AAnnnnuuaall RReeppoorrtt 22000011 CANADA'S CLIMATE CHANGE voluntary challenge & registry inc. Readers’ Comments and Requests

We welcome your comments, questions and requests. Please visit our web site at www.vcr-mvr.ca or contact us at:

Canada's Climate Change Voluntary Challenge & Registry Inc. (VCR Inc.) 170 Laurier Avenue W, Suite 600 Ottawa, K1P 5V5 Telephone: (613) 565-5151 Fax: (613) 565-5743 E-mail: [email protected]

Other publications available from VCR Inc. include: • VCR Inc. Annual Report 1998 • VCR Inc. Annual Report 1999 • VCR Inc. Annual Report 2000 • VCR Inc. Annual Report 2001 • VCR Inc. Registration Guide 1999 • Champion News (bi-monthly)

Toutes publications du bureau de MVR Inc. sont disponibles en français. VCR INC Mission

To provide through leadership, the means for promoting, assessing, and recognizing the effectiveness of the voluntary approach in addressing climate change.

VCR INC Mandates

•To recruit broad participation from all sectors of the Canadian economy with the support of the Council of Champions and in conjunction with sector organizations.

•To record and document participation, action plans, best practices and achievements.

•To analyze actions and achievements, and consider their potential for further progress and to provide the related support to participants as their involvement deepens.

•To recognize, publicize and promote participants making significant progress towards Canada’s reduction objectives with the support of the Technical Advisory Committee.

•To contribute to the development and implementation of standards and procedures for measuring the impact of reduction activities.

•To provide a national registry for initiatives which lead to early voluntary action to reduce GHG emissions.

•To prepare progress and annual reports, and identify issues for consideration in the evolution of VCR Inc. ANNUAL REPORT 2001 Retrospective 2001

We set out at the beginning of 2001 with a renewed enthusiasm and a clear three-year strategy for continuous improvement. Thanks to your continued support we have not been disappointed.

As our momentum continues on an upward path, the growth of champion level reporting signals significant progress in deepening quality and transparency of reporting. Our Challenge Registry has increased its ratio of Champion level Reporters to non-Champion level to 208 out of 785 registrants. The 208 Champion level reports include 101 Gold, 75 Silver, and 32 Bronze. The Gold level represents the largest overall increase of 18% over last year. Bronze and Silver levels each increased 9%.

We continue to work with the various sector organizations and appropriate programs with our active linkages and partnerships increased by 18% to 53 for 2001.

Our website continues to be heavily accessed: average hits increased by 174% over 2000 figures.

Our Challenge Registry is being used as a reference guide for various initiatives, including environmental oriented mutual funds and as a resource for studies related to the impact of voluntary climate change mitigation efforts.

With gratitude to our Champions In Action (CIA) members for their hard work over the course of 2001, we are pleased to note that the CIA initiative made significant progress over the past year. We have developed Standardized Reporting elements, including the main quantitative Balance Sheet, which detail entity targets and actions for annual reporting through the VCR Inc. Reductions Registry. We have drafted a Framework Understanding for custom application by each participant. In addition, a core group within CIA has been working in cooperation with Industry Canada to design and pilot an Environmental Supply Chain Management System that will encourage a broader array of Canadian businesses to take action to reduce their GHG footprint.

On March 1, 2001, over 150 people attended our Third Annual Leadership Awards Ceremony. We were pleased to recognize winners and honourable mentions in 20 industrial sector categories, including the Individual and Sector/Association categories. As well, we introduced an award for the first time in the category of Small to Medium-sized Enterprise.

Your participation in our Stakeholder Survey for 2001 continued to be strong, and it revealed increases in the level of satisfaction for both our technical and executive contacts.

VCR Inc. continues to provide an increasing number of services to our clientele including, for 2001: Baseline Protection; an Individual Action Registry linked to Public Service Announcements; the CIA Initiative; use of the Reductions Registry for a variety of initiatives that involve the assessment of the veracity of project, facility or entity-based GHG emission reductions; and the Credit Registry designed to post and track government sanctioned GHG emission reduction credits and Registered GHG Emission Reductions (RERs) that have been permanently retired through VCR Inc. These initiatives have led the way in our efforts to provide validation as a means of evaluation, research analysis, a flexible and responsive system of registries, and expertise in energy data analysis.

u nn al R A e p o r

t

2

2 0 0 1 As Canada moves toward Phase II of its National Implementation Strategy, the role played by VCR Inc. in support of enhanced voluntary initiatives is more vital than ever. The need has never been greater to demonstrate that, all working together, we can voluntarily make a significant impact on the reduction of Canada’s GHG inventory. The Board of VCR Inc. is unanimous in its call to you to continue your dedication to strengthening voluntary initiatives. We are also counting on you to issue the challenge to any of your sector peers who are not already engaged, to get involved and ‘celebrate the momentum’.

Michael O’Brien Robert A. Flemington, P. Eng. Chair, VCR Inc. Board of Directors President, VCR Inc.

t 200 or 1 p e R l

a

u

n 3

n A ANNUAL REPORT 2001 Table of Contents

Retrospective 2001 ...... 2 Mission ...... 1 Mandates ...... 1 Chapter One: Challenge Registry ...... 7

Chart 1: Registered Documents 1997-2001 ...... 8 Chart 2: Cumulative Action Plans and Related First Progress Reports ...... 8 Chart 3: VCR Inc. Champion Level Reporters ...... 9 Chart 4: Number of Champion Level Reporters ...... 9 1.1 Linkages and Partnerships ...... 10 Table 1: Linkages and Partnerships ...... 10 Table 2: Number of Linkages and Partnerships ...... 10 Chart 5: Percentage of Sector GHG Emissions Represented at VCR Inc...... 11 1.2 Sector Profiles ...... 11 1.2.1 Context ...... 11 Chart 6: Sources of GHG Emissions...... 11 Chart 7: Canadian GDP and GHG Emissions ...... 12 Chart 8: Canada’s GHG Emissions 1999 ...... 12 Table 3: National 1998 GHG Emissions Inventory Breakdown ...... 13 1.2.2 Methodologies ...... 14 1.2.3 Electricity Generation ...... 15 Chart 9: Electric Utilities ...... 16 1.2.4 Fossil Fuels...... 17 Chart 10: Upstream Oil and Gas Industry Production Energy Intensity ...... 18 Chart 11: Energy Intensity Index Trends for CPPI Member Refineries ...... 19 Chart 12: Energy Pipeline GHG Emissions ...... 20 Chart 13: Primary Canadian Coal Industry GHG Emissions Trends ...... 22 1.2.5 Manufacturing and Mining...... 23 Chart 14: Cement Industry Energy Intensity ...... 24 Chart 15: GHG Emissions from the Chemical Sector ...... 26 Chart 16: GHG Emissions from Metal Mining ...... 27 Chart 17: Nonferrous Metal Smelting and Refining ...... 28 Chart 18: 1999 Aluminium Emissions ...... 29 Chart 19: Pulp and Paper Industry Fossil Fuel Emissions ...... 30 Chart 20: Steel Industry Energy Index 1990-2010...... 32 Chart 21: Textiles Industry Trends ...... 33 Chart 22: Canadian Auto Manufacturing Trends ...... 34 1.2.6 Commercial Transportation...... 35 Chart 23: Commercial Transportation Energy Use and Activity Rates ...... 35 Chart 24: Railway Transportation CO2 Emissions Trends ...... 36 1.2.7 Institutional and Commercial ...... 37 Chart 25: Institutional and Commercial Sectors Energy Use and Floor Space Trends ...... 37 1.2.8 Households ...... 42 Table 4: ABC Statistics ...... 43 1.2.9 Agriculture...... 44

u nn al R A e p o r

t

2

4 0 0 1 Chapter Two: Canadian GHG Reduction Registry . . . . .47

2.1.1 Baseline Protection ...... 47 2.1.2 Champions in Action (CIA) ...... 47 Chart 26: Champions In Action ...... 49 2.1.3 Greenhouse Gas Emission Reduction Trading Pilot (GERT)...... 49 2.1.4 Activities Implemented Jointly (AIJ) ...... 49

Chapter Three: Credit Registry ...... 51

Chapter Four: Leadership Awards ...... 53

4.1 2000 Leadership Award Winners ...... 54

Chapter Five: Communications ...... 57

5.1 Website ...... 57 Chart 27: Monthly Hits and User Sessions ...... 57 5.2 Publications ...... 57 5.2.1 Champion News ...... 57 5.2.2 Registration Guide ...... 58 Chart 28: Total Number of Registration Guide Downloads ...... 58 5.2.3 Annual Report ...... 58 5.2.4 Progress Report ...... 59 5.3 Annual Survey ...... 59 Table 5: Satisfaction Quotient of Executive Contacts ...... 61 Table 6: Satisfaction Quotient of Technical Contacts ...... 61

Chapter Six: VCR Inc. Structure ...... 63

Chart 29: VCR Inc. Organizational Structure ...... 64 6.1.1 2001 Council of Champions ...... 64 6.1.2 Board of Directors (Year 2001) ...... 65 6.1.3 Members of VCR Inc.’s Technical Advisory Committee (TAC) ...... 65 6.1.4 2001 Funding Partners ...... 66 6.1.5 List of Registrants by Level of Reporting ...... 66

Appendices: List of Acronyms, Greenhouse Gases and Measurement Units

Table 7: List of Acronyms...... 71 Table 8: Greenhouse Gases ...... 72 Table 9: Measurement Units ...... 72

t 200 or 1 p e R l

a

u

n 5

n A DDepthepth ofof reportingreporting continuescontinues toto improveimprove dramaticallydramatically CHAPTER ONE Challenge Registry

The Voluntary Challenge and Registry (VCR) was first established by Natural Resources Canada (NRCan) in 1995 as a key element of Canada's National Action Program on Climate Change1. In October 1997, the operation of this initiative was incorporated, as planned, into a partnership (VCR Inc.) two-thirds funded by industry and one-third by the federal and all provincial governments.

Our overriding objective is to Challenge both current and potential registrants from all economic sectors and geographic regions to undertake voluntary actions that will contribute towards the reduction of Canada’s GHG emissions.

The Challenge Registry is Canada's only publicly accessible national registry of voluntary greenhouse gas baselines, targets, and reductions based on individual entities and/or facilities. As a public forum for sharing voluntary GHG emissions reduction information, it is at the heart of VCR Inc.’s core function. The Registry component of our operations serves to record the actions planned and executed by our registrants, providing them with the opportunity to exchange information and to share best practices with their peers.

Any entity with operations in Canada can register an Action Plan and provide subsequent Progress Reports. Hundreds of organizations have registered reports annually, each describing GHG emissions, reduction projections, target setting, measures to achieve targets, and/or results, as well as education training and awareness activities related to GHG emissions reductions.

The number of documents posted in the Challenge Registry has increased to about 1700. We have registered more than 785 current Action Plans and almost half of those have been followed up with regular Progress Reports. These reports can be viewed in their entirety by accessing the Challenge Registry within the VCR Inc. web site (http://www.vcr-mvr.ca/vcr-002.cfm). They may be browsed by entity name, by geographic location, by sector, and by report type. In addition, VCR Inc. has internal search engines that allow the organization, on a fee for service basis, to undertake more detailed analysis of the information contained in these reports.

All registered reports are scrutinized and the most rigorous reporters are assigned Bronze, Silver or Gold Champion level Reporter status. All publicly registered reports are also considered for the prestigious VCR Inc. Leadership Awards.

In 2001, in conjunction with a set of Public Service Announcements, we initiated the first steps of our Individual Action Registry. Individuals or small to medium sized entities can progress through a complete on-line registration to develop an action plan that estimates the GHG impact of their activities. The actions of individual Canadians directly account for about 28 percent of Canada’s greenhouse gas emissions.

The level of reporting across all sectors has continued to improve dramatically through those 208 entities that have achieved Champion level reporter status and through the work of Champions in Action. While Chart Two would, at first glance, suggest that the growth in registered plans has begun to level out, it is important to note that 31 registered entities were deleted in 2001 from the Challenge Registry primarily due to mergers, acquisitions, and closures. In order to encourage entities to register current activities, during the fall of 2001 we directly contacted those 263 registrants that had not submitted a progress report to us in over two years. Of the 263, 25 sent in an updated report, 22 verbally committed to send a plan in the future, and 91 requested a registration update package.

t 200 or 1 p e 1In the spring of 1990, federal, provincial and territorial energy and environmental ministers and their officials R began work on a national strategy to address climate change. Ensuing discussions resulted in the l a

development of the National Action Program on Climate Change. After extensive national consultation, the u n 7

first Business Plan of Canada’s National Implementation Strategy on Climate Change was implemented.

n Voluntary action remains a key component of this strategy. A CHART 1: Registered Documents 1997-2001 1800 1600 1698 1400 1488 1200 1176 1000 800 864 600 400 517 200 POSTED DOCUMENTS 0 1997 1998 1999 2000 2001

YEAR

CHART 2: Cumulative Action Plans and Related First Progress Reports 800 785 700 757 681 Action Plans 600

500 547 400 TICIPATION 371 R 300 354 344

PA 168 258 Progress Reports 200 112 100 1997 1998 1999 2000 2001

YEAR

u nn al R A e p o r

t

2

8 0 0 1 CHART 3: VCR Inc. Champion Level Reporters 1997-2001 120 101 100 83 80 75 60 68 41 40 39 REPORTERS 20 29 32 18 0 1999 2000 2001

NUMBER OF CHAMPION-LEVEL YEAR

BRONZE SILVER GOLD

CHART 4: Number of Champion Level Reporters

2001 208

2000 180

1999 98

A complete list of Gold, Silver, and Bronze Champion level Reporters and all other Registrants is located at the back of this report as List of Registrants by Level of Reporting.

t 200 or 1 p e R l

a

u

n 9

n A 1.1 Linkages and Partnerships Chart Five illustrates the degree of engagement for major sectors of our economy. Consistent with our continuing effort to engage new sectors and to link with new GHG reduction programs across Canada, during 2001 we initiated the groundwork which will lead to the formation of linkages and partnerships with the Airline industry, Agriculture, Food and Consumer Goods, Institutional and Commercial Buildings, and Canada’s less concentrated general manufacturers.

The 53 Associations and programs listed in Table One were active during 2001 in the process of helping to engage their constituents in the voluntary challenge. This represents an 18% increase over our 2000 level of activity.

T ABLE ONE: Linkages and Partnerships 1. Action By Canadians (ABC) 28. Cement Association of Canada 2. Air Transport Association of Canada (ATAC) 29. Clean Air Canada Inc. (CACI)/Pilot Emissions Reduction Trading (PERT) 3. Food Processors Association (AFPA) 30. Clean Development Mechanism & Joint Implementation Office (CDM/JI) 4. Aluminium Association of Canada (AAC) 31. Climate Change Calculator 5. Association of Canadian Community Colleges (ACCC) 32. Climate Change Central - Alberta 6. Atomic Energy of Canada Limited (AECL) 33. Climate Change Secretariat 7. Automotive Parts Manufacturers' Association (APMA) 34. Coal Association of Canada (CAC) 8. Baseline Protection Initiative 35. ÉcoGESte 9. Better Buildings Partnership 36. Electro-Federation of Canada 10. Canadian Association of Oilwell Drilling Contractors (CAODC) 37. Environmental Supply Chain Management Pilot (ESCM) 11. Canadian Association of Petroleum Producers (CAPP) 38. Federation of Canadian Municipalities (FCM/PCP) 12. Canadian Chemical Producers' Association (CCPA) 39. FleetSmart 13. Canadian College of Health Service Executives (CCHSE) 40. Forest Products Association of Canada (FPAC) 14. Canadian Electricity Association (CEA) 41. GHG Verification Centre 15. Canadian Energy Pipeline Association (CEPA) 42. Greenhouse Gas Emissions Reduction Trading (GERT) Pilot 16. Canadian Fertilizer Institute (CFI) 43. Hotel Association of Canada 17. Canadian Foundry Association (CFA) 44. Mining Association of Canada (MAC) 18. Canadian Gas Association (CGA) 45. National Pollutant Release Inventory (NPRI) 19. Canadian Home Builders' Association (CHBA) 46. New Directions Group (NDG) 20. Canadian Industry Program for Energy Conservation (CIPEC) 47. Office of Energy Efficiency (OEE) 21. Canadian Lime Institute (CLI) 48. Ontario Centre for Environmental Technology Advancement (OCETA) 22. Canadian Petroleum Products Institute (CPPI) 49. Petroleum Services Association of Canada (PSAC) 23. Canadian Public Health Association (CPHA) 50. Railway Association of Canada (RAC) 24. Canadian School Boards Association (CSBA) 51. Rubber Association of Canada 25. Canadian Steel Producers Association (CSPA) 52. Technology Early Action Measures (TEAM) 26. Canadian Textiles Institute (CTI) 53. World Energy Council (WEC) 27. Canadian Vehicle Manufacturers Association (CVMA)

T ABLE 2: Linkages and Partnerships

1997 1998 1999 2000 2001

21 25 34 45 53

u nn al R A e p o r

t

2

10 0 0 1 CHART 5: Percentage of Sector GHG Emissions Represented at VCR Inc.

