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Wedge Advisory Note – Summary

Advice on a Long-term Strategy
on Energy and Climate Change

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Summary of Findings

This document addresses opportunities and challenges facing
Canada in relation to its long-term energy and climate
change future. Specifically, it deals with how to, by
2050:

• Meet
  the energy needs of a growing economy
• Achieve
  substantial reductions in carbon emissions
• Improve
  the quality of Canada’s air

The
following key findings are derived from an examination
of a 2050 scenario developed by energy consultants ICF
International. The National Round Table on the Environment
and the Economy (NRTEE) members approved all recommendations
in this advisory note.

These
findings suggest a possible path for how Canada can
meet its future energy needs and address the pressing
environmental challenges of climate change and clean
air.

1. There
   can be a domestic solution to making
   significant greenhouse gas (GHG) reductions by mid-century,
   but significant reductions can be achieved only if
   energy is used more efficiently and if energy is produced
   while emitting less carbon. Energy and climate change
   policy in the 21st century means addressing both energy
   use and energy production. The question
   is not which technologies to deploy, but
   how to deploy all of the potential GHG reduction
   technologies. How to effectively deploy many different
   technologies in several sectors is an important policy
   issue.

• Energy
  use: Increasing energy efficiency is key –
  by doing so we could achieve approximately 40 per
  cent of our goal of a 60 per cent reduction in GHG
  emissions.

• Energy
  production: i) Oil and gas
  sector: Canada’s growing role as a major energy
  exporter is compatible with deep GHG emissions,
  but only if carbon capture and sequestration (CCS) is perfected. Resource extraction in the 21st
  century needs to take into account GHG reduction
  and adaptation to a carbon-constrained world economy
  – this benefits Canada both environmentally
  and competitively as a leading provider of world
  energy. ii) Electricity
  generation: To reduce GHG emissions by 60 per cent,
  the electricity sector will need to be transformed
  between now and 2050. As with the oil and gas sector,
  clean coal technology involving CCS plays
  an important role — this study assumes that
  all coal-fired generation in Alberta, and Saskatchewan
  will use CCS by 2050. After CCS, the largest reductions
  pertaining to electricity generation are from co-generation
  and renewables (particularly wind).

1. Urgent
   need for a long-term signal — The chief
   difficulty in significantly reducing GHG emissions
   is not the lack of relevant technologies – rather
   it is the lack of a long-term signal. Such a signal
   is needed to help the private sector make shorter-term
   investment decisions that take GHG reductions into
   consideration. These decisions, affecting Canada’s
   energy use and production infrastructure, are taken
   now, every day. It is important to send the appropriate
   signal as soon as possible. The longer we wait, the
   more difficult it will be.  
2. Significant
   co-benefits — Air pollution reductions and
   other co-benefits in key areas will occur along with
   the reduction of GHG emission reduction. For instance,
   significant economic co-benefits through the marketing
   of clean energy technologies will occur. However,
   domestic platforms, especially for areas such as carbon
   capture and sequestration, need to be made a national
   priority.