January 21, 2003
Hon. John Manley, M.P.
Minister of Finance
Minister's Office — L'Esplanade Laurier
140 O'Connor Street
OTTAWA, ON K1A 0G5
Dear Minister Manley,
On behalf of the Pembina Institute, I would like to congratulate the government of Canada for its ratification of the Kyoto Protocol and the introduction of the Wind Power Production Incentive, Renewable Energy Deployment Initiative, and Market Incentive Program to increase investments in low-impact renewable energy supplies in Canada.
While the Pembina Institute supports many components of the Climate Change Plan for Canada, we believe that the role of low-impact renewable energy has been vastly undervalued. The Plan sets out a renewable energy target that would lead to "10% of new electricity generating capacity from emerging renewable sources," resulting in 3.9 Mt of reductions.
Our analysis indicates, however, that by the end of the first Kyoto commitment period (2012) Canada could generate 10% of its entire electricity needs from low-impact renewable energy. This target would be equivalent to approximately 62,000 gigawatt-hours of electricity supplies, including existing sources that have been supported by federal government policies and private citizen investments. Assuming that about 3% of our electricity is currently generated by low-impact renewable energy sources, the incremental emission reductions are estimated to be on the order of 22.9 million tonnes per year.
The Clean Air Renewable Energy Coalition, of which the Pembina Institute is a founder, has achieved consensus on a number of policy recommendations to support substantial growth in low-impact renewable energy in Canada that would help us meet this more aggressive target. They are outlined below.
We ask that you consider implementing these policy recommendations in the 2003 Federal Budget. In addition to helping Canada meet its Kyoto commitment, these measures would also support the government's Innovation agenda, Clean Air agenda, and Children's Health agenda, as well as serve as a vehicle to stimulate regional economic development and create permanent jobs nationwide.
- The federal government increase the Wind Power Production Incentive (WPPI) to 2.7¢/kWh to ensure appropriate investment in wind energy and harmonization with the US.
- The federal government extend incentive programs similar to the WPPI to other renewable energy technologies.
- The federal government expand the Market Incentive Program (MIP) funding to $30 million per year, extend it to 2012 and consult with the provinces and territories to develop a broader-based consumer green energy rebate and education program.
- The federal government develop a Wind Energy Mapping and Wind Measurement Initiative.
Additional information and details on these recommendations is provided in a backgrounder document from the Clean Air Renewable Energy Coalition, attached.
Renewable energy development is a leading source of economic growth in many parts of the world and yet Canada has largely been a bystander to the flow of investment dollars. Investors prefer those jurisdictions that have fully accounted for the environmental costs of energy production. This translates to an increased value for the emission reduction benefits of low-impact renewable energy.
Canada has one of the largest renewable energy resource bases in the world, and yet we haven't mapped them or established a strong business mechanism to tap into them on a large scale. While the federal government and several provinces and territories have made initial gains in developing supportive policies, we are still missing a comprehensive policy to bring Canada on par with other industrialized countries.
Government policies and programs to support the emergence of the renewable energy industry in Canada represent an opportunity to realize the benefits of capital investment, regional creation of jobs, and related technology advancements, while cleaning our air and improving the health of children and all Canadians. They also establish a foundation for energy source diversification with important climate change co-benefits.
We are asking for your personal support and that of your government to include reference to these proposals in your upcoming Budget. We believe the proposals we have outlined above would go a considerable distance to removing the current impediments to innovation and growth of renewable technologies in Canada.
As I have now relocated my office to Ottawa, I would be pleased to meet with you or a designated representative at your convenience. I can be reached at 613-235-6288, Ext. 33.
Yours sincerely,
David Pollock, Executive Director