Auto Manufacturing 93% Cement 95% Chemicals 100% Coal 100% Dowstream Petroleum 100% Education and Health Institutions 33% Electric Utilities 100% Energy Pipelines 100% Federal Government 100% Lime 45% Metal Mining and Processing 90% Municipal Governments 56% Natural Gas Distribution 100% Primary Alumimium 100% Provincial Governments 100% Pulp and Paper 75% Railways 100% Service and Retail Industry 24% Steel 100% Textiles 60% Upstream Oil and Gas 93% 020406080100

1.2 Sector Profiles

1.2.1 Content Canada’s GHG Emissions and Reductions Inventory (CGERI) totaled just under 700 million tonnes of CO2 equivalent in 1999, about 15% higher than it was in 1990. The vast majority of these emissions (71%) occur as a result of energy consumption at the "burner tip": driving your car, heating and cooling your home and other buildings, finding and bringing natural resources to market, manufacturing goods, and providing services within our economy. An additional 9% are fugitive emissions involved in the production and transportation of energy itself. Hence, 80% of our national GHG footprint is directly related to energy production and consumption. Significant strides were made by most sectors during 2001 to document their energy conservation initiatives in terms of GHG emissions reductions.

CHART 6: Sources of GHG Emissions

Industrial Processes 7.2% Solvent and Other Product Use 0.1% Energy Other 80.2% 19.8% Agriculture 8.7% Land-Use Change and Forestry 0.3% Waste 3.4% Note: Due to rounding, individual values may not add up to totals t 200 or 1 Source: VCR Inc. data derived from Environment Canada, Canada’s p e Greenhouse Gas Inventory 1990 – 1999 Emission and Removal Estimation R l Practices and Methods, April 2001, and Statistics Canada, Quarterly Report a u

on Energy Supply-Demand in Canada 1999 – IV, January 2001. n 11 n A CHART 7: Canadian GDP and GHG Emissions 1.4

1.3

1.2

1.1

1.0 1990=1.00

0.9

0.8 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

YEAR

GDP (Chained 1997 $)

Trend Line GHG Emissions

GHG Emissions

Sources: Environment Canada, Canada’s Greenhouse Gas Inventory 1990 – 1999 Emission and Removal Estimation Practices and Methods, April 2001 and Statistics Canada, Table 380-0002: Gross Domestic Product, expenditure-based, November 2001.

CHART 8: Canada's GHG Emissions 1999

Agriculture Other Electricity Generation 10.7% 1.2% 16.9%

Households 18.6% Fossil Fuels 20.0%

Institutional and Commercial (including waste) 9.7% Transportation Manufacturing Mining (Commercial) 16.8% 6.4%

TOTAL = 699 Mt CO2 eq

Source: VCR Inc. data derived from Environment Canada, Canada’s Greenhouse Gas Inventory 1990 – 1999 Emission and Removal Estimation Practices and Methods, April 2001, and Statistics Canada, Quarterly Report on Energy Supply-Demand in Canada 1999 – IV, January 2001.

u nn al R A e p o r

t

2

12 0 0 1 T ABLE THREE: National 1998 GHG Emissions Inventory Breakdown Estimate of Sector 1999 GHG Portion of GHG Emissions Sector Section Details Emissions National (Mt CO eq) Coverage 2 Total within Registry

Includes all generation facilities Electricity 1.2.3 operated by utility companies and 118.0 16.9% 100.0%2 Generation steam generation facilities.

Includes mining, production, Fossil 1.2.4 transformation and pipeline 138.0 20.0% 95.0%3 Fuels transportation related to oil, gas and coal.

Includes aluminum, cement, Manufacturing chemical, forest products, general 4 and 1.2.5 manufacturing, mining, 117.5 16.8% 72.0% Mining steel, textiles, vehicles and parts manufacturing.

Includes air, marine, rail, 5 Commercial 1.2.6 off-road and road vehicles 44.5 6.4% 26.0% Transportation (including fleet vehicles).

Includes energy and waste related emissions from federal, provincial Institutional and 1.2.7 and municipal governments, 67.8 9.7% 35.0%6 education and health Commercial institutions; commercial, service and retail industries.

Includes residential space and water heating (43.0 Mt), and Households 1.2.8 130.0 18.6% – personal vehicle transportation (84.7 Mt)

Includes non-combustion Agriculture 1.2.9 related emissions 75.0 10.7% – (mostly methane and nitrous oxide).

Other 8.4 1.2% – Total 699.07 100.0% 76%8

2 Canadian Electricity Association 3Weighted average using oil, gas and coal sector statistics 4 VCR Inc. estimation, 2001 t 200 5 VCR Inc. estimation, 2001 or 1 p 6 Assumes 100 per cent of government emissions, in addition to 10 per cent of other buildings e 7A20Mt reduction of CO fromLand Use Change & Forestry is not included in inventory totals R 2 l

8 VCR Inc. registrants represent 76% of the GHG emissions from all sectors except Households, Agriculture and a

Other u

n 13

n A Chart Eight and the supporting detailed information in Table Three serve to illustrate and quantify the GHG impact of the various sectors of our economy. It is estimated that, excluding households and the farming community, 76% of the ability of the remaining sectors to reduce our national GHG annual inventory is represented by the Action Plans of those companies, governments, and other organizations documented in our Challenge Registry.

In our 2000 Annual Report we began tracking the relationship between Canada’s Gross Domestic Product (GDP), a measure of the strength and size of our economy, and the GHG emissions generated as a result of this economic activity. It was noted that 1997 marked the first year that Canada successfully de-coupled the generation of GHG emissions from our economic growth. Chart Seven illustrates that the trend continued into 1998 and 1999, providing clear evidence that the efforts to reduce GHG emissions made by all sectors of our economy are having a positive and significant effect.

You will note when reading the following sector profiles that we have introduced a new measure of performance by estimating the quantity of avoided annual emissions achieved as a result of energy management and other reduction activities undertaken within the sector since 1990. The methodology for this estimate was developed with the aid of VCR Inc.’s multi-stakeholder Technical Advisory and is described below.

1.2.2 Methodologies

Direct emissions for the national totals and major sectors (energy, manufacturing, commercial transportation, etc.) were calculated based on two different data sources. For non-energy emissions, VCR Inc. used data from Canada’s Greenhouse Gas Inventory 1990 – 1999 Emissions and Removal Estimation Practices and Methods, which was published by Environment Canada in April 2001. This same document provided emission factors for energy-related emissions. However, to get a more detailed breakdown of end use energy consumption and associated emissions, VCR Inc. used raw energy consumption data published by Statistics Canada, in Quarterly Report on Energy Supply- Demand in Canada, 1999 – IV, which was released in January 2001. This quarterly report, often referred to as the QRESD, is also used by Environment Canada to determine energy-related emissions for the national inventory.

Direct emissions for detailed sector profiles (energy pipelines, coal mining, metal mining, steel, etc.) were either determined using the same methodology as above, or drawn from public CIEEDAC data, or taken from sector roll-up data produced by trade associations, or compiled from emissions data from individual registrants.

Indirect emissions for detailed sector profiles were either calculated by VCR Inc., or taken from sector roll-up data produced by trade associations, or compiled from emissions data from individual registrants. Indirect emissions calculated by VCR Inc. were typically done on a provincial / territorial basis. The QRESD report includes energy consumption for electrical generation by both utilities and industry for each province and territory, creating accurate regional emission factors. For many sectors, all or most electrical energy consumption data was available on a regional basis. (For some manufacturing sectors, the energy consumption data was confidential for non-core producing regions. Emissions factors for electrical consumption in these regions could be extrapolated, but not as accurately as for core regions. Since the national energy consumption was known, the energy consumed by non-core regions could be calculated by subtracting the energy consumption from the core regions.) Where no reasonable estimate of indirect GHG emissions was possible, they were not included in the sector profile.

‘Avoided annual emissions’ represents the difference between actual emissions in 1999 and u those that would have occurred had no reduction initiatives been undertaken since 1990. nn al R A e p o The preferred methodology for avoided annual emissions is: r t (1990 emissions intensity – 1999 emissions intensity) x 1999 production

2

14 0 0 1 Other similar calculations are used if the emissions intensity or production data is not available. If no reasonable method of estimating avoided emissions is available, it is not included in the sector profile. It should be noted that ‘avoided annual emissions’ represents the net impact of all actions across the sector, including both voluntary and policy initiatives, and those initiated by both registered and non- registered entities.

‘Action Plans’ refers to the number of organizations in the sector that have an action plan registered in the VCR Inc. Challenge Registry. There are three minimum criteria for a registered action plan: senior management commitment, commitment to regular reporting, and a base year quantification.

‘Champion level’ refers to the top level of reporters within the Challenge Registry, who have earned Bronze, Silver or Gold Champion level Reporter status. Champion level Reporter status is earned by registering rigorous reports, as described in the VCR Inc. Registration Guide. Gold status also requires demonstrated reduction actions that have reduced total GHG emissions, and / or GHG emissions intensity or energy intensity between the registrant’s current reporting year and base year.

‘% of sector emissions’ refers to the portion of the sector’s total GHG emissions included in the Challenge Registry. This ratio is estimated based on the ratios of registered and unregistered production, energy consumption, and / or direct input from a representative sector trade organization based on their detailed knowledge of the sector participants.

1.2.3 Electricity Generation

Total Direct Emissions: 112.0 Mt CO2 eq

9 1999 Avoided Emissions : 20.4 Mt CO2 eq from Reference Case

Sector Engagement: 16 Action Plans 10 Champion level Virtually 100% of sector emissions10

Significant progress by sector: Between 1990 and 1999, GHG emissions (CO2 eq) reported by VCR-participating companies increased by a total of 24% or an average of 2.5% per year. However, from 1998 to 1999 emissions fell by 2.0 Mt, as thermal generation declined slightly and reduction initiatives intensified. Increases in fossil generation since 1990, coupled with a slight decline in hydro generation from 1996 to 1999, are largely responsible for the rising emissions. Nearly half the increase in coal-based generation since 1990 is due to the lay-up of nuclear reactors in Ontario.11 Nonetheless, future emissions growth will be moderated over the next 20 years, since natural gas and hydro generation are expected to grow faster than coal-based generation, and as existing nuclear units come back on-line, to meet both load growth and plant requirement needs, and improvements in energy efficiency are made12.

Between 1990 and 1999, the mass of reported GHG emissions (CO2 eq) per unit of net fossil generation declined by 12%. Since 1990 the share of coal in Canada’s thermal generation has declined slightly, while the shares of lower-emitting natural gas and biomass energy have increased, mainly at the expense of oil’s share, which has fallen significantly13. Moreover, the generation and energy conversion efficiencies of utilities have improved over this period. Environment Canada reports that the average combustion heat rate for the electricity sector (in kJ per kWh of electricity production) fell by 3% from 1994 to 1996 14. As a result, although thermal generation and GHG emissions have increased overall, the amount of GHGs emitted per unit of electricity produced has declined.

9 From 1998 Reference Case, as outlined in Canadian Electricity Association, Overview of 1998 Electricity Sector Submissions of 1997 year end data to Canada’s Voluntary Challenge Program. 10 Not all Canadian electricity-generating companies report to VCR Inc. t 200 or 1 11 Environment Canada, Backgrounder on Greenhouse Gas Emissions, 1990 to 1998, 2000. p e 12 Global Change Strategies International A Bird’s Eye View of Electricity Supply and Demand to 2020, prepared R for the Canadian Electricity Association, 2001. l a

13 Statistics Canada, Quarterly Report on Energy Supply-Demand, 1998-IV, 57-003-XPB, 1999 and Statistics u n 15

Canada, Electric Power Annual Statistics, 57-202, 1998.

n 14 Environmental Canada, Canada’s Greenhouse Gas Inventory Ð1997 Emissions with Removals and Trends, 1999. A Examples of Best Practices:

Reducing diesel dependence in remote communities Many isolated communities are not tied into large-scale electric grids. These communities typically rely on local diesel or hydro generation. The Development Corporation is taking significant steps to reduce regional reliance on diesel generation. Near Mayo, a mine shutdown has eliminated demand for a 5 MW hydroelectric facility. A 230-kilometre transmission line is being built to connect this facility with Dawson City, where existing diesel generation will be offset. This project should be complete by 2002.15

Green Power programs In some markets, residential and commercial electricity consumers can purchase green power. Since its launch in 1999, more than 3,100 EPCOR customers now purchase green power. Green power sources in EPCOR’s portfolio include solar, wind and small hydro. These customer choices reduced emissions by 2.0 kt CO2 eq in 2000.

Generation By-Product Use Recycling and re-using generation by-products reduce energy usage at associated manufacturing facilities. The chemical and physical properties of fly-ash make it a valuable input to cement production, thereby reducing the need to produce substitutes and the associated greenhouse gas emissions. At NB Power, shipments of ash from various facilities to cement manufacturers amounted to 21,000 tonnes in 1999. Synthetic gypsum, a by-product of flue-gas desulphurisation units at NB Power’s Belledune and Dalhousie stations, is sent for use in the manufacture of wallboard. Shipments of gypsum were 222,000 tonnes in 1999 16.

Internal Efficiency Improvements After using infrared mapping to locate the positions of greatest heat loss, ATCO Power upgraded the insulation around the boilers at H.R. Milner station. Improved insulation reduces heat loss, which in 17 turn reduces fuel consumption. In 1999, this improvement resulted in a reduction of 9.0 kt of CO2. At SaskPower’s Boundary Dam station, improved soot-blowing strategies, increased fuel and air distribution system tuning, and use of on-line performance displays has further optimized 18 boiler/turbine operation, resulting in a 12.6 kt CO2 reduction in 1999.

CHART 9: Electric Utilities Historic Actual Thermal Generation 120 1000 CO2 eq Emissions Intensity 900 100 800 Emissions 80 700 equivalent) 2 600 60 500 400 40 300 equivalent g/k.W.h.) equivalent 2 200 20 100 (CO GREENHOUSE GAS EMISSIONS (megatonnes of CO

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0 MASS OF GREENHOUSE GASES EMITTED PER UNIT OF NET THERMAL GENERATION PER UNIT OF NET

Source: Canadian Electricity Association, January 2002.

u nn al R A e p o 15 Yukon Development Corporation, An Action Plan for Reducing Greenhouse Gas Emissions, October 31, 2001, p. 10. r t 16 New Brunswick Power Corporation, Voluntary Challenge & Registry Inc. 2000 Climate Change Action Plan Annual

2 Report, 2001.

16 0 0 17 ATCO Power, Voluntary Challenge & Registry Inc. 1999/2000 Climate Change Progress Report, 2001.

1 18 SaskPower, Voluntary Challenge & Registry Inc. 1999 Climate Change Action Plan Progress Report, 2000. 1.2.4 Fossil Fuels

Direct Emissions: 99.5 Mt CO2 eq Indirect Emissions: 22.2 Mt CO2 eq Total Emissions: 121.7 Mt CO2 eq 1.2.4.1 Upstream Oil and Gas

Direct Emissions: 62.0 Mt CO2 eq Indirect Emissions: 17.3 Mt CO2 eq Total Impact: 79.3 Mt CO2 eq

Sector Engagement: 61 Action Plans 41 Champion level 93% of sector emissions

Significant progress by sector: More than two-thirds of all registrants are Champion level reporters. Several companies joined the Challenge Registry in 2001, but many more were involved in mergers or acquisitions, reducing the total number of participating companies from last year. Total emissions and energy intensity from the sector continue to climb as production increases primarily through more energy intensive oil sands and heavy oil production. However, fugitive methane emissions from all oil and gas activities peaked in 1997 and are now trending downward. One of the most significant reductions by the sector has been through flaring reduction, which is described below.

Examples of best practices:

Solution gas conservation and flaring reductions In 2000, total solution gas flaring in Alberta was 38 per cent below 1996 levels. (This surpasses the industry target of 25 per cent reduction by 2001.) Players in the industry take flaring reduction goals seriously. Chevron Canada Resources proudly claims to have “improved its already impressive solution gas conservation rate…to 99.7% for 2000.” 19 Innovative technologies such as small scale electric power generation and inter-company recovery strategies are being used to reduce flare volumes and conserve natural gas.

Oil sands energy efficiency improvements Syncrude has reduced energy intensity in its oil sands operations by over 40% since 1988. Suncor has achieved similar success, and their 2001 forecast indicates an emissions intensity of 0.574 t CO2 eq per m3 oil equivalent, more than 20% below 2000 levels.

Fugitive methane reductions The natural gas production industry, along with energy pipelines and natural gas distribution, produces fugitive emissions, especially methane (CH4). Fugitive CH4 emissions are generated from a variety of processes, both intentional and inadvertent. The industry as a whole is developing new operating procedures and implementing new technologies to reduce releases from existing facilities and eliminate them from most new facilities. Many companies are incorporating new leak detection techniques and low bleed pneumatic equipment to aggressively reduce fugitive emissions.

t 200 or 1 p e R l 19 Chevron Canada Resources, Voluntary Challenge and Registry 2000 Annual Report, October 2001, p. 10. a

u

n 17

n A CHART 10: Upstream Oil and Gas Industry Production Energy Intensity

1.80

1.75

1.70 Oil Equivalent) 3

(GJ/m 1.65 PRODUCTION ENERGY INTENSITY PRODUCTION 1.60 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Michelussi, Tom. Examination of Measures for Greenhouse Gas Reductions in 1.2.4.2 Downstream Petroleum Canada’s Upstream Petroleum Industry, ALTUS Environmental Engineering Ltd., 2000. 20 Direct Emissions : 16.5 Mt CO2 21 Indirect Emissions : 1.9 Mt CO2 eq Total Emissions: 18.4 Mt CO2 eq

22 Avoided annual emissions : 2.3 Mt CO2 eq

Sector Engagement: 9 Action Plans 6 Champion level 100% of sector emissions

Significant progress by sector: The Canadian Petroleum Products Institute (CPPI) works continuously with its members, governments and auto manufacturers to establish long-term sustainable GHG emissions reductions, especially with respect to household transportation. The sector is also a long-standing member of the Canadian Industry Program for Energy Conservation (CIPEC). The petroleum products sector recently extended its CIPEC, sector-wide energy efficiency improvement targets to 2005.

Examples of best practices:

Ethanol blended gasoline Petro-Canada entered a joint venture with Iogen Corporation, which is attempting to produce ethanol from waste byproducts (as opposed to grains such as corn). Ethanol can be blended with regular gasoline up to 10 per cent, reducing tailpipe GHG emissions by 10 per cent.

Investing in alternative and renewable energy Suncor Energy Inc., the parent company of Sunoco, is pursuing similar actions to produce cleaner fuels and fuels from renewable resources. Suncor has committed to spending $100 million on alternative and renewable energy projects over the next five years.

20 J. Nyboer and B. Sandownlik, A Review of Energy Consumption in Canadian Oil Refineries and Upgraders u 1990, 1994 to 1999, Canadian Industry Energy End-use Data and Analysis Centre, October 2000, Tables 6, 7, nn al R A e and 9. p o 21 VCR Inc. estimate based on known electrical energy consumption in Alberta, Ontario and Québec, and r t undifferentiated consumption data for other provinces and territories.

2 22 (1990 Emissions Intensity - 1999 Emissions Intensity) x (1998 Production)

18 0 0 1 Industry-wide commitment to energy efficiency The downstream petroleum industry has a long-standing commitment to emissions reduction. Petroleum refiners have participated in the Canadian Industry Program for Energy Conservation (CIPEC) since its inception in July of 1994. This ongoing commitment has resulted in significant energy and emissions reductions. Between 1990 and 1998, the sector’s measure of energy intensity, the Solomon Energy Intensity Index, has dropped from 114 to 94. More recently, the industry, as a whole, has committed to reduce energy consumption per unit production by 1 per cent per year from 2000 to 2005.

CHART 11: Energy Intensity Index Trends for CPPI Member Refineries

120

110 Target 100 Actual 90

Intensity Index 80 Solomon Energy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Nyboer, J. and Sandownik, B. A Review of Energy Consumption in Canadian Oil Refineries and Upgraders, 1990, 1994 to 1999, Canadian Industry Energy End-use 1.2.4.3 Energy Pipelines Data and Analysis Centre, Simon Fraser University, October 2000, Table 10. 23 Direct Emissions : 16.9 Mt CO2 eq Indirect Emissions: 2.0 Mt CO2 eq Total Emissions: 18.9 Mt CO2 eq

Sector engagement: 16 Action Plans 10 Champion level 100% of sector emissions

Significant progress by sector: Canada’s transmission energy pipeline industry decreased emissions 3% or 0.6 Mt CO2 eq between 1998 and 1999. This emission reduction can be attributed virtually 50/50 to natural gas pipelines and liquid hydrocarbon pipelines.

Since 1990, the sector has experienced phenomenal growth in the volume of oil and natural gas transported. According to the Canadian Energy Pipeline Association (CEPA), between 1990 and 1999 natural gas volumes jumped by 76 per cent while liquid hydrocarbon volumes rose by 34 per cent. Industry actions have limited emissions growth to 63 per cent during this period.

In 2000, the transmission pipeline industry underwent significant changes in response to record Canadian oil and natural gas production and the industry’s new competitive business environment. Existing systems were expanded and new lines were constructed and put into service to move higher volumes of oil and natural gas to domestic and export markets. More than half the volumes moved through Canadian pipelines were delivered to export markets, largely in the United States.

t 200 or 1 p e R 23 Direct and indirect emissions data as reported in Sixth Report to the Climate Change Voluntary Challenge and l a

Registry, published by the Canadian Energy Pipeline Association, 2000. u

n 19

n A The Alliance Pipeline started up in December 2000, moving natural gas from B.C. and Alberta to the Midwestern U.S., where it connects to lines that also deliver to eastern Canada. Maritimes & Northeast Pipeline – the East Coast’s first major natural gas transmission line – completed its first full year of operation at the end of 2000, moving natural gas from Canada’s offshore projects to the U.S. northeast.

Expansion of Canada’s transmission pipeline system is expected to continue well into the future. Much of this growth will result from higher U.S. demand for Canadian natural gas, given U.S. government policies that emphasize the need for secure North American energy supplies. Expansion of oil pipelines will also likely occur due to the number of projects currently under way to increase production from Alberta’s oilsands.

Examples of best practices:

Comprehensive emissions reduction programs In 2000, TransCanada PipeLine’s Fugitive Emissions Management Program resulted in GHG emissions savings of 346,000 tonnes. This was a 22 per cent improvement from 1999. Emissions savings were achieved by wider implementation of the program and improved scheduling that enabled TransCanada to do more emissions containment work earlier in the year. The program includes a number of actions that fall into two major activities: fugitive emissions measurement and Leak Detection and Repair (LDAR).

When completing capacity expansion projects in 2000, Enbridge Pipelines installed larger diameter pipe, which reduces the energy required to transport a unit of product.

CHART 12: Energy Pipeline GHG Emissions

25 Total Emissions Direct Emissions 20 Indirect Emissions

eq 15 2 10 5 Mt CO

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Canadian Energy Pipeline Association. Fifth Report to the Climate Change Voluntary Challenge and Registry, March 20, 2000.

u nn al R A e p o r

t

2

20 0 0 1 1.2.4.4 Natural Gas Distribution

24 Direct Emissions : 1.8 Mt CO2 eq Indirect Emissions: 0.6 Mt CO2 eq Total Emissions: 2.4 Mt CO2 eq

Sector Engagement: 10 Action Plans 7 Champion level 100% of sector emissions

Progress by sector: In 2000, one new natural gas distributor joined the Challenge Registry. Gazifère is an Enbridge subsidiary that operates in the Outaouais region of Québec. This first-time reporter earned Silver Champion level Reporter status upon registration.

The Canadian Gas Association (CGA) has a long-standing role in encouraging demand-side management by its member companies and supporting voluntary initiatives including VCR Inc. and domestic emissions trading pilots. As well, a new partnership with builders is encouraging energy efficiency in buildings.

Examples of best practices:

Line heater efficiency Line heaters are one of the largest energy users in the natural gas distribution sector. Virtually all gas distributors have improved line heater efficiency and reduced GHG emissions. BC Gas Utility Ltd. has improved the efficiency of their line heaters, saving 1,300 t CO2 eq per year. Gaz Métropolitain has implemented similar measures, reducing GHG emissions by 800 t CO2 eq. These actions not only reduce emissions, but also reduce operating costs.

Pipeline replacement Cast iron and older unprotected steel pipes were commonly used for natural gas distribution. However, these pipes are prone to leaks, and therefore fugitive methane emissions. These pipes have been replaced by cathodically protected (corrosion resistant) steel or plastic pipe. BC Gas Utility Ltd. and Enbridge Consumers Gas have internal programs to replace their existing cast iron and unprotected steel piping infrastructure. In the case of Enbridge Consumers Gas, fugitive emissions from pipeline infrastructure are responsible for 212 kt CO2 eq or 38% of their 1999 GHG emissions. Gaz Métropolitain replaced the last cast steel piping in their distribution system in November 2000, achieving a total reduction of 17.5 kt CO2 eq per year. 1.2.4.5 Coal Mining

Direct Emissions: 2.3 Mt CO2 eq Indirect Emissions: 0. 4 Mt CO2 eq Total Impact: 2.7 Mt CO2 eq

25 Avoided annual emissions : 0.3 Mt CO2 eq

Sector Engagement26: 4 Action Plans 3 Champion level 91 % of sector emissions

24 Direct and indirect emissions data was estimated by VCR Inc. The estimation methodology compared energy and fugitive emissions data sources for the entire pipelines industry to the emissions profile for the energy transmission sector, as the reported by the Canadian Energy Pipeline Association. The difference between t 200 or 1 the two emissions estimates is attributed to the natural gas distribution sector. p e 25 (1995 GHG emissions intensity - 1999 GHG emissions intensity) x 1999 production R 26 Two mines, one in New Brunswick and the other in Alberta, are owned by electric utilities. Indirect emissions l for these two facilities are accounted for in the Electricity Generation sector profile. Both utilities are VCR Inc. a

u n 21

registrants, but are not included in the coal sector registrant count here.

n A Significant progress by the sector: There have been several structural changes within the coal mining industry. Sherritt International Corporation and the Ontario Teachers’ Pension Plan Board acquired Canada’s largest coal producer, Luscar Ltd., on May 10, 2001. The new ownership has maintained Luscar’s previous commitment to continuous improvement in energy efficiency and emissions reductions. As well, several Canadian coal mines have closed recently in Nova Scotia, Alberta and . The Cape Breton Development Corporation, which produced 2% of Canada’s coal in 1999, ceased all mining operations by November 23, 2001. Virtually all Canadian coal mining companies are strongly committed to VCR Inc. Only one registered organization is not a Champion level reporter, and its interest is limited to partial ownership of a mine operated by a Champion level reporter. Several small surface coal mines operate in Eastern Canada, none of which are registered in the VCR Inc. Challenge Registry. However, the primary customers of these mines are large utilities who are Champion level reporters.

Examples of best practices:

Haul truck fuel efficiency At the Teck Cominco Ltd.’s Elkview mine, the efficiency of the haul truck fleet is estimated to have improved 9% since 1990 through engine replacement programs and fan-drive clutches applications. Haul trucks radiator fans are designed to cool equipment on the hottest days of the year. During cooler temperatures, fan-drive clutches periodically disengage the fan, reducing engine load and fuel consumption.

Reclamation process improvements At Luscar Ltd.’s Sheerness mine in Alberta, topsoil removed from pre-mining preparation is now placed directly on virtually complete reclamation areas, as opposed to being stockpiled for years, then moved again to reclaim the original land. This initiative reduces transportation emissions by 0.66 kt CO2 eq per year, while simultaneously improving the quality of land reclamation.

Active electricity monitoring systems Luscar’s mountain mines are also making significant reductions, including an annual reduction of 3.7 kt CO2 eq associated with the year 2000 implementation of a Pegasys Electrical Monitoring system at the Coal Valley Mine in Alberta.

CHART 13: Primary Canadian Coal Industry GHG Emissions Trends

1.60 Net Emissions 1.40 eq) 2 1.20 Net Emissions Per Unit

Production coal) eq/t raw 2 (Mt CO 1.00 NET EMISSIONS NET EMISSIONS (t CO

0.80 PER UNIT PRODUCTION

1999 1998 1997 1996 1995 1994 1993 1992 1991 1990

2005 2004 2002 2001 2000 2003

Source: VCR Inc. data compiled from registered reports and other correspondence from Luscar Ltd. and Fording Coal Limited.

u nn al R A e p o r

t

2

22 0 0 1 1.2.5 Manufacturing and Mining

Total Direct Emissions: 117.2 Mt CO2 eq Total Indirect Emissions: 32.5 Mt CO2 eq Total Emissions: 149.7 Mt CO2 eq 241 Action Plans (64 Champion level) 75% of sector emissions27

Total annual emissions reductions from energy conservation28: 8.4 Mt CO eq 2 29 Total annual emissions reductions from N2O abatement at DuPont Canada Inc.’s Maitland site : 9.5 Mt CO2 eq

The manufacturing and mining industry is energy intensive, and since 1974, the Canadian Industry Program for Energy Conservation (CIPEC) has worked closely with this broad sector to reduce energy consumption. Virtually all CIPEC participants are registered in the VCR Inc. Challenge Registry. In 2000, CIPEC was awarded the VCR Inc. Association Leadership Award for significant promotion and achievement of continuous improvements in energy efficiency. Most individual sectors within this industry are targeting energy efficiency improvements of at least one per cent per year.

The manufacturing and mining industry is also responsible for significant industrial process emissions. These emissions, which accounted for nearly 50 Mt CO2 eq in 1999, are trending downward from peak emissions of 57 Mt CO2 eq in 1997. Virtually all of this reduction is attributable to a single facility: DuPont Canada Inc.’s Maitland site, which is Canada’s only producer of adipic acid. Other emissions sources have stabilized or slightly increased over this same time frame. However, additional improvements are expected in the future, as significant emissions mitigation initiatives are implemented by the aluminium and magnesium sectors.

1.2.5.1 Cement 30 Direct Emissions : 11.6 Mt CO2 eq Indirect Emissions: 0.4 Mt CO2 eq Total Emissions: 12.0 Mt CO2 eq

31 Avoided annual emissions reduction : 0.5 Mt CO2 eq

Sector engagement: 6 Action Plans 2 Champion level 75% of sector emissions

Progress by sector One company, St. Mary’s Cement Company (formerly Blue Circle Cement) earned Gold Champion level Reporter status in 2001. They are the first cement manufacturer to earn this status.

Canadian cement manufacturers produced 12.5 Mt cement clinker in 1999, an increase of 4.5 per cent from 1998, and 20 per cent from 1990. After energy efficiency improved dramatically between 1992 and 1997, recent trends indicate energy efficiency on a per unit basis has flat-lined since all the easy energy efficiency improvements, such as plant modernization, have been completed.

27 According to Natural Resources Canada, “75% of industrial energy use represented by CIPEC members.” (http://oee.nrcan.gc.ca/cipec/ieep/cipec/achievements/achievements.cfm, October 12, 2001.) The VCR Inc. Challenge registry is closely tied to CIPEC and virtually all CIPEC participants are also registered in the VCR Inc. Challenge Registry. Energy use is assumed to be directly related to GHG emissions. 28 Energy efficiency improvement 1990 to 1999 x 1999 total emissions The “energy efficiency improvement 1990 to 1998” data is reported by Natural Resources Canada in Energy Efficiency Trends in Canada 1990 to 1999, An Update, July 2001, p. 25. The “change in emissions including electricity” data (from the same source) was not used because their calculation methodology does not t 200 estimate emissions from electricity on a regional basis. or 1 p 29 DuPont Canada Inc., Submission for Voluntary Challenge & Registry Inc., October 2001, p. 22. e 30 The process emissions included in the direct emissions, 8.7 Mt CO2 eq, include emissions from cement R l calcination as well as lime and soda ash production. The latter two sources are assumed to be insignificant a

compared to cement. u

n 23

31 (Energy efficiency improvement 1990 to 1999) x 1999 Total Emissions n A Examples of best practices:

Dry kiln process, preheater and precalcination technology The St. Mary’s Cement Company operates a plant that makes best use of modern cement technology to reduce energy consumption in the cement manufacturing process. The St. Mary’s plant uses a dry kiln process, in addition to preheater and precalcination equipment. The combination of these systems reduces energy load by approximately 40 per cent compared to the technology used 25 years ago. At the St. Mary’s plant, these energy-efficient systems reduce annual GHG emissions by over 250 kt CO2 eq.

Waste Energy Sources Waste energy sources including tires, sewage sludge, and recycled liquid fuels are ideal fuels for cement kilns. Using waste fuels diverts material from landfills as well as producing useful energy for cement calcination. In 1999, waste fuels contributed 8.8 per cent of the sector’s total energy consumption. The industry aims to bring this ratio up to 20 per cent recognizing that current Federal, Provincial and Municipal regulations and legislation must be changed to permit an increase in the use of alternative fuels.

Concrete Roads Heavy-duty vehicles (such as transport trucks) consume up to 10 per cent less fuel driving on concrete roads than on asphalt roads. This fuel saving is attributed to reduced rolling resistance of the surface pavement: since concrete is a rigid pavement it will ‘deflect’ less than asphalt.

CHART 14: Cement Industry Energy Intensity 1.10 1.05 1.00 0.95 0.90 0.85 TRENDS

(1990 = 1.00) 0.80 0.75 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0.70 2000

Source: Canadian Industrial Energy End-use Data and Analysis Centre (CIEEDAC). Development of Energy Intensity Indicators for Canadian Industry, 1990-1999, Simon Fraser University, January 2001.

u nn al R A e p o r

t

2

24 0 0 1 1.2.5.2 Chemicals 32

Direct Emissions: 12.9 Mt CO2 eq

33 Avoided annual emissions : 6.1 Mt CO2 eq

Sector Engagement: 71 Action Plans 12 Champion level 100% of sector emissions

Significant progress by sector: The Canadian Chemical Producers’ Association (CCPA) has gathered sector-wide GHG emissions data through its voluntary Responsible Care initiative, reporting annual results in Reducing Emissions reports for nine consecutive years. The association has encouraged the largest emitters, representing 90 per cent of the total sector emissions, to report directly to VCR Inc. 16 individual companies report to VCR Inc., all but four at the champion level. Gold Champion level Reporters represent more than 75% of the sector’s total emissions.

Sector challenges: Different processes require different energy inputs, and according to the CCPA, CO2 emissions (resulting primarily from energy consumption) per unit product output have trended upwards since 1998, while still remaining below 1992 (the Reducing Emissions baseline) levels. This trend can be attributed, at least in part, to the increased application of cogeneration in manufacturing facilities. These cogeneration facilities are increasing the energy consumption (and GHG emissions) for chemical manufacturers. The reduced energy consumption (and GHG emissions) from decreased electricity generation has not been accurately estimated at this time.

Examples of best practices:

N2O abatement at adipic acid production facility Canada’s only adipic acid production facility is owned and operated by DuPont Canada Inc. It was the largest point-source emitter of GHGs in the Canadian chemicals industry, producing 10.7 Mt CO2 eq in 1990. However, an abatement system was commissioned in 1997, and an increasing percentage of N2O has been abated each year. In 2000, the abatement system reduced 93.1 percent of the total N O, 34 2 reducing 11.7 Mt CO2 eq. The expected ultimate maximum N2O abatement ratio is 93.9 per cent.

Challenging energy reduction targets Individual companies are committed to making significant energy efficiency improvements. At DuPont Canada Inc., unit energy use in 2000 was 31.6% lower than in 1990.35 Energy performance contracting, electric motor upgrades, and select process changes are examples of energy consumption reductions recently implemented by the company. DuPont is committed to continuous improvement in energy efficiency, targeting an energy consumption reduction of 15% between 1995 and 2005.

Cogeneration By applying cogeneration at their facilities, many chemical manufacturers are meeting their heat and electrical energy demands while reducing or eliminating their electricity consumption and maintaining natural gas consumption rates. Nova Chemicals built a large cogeneration facility at their Joffre ethylene-manufacturing complex, which includes the world’s largest ethane cracker. While the cogeneration facility was still in start-up and commissioning phases in 2000, it exported nearly 800 MWh of electricity to the Alberta Interconnected System offsetting nearly 400 kt CO2 eq from conventional power generation in the province. The cogeneration plant can export as much as 330 MW to the Alberta Interconnected System, resulting in sizable GHG emission reductions while continuing to make efficient use of natural gas to provide heat and electric energy to the adjacent ethylene plant.

t 200 or 1 32 The chemicals sector described here includes all members of the Canadian Chemical Producers’ Association p e (CCPA). CCPA members represent manufacturers of organic chemicals, inorganic chemicals, polymers, and R specialty chemicals. This profile does not include emissions from some fertilizer manufacturers. l a

33 (1992 Emissions Index - 2000 Emissions Index) x 2000 Total Emissions u n 25

34 DuPont Canada Inc., Submission for Voluntary Challenge & Registry Inc., October 2001, p. 15.

n 35 Manufacturing Energy Management Team (MEMT), Energy Report 2000, DuPont Canada Inc., 2001, p. 6. A CHART 15: GHG Emissions from the Chemical Sector

25 125

20 100 GHG Emissions eq)

2 15 75

10 50 GHG Emissions Index (Mt CO

GHG EMISSIONS 5 25 Output, 1992=100 Output, Emissions Per Unit Emissions Per

0 0 GHG EMISSIONS INDEX 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Source: Canadian Chemical Producers’ Association and Levelton Engineering Ltd. Reducing Emissions 9, 2000 1.2.5.3 Metal Mining Emissions Inventory and Five Year Projections, 2001, p. 28.

Direct Emissions: 3.1 Mt CO2 eq Indirect Emissions: 1.9 Mt CO2 eq Total Emissions: 5.0 Mt CO2 eq

36 Avoided annual emissions : 0.7 Mt CO2 eq

Sector Engagement: 17 Action Plans 4 Champion level +90% of sector emissions

Significant Progress by Sector: The Mining Association of Canada (MAC) has worked hard to improve the implementation and reporting of voluntary emissions reduction within the sector. In 2001, MAC published "Strategic Planning – and Action on Climate Change, A guide for Canadian Mining Companies", which was prepared by The Pembina Institute and Stratos Inc.

The sector has achieved energy intensity reductions of one per cent per year between 1990 and 1999. GHG energy intensity improvements are almost two per cent per year, which is extremely good considering roughly 45 per cent of energy consumed is hydro electric.

Examples of Best Practices:

Mining companies, including Noranda Inc., have implemented significant emissions reduction actions. Taking into account the structural changes, Noranda’s 1999 GHG emissions for mining and milling were 8.8 per cent below business as usual levels.37 These actions include a new bulk handling facility for outbound concentrate shipments at the Port of Belledune (which improved product quality while reducing transportation costs), implementing semiautogenous grinding at Brunswick Mining (which replaced significant surface crushing and ore handling equipment), upgrading tailings disposal technology (eliminating significant backfill quarry and reducing surface storage of new tailings), as well as process changes that increased lead concentrate delivered to Brunswick Smelting (which reduced both smelting and transportation energy consumption).

u nn al R A e p o r t 36 (% 1990 GHG Intensity - % 1999 GHG Intensity) x 1999 Total Emissions

2 37 Noranda Inc., Action Plan, December 2000, p. 33.

26 0 0 1 CHART 16: GHG Emissions from Metal Mining

8000

7000 Total 6000

eq) 5000 2 Direct 4000 3000 (kt CO 2000 Indirect GHG EMISSIONS 1000

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Mining Association of Canada. Action Plan for Reducing Greenhouse Gas Emissions, October 2001, p. 21.

1.2.5.4 Nonferrous Metal Smelting and Refining

Direct Emissions: 3.3 Mt CO2 eq Indirect Emissions: 1.5 Mt CO2 eq Total Emissions: 4.8 Mt CO2 eq

38 Avoided annual emissions : 0.2 Mt CO2 eq

Sector Engagement: 8 Action Plans 3 Champion level +90% of sector emissions

Significant progress by sector The nonferrous metal smelting and refining sector is composed entirely of companies that also participate in metal mining. The activities of both mining companies and the Mining Association of Canada are detailed in the Metal Mining sector profile.

Energy intensity improved by 1.3 percent per year over the 1990-99 period while GHG intensity improved by 1.8 percent per year over the same period. The sector is committed to an annual energy efficiency improvement target of one per cent per year through 2005.

Examples of best practices:

Energy efficiency improvements Falconbridge Limited has reduced emissions in its smelting and refining operations through air compressor rationalization (reducing electricity consumption in the Sudbury Smelter) as well as process changes in copper casting, recycle ratio, and anode furnace improvements (reducing natural gas at Kidd Creek). Combined with energy reductions in metal mining operations, these initiatives will combine to help Falconbridge Limited reduce energy costs by 10% by 2004.

t 200 or 1 p e R l

a

38 (% 1990 Emissions Intensity - % 1999 Emissions Intensity) x 1999 Emissions u

n 27

n A CHART 17: Nonferrous Metal Smelting and Refining 6.0

5.0 Total 4.0 eq) 2 3.0 Direct 2.0

(Mt CO Indirect

GHG EMISSIONS 1.0 0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Mining Association of Canada. Action Plan for Reducing Greenhouse Gas Emissions, October 2001, p. 22.

1.2.5.5 Primary aluminium

Direct Emissions: 10.8 Mt CO2 eq Indirect Emissions: Negligible Total Emissions: 10.8 Mt CO2 eq

39 Avoided annual emissions : 5.2 Mt CO2 eq

Sector engagement: 6 Action Plans 2 Champion level 100% of sector emissions

Significant progress by sector: Year 2001 will be considered by the aluminium industry as another very important step toward the reduction of greenhouse gases.

After having been the first industry to measure and identify GHG emissions, PFCs in particular, through an extensive program in 1994, a second benchmarking project was completed in 2000. The outcome represents a significant improvement in terms of GHG emissions. Although the Canadian aluminium industry doubled its production between 1990 and 1999, the emissions of GHG have been stabilized at the 1990 level. The intensity of GHG per ton of aluminium produced declined from 7.0 t in 1990 to 3.6 t in 2000, a reduction of 42%. On the back of these significant results, the three Canadian producers of primary aluminium – Alcan Inc., Alcoa and Aluminerie Alouette Inc. – have decided to go further.

Examples of best practices:

Aggressive emissions reduction targets Reflecting Alcan’s ongoing commitment to excel in all aspects of its business and building on its leadership in environmental initiatives, the company announced its global greenhouse gas target of reducing greenhouse gas emissions by 500,000 tons in the next four (4) years. The TARGET u program sets new and aggressive standards for Alcan worldwide. nn al R A e p o r

t

2 39 (1990 emissions intensity - 1999 emissions intensity) x 1999 production

28 0 0 1 Alcoa released a worldwide climate change policy statement and a climate change implementation plan. Alcoa will reduce its direct GHG emissions to 25% below the 1990 baseline on a worldwide basis by 2010 with potential for significant additional reductions through major technology improvements. In 2001, Aluminerie Lauralco, an Alcoa smelter, earned Silver Champion level Reporter Status.

PFC Emissions Controls Aluminerie Alouette Inc. has been able to limit its PFC emissions to negligible levels, thanks to a most effective process control put in place by a dedicated group of employees. These results are so good that further reductions will be difficult to attain unless there is a technological breakthrough.

Voluntary agreements Another very significant event in 2001 has been the conclusion of an Agreement on voluntary greenhouse gas reductions in Québec. The Québec Department of Environment and the three member companies of the Aluminium Association of Canada will sign this voluntary Agreement in January 2002. The agreement will run until December 31, 2007.

CHART 18: 1999 Aluminium Emissions

TOTAL = 10.76 Mt CO2 equivalent

PFC Process CO2 Process Emissions Emissions 36% 55%

Total Combustion Emissions 9% Combustion Emissions are over 99% CO2

1.2.5.6 Pulp and Paper

Direct Emissions: 11.4 Mt CO eq 40 2 Indirect Emissions : 8.7 Mt CO2 eq Total Emissions: 20.1 Mt CO2 eq

41 Avoided annual emissions : 6.2 Mt CO2 eq

Sector engagement: 28 Action Plans 16 Champion level +75% of sector emissions

40 Precise electrical consumption data associated with this sector is know for Alberta, British Columbia, New t 200 or 1 Brunswick, Ontario and Québec, and accurate emission factors were used to estimate indirect emissions. p e Electrical energy consumption data other regions (10% of sector total) is regionally confidential, and less R precise indirect emission factors were used. l a

41 (1990 emissions per unit production - 1999 emissions per unit production) x 1999 production u

n 29

n A Significant progress by sector: Pulp and paper companies are volunteering to report GHG emissions and emissions reductions in the VCR Inc. Challenge Registry. As well, most sector registrants are improving the reporting rigour and earning Champion level Reporter status. An example of this is Alberta Pacific Forest Industries Inc., which achieved Gold status with its inaugural submission in 2001.

The pulp and paper sector continues to create significant emissions reductions through two key methods. Improving energy efficiency is a key goal for the industry, which has an impressive track record. Sector-wide energy efficiency increased by 11.2 per cent between 1990 and 1999. The second key method for achieving emissions reductions is increased use of biomass energy sources. Wood waste and other biomass fuels were created through sustainable forestry practices and are typically by-products of manufacturing processes. Alternative disposal of these wastes would be in landfills, where methane emissions would be significant. The portion of total sector energy use attributed to biomass energy sources has risen by 4 per cent since 1990.

Examples of best practices:

Afforestation Afforestation refers to the growth of a forest on land that has not recently sustained forests to complete forest coverage. Alberta Pacific Forest Industries Inc. (Al-Pac) is planning a large-scale afforestation project near Boyle, Alberta, on private land formerly used for agriculture. The Al-Pac Poplar Farm Program will eventually cover 23,600 ha in 2023. Expected peak sequestration (including 42 both timber and roots structure) will be 561,029 t CO2 per year. The tree farm will provide a sustainable source of timber to the pulp mill, with significant sequestered carbon in Al-Pac’s products.

Fuel switching Pacifica Papers is one of many companies that have implemented measures to use biomass energy sources to displace fossil fuel consumption. At its Powel River facility, Pacifica Papers replaced four power boilers with a new fluidized bed boiler, offsetting natural gas with hog fuel (biomass) consumption. This installation has reduced the use of fossil fuels at Power River by 58%.

Cogeneration Several companies are using cogeneration to offset emissions and costs associated with electricity consumption. Both natural gas and biomass are used as the primary power sources for the cogeneration units. Pacifica Papers and Weldwood of Canada Ltd. are examples of pulp and paper companies that have integrated cogeneration with their operations. CHART 19: Source: Source: VCR Pulp and Paper Industry Inc. data derived Fossil Fuel Emissions from Canadian Industry Program for 15 0.600 Energy Conservation (CIPEC), 1999/2000 13 0.500 GHG Emissions Annual Report, 2001, p. 41 and 10 0.400 Environment eq) Emissions Intensity 2 Canada, Canada’s 8 0.300 Greenhouse Gas Inventory 1990-1999, 5 0.200 eq/t production) Emission and (Mt CO 2

Removal Estimation GHG EMISSIONS Practices and 3 0.100

Methods, April 2001, EMISSIONS INTENSITY (t CO p. 27, 28 and 98. 0 0.000 1990 1992 1994 1996 1998 2000

u nn al R A e p o r

t

2 42 BW McLoy & Associates, Greenhouse Gas Emissions: 2000 VCR Report, Alberta Pacific Forest Industries 30 0

0 Inc., October 2001, p. 7. 1 1.2.5.7 Steel

Direct Emissions43: 15.8 Mt CO eq 44 2 Indirect Emissions : 1.8 Mt CO2 eq Total Emissions: 17.6 Mt CO2 eq

45 Avoided annual emissions : 8.0 Mt CO2 eq

Sector engagement: 10 Action Plans 2 Champion level +90% of emissions represented in VCR Inc. Challenge Registry 100% of sector is included in the sector-wide target +90% of companies representing +90% of sector emissions sources have made company-level commitments to VCR Inc., Energy Innovators or ÉcoGESte.

Significant progress by sector: Energy efficiency and associated greenhouse gas emissions have trended down over the last decade. Energy consumption and related emissions intensity dropped approximately 16 per cent since 1990. The steel sector has renewed its energy reduction target through the Canadian Industry Program for Energy Conservation (CIPEC). The new sector-wide target is an average one percent per year reduction in energy intensity between 2000 and 2010.

Examples of best practices:

Implementing energy efficiency initiatives Steel production is energy intensive and steps to improve energy efficiency have paid dividends for Canadian steel producers. Many examples of steps to improve energy efficiency are documented for Stelco Inc.’s Lake Erie Steel Company. In 2000, energy efficiency initiatives at Lake Erie included upgrading the main boiler to increase consumption of blast furnace gas (offsetting oil and coke oven gas consumption), installing hydraulic couplings to reduce electrical consumption during idle periods, installing a high-efficiency steel-reheating furnace, and reducing coke oven gas (COG) bleeding by cleaning and replacing COG pipelines. These are a few examples of energy efficiency initiatives that have been applied at other facilities across the sector.

Employee awareness Staff at AltaSteel Ltd., a Stelco Inc. company, are encouraged to identify and submit energy saving initiatives for their work area. Submissions that are implemented and significantly reduce energy consumption earn financial rewards. Energy efficiency training and open communication between employees and management result in considerable energy savings throughout the facility.

43 This includes 8.5 Mt CO2 eq attributed to industrial process emissions. Susan Olynyk, on behalf of the Canadian Steel Producers Association, provided the CO2 emission factor used for coke oven gas for this sector only. It differs from the factor published by Environment Canada in the latest official inventory. To ensure that total manufacturing emissions are consistent with the official national inventory, the Environment Canada factor has been used for other emission calculations in this document. The Environment Canada emission factor appears to over-estimate total CO2 emissions from coke oven gas consumption by approximately 1.3 Mt. 44 Precise electrical consumption data associated with this sector is known for Ontario and Québec, and t 200 or 1 accurate emission factors were used to estimate indirect emissions. Electrical energy consumption data for p e other regions (14% of sector total) is regionally confidential, and less precise indirect emission factors were R used. l a

45 (1990 emissions intensity Ð 1998 emissions intensity) x 1998 production u

n 31

n A CHART 20: Steel Industry Energy Index 1990-2010 22 Actual

20 Target 1990–2000

Target 2000–2010 18

16

14 GJ/tonne shipped 12

10 1990 1995 2000 2005 2010

Source: Canadian Steel Producers Association, December 2000. 1.2.5.8 Textiles

Direct Emissions: 0.65 Mt CO2 eq

Avoided direct annual emissions: 0.38 Mt CO2 eq

Sector Engagement: 21 Action Plans 4 Champion level 60% of sector emissions

Significant progress by sector: In 2001, the number of Champion level Reporters for the sector has doubled. Consoltex Inc., a registrant since 1995, recently earned Silver Champion level Reporter status. Albarrie Canada Limited is a new registrant that earned Bronze with its first submission. The only Gold Champion level Reporter for this sector is DuPont Canada Inc., which manufactures nylon, Lycra, and other textile products as well as chemical products.

The textiles sector has improved its energy efficiency every year for the past five years, and has successfully reduced energy intensity by 12 per cent since 1990. The sector has made a commitment to continue to improve energy efficiency by one per cent per year between 2000 and 2010.

Examples of best practices:

Comprehensive energy audits Consoltex Inc. performed a comprehensive energy audit in 1995. This audit highlighted several areas for improving energy efficiency. In the years since this audit, several key initiatives have been implemented to improve facility HVAC, lighting, and compressed air systems. Energy consumption decreased significantly, and this translates into GHG emissions reductions as well as reduced operating costs.

Education and outreach initiatives Albarrie Canada Limited has implemented a number of outreach programs targeting employees, customers, and the public. These awareness programs highlight energy efficiency as well u as greenhouse gas emissions issues. Albarrie’s significant efforts in this area will nn al R A e p o encourage individuals to reduce their impact on GHG emissions at work and at home. r

t

2

32 0 0 1 CHART 21: Textiles Industry Trends

0.50 Emissions per 15.0 0.45 GDP Output 0.40 12.0 0.35 0.30 Energy per 9.0 0.25 GDP Output 0.20 6.0 0.15 0.10 3.0 eq per $1000 GDP Output) 2 0.05 (GJ per $1000 GDP Output)

0.00 0.0 ENERGY CONSUMPTION (t CO 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 DIRECT EMISSIONS INTENSITY

Source: Nyboer, J. and Laurin, A. Development of Greenhouse Gas Intensity Indicators for Canadian Industry, 1990 to 1999, Canadian Industry Energy End-use Data and Analysis Centre, Simon Fraser University, March 2001, p. 38, 39 and appendices.

1.2.5.9 Transportation Manufacturing

46 Direct Emissions: 1.2 Mt CO2 eq Indirect Emissions: 0.5 Mt CO eq47 2 48 Total Emissions: 1.7 Mt CO2 eq

Avoided annual emissions: 0.3 Mt CO2 eq

Sector engagement: 15 Action Plans 6 Champion level +90% of sector emissions

Significant progress by sector: Honda of Canada Manufacturing Ltd. earned Gold Champion level Reporter status with its first submission to the VCR Inc. Challenge Registry. The automotive component of the sector has achieved across-the-board reductions in emissions per vehicle since 1990.

The aerospace component of this sector produces significant emissions through product testing in early stages of development. This testing is often related to safety and reliability, and is therefore an element where emissions reduction is challenging.

All transportation manufacturers market vehicles that encourage energy efficiency. New generations of Canadian-built cars, trucks and planes have better GHG emissions performance than those marketed a decade ago.

t 200 or 1 46 The source for this data is registered reports and other correspondence from DaimlerChrysler Canada Inc., p e Ford Motor Company of Canada, Ltd., General Motors of Canada Ltd., and Honda of Canada Mfg. R 47 Same as above. l a

48 Same as above. u

n 33

n A Examples of best practices:

Champions in Action General Motors of Canada Limited (GMCL) made a commitment to VCR Inc. in 1995 and has voluntarily reported its progress in 6 annual reports. GMCL has demonstrated leadership as a Gold Champion level reporter since Champion level evaluation began. In addition GMCL, along with other VCR Inc. leading participants, has worked to develop VCR Inc.’s Champions In Action (CIA) initiative. This initiative is VCR Inc.’s next step in continuously improving GHG emissions levels voluntarily through the creation of a participation and reporting level beyond Champion level reporting. This new level of participation includes a rigorous peer review of CIA members’ Challenge Registry reports. CIA member reviews will include analysis of the transparency and accuracy of all GHG emissions calculations. CIA members will ensure that their peers meet a very high standard of reporting and GHG emissions reduction performance. Companies that choose to join CIA will invest resources not only to evolve their own Challenge Registry reporting, but also to critique and enhance the reporting of other CIA members. For more information about this initiative, please see the CIA section of this report.

Continuous improvement in energy efficiency All major Canadian auto manufacturers have established track records of improved GHG emissions performance. While individual companies differ in performance based on product lines and reduction initiative implementation schedules, the results as a whole are very impressive. According to the Canadian Industry Program for Energy Conservation (CIPEC), the energy intensity of this sector has dropped 17.8 per cent between 1990 and 1999. The sector has renewed its CIPEC commitment, targeting energy intensity reductions of one per cent per year to 2005.

CHART 22: Canadian Auto Manufacturing Trends

Emissions Index Production 3.0 Emissions 1.2

2.5 1.0

(Mt CO2 eq) 2.0 0.8 (million vehicles) 1.5 0.6

1.0 0.4 (t CO2 eq./vehicle) EMISSIONS INDEX 0.5 0.2 AND EMISSIONS PRODUCTION PRODUCTION 0.0 0.0 1995 1996 1997 1998 1999 2000

Source: VCR Inc. data compiled from registered reports and other correspondence from DaimlerChrysler Canada Inc., Ford Motor Company of Canada, Ltd., General Motors of Canada Ltd., and Honda of Canada Mfg.

u nn al R A e p o r

t

2

34 0 0 1 1.2.6 Commercial Transportation

CHART 23: Commercial Transportation Energy Use and Activity Rates 1.35 1.30 1.25

1.20 Activity 1.15 (tonne-kilometre) 1.10 1.05 Energy Use (1990=1.00) ENERGY USE 1.00

AND ACTIVITY RATES AND ACTIVITY 0.95 0.90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Natural Resources Canada. Energy Efficiency Trends in Canada 1990 to 1999, An Update, Office of Energy Efficiency, July 2001, p. 56. 1.2.6.1 Railways

Direct Emissions: 6.5 Mt CO2 eq Indirect Emissions: 0.0 Mt CO2 eq Total Emissions: 6.5 Mt CO2 eq

49 Avoided annual emissions : 1.0 Mt CO2

Sector engagement: 50 Action Plans 1 Champion level 100% of sector emissions

Significant progress by sector: The Railway Association of Canada has introduced the VCR Inc. Challenge Registry to its entire membership through the Locomotive Emissions Monitoring Programme. All railways in Canada are included in the monitoring programme reports, and also in the Challenge Registry.

Canadian National Railway has taken a leadership role in individual reporting by registering an action plan that earned Silver status.

Emissions per net ton-mile have been trending steadily downward since the 1970s, with a 15 per cent reduction between 1990 and 1998.

Examples of best practices:

Locomotive fleet upgrades Locomotives are the largest source of GHG emissions for the industry. New locomotives have much higher fuel efficiency than previous generations of locomotives. These locomotive upgrades are occurring in most railways, especially Canadian National Railway and .

t 200 or 1 p e R 49 (1990 CO2 emissions per net ton-mile Ð 1999 CO2 emissions per net ton-mile) x 1999 net ton-miles N2O and l

CH4 emissions reductions are not included in the avoided emissions calculation. a

u

n 35

n A Locomotive retrofits New technology is being applied to older equipment to help reduce emissions. This includes a ‘low idle’ feature that enables diesel engines to idle at very low speeds, reducing friction losses and fuel consumption significantly. Mainline locomotives could reduce their total fuel consumption by 3 per cent on typical duty cycles. Automatic start/stop systems also conserve fuel when a locomotive is not in use, and these systems are designed to restart engines periodically during cold weather to prevent freezing and to charge batteries.

Corporate policy During the summer season, Canadian National Railways strictly enforces a ‘maintenance regulation’ that requires all locomotives to be shut down if the anticipated idle time is one hour or more. Between 1990 and 1998, this company policy is estimated to have conserved one million litres of diesel fuel.

CHART 24: Railway Transportation CO2 Emissions Trends 6,400 35

6,200 Emissions per Freight Traffic Unit 30

6,000 25

5,800 20

5,600 15 EMISSIONS CO Emissions 2/ net ton-mile)

2 2 5,400 10 CO 5 EMISSIONS PER 5,200 (t CO

FREIGHT TRAFFIC UNIT

1999 1998 1997 1996 1995 1994 1993 1992 1991

1990 0

2006 2005 2004 2003 2002 2001 5,000 2000

Source: The Railway Association of Canada. Locomotive Emissions Monitoring Programme 1998, October 2000, pp. 14-15.

1.2.6.2 Commercial Trucking

50 Direct Emissions : 21.6 Mt CO2 eq Indirect Emissions: nil Total Emissions: 21.6 Mt CO2 eq

Sector Engagement: 6 Action Plans 4 Champion level

Significant progress by sector: SGT 2000, a trucking company operating in Canada, U.S. and Mexico, earned Gold Champion level Reporter status in 2001. There are currently two trucking companies that have earned Gold status in the last two years.

u nn al R A e p o r t 50 These emissions include trucking as well as bus operations (intercity as well as urban transportation).

2 However, the vast majority of emissions are associated with commercial trucking.

36 0 0 1 Examples of best practices:

Speed controls Several fleet operators have installed governors on their tractor units to reduce speeding. SGT’s fleet is limited to a top speed of 98 km/h or 60 mph. Trucks running 10% over this speed tend to use 30% more fuel, so speed control is a very important factor in reducing GHG emissions and fuel costs.

Employee awareness The independent nature of trucking does not lend itself well to typical employee awareness programs. However, some companies, such as SGT, have found ways to enhance fuel efficiency by encouraging competition amongst staff. Truckers have their fuel efficiency publicly posted at the trucking facilities, and individual drivers are recognized if they are amongst the best in the fleet. Truckers ‘compete’ to improve fuel economy while less efficient drivers are identified for additional training and mentoring.

Satellite communications systems GPS location systems and satellite communications have enabled fleet managers to better control costs by helping drivers navigate efficient routes between pickup and delivery. Bison Transport is one of many companies reducing GHG emissions by installing satellite communications equipment on their trucks. 1.2.7 Institutional and Commercial

Direct Emissions: 67.8 Mt CO2 eq Indirect Emissions: 29.8 Mt CO2 eq Total Emissions: 97.6 Mt CO2 eq

CHART 25: Institutional and Commercial Sector Energy Use and Floor Space Trends

1.18 1.16 1.14 1.12 Activity (Floor Space) 1.10 1.08 1.06 TRENDS Energy Efficiency

(1990=1.00) 1.04 1.02 1.00

0.98 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Natural Resources Canada. Energy Efficiency Trends in Canada 1990 to 1999, An Update, Office of Energy Efficiency, July 2001, Figure A-4.2: Commercial Energy Efficiency, Energy Use, Aggregate Energy Intensity and Activity, 1990-1999, p. 48.

t 200 or 1 p e R l

a

u

n 37

n A 1.2.7.1 Federal, Provincial and Territorial Governments

Sector Engagement: 14 Action Plans 3 Champion level 90 % of sector emissions

Significant progress by sector: The Government of British Columbia earned Gold Champion level Reporter status with their 2001 submission. The Government of Alberta and the Government of Canada maintained their Gold status from last year. The federal government is on track to meet its 20 per cent reduction target. A significant part of its current reduction is attributed to downsizing.

Examples of best practices:

Investing in fuel efficient fleets The Government of British Columbia has included plans to purchase or lease more than 100 hybrid electric vehicles in the coming year. Various ministries would use these vehicles as part of their fleets. The reductions from the purchase of ultra-high efficiency vehicles is significant, especially considering that, in this sector, transportation emissions are second only to buildings in total magnitude.

Education programs Provincial governments determine curricula for Canada’s public schools, and most, including Alberta, have chosen to focus a part of the science curriculum on GHG emissions and the potential effects of climate change. Canada’s youth have an important role to play in voluntarily reducing GHG emissions, but actions must be based on awareness and knowledge of the issue and its potential impacts.

Building retrofits The most significant source of emissions for this sector is energy use in buildings. The federal government has successfully reduced emissions in many buildings through the Federal Buildings Initiative (FBI). The payback periods for many building retrofits can be much longer than many departments can afford. The FBI has enabled many federal departments to complete building retrofits that would have been difficult to finance internally. Energy reduction savings from building retrofits have accounted for 1.6 per cent of the governments’ emissions since 1990.

1.2.7.2 Municipal Governments

Direct Emissions: 25.3 Mt CO2 eq Indirect Emissions: 1.1 Mt CO2 eq Total Emissions: 26.4 Mt CO2 eq

Sector engagement: 61 Action Plans 4 Champion level 37% of sector emissions

Significant progress by sector: Municipal amalgamation caused a decrease in the total number of registered action plans. Included in the amalgamation were the only two Gold Champion level Reporters from this sector, which were merged into the new City of Ottawa. Early in 2001, the federal government announced significant new funding ($250 million) for municipal actions to reduce GHG emissions. It is anticipated that this wealth of resources will be applied to voluntary actions across the country. The Federation of Canadian Municipalities is responsible for administering this program through their Partners for Climate Protection Program and VCR Inc. has established appropriate registry linkages. u nn al R A e p o r

t

2

38 0 0 1 Examples of best practices:

Purchasing green power Municipalities have purchased green power for specific facilities or systems. One example is the City of Calgary, which is purchasing 21,000 MWh of wind-generated electricity each year to power the city’s light rail transit system. Calgary Transit’s "Ride the Wind" initiative has not only offset fossil fuel generation, but it provides Calgary’s citizens with a very visible GHG emissions reduction.

Streetlight retrofits Many municipalities across the country are installing new lighting systems that require significantly less energy and maintenance than previous generations of streetlights. Electrical consumption reductions of 10 per cent or more are common for these actions.

1.2.7.3 Education

Direct Emissions51: 5.9 Mt CO eq 52 2 Indirect Emissions : 4.0 Mt CO2 eq Total Emissions: 9.9 Mt CO2 eq

Avoided annual emissions: 0.3 Mt CO2 eq

1.2.7.3.1 Community Colleges

Sector engagement: 57 Action Plans 23 Champion level

Significant progress by sector: While the total number of registered colleges has risen by only four since last year, reporting rigour has increased dramatically. At 23, the number of Champion level Reporters is 50 per cent higher than last year. With 17 Gold Champion level Reporters, Colleges lead all non-industrial sectors in the Challenge Registry.

Examples of best practices:

Roof insulation While installing a new roof is not a project selected for energy savings alone, when it must be done, it is very beneficial to spend a little extra money to improve the insulation. Camosun College installed new roofs on several of its buildings between 1995 and 1999, and additional insulation was installed in each building. The energy cost saving of this extra insulation is $20,000 per year.

Window and door glass replacement Double glazed, low emissivity windows are excellent for colleges. By replacing older glass panes, colleges can not only reduce heating and cooling energy costs, but also provide a quieter and more comfortable environment for students and staff. Camosun College is saving over $13,000 per year by installing these panes in doors and windows in two buildings.

t 200 or 1 p e 51 This includes emissions from all education buildings (including colleges, universities and school boards) as R well as fleet vehicles. l a

52 This includes emissions from all education buildings, including colleges, universities and school boards. u

n 39

n A 1.2.7.3.2 School Boards

Sector engagement: 72 Action Plans 9 Champion level

Significant progress by sector: Since last year, eight school boards have joined the Challenge Registry.

More school boards are engaged in rigorous reporting, with an 80 per cent increase in Champion level Reporters over last year. Two new registrants this year are the first Champion level Reporters from this sector that operate and report in French. All school board registrants are also Energy Innovators who, through Natural Resources Canada and the Canadian School Boards Association, receive assistance to implement and report energy conservation and GHG emissions reduction activities.

Examples of best practices:

Heating, ventilation and air conditioning (HVAC) upgrades Half the energy used in institutions goes into heating and cooling facilities. Upgrades in heating and cooling systems at one school, Mgr-Euclide-Théberge of the Commission scolaire des Hautes-Rivières, have resulted in energy cost reductions of over $50,000 per year and more than 150 t CO2 eq per year. These types of reductions are indicative of GHG emissions reduction and cost saving opportunities found in schools throughout the country.

Using ESCOs for large-scale efficiency projects The Ottawa Carleton District School Board used an energy service company (ESCO) to implement a significant energy and GHG emissions reduction program, beginning in June 1998. This project covers lighting, HVAC, and automated building systems throughout more than 80 buildings. This project will reduce energy costs for the school board by 20% or $2.1 million per year. Many school boards use ESCOs to help finance and implement large-scale energy saving projects.

1.2.7.3.3 Universities

Sector engagement: 35 Action Plans 7 Champion level

Significant progress by sector: The number of Champion level Reporters has more than doubled since last year. Universities are slowly being engaged in Challenge Registry, and further engagement and rigorous reporting is expected in the future.

Examples of best practices:

Occupancy sensors Many rooms on university campuses have lights that are on without cause. Occupancy sensors will turn off lights and equipment when no students or staff are present, significantly reducing electrical energy consumption. The University of Lethbridge has installed occupancy sensors in classrooms and washrooms. This action is part of a comprehensive energy reduction program that is saving the university $91,000 per year in energy, reducing GHG emissions by 980 t CO2 eq per year.

Heating System Scheduling At the University of Lethbridge, building heating system scheduling is done using parameters of time of day, outside temperature, rate of temperature change, and interior occupancy. This sophisticated control system is continually being optimized for efficiency and comfort.

u nn al R A e p o r

t

2

40 0 0 1 1.2.7.4 Health Services

Direct Emissions: 5.0 Mt CO2 eq Indirect Emissions: 3.4 Mt CO2 eq Total Emissions: 8.4 Mt CO2 eq

53 Avoided annual emissions : 0.1 Mt CO2 eq

Sector engagement: 39 Action Plans 11 Champion level 33 % of sector emissions (Education and Health Institutions combined)

Significant progress by sector: While the number of action plans increased only marginally (3), there have been an additional nine Champion level Reporters. Reporting rigour among Health Institutions has improved dramatically since last year.

Examples of best practices:

Staff education programs By informing staff about the impact of leaving on lights or unnecessary equipment or computers, the Brandon Regional Health Authority has been able to achieve an estimated $40,000 per year reduction in energy costs. The associated GHG emissions are tracked and staff are informed of the success of their actions.

Exit lighting retrofits Conversion of exit lights to LEDs is a relatively simple way to reduce energy costs. At the Brandon Regional Health Authority, simple payback for this is fast compared to other projects: only one year.

Heating, Ventilation and Air Conditioning (HVAC) improvements Optimizing HVAC equipment in a hospital can dramatically reduce energy consumption and associated greenhouse gas emissions. At Rouge Valley Health System in , modifications to HVAC systems implemented since 1994 have resulted in annual emissions reductions in excess of 600 t CO2 eq. Like many other institutions, an energy service company (ESCO) was used to implement these actions.

1.2.7.5 Service and Retail Industries

Direct Emissions: 11.0 Mt CO2 eq Indirect Emissions: 7.5 Mt CO2 eq Total Emissions: 18.5 Mt CO2 eq

Avoided annual emissions: 42.2 Mt CO2 eq

Sector Engagement: 81 Action Plans 17 Champion level 33% of sector emissions

Significant progress by sector: Submissions to the Challenge Registry improved slightly in the number of registered action plans, but very dramatically in terms of rigorous reporting. The number of Champion level reporters increased by 70% since last year with 2 new members at each of the Gold, Silver and Bronze levels.

t 200 or 1 p e R l

a

53 (% change in energy efficiency 1990 to 1999) x 1999 emissions u

n 41

n A Examples of best practices:

Reducing waste Most service industry operations claim not to pollute. However, the effects of operations, including waste, have predictable impacts on GHG emissions. London Life Insurance Company has taken steps to dramatically reduce waste destined for landfills. They include an aggressive recycling programme, an area where the company estimated methane emissions from landfilled waste generated an emissions ‘liability’ of 528 t CO2 eq in 1993. By 1999, the annual ‘liability’ had been reduced to 472 t CO2 eq, and ‘assets’ of 1,773 t CO2 eq (avoided CO2 emissions) were being generated through recycling waste streams.

Common measures of performance The standard measure of emissions intensity for this very broad sector is emissions per facility area 2 (t CO2 eq / m ). This common measure allows organizations such as London Life to compare their emissions intensity between facilities within the organization as well as with peers or competitors.

Supporting voluntary reductions by employees VanCity Savings and Credit Union assists employees to make emissions reductions themselves. By providing convenient and safe bicycle storage and change rooms, both at head and branch offices, more employees are choosing not to drive to work. Since personal transportation accounts for 86.7 Mt CO2 eq (12%) of Canada’s total GHG emissions, these bike-friendly initiatives, if they were applied across all employers in the service industry, would have a far greater impact than many of the sector’s internal energy efficiency initiatives.

1.2.8 Households

Direct Emissions: 127 Mt CO2 eq Indirect Emissions: 23 Mt CO2 eq Total Emissions: 150 Mt CO2 eq

Sector engagement: 2001 figures as presented by Actions By Canadians (ABC)54 are: 4,867 participants from 241 workshops

Significant progress by sector: Since 1990, there has been significant growth in the number and size of residential homes. As well, people are traveling more, and using larger vehicles than in 1990. These lifestyle changes have resulted in significant emissions. However, the emissions growth is being curbed somewhat by energy efficiency and voluntary actions to reduce emissions. Energy efficiency in residences has improved by 13 per cent since 1990. Likewise, energy efficient technology in vehicles, such as improved aerodynamics, lightweight frames, improved tires, electric cooling fans, and transmission upgrades, has reduced total transportation energy efficiency by 3.9 per cent.55

The greenhouse gas reduction impacts of achieved actions were entered into the ABC database and the information is reflected in the table below.

Examples of best practices:

The following are examples of activities that you, as an individual, can undertake to reduce greenhouse gas emissions. Daily decisions about the use of energy, water, products (waste output), have ripple effects on the environment. Even small actions can make a difference.

u nn al R A e 54 In its first year, ABC was supported by a contribution from the federal Climate Change Action Fund (CCAF) p o and by matching contributions and in kind commitments from its private sector partners. r t 55 Natural Resources Canada, Energy Efficiency Trends in Canada 1990 to 1999, An Update, Indicators of

2 Energy Use, Energy Efficiency and Emissions, July 2001, p. 35.

42 0 0 1 Everyday friendly actions you can easily take are: fixing that leaky faucet in the basement sink, ensuring the tire pressure on your car is optimized for fuel efficiency and improved wear and tear on your car, turning the lights out when leaving a room, and many more. The VCR Inc. Challenge Registry now has the ability to record the achievements of individual reduction efforts. Visit http://www.vcr-mvr.ca/iap/index.cfm to begin the registration process.

The use of home appliances, including lights, refrigerators, computers and TVs, accounts for about 10% of all the energy consumed in a home, not including hot water heating. Improving the efficiency of these appliances while using them more effectively can provide significant economic and environmental returns.

Transportation Home Heating Start carpooling Upgrade insulation Take public transit Caulk and weather-strip doors and windows Walk, rollerblade, or bike Install efficient furnace Remove roof and rear mounting racks Install energy efficient windows Reduce speed Install set back thermostat Stop/reduce idling Check tire pressure Lights & Appliances Regular car maintenance Turn off lights when not in use Purchase low-emission vehicle Switch to compact fluorescents Install motion detector Water & Water Heating Purchase energy efficient appliances Fix leaky faucet Dry clothes on line Install low flow showerhead Run dishwasher only when full Install blanket on hot water heater Turn off computer (at least the monitor) when not in use Reduce water heater temperature Install low faucet aerator Miscellaneous Install solar panel Turn off office copier at night Turn off the water while brushing your teeth Use bike couriers in the office Keep a pitcher of water in the fridge Make a change in lawn care Plant trees Recycle more Avoid non-recyclable packaging Start composting Buy a unit of green power

56 T ABLE FOUR: ABC Statistics Achieved Reductions (kgs) Action Category As at Dec 2000 Dec 2001 Transportation 465,945 936,297

Home Heating 48,432 97,676

Lights and Appliances 308,925 729,761

Water and Water Heating 196,198 158,923

Miscellaneous 135,895 247,477

Total 1,055,396 2,169,50457

t 200 or 1 p e 56 CIPEC members have implemented the same program under the name “Count Me In” and their results are R included in this summary. l a

57 This number is estimated from 4,867 participants from 241 workshops. Numbers provided by ABC. u

n 43

n A The ABC program is an outstanding example of how Canadian citizens, industry and government can work together to make a difference on an issue that is truly global in scope. It demonstrates that individuals can be an important part of Canada’s collective efforts to achieve its international commitments on climate change.

Many of the items on the lists above are very simple to achieve! Do Your Part – Celebrate the Momentum!

1.2.9 Agriculture

58 Direct Emissions : 75.0 Mt CO2 eq Indirect Emissions: 3.4 Mt CO2 eq Total Emissions: 78.4 Mt CO2 eq

59 Avoided annual emissions, energy sources : 1.0 Mt CO2 eq

Significant progress by sector: Since 1990, agricultural activity has increased by 24.2 per cent while energy consumption has increased by only 15.4 per cent. This indicates an improvement in energy intensity of 7.0 percent.

Examples of best practices:

Soil sequestration Farmers can use zero-till technology and cropping methods that increase carbon sequestration in agricultural soils. This method of sequestration has tremendous potential, but it has yet to be used on a large scale in Canada.

Manure management Livestock wastes can be converted into energy or fertilizer, which reduces natural emissions of CH4 and N2O. This technology is becoming more attractive to large-scale livestock operations, which are increasingly aware of waste disposal issues and high energy costs.

u nn al R A e p 58 This includes 61.3 Mt CO2 eq from non-energy sources. Livestock production and fertilizer use are large o sources of N O and CH . r 2 4 t 59 (% change in energy intensity 1990 to 1999) x 1999 energy-related emissions 2 This does not take into account energy use trends, which indicate more use of diesel and less use of gasoline.

44 0 0 1 GGoodood MeasurementMeasurement PromotesPromotes GGoodood ManagementManagement u nn al R A e p o r

t

2

46 0 0 1 CHAPTER TWO Canadian GHG Reduction Registry

The Canadian GHG Reduction Registry was created at the request of Natural Resources Canada to satisfy the need to track emissions reductions associated with the Baseline Protection Initiative that forms a part of the First Business Plan within the new National Implementation Strategy. In addition, the Reduction Registry is available to a variety of initiatives that involve the assessment of the veracity of project, facility, or entity-based GHG emission reductions. For example, it is the on-going registry for the Greenhouse Gas Emission Reduction Trading (GERT) pilot and for Activities Implemented Jointly (AIJ), projects funded by industry and coordinated by the Department of Foreign Affairs and International Trade, CDM and JI office.

2.1.1 Baseline Protection60

On January 12, 2000, federal, provincial and territorial Ministers of Energy and the Environment officially announced the Baseline Protection Initiative (BPI) under the National Climate Change Process. The initiative is intended to reduce the uncertainty of business and to facilitate long term corporate planning. Governments have made assurances that businesses taking early action to reduce GHG emissions will not be disadvantaged if future policy is implemented which allocates obligations to reduce GHG on the basis of past emission levels.

The program is administered by two Program Managers-the Office of Energy Efficiency of Natural Resources Canada and ÉcoGESte, in Québec-which are overseen by a Management and Coordination Board composed of federal, provincial and territorial government officials.

As of March 1, 2001, you can participate in the Baseline Protection Initiative by registering your early emission reduction actions with VCR Inc.61 or ÉcoGESte in Québec. There is no deadline for joining the BPI. You can register with the BPI at any time and withdraw from it without penalty.

To be eligible, your actions must have been implemented since January 1, 1990. They must result in real, net reductions, i.e. emission reductions or avoided emissions, which are directly attributable to specific, identifiable actions. Reductions must be measurable and verifiable. 2.1.2 Champions in Action (CIA)

Introduced in 2000, the purpose of this initiative is to test the concept of voluntary agreements as a means to document and manage greenhouse gas (GHG) emission reductions, and to provide Canadian organizations and governments with the ability to test the design and implementation of other enhanced voluntary approaches designed to accelerate early action to reduce GHG emissions.

Participating companies, governments and other responsible entities would enter into a voluntary understanding with VCR Inc., with performance targets for Canadian entity-wide GHG emission reductions, net of any offsetting which may be undertaken. VCR Inc., will manage a peer review process in order to analyze, validate, track and report over time, the achievement of these targets.

Participation in the initiative is voluntary and is intended to be inclusive of any and all organizations with an interest in promoting accelerated action by providing leadership. Now that the structure and process for becoming a CIA member are in place, VCR Inc. is encouraging other organizations to become members. t 200 or 1 p e R 60 For more information on the Baseline Protection Initiative, visit the program web site at: l a

http://www.nccp.ca/NCCP/baseline_pro/index_e.html u n 47

61 A transaction fee of $200 plus GST will apply.

n A During 2001, the CIA Coordinating Committee developed the framework understanding and standardized reporting which will form the foundation for a system of peer review and validation.

Framework Understanding The intent of this understanding is to help draft individual formal documents that identify the GHG reduction targets that CIA members have voluntarily committed to achieve. An initial draft has been completed and members have reviewed the document and have solicited input from their legal staff.

The framework understanding was modeled on the work of the New Directions Group (NDG), which brought together leaders from the business and environmental communities to identify those attributes of voluntary, non-regulatory initiatives (VNRI) necessary to achieving environmental policy objectives. The NDG defined the essential principles of VNRIs to ensure their quality, effectiveness and credibility and the CIA framework understanding has incorporated these design elements.

The understanding consists of three main parts:

A descriptive section that is standard for all individual understandings. This document defines the terms used in the understanding and sets out the requirements for VCR Inc. and the CIA member.

A copy of the CIA member’s most current Action Plan and/or progress report. This outlines the commitments and timetable that the CIA member is willing to abide by in reducing GHG emissions.

A ‘Balance Sheet’ that captures the GHG emission information for the base year, future targets, and results from the previous year. This information will be updated each year throughout the term of the understanding and is intended to be the public face of the initiative.

Standardized Reporting As outlined above, the Framework Understanding requires the creation and maintenance of a Balance Sheet that captures greenhouse gas emission data. This data is completed by the CIA member and follows the principles in the Greenhouse Gas Protocol developed jointly by the World Research Institute and the World Business Council for Sustainable Development (WRI/WBCSD). This protocol is designed to promote the use of standardized methods for estimating and reporting GHG emissions.

Peer Review and Validation A Coordinating Committee comprising the original CIA members has combined the wealth of knowledge gained in creating Champion level Action Plans with the experience at VCR Inc. of implementing tracking systems for voluntary GHG reductions. Work continues on the detailed design of a formal peer review and validation protocol.

2001 Champions in Action Members are:

Alcan Irving Oil Limited Dupont Canada Inc. Ontario Power Generation EPCOR Petro-Canada Falconbridge Shell Canada General Motors of Canada Ltd. Suncor Energy Inc. Government of Alberta TransAlta Corporation Government of Canada TransCanada

Becoming a Champions in Action member Now that the most time-consuming part of the work has been completed and a structure and process are in place, VCR Inc. is inviting interested governments, companies and other organizations to become members of Champions in Action. The conditions for joining are:

u nn al R A e p o r

t

2

48 0 0 1 Participants must join the VCR Inc. Council of Champions with a commitment to maintain membership for a minimum of three years. (The current annual membership fee is $5,000.)

Participants must be prepared to achieve Champion level reporting status.

Participants must be willing to enter into negotiations leading to a voluntary understanding with VCR Inc.

CHART 26: Champions in Action

2002 30 Planned

2001 16

2000 14

2.1.3 Greenhouse Gase Emission Reduction Trading Pilot (GERT)

The Greenhouse Gas Emission Reduction Trading (GERT) Pilot program was launched by a multi- stakeholder partnership in June 1998. The Pilot provides practical experience with a market-based approach. An emission reduction trading system provides industry, governments and other organizations with the opportunity to buy and sell emission reductions. By encouraging investment in lower-cost reductions, this approach has the potential to help Canada meet GHG reduction targets at a reduced overall cost. The pilot is expected to discontinue operations in June of 2002 and VCR Inc. is providing an on-going registry service to GERT to ensure that the projects it has reviewed and the associated registered emission reductions are maintained into the future. 2.1.4 Activities Implemented Jointly (AIJ)

In the pilot phase of joint implementation, which was launched in 1995, the Conference of the Parties of the UNFCCC identified projects referred to as Activities Implemented Jointly (AIJ). These activities were pursued mainly with the objective of gaining experience, and do not generate emission reduction credits. These projects are registered within VCR Inc.’s Reductions Registry.

t 200 or 1 p e R l

a

u

n 49

n A EEconomic,conomic, Environmental,Environmental, andand SocialSocial AdvancesAdvances areare MutuallyMutually ReinforcingReinforcing CHAPTER THREE Credit Registry

VCR Inc.’s Canadian GHG Credit Registry is the national registry for Greenhouse Gas (GHG) emission reduction credits.

This Credit Registry has been designed to post and track Registered GHG Emission Reductions (RERs) that have been permanently retired through VCR Inc. as well as government sanctioned GHG emission reduction credits.

International negotiations concerning the ground rules under which useable credits might be created are continuing and it is anticipated that the resulting Clean Development Mechanism and Joint Initiative (CDM/JI) projects will generate credits, which will be registered here.

In the meantime, entities who have posted RERs in our Reductions Registry and who wish to transfer ownership of a portion of them to VCR Inc. for permanent retirement may do so through our Credit Registry.

t 200 or 1 p e R l

a

u

n 51

n A RRecognizingecognizing OutstandingOutstanding AAchievementchievement CHAPTER FOUR Leadership Awards

VCR Inc.’s annual Leadership Awards are granted based on the results achieved and reported in an Action Plan by registrants, with the intention of recognizing them for their outstanding contributions toward meeting Canada’s commitment to reduce GHG emissions. The independent judging panel is drawn from the membership of VCR Inc.’s Technical Advisory Committee.

The members of VCR Inc.’s Council of Champions, selected special guests, all Leadership Award winners from previous years, current award winners, and those receiving Honourable Mention, are invited to VCR Inc.’s annual Council of Champions Meeting and Leadership Awards Ceremony held in February or March of every year. It is a gala celebration held, since its inception, at the Canadian Museum of Civilization in Hull, Québec.

It has become customary for the Ministers of Natural Resources Canada and of Environment Canada to present the awards to the recipients. A broad-spectrum of senior industry and government leaders, environmental non-government organizations, academia and other interested parties, including the media, attend the affair. Invitations are mailed out in early January.

Those selected to receive an Award or Honourable Mention are contacted directly in advance of the event.

VCR Inc.’s Technical Advisory Committee has developed the following selection criteria for the awards as guidance for its judging panel:

Minimum Selection Criteria • Registered with VCR Inc.; and • Have submitted either an Action Plan or a Progress Report between October 31st of the current year and November 1st of the previous year.

Other Considerations • Representation of different sectors in selecting award candidates; and • Best submission from a new registrant.

Specific Selection Criteria Depth of commitment to GHG emission reduction as expressed in: a) Senior management support, and the development of corporate actions and policies (i.e. Does the organization operate other environmental programs in concert with those described in the VCR Inc. Action Plan? Does the organization have a good history of energy management? Has the organization implemented purchasing policies that promote environmental awareness? Has the organization reported thoroughly?). b) Education, training and awareness programs for employees. c) Submission of a Progress Report(s), serving to indicate successful results related to the reduction of GHG emissions. d) Quality of results reported regularly, achievement of targets, and overall impact on the organization’s GHG emissions. e) Innovation in addressing GHG emission reductions.

Leadership within the organization’s sector as expressed in: a) Cooperation and participation with related government (federal, provincial, territorial and municipal) and/or industry programs. b) Promotion of the climate change challenge to peers, through trade associations, and/or to the general public. t 200 or 1 p c) Assisting peers in planning actions to address GHG emission reductions. e R d) The organization’s efforts result in an increased number of participants (at all levels l a

u

of engagement) in VCR Inc. or in a related energy efficiency program addressing n 53

n the climate change challenge. A Throughout the judging process, special emphasis is placed on finding organizations that have demonstrated commitment, action and leadership within their economic sector. Recognition for commitment and action is granted to eligible registrants based on their Action Plans and/or Progress Reports. In this case, VCR Inc.’s judging panel members pay close attention to the Results Achieved section of the reports under review.

Those recipients in the category of Association and Individual Leadership are drawn from a list of nominees chosen because of their dedicated activity as advocates for the voluntary climate change challenge.

4.1 2000 Leadership Award Winners

Small and Medium-sized Enterprise Oil and Gas Refiners and Upgraders Enviros RIS Canada Syncrude Canada Ltd Irving Oil (HM) Sector Leadership Awards Petro-Canada (HM) Commercial VanCity Savings Credit Union Mining Novotel Canada Inc. (HM) INCO Limited Luscar Limited (HM) Automotive Manufacturing Falconbridge Limited (HM) DaimlerChrysler Canada Inc. General Motors of Canada Ltd. (HM) Municipality City of Ottawa Colleges and Universities New Brunswick Community Colleges Pipelines and Natural Gas Distribution SaskEnergy & Trans Gas School Boards School Board No. 43 (Coquitlam) Nuclear Technology Atomic Energy Canada Limited Electric Utilities BC Hydro Primary Metals Dofasco Inc. Chemicals NOVA Chemicals Governments DuPont Canada Inc. Government of Alberta Government of British Columbia (HM) Forest Products Abitibi-Consolidated Inc. Oil and Gas Upstream Startech Energy Inc. (ARC Resources Ltd.) General Manufacturing Burlington Resources Canada Energy Ltd. IBM Canada Ltd. Orenda Aerospace Corporation Sector/Association Leadership Award Canadian Chemical Producers’ Association Health Services University of Alberta Hospital Individual Leadership Award Sadettin Yilmaz, Natural Resources Canada Ken Ogilvie

u nn al R A e p o r

t

2

54 0 0 1 CCelebrateelebrate thethe MomentumMomentum u nn al R A e p o r

t

2

56 0 0 1 CHAPTER FIVE Communications

5.1 Website

In the fall of 2001, the VCR Inc. website underwent a facelift. The original website has been in existence since it was launched in March of 1998. The new image and look will facilitate ease of updating and provides easier navigation of the site.

The VCR Inc. Web site acts as a highly interactive communications medium, reaching all target audiences and providing enormous amounts of information at a very low cost. It is also very flexible and can be changed quickly to reflect current activity.

Documents such as newsletters, success stories and handbooks are posted on-line. The site has been promoted to several search engines and has been advertised in all VCR Inc. mail-outs, resulting in growing awareness. Since its inception the number of visitors to the site has grown considerably.

The number of page views on a one-month daily average has increased by 260% over three years and the number of successful hits for the entire VCR Inc. site has grown 360%.

CHART 27: Monthly Hits and User Sessions

300,000 14,000

250,000 12,000 Average Monthly Hits 10,000 200,000 8,000 150,000 6,000

WEB HITS 100,000 4,000 Average Monthly 50,000 User Sessions 2,000 USER SESSIONS

0 0 1998 1999 2000 2001

5.2 Publications

5.2.1 Champion News Published every second month, Champion News is distributed to all VCR Inc. registrants and other interested parties by mail and electronically by email. The newsletter is also available on-line at the website address: www.vcr-mvr-ca under the What’s New Section. Its purpose is to keep readers apprised of VCR Inc. activities, providing them with information on a variety of topics from success stories to welcoming new registrants to the announcement of new VCR Inc. initiatives. t 200 or 1 p The current readership of the newsletter is approximately 2500, and is constantly e R increasing. As part of VCR Inc.’s efforts to promote the best practices and achievements l a

u

of VCR Inc. registrants, at least one success story is included in every issue of Champion n 57

n A News and in a special Success Stories section on the website. Each story features a different registrant who has adopted innovative solutions or demonstrated outstanding performance over the last year. We are particularly interested in featuring stories about solutions or achievements that may be applied across a variety of sectors and/or geographical regions. 5.2.2 Registration Guide

VCR Inc.’s Registration Guide is intended to walk registrants through the process of submitting their Action Plans to VCR Inc. using built-in templates, user-friendly instructions and an easy-to-fill-out, on- line registration form.

From baseline development, through target setting, to the documentation of achieved results, this guide provides complete information about VCR Inc., its Champion level Reporting System, how to prepare a comprehensive Action Plan to reduce GHG emissions, and many other informative and useful features. It also includes other reporting tools that will assist in the preparation of an Action Plan, such as up-to-date emissions factors, a Champion reporting checklist, and a listing of trade association resources.

During 2001 we introduced the Individual Action Plan and Registry into our Challenge Registry and this will be further developed in 2002. It is a complete on-line registration and information system designed specifically for individuals and small to medium sized enterprises. With linkages to Canada’s Climate Change Calculator, this approach allows VCR Inc. to follow-up by e-mail to reinforce participating individuals’ efforts to reduce the GHG impact of their activities.

CHART 28: Total Number of Registration Guide Downloads 14000 12000 10000 8000 6000 NUMBER 4000 2000

0 J A Oct 00 Dec 00 F Apr 01 J A Oct 01 Dec 01 un 00 un 01 eb 01 ug 00 ug 01

DATE

5.2.3 Annual Report

Issued annually at the beginning of March in conjunction with the Annual Council of Champions meeting and Leadership Awards Ceremony, VCR Inc.’s Annual Report contains an interesting and revealing synopsis of activities and initiatives undertaken throughout the previous year. It includes an important chapter on sector activities within the Canadian economy that generate greenhouse gas emissions. Using identified sources, graphs and tables, the Report documents those sectors of Canada’s economy that have achieved significant progress in GHG emission u nn al R A e reductions. The Report is distributed widely following its initial release. p o r

t

2

58 0 0 1 5.2.4 Progress Reports

VCR Inc.’s Progress Report is distributed electronically on a monthly basis to an interested group of roughly 175 readers, including Council of Champions/Board of Directors members, association heads, government officials and VCR Inc.’s Technical Advisory Committee members. Its purpose is to keep VCR Inc.’s closest stakeholders apprised of the Corporation’s progress on a more detailed month-to- month basis, and it has become a valuable vehicle for on-going communication with the principals behind the ever growing list of linkages and partnerships. 5.3 Annual Survey COMPAS was commissioned to conduct a survey to measure stakeholder awareness of and satisfaction with the activities of Canada’s Climate Change Voluntary Challenge and Registry Incorporated (VCR Inc.). The survey is a follow-up to ones undertaken in February-March 1999, December 1999, and December 2000.

Two versions of the questionnaire were developed: a short version for use with senior executive stakeholders, and a longer version for use with the technical contact person in stakeholder organizations. The survey was administered using a combined methodology that included an on-line version of the survey, fax, and email. In total, 1,224 surveys were mailed out in October: 651 to technical stakeholders and 573 to executive stakeholders. In total, 331 surveys were completed: on- line (139), by fax (124), and by email (68). This represents an overall response rate of 27%, very similar to the response rate of previous surveys.

Familiarity and Perceived Importance • 84% of technical stakeholders claim to be at least moderately familiar with the activities of VCR Inc. (33% say very familiar). Familiarity is only slightly higher, but much stronger among executive stakeholders: 89% are at least moderately familiar (52% say very familiar). Familiarity among technical stakeholders is virtually identical to what it was in previous surveys, in terms of both level and intensity. Among executive stakeholders, strong familiarity has increased since tracking began (from 37% to 52% who say they are very familiar). • 91% of technical stakeholders consider VCR Inc.’s work to be important: almost half (48%) consider the work to be moderately important, while 43% consider it to be very important. Executives have similar views in terms of both level and intensity. Since last year, there has been an increase in the number of technical stakeholders who consider the work to be very important (43% vs. 37%) halting the decrease that had been taking place since the baseline survey (from 51% to 37%). The number of executives who consider the work to be important has not changed significantly since last year. • 79% of technical respondents view participation in VCR Inc. as at least moderately important to their organization (30% say very important). Executives are slightly more likely to view participation as important (85%). The overall importance of participation among technical stakeholders has changed little over time (76-79% range). Executive perceptions in this area have changed little over time.

Perceptions of Satisfaction and Benefits • 61% of the technical stakeholders say that their expectations have been met with respect to participation in the activities of VCR Inc. However, satisfaction tends to be moderate (50%) rather than strong (11%). One-quarter think that their expectations have been somewhat met. Executive stakeholders tend to express greater satisfaction: 70% say their expectations have been met (8% say greatly, 62% say satisfactorily), while 17% say they have been somewhat met. Compared to previous years, the level of expectations being met (greatly or satisfactorily) has increased noticeably among technical stakeholders (61% vs. 50-52% in previous years). It has also increased among executive stakeholders, (70% vs. 64% in Fall 00, 65% in Fall 99 and 52% in Feb.

99). t 200 or 1 p • 75% of technical stakeholders say that participation in VCR Inc. helps their e R organization achieve or promote its emission reduction targets. This compares to l a

u

n 59

n A 84% of executives. Results for technical stakeholders are higher than in previous surveys (64-67% range). By contrast, executive perceptions have fluctuated: 84% think that participation helps them achieve their reduction targets vs. 71% in Fall 00, 80% in Fall 99, and 69% in Feb. 99. • In terms of benefits associated with participation in VCR Inc., technical stakeholders focus most often on public recognition (19%), access to information (17%), and promoting awareness (15%). Executive stakeholders tended to focus on the same benefits but put much more emphasis on promoting awareness (29% vs. 15%), and less on energy efficiency (4% vs. 11%). Public recognition, access to information, and monitoring and gauging progress continue to increase gradually in significance after an initial decline two years ago (Fall 99). Communication and cooperation with others, energy efficiency, and comparison with others have also increased in significance compared to previous surveys. Conversely, promoting awareness and promoting the voluntary approach have been declining in significance over the past two years. • 73% of technical stakeholders expressed satisfaction with their working relationship with VCR Inc. (34% said they were very satisfied). Just over one quarter (26%) were neither satisfied nor dissatisfied, while almost no one expressed any degree of dissatisfaction with the working relationship. Executives expressed noticeably higher levels of satisfaction (88% vs. 73%). This is the first time that executives have been asked this question. Satisfaction among technical stakeholders with the overall working relationship with VCR Inc. has increased significantly since last year, and is the highest it has been since tracking began (73% vs. 61% in Fall 00, 68% in Fall 99, and 66% in Feb. 99).

Communications Issues Note that these issues were included only for technical stakeholders. • During the past year, 82% received information from VCR Inc. through the newsletter, 62% through the VCR Inc. Website, 50% through the annual report, and 44% through the progress report. After this, information comes most often by means of the registration guide (23%), personal contact (18%), or the annual meeting/awards ceremony (11%). Since the baseline survey, the newsletter continues to be the main vehicle through which communication with VCR Inc. takes place. Since the last study, the website has moved ahead of the annual report as a vehicle through which communication with VCR Inc. has taken place. • 77% of technical stakeholders indicated that they would prefer to receive VCR Inc. information by email. Conversely, 28% said that they would prefer to receive such information by mail. A small number would like to receive information through both. This question was not asked in previous surveys. • 79% said that they have visited the VCR Inc. Website and Registry. Conversely, 23% have never visited it. The frequency of visits, however, is relatively varied. Well over one-third (42%) visit it a few times a year or less. Almost as many (37%) visit it at least every 2-3 months (9%, a few times a month; 1% once a week or more). The number of stakeholders who have visited the website increased noticeably since last year and is at its highest point since tracking began (79% vs. 65% in Fall 00, 66% in Fall 99, and 58% in Feb. 99). •Visitors to the website are most often seeking information about what other companies are doing (39%), followed at a distance by guidelines or requirements for reporting and news and updates (23% each) (multiple responses accepted). Other types of information looked for relatively frequently include general information (14%), contact information (10%), and information on programs and funding (8%). This question was not asked in previous studies. • Over two-thirds of those who visited the VCR Inc. website described it as good (50%) or excellent (17%) in terms of ease of navigation. Approximately one quarter (24%) were lukewarm, describing it as satisfactory. Very few were critical (2% said it needs improvement). This question was not asked in previous studies. •Two-thirds of those who visited the VCR Inc. website described the design and basic layout of the site as good (49%) or excellent (17%). One quarter described it as satisfactory. Very few were critical (4% said it needs improvement). This question was not asked in previous studies. •Visitors to the VCR Inc. Website found the most useful section to be the on-line reports (31%), followed by the registries/registry section, and the what’s new section (23% each) u nn al R A e (multiple responses accepted). A significant number (15%) identified all sections as very p o r useful. This question was not asked in previous studies. t

2

60 0 0 1 As well, • 85% of technical stakeholders believe that VCR Inc.’s Leadership Awards Program is somewhat (54%) or very valuable (31%). Few think it is not valuable (9%). In all, 6% said they were not aware of the program. The number of technical stakeholders who perceive the Leadership Awards Program as valuable has increased since last year (85% vs. 79%). •A majority of technical stakeholders (56%) are at least moderately familiar with VCR Inc.’s role in Canada’s Baseline Protection Initiative and early emissions reduction actions. However, a significant number are not very (31%) or not at all familiar with it (14%).

T ABLE FIVE: Satisfaction Quotient of Executive Contacts “To what extent has participation in VCR Inc. met your organization's expectations?” 1998 1999 2000 2001 Multiplier Percent Quotient Percent Quotient Percent Quotient Percent Quotient Greatly 1.5 7.0 10.5 10.0 15.0 5.0 7.5 8.0 12.0 Satisfactorily 1.0 45.0 45.0 48.8 48.8 59.0 59.0 62.0 62.0 Somewhat 0.5 28.0 14.0 20.0 10.0 18.0 9.0 17.0 8.5 Not at all -1.0 6.0 -6.0 5.0 -5.0 2.0 -2.0 6.0 -6.0 Total – 63.5 68.8 – 73.5 – 76.5 Source: VCR Inc. 2001 Stakeholder Survey, Perceptions of Satisfaction and Benefits, Compas Inc., December 2001.

