities

In 2004-2005, the NRTEE contributed to several national priorities. In the October 2004 Speech from the Throne (SfT), the Government of Canada identified a series of commitments that are closely aligned with the NRTEE’s mandate, current activities and plans. Highlights are presented below. Speech from the Throne (October 2004) Globally competitive and sustainable economy. The Government announced that it will pursue a "strategy to build an even more globally competitive and sustainable economy." The NRTEE’s work on ecological fiscal reform is extremely well positioned to support the government in this area. Sustainable development in decision-making. In the SfT, the Government committed to working with its partners to build sustainable development systematically into decision-making. Much of the NRTEE’s work in 2004-2005 was aligned with this commitment; its outputs allowed for a significant contribution to Canada’s environment as well as to new thinking on sustainable development. New Deal for Cities and Communities. Another key Government priority is its commitment to work with both the provinces and the territories to deliver a New Deal for Canada’s Cities and Communities. The NRTEE’s past work on brownfield redevelopment and the environmental quality of Canadian cities continues to be relevant to these issues. Aboriginal people. Ensuring that Canada’s prosperity is shared by Canada’s Aboriginal people was also cited as a Government priority. In 2004-2005, the NRTEE’s work on the boreal forest laid the foundation for the development of policy advice to promote this goal. Specifically, this program’s consultation process examined the Aboriginal communities’ role in resource planning and management, governance and capacity development in the boreal; the current realities and debate surrounding treaty rights in the boreal for policy-makers; the optimal approach to institutional engagement of Aboriginal peoples in resource planning and management; the challenges surrounding economic development at the community level; and the ways of making recommendations to strengthen Aboriginal business opportunities in the region. Energy and climate change. The Government reiterated its commitment to the Kyoto Accord on climate change and to approaches that produce long-term and enduring results while maintaining a strong and growing economy. The NRTEE’s work on ecological fiscal reform and energy and on energy and climate change has been, and continues to be, integral to this priority and commitment. Greening Government Operations. In early 2005, the NRTEE met with the Associate Deputy Minister of Public Works and Government Services Canada to discuss a role for the Round Table in promoting the implementation of Greening Government Operations policies. This will translate into a NRTEE-Public Works cooperative activity in 2005-2006. Federal Budget 2005 The relevance of the NRTEE’s efforts is further reflected in the Government’s February 2005 Budget Plan, specifically with regard to energy and climate change issues and the New Deal for Cities and Communities. (See also Section 2.3 - Performance Discussion.) Previous budgets Since 2001, when the federal budget speech first provided direction for the NRTEE to engage in brownfield redevelopment work, federal government statements have included the topics of brownfields and contaminated sites. Indications of commitment to, and support for, the remediation of federally owned contaminated sites can be found in the 2003 and 2004 federal budget speeches.

1.4.5 Factors influencing the NRTEE’s performance

As always, the NRTEE’s success depends on its ability to influence the government’s approach to important sustainable development issues. To accomplish this, the NRTEE must produce and promote relevant, neutral and credible advice in a timely manner. Its ability to do so is affected by a whole range of issues, both external and internal. These are discussed below. External factors Complex decision-making environment. The key indicator in any examination of the NRTEE’s performance is its ability to influence federal policy development. In Canada, particularly for the issues typically examined by the NRTEE, federal policy is not developed in isolation; it is also affected by the government’s associations with the provinces and municipalities. This creates a complex decision-making environment, one that can potentially compromise the federal government’s ability to act on the NRTEE’s recommendations. Then there is the array of priorities being addressed by key stakeholders. This means that the NRTEE must compete to have its products and recommendations accorded due attention. To address this situation, the NRTEE will in the future be allocating more of its budget to promotion and communications efforts. Misconceptions about mandate and goals. Outsiders’ misconceptions about the NRTEE’s mandate and goals at times influence perceptions about the NRTEE’s performance; so too does the expectation that the NRTEE’s responsibilities include implementation of its recommendations. Although these misconceptions do not affect the actual achievement of the NRTEE’s stated outcomes, they usually indicate a strong need for better communication of the agency’s philosophy, approach and ability to influence policy outcomes. In that way, expectations can be properly managed. Lack of understanding: In the DPR 2003-2004, we identified one particular NRTEE challenge as being the general lack of understanding of the close links between the environment and the economy and, in turn, the low priority accorded sustainable development issues. This continues to be a challenge. However, in 2004-2005, the increased government and public attention afforded climate change and Canada’s Kyoto Commitments, coupled with the NRTEE's extensive efforts on energy and climate change, actually increased the likelihood that this challenge will eventually be met. In a similar vein, the anticipated uptake of the NRTEE’s extensive and groundbreaking work on Ecological Fiscal Reform (EFR), already recognized and successfully promoted in limited stakeholder groups, could prove to be a challenge. At issue is the relatively arcane subject matter and the recommended new approach to thinking about fiscal issues, particularly as they relate to the environment. The NRTEE, having recognized this potential problem, has devised a communication plan to address the issue. Internal factors As noted previously, in February 2005, the Government referred two major requests to the NRTEE for advice on climate change. In addition, Finance Canada requested advice on "feebates." Much of the new advice is required by the fall of 2005. The NRTEE, appreciative of the confidence demonstrated by these requests, is working to manage the changes associated with the new approaches for meeting tight timelines imposed while it was integrating both the new Chair and the new members.

1.4.6 Overall agency performance

A full discussion of the NRTEE’s overall performance can be found in Section II: Analysis by Strategic Outcome.

1.4.7 Resources used in 2004-2005

In 2004-2005, the NRTEE spent $4.7 million (94%) of its appropriation from Parliament. The 2004-2005 appropriation was slightly less than that of previous years because of a reduction in the statutory appropriation for employee benefit plans ($26,304); that reduction reflected the less-than-estimated cost of the NRTEE’s employee benefit plans. The NRTEE’s total expenses for the year were $5.1 million-$0.4 million greater than the parliamentary appropriations used during the year. This $0.4 million represents the cost of services ($408,450) provided by other government departments at no charge to the NRTEE. Salaries and professional services accounted for $3.4 million (73%) of total expenses in 2004-2005, an amount comparable to the $3.5 million (70%) of total expenses for the previous year. As in previous years, the agency continued to obtain technical knowledge and accommodate fluctuating program demands by supplementing staff resources with specialized professional services - primarily for research, analysis and communications. Additional financial details can be found in Section III - Supplementary Information.