20160131-IEA-Energy_Policies_of_IEA_Countries_Canada_2015_Review_287页_7mb

Summary of Canada's Energy Policies (2015 Review)

Core Content

The 2015 Review of Energy Policies of IEA Countries: Canada provides an in-depth analysis of Canada's energy landscape, focusing on its role in global energy markets, policy frameworks, and challenges in achieving sustainable and secure energy development. The report outlines key achievements, ongoing issues, and future directions for Canada's energy strategy.

Main Objectives of the IEA

The International Energy Agency (IEA) aims to:

• Promote energy security through collective responses to supply disruptions.
• Provide authoritative research and analysis to ensure reliable, affordable, and clean energy for IEA member countries and beyond.
• Support global collaboration on energy technologies to secure future supplies and reduce environmental impact.
• Encourage energy efficiency, low-carbon technologies, and climate change mitigation.
• Foster international dialogue with non-member countries, industry, and organizations to address global energy challenges.

Key Energy Policies in Canada

General Energy Policy

• Canada has made progress in implementing IEA policy recommendations, including:
  • Enhancing energy efficiency data and policies.
  • Streamlining approval processes for major energy infrastructure.
  • Deploying carbon capture and storage (CCS).
  • Restructuring Atomic Energy Canada Limited (AECL) to a government-owned, contractor-operated model.
• Co-operation between federal and provincial/territorial governments has improved in these areas.
• Several provinces have proposed climate action plans within their jurisdictions.

Energy Efficiency

• Canada's energy intensity has decreased by 20% since 2009, despite a 2% increase in energy consumption.
• Key sectors that have improved efficiency include:
  • Metals, paper, pulp, and print industries.
  • The forest industry, supported by federal policies.
  • Federal energy efficiency standards for buildings and vehicles.
• A National Energy Code for Buildings was introduced in 2011.
• EnerGuide labelling has been implemented to improve consumer awareness of energy efficiency.

Climate Change

• In 2013, 25% of Canada's GHG emissions came from the oil and gas sectors, which have increased by 14% since 2005 and 67% since 1990.
• The oil-sands sector is a major contributor to emissions intensity.
• Canada has set a 30% GHG reduction target by 2030 compared to 2005 levels.
• The Boundary Dam CCS project (operational since 2014) and the Shell Quest project (launched in 2015) are key examples of CCS deployment.

Natural Gas

• Canada is the fourth-largest natural gas producer and has significant unconventional gas resources, particularly shale gas.
• LNG export terminals are being developed, with 26 projects planned as of 2015, though only one has received a conditional final investment decision.
• Pipeline safety and rail transport regulations have been strengthened following incidents like the Lac Mégantic disaster.
• Natural gas prices in Canada have been affected by US shale gas production, leading to reduced export competitiveness.

Oil

• Canada is the fifth-largest crude oil producer and third-largest coking coal exporter.
• Oil-sands production has been relatively resilient to price drops due to efficiency improvements and technological advances.
• Oil pipeline spills and rail transport risks have prompted new safety and environmental regulations.
• The low oil price environment has impacted investment in new projects, with greenfield projects delayed or cancelled.

Coal

• Coal production has declined in recent years, and coal-fired power plants are being phased out.
• Coal transportation and infrastructure remain important for certain regions.
• Environmental regulations on coal use have been strengthened.

Electricity

• Canada has a low-carbon electricity mix, with 75% of electricity generated from non-emitting sources (hydro and nuclear).
• Electricity markets are provincial, but reliability is managed at the North American level.
• Nuclear power is a key component of the power system, with refurbishment projects in Ontario playing a crucial role in maintaining nuclear capacity.
• Renewable energy (wind, solar, hydro) is growing, but market fragmentation and limited interconnection between provinces hinder integration.

Renewable Energy

• Renewable energy accounts for a small but growing share of total primary energy supply (TPES).
• Federal and provincial policies promote renewable energy, with provincial initiatives such as renewable energy procurement mechanisms.
• Integration of variable renewable sources (e.g., wind and solar) is a challenge due to grid management and storage needs.
• Canada has significant renewable potential, particularly in hydro and wind, and theoretical technical potential is outlined in the report.

Nuclear Energy

• Canada is the second-largest uranium producer, supplying 16% of global demand.
• Uranium exports make up 85% of production, with Cigar Lake mine boosting output by 50% in 2014.
• Nuclear safety and waste management are key priorities, with the Energy Safety and Security Act modernizing the civil nuclear liability regime.
• The Canadian Nuclear Laboratories (CNL) are now managed by CNEA, following the restructuring of AECL.

Key Challenges

1. Energy Intensity: Canada remains one of the most energy-intensive economies in the IEA.
2. GHG Emissions: The oil and gas sectors are the largest contributors to GHG emissions.
3. Market Integration: US shale gas and tight oil have disrupted Canadian export markets, particularly for natural gas.
4. Investment in New Projects: LNG export projects face financial and regulatory challenges.
5. Public Acceptance: Social licence for new energy infrastructure is a major hurdle.
6. Funding for Energy RD&D: Public funding for energy research and development has declined since 2009, despite increased private sector involvement.

Recommendations

• Strengthen energy efficiency standards across all sectors.
• Improve data transparency and market integration.
• Enhance regulatory coordination with the United States.
• Support CCS and low-carbon technologies.
• Ensure adequate funding for public energy RD&D.
• Develop new export markets and diversify energy sources.
• Address public concerns and environmental impacts of energy infrastructure.

Conclusion

The 2015 review highlights Canada's strong energy position, its progress in sustainability, and the challenges it faces in maintaining energy security, economic competitiveness, and environmental responsibility. The report underscores the need for continued policy innovation, regulatory streamlining, and international collaboration to ensure a resilient and sustainable energy future.