T ABLE SIX: Satisfaction Quotient of Technical Contacts “Overall, how satisfied are you with your working relationship with VCR Inc.?” 1998 1999 2000 2001 Multiplier Percent Quotient Percent Quotient Percent Quotient Percent Quotient Very Satisfied 1.5 17.0 25.5 31.0 46.5 28.0 42.0 34.0 51.0 Somewhat Satisfied 1.0 49.0 49.0 38.0 38.0 33.0 33.0 39.0 39.0 Neither 0.5 23.0 11.5 22.0 11.0 34.0 17.0 26.0 13.0 Somewhat Dissatisfied -0.5 5.0 -2.5 2.0 -1.0 1.0 -0.5 2.0 -1.0 Very Dissatisfied -1.0 2.0 -2.0 4.0 -4.0 1.0 -1.0 0.0 0.0 Total - 81.5 - 90.5 - 91.5 - 102.0 Source: VCR Inc. 2001 Stakeholder Survey, Perceptions of Satisfaction and Benefits, Compas Inc., December 2001.

• 59% claim to be at least moderately familiar with VCR Inc.’s Champions in Action Initiative. The remainder were either not very familiar (29%) or not familiar at all with it (12%).

t 200 or 1 p e R l

a

u

n 61

n A SSuccessuccess isis thethe SumSum ofof aa MultitudeMultitude ofof PersonalPersonal ActionsActions CHAPTER SIX VCR Inc. Structure

VCR Inc. reports to a Council of Champions (list of 2001 Council Members, see section 6.1.1) comprising senior representatives from leading industry organizations and government bodies supporting the corporation. The Council currently consists of 45 members, who represent over 75 per cent of the opportunity for business and government operations to reduce GHG emissions in Canada. Each Council member serves as the ‘champion’ of the voluntary challenge in his/her sector or region.

VCR Inc.’s Board of Directors (list of 2001 Board of Directors, see section 6.1.2) is drawn from the Council. Industry representatives are elected on an annual basis at the Council of Champions Meeting, while the federal minister of Natural Resources Canada appoints government representatives. The Board receives guidance from the following three committees:

The Governance Committee was established to permit review of the issues related to the election and nomination of board members and to assess the performance of the Technical Advisory Committee. It consists of a Chair and two other board members.

The Audit Committee was created to review the audited year-end financial statements and reports and to meet with the auditors. Much like the Governance Committee, there are a Chair and two board members, and it is their responsibility to satisfy themselves, on behalf of the Board, that VCR Inc.’s financial requirements are met.

The Technical Advisory Committee (TAC) (list of 2001 TAC Members, see section 6.1.3) was established to provide, at the request of the Board, recommendations concerning technical issues. It consists of representatives from academia, labour, environmental non-government organizations, the aboriginal community, industry and governments.

The VCR Inc. office was created to support the Council of Champions in the development of an engagement strategy to recruit more organizations, more partnerships with associations, and more awareness of the voluntary approach by all Canadians. In this regard, the Board provided input to, and approved, the 2001-2003 Strategic Plan. In addition, an annual Business Plan based on this strategy is reviewed and endorsed by the Board in conjunction with the presentation of an annual budget.

For the year ending 2001, the office comprised six staff members: President, Office Manager, Technical Representative, Data Administrator, Registry Analyst and Web Developer.

t 200 or 1 p e R l

a

u

n 63

n A CHART 29: VCR Inc. Organizational Structure

VCR Inc. Council of Champions

VCR Inc. Technical Advisory Board of Directors Committee

President Robert A. Flemington P.Eng.

Technical Representative Office Manager Evan Jones P atricia Chartrand P.Eng.

Data Administrator Registry Analyst Web Developer Natalie Andrews Brian Rawson Najah Berrada

6.1.1 2001 Council of Champions

R.L. (Dick) Bowman Jack Ebbels Hugh Klaassen Executive Vice President Deputy Minister of Energy and Mines Corporate Operating Officer Ingersoll Lime Ltd. Government of British Columbia Paramount Resources Ltd.

Norman B. Brandson Tim W. Faithfull Stuart L. Kramer Deputy Minister President and Chief Executive Officer Deputy Minister, Environment and Government of Shell Canada Limited Resource Management Government of Saskatchewan Grete Bridgewater Bob Flemington Manager, Environmental Programs President Barry Lacombe Canadian Pacific Railway VCR Inc. President Canadian Steel Producers Association Jim Burpee Daniel Gagnier Senior Vice President , Pickering 'A' Vice-President, Corporate and David Lewin Ontario Power Generation Inc. Environmental Affairs Senior Vice President, Sustainable Alcan Aluminium Ltd. Development Alex Campbell EPCOR Utilities Inc. Deputy Minister, Sustainable Daniel Graham Development Deputy Minister of Natural Resources Larry MacDonald Government of Nunavut Government of Nova Scotia Senior Vice-President Manufacturing East NOVA Chemicals Ray Clayton Peter Harrison Deputy Minister of Energy and Mines Deputy Minister of Natural Resources Brian Maynard Government of Saskatchewan Government of Canada Deputy Minister of Mines & Energy Government of Newfoundland and David Colcleugh W. Warren Holmes Labrador President, CEO & Chairman Senior Vice President DuPont Canada Inc. Falconbridge Limited Brian McConaghy Vice President of Health, Safety & Peter Cooke Arthur Irving Jr. Environment Executive VP, Cement North America Irving Oil Limited TransCanada Lafarge Canada Inc. Boris Jackman Bob McLeod Paul Dean Executive Vice President Deputy Minister of Resources, Wildlife & Deputy Minister of Environment and Petro-Canada Economic Development Labour Government of the Northwest Territories Government of Newfoundland and Byron James Labrador Deputy Minister, Environment and Local Kevin McNamara Government Deputy Minister of the Environment & John Donner Government of New Brunswick Labour Assistant Deputy Minister, Climate Government of Nova Scotia Change, Department of Environment Jim Johnston Government of Alberta Deputy Minister of Development Government of Prince Edward Island

u nn al R A e p o r

t

2

64 0 0 1 Chris Micek Normand Pellerin Norm Stewart Manager, Environment, Health & Safety Assistant Vice President, Environment Vice President, Government Relations Agrium Canadian National Railway Company (CN) and General Council Ford Motor Company of Canada, Ltd. Alan Nymark Bryne Purchase, Ph D Deputy Minister of Environment Deputy Minister, Ministry of Energy, Derek Thompson Government of Canada Science and Technology Deputy Minister of Environment, Lands & Government of Ontario Parks Michael O'Brien Government of British Columbia Executive Vice President, Corporate Angus Robertson Development and CFO Deputy Minister of Economic Christian L. Van Houtte Suncor Inc. Development President Government of Yukon Aluminium Association of Canada (AAC) Robert Page Vice-President, Sustainable Development Betty Rozendaal Tayce Ann Wakefield TransAlta Corporation Director, Environment Vice President Atomic Energy of Canada Limited (AECL) General Motors of Canada Ltd.

6.1.2 Board of Directors (Year 2001)

Mr. Jim Burpee Mr. Byron James Mr. Norm Stewart Senior Vice President Deputy Minister, Environment and Local Vice President, Government Relations Electricity Production Government and General Council Ontario Power Generation Inc. Government of New Brunswick Ford Motor Company of Canada, Ltd.

Mr. Peter Cooke Mr. Hugh Klaassen Former 2001 Board Members Executive VP, Cement North America Corporate Compliance Officer Mr. Bob Eamer Lafarge Corporation Paramount Resources Ltd. Senior Vice President Lafarge Canada Inc. Corporate and Technology Development Mr. Brian McConaghy Domtar Inc. Mr. John Donner Vice President of Health, Safety & Assistant Deputy Minister, Climate Environment Mr. Boris Jackman Change, Department of Environment TransCanada Pipelines Limited Executive Vice President Bureau of Climate Change Petro-Canada Government of Alberta Mr. Alan Nymark Deputy Minister of Environment Mr. Paul Kelly Mr. Bob Flemington Government of Canada President & CEO President Slater Steel Inc. VCR Inc. Mr. Michael O'Brien Executive Vice President, Corporate M. Robert Tessier Dr. Peter Harrison Development and CFO President and Chief Executive Officer Deputy Minister of Natural Resources Suncor Inc. Gaz Métropolitain Government of Canada Ms. Jane Peverett Ms. Katherine Trumper Mr. W. Warren Holmes President and CEO Deputy Minister, Sustainable Senior Vice President Union Gas Limited Development Canadian Mine Operations Government of Nunavut Falconbridge Limited Dr. Bryne Purchase, Ph D Deputy Minister, Ministry of Energy, Mr. Gordon D. Ulrich Science and Technology President Government of Ontario LUSCAR Ltd.

6.1.3 Members of VCR Inc.’s Technical Advisory Committee (TAC)

Les Aalders Sandor Derrick Paul Hansen VP Engineering and Maintenance Manager, Foundation Programs Manager, Environmental Affairs Air Transport Association of Canada Sustainable Communities & DaimlerChrysler Canada Inc. Environmental Policy David Bell Federation of Canadian Municipalities Lyle Hargrove Director Director of CAW Health and Safety York University Bob Flemington Training Fund President Canadian Auto Workers Peter Chantraine VCR Inc. Manager, Energy and Environment Rick Jennings DuPont Canada Inc. Fred Gallagher Director Managing Director Energy Policy Branch, Energy Division Victoria Christie Vision Quest Windelectric Inc. Government of Ontario Advisor, Issues & Advocacy Canadian Electricity Association David Hajesz Paul Kovacs Climate Change Technologies Executive Director Ken Crane Coordinator Institute for Catastrophic Loss Mitigation Director of Environmental Services TEAM Operations Office Luscar Ltd. Government of Canada Marc Lemieux Conseiller principal, Environnement Affaires réglementaires Gaz Métropolitain

t 200 or 1 p e R l

a

u

n 65

n A Peter Love Tom Michelussi Betty Rozendaal Program Director Altus Environmental Engineering Limited Director, Environment Lourie & Love, Environmental Atomic Energy of Canada Limited Management Consulting Inc. Ron O. Nielsen Manager, Environmental Affairs and Lucie Veilleux Scott McCoombs Sustainability Manager, Environment and Energy Energy Engineer Department of Alcan Primary Metal Group Forest Products Association of Canada Environment Alcan Aluminium Ltd. Government of Nova Scotia Rick Williams Susan Olynyk Head, Air Quality Issues - Air Resources Tim McIntosh Senior Energy Specialist Branch Director of Demand Policy and Analysis Dofasco Inc. Government of British Columbia Office of Energy Efficiency, Natural Resources Canada Merrell-Ann Phare Government of Canada Executive Director Centre for Indigenous Environmental Resources

6.1.4 2001 Funding Partners

Alcan Aluminum Ltd. Falconbridge Limited Government of Nova Scotia Ð Department Aluminium Association of Canada Forest Products Association of Canada of Environment and Labour Atomic Energy of Canada Limited General Motors of Canada Inc. Government of Nova Scotia Ð Department Canadian Association of Petroleum Government of Alberta of Natural Resources Producers Government of British Columbia Ð Government of Nunavut Canadian Chemical Producers’ Department of Energy and Mines Government of Ontario Association Government of British Columbia Ð Government of Prince Edward Island Canadian Electricity Association Department of Environment, Lands Government of Saskatchewan Ð Canadian Energy Pipeline Association and Parks Department of Energy and Mines Canadian Fertilizer Institute Government of Canada Ð Department of Government of Saskatchewan Ð Canadian Gas Association Environment Canada Department of Environment and Canadian Lime Institute Government of Canada Ð Department of Resource Management Canadian National Railway Natural Resources Canada Government of the Northwest Territories Canadian Pacific Railway Government of Manitoba Government of Yukon Canadian Petroleum Products Institute Government of New Brunswick Irving Oil Limited Canadian Steel Producers Association Government of Newfoundland and Mining Association of Canada Canadian Vehicle Manufacturers’ Labrador Ð Department of Energy and Ontario Power Generation Inc. Association Mines Shell Canada Cement Association of Canada Government of Newfoundland and Suncor Energy Inc. Dupont Canada Inc. Labrador Ð Department of Syncrude Canada Ltd. EPCOR Environment and Labour TransAlta TransCanada

6.1.5 List of Registrants by Level of Reporting

Gold

Alberta Energy Company Dow Chemical Canada Inc. New Brunswick Community College - Alberta-Pacific Forest Industries Inc. DuPont Canada Inc. Moncton Campus ATCO Gas Enbridge Consumers Gas New Brunswick Community College - ATCO Pipelines Enbridge Pipelines (Saskatchewan) Inc. Saint John Atomic Energy of Canada Limited EPCOR Utilities Inc. New Brunswick Community College - BC Gas Utility Ltd. ExxonMobil Canada Ltd. St. Andrews Campus Bison Transport Falconbridge Limited New Brunswick Community College - Brandon Regional Health Authority Ford Motor Company of Canada, Ltd. Woodstock Burlington Resources Canada Energy Ltd. Gaz Métropolitain Nexen Canada Ltd. Camosun College General Motors of Canada Ltd. Nexfor Inc. Canadian Chemical Producers' Association Glenrose Rehabilitation Hospital and Energy Noranda Inc. Canadian Natural Resources Limited Centre Northwest Territories Power Corporation Canadian Petroleum Products Institute Government of Alberta NOVA Chemicals Capilano College Government of British Columbia Nova Scotia Power Inc. Cégep de Saint-Jérôme Government of Canada Ontario Power Generation Inc. Chevron Canada Resources Honda of Canada Mfg. Orenda Aerospace Corporation Chinook Group Limited Humber College of Applied Arts and Oxy Vinyls Limited City of Ottawa Technology Pacifica Papers Company Collège Communautaire de Nouveau- Husky Energy Inc. PanCanadian Energy Corporation Brunswick - Campbellton Campus Husky Injection Molding System Ltd. Penn West Petroleum Ltd. Collège Communautaire de Nouveau- Imperial Oil Ltd. Petresa Canada Inc. Brunswick - Dieppe Inco Limited Petro-Canada Collège Communautaire de Nouveau- Irving Oil Limited Prime West Energy Inc. Brunswick - Edmunston Campus La Cité collégiale Rocky View School Division No. 41 Commute Ex Inc. Langara College Rouge Valley Health System Conoco Canada Limited Luscar Ltd. SaskEnergy DaimlerChrysler Canada Inc. Manitoba Hydro SaskPower u nn al R Delta Meadowvale Resort Mikro-Tek School District No. 43 (Coquitlam) A e p & Conference Centre Mining Association of Canada SGT 2000 inc. o Devon Canada New Brunswick Community College - Shell Canada Limited r t Dofasco Inc. Miramichi Campus Shell Chemicals Canada Ltd.

2

66 0 Shiningbank Energy Ltd. 0 1 Simon Fraser University St. Lawrence Corp. Atlantic Shopping Centres Sir Sandford Fleming College Stanton Regional Health Board Atlas Cold Storage Southern Alberta Institute of Technology Teck Corporation Atlas Specialty Steels Inc. St. Mary's Cement Company Tembec Inc. ATS Automation Tooling Systems, Inc. Star Oil & Gas Ltd. The Body Shop Augustana University College Stelco Inc. Toronto Dominion Centre Leaseholds Limited Aur Resources Inc. Stora Enso Port Hawkesbury Triumph Energy Corporation Barrick Gold Corporation Summit Resources Limited University of Western Ontario Barrie-Collingwood Railway Suncor Inc. Vancouver Community College Basell Canada Inc. Syncrude Canada Ltd. Weldwood of Canada Ltd. BASF Canada Inc. Tembec-Spruce Falls Operations Westcoast Energy Inc. BC Research Inc. TransAlta Corporation Winnipeg Health Sciences Centre Beaulieu Canada Inc. TransCanada Beaver Drilling Ltd. University College of the Fraser Valley Best Western International, Inc. (Canada) University of Alberta Hospital Bishop's University University of Lethbridge Bronze Black Gold Regional Schools University of Ottawa Black Photo Corporation VanCity Savings Credit Union Acadia University Boehme Filatex Canada Inc. Yukon Development Corporation Albarrie Canada Limited Boeing Toronto Ltd. Anadarko Canada Corporation Boliden Limited ATOFINA Canada Inc. Bombardier Inc. Avalon West School Board Boundary School Division No. 16 Silver Bayer Inc. - Rubber Division Bowater Pulp and Paper Canada Inc. Bentofix Technologies Inc. Brandon School Division No. 40 Abitibi-Consolidated Inc. BHP Diamonds Inc. British Columbia Power Exchange Corp. Agrium Cadillac Fairview Corporation Ltd - Broan-Nutone Canada Alcoa - Aluminerie Lauralco inc. Ontario Portfolio Bruce-Grey Catholic District School Board Alliance Pipeline Ltd. Calpine Canada Resources Ltd. Buffalo Trail Regional Division #28 ARC Resources Ltd. Celsius Energy Resources Burin Peninsula School Board Archean Energy Ltd. EOG Resources Canada Inc. Burlington Northern (Manitoba) Ltd. ATCO Electric Fording Coal Limited Burlington Northern Santa Fe Atlantic Health Sciences Corporation London Life Insurance Company Calahoo Petroleum Ltd. BC Hydro M & I Heat Transfer Products Calgary Board of Education Bowater Mersey Paper Company Limited McLeod Harvest Inc. Calