20100331-IEA-Energy_Policies_of_IEA_Countries_Canada_2009_Review_266页_7mb

Summary of the 2009 Review of Canada's Energy Policies

Core Content

The 2009 Review of Canada's Energy Policies, conducted by the International Energy Agency (IEA), provides an in-depth analysis of the country's energy challenges and offers recommendations for improving its energy policy framework. Canada is recognized for its diverse and balanced energy resource portfolio, making it one of the largest producers and exporters of energy among IEA member countries. The energy sector plays a significant role in the Canadian economy and global energy security due to its abundant resources.

Main Views and Key Information

1. Energy Sector Overview

• Energy Resources and Production: Canada has a rich and diverse energy resource base, including oil, natural gas, coal, and renewable energy sources.
• Economic and Environmental Balance: The Canadian government aims to balance environmental responsibility, economic growth, and secure, competitively priced energy and infrastructure.
• Energy Intensity and Emissions: Canada has the highest energy intensity and per-capita CO₂ emissions among IEA countries, largely due to its size, cold climate, and resource-based economy.
• Renewable and Low-Emission Sources: The power sector in Canada is among the lowest emitting in the OECD, with over 80% of electricity generated from renewable and nuclear sources.

2. Policy Framework

• Federal and Provincial Roles: The federal government and provinces share responsibility for energy policy. Provinces have primary authority over energy resources, while the federal government provides overarching guidance.
• Market Orientation and Regulation: Energy policy is market-oriented, with regulatory oversight aimed at ensuring environmental and economic sustainability.
• Key Principles: The policy is guided by three main principles: market orientation, respect for provincial authority, and, when necessary, intervention to achieve specific objectives.

3. Climate Change Policy

• Kyoto Protocol and Turning the Corner: Canada failed to meet its Kyoto Protocol commitments and adopted the "Turning the Corner" framework in 2007 as an alternative approach.
• International Cooperation: The IEA recommends that Canada maintain close dialogue with the United States and participate in any international climate agreements.
• Clean Energy Dialogue: A Clean Energy Dialogue was initiated in 2009 with the U.S. to explore future cap-and-trade systems and clean energy technology development.

4. Carbon Capture and Storage (CCS)

• Federal Priority: CCS is a key priority for the federal government, offering Canada an opportunity to develop large-scale GHG reduction technology.
• Geographic Advantage: Western Canada has favorable conditions for CCS, with major emitters near suitable storage sites.
• Need for Integrated Policy: Due to the high costs and uncertainties of CCS, a comprehensive and integrated policy is needed, including economic and regulatory incentives.

5. Energy Efficiency

• High Energy Intensity: Canada has the highest energy intensity in the IEA, driven by its cold climate, large distances, and high standard of living.
• National Commitment: In 2008, provinces and territories committed to a 20% increase in energy efficiency by 2020, through improved building codes, product regulations, and home retrofit programs.
• Federal and Provincial Collaboration: The IEA encourages stronger cooperation between federal and provincial energy ministers to develop a unified national energy efficiency strategy.

6. Sector-Specific Challenges and Recommendations

Oil and Gas

• Unconventional Oil: The Alberta oil-sands represent a major challenge in sustainable development.
• Export Markets: Canada should explore expanding its oil and gas export markets beyond the U.S. and invest in necessary infrastructure.
• Regulatory Streamlining: The federal government should streamline environmental regulatory processes for upstream oil and gas.

Coal

• Abundant Reserves: Canada has substantial coal reserves and is a significant exporter of coking coal, contributing to global competition.
• Environmental Impact: There are concerns about the environmental impact of coal production and use, including water management and reclamation.

Natural Gas

• Storage and Infrastructure: Natural gas storage and LNG infrastructure are critical for supply security and market access.
• Regulatory Reform: Regulatory reform is needed to improve transparency and market efficiency in natural gas trading.

Electricity

• Non-Emitting Sources: The federal government aims to ensure 90% of electricity comes from non-emitting sources by 2020.
• Renewable and Nuclear Contribution: Renewable energy (mainly hydro) and nuclear energy together account for 76% of electricity generation.
• Need for Coordination: Coordination with provinces is essential for planning and authorizing new generation facilities and maintaining support mechanisms for renewables.

Nuclear Energy

• Refurbishment Plans: Canada has ongoing plans to refurbish nuclear power stations to maintain their role in the energy mix.
• Policy Support: A long-term strategy is needed to support the nuclear industry and ensure its continued contribution to low-emission energy.

Energy Technology and R&D

• Funding and Coordination: Canada should increase funding for energy R&D and improve coordination between federal and provincial efforts.
• Innovation and Deployment: Investment in low-carbon technologies and energy efficiency measures is essential for long-term sustainability.

Key Recommendations

• Develop a Coordinated Climate Change Policy: Target key emitting sectors and propose specific cap-and-trade mechanisms.
• Implement a Comprehensive Energy Efficiency Strategy: Focus on reducing energy intensity, especially in the road transport and buildings sectors.
• Maintain Leadership in CCS: Commit to funding large-scale CCS demonstration projects and support their commercialization.
• Streamline Environmental Regulations: Improve the efficiency and predictability of environmental regulatory processes for upstream oil and gas.
• Expand Energy Export Markets: Explore new international markets for oil and natural gas and invest in necessary infrastructure.
• Strengthen Provincial-Federal Collaboration: Enhance coordination in energy planning, policy implementation, and efficiency measures.
• Support Renewable Energy Development: Ensure long-term, effective support mechanisms for renewable energy sources.
• Promote Energy Technology Innovation: Increase government funding and streamline R&D efforts in energy technologies.

Conclusion

The 2009 Review highlights Canada's strengths in energy production and export, but also its challenges in achieving long-term sustainability, particularly in reducing greenhouse gas emissions and improving energy efficiency. The report emphasizes the need for a balanced and integrated approach to energy policy, involving both federal and provincial collaboration, market-oriented strategies, and international leadership in emerging technologies like CCS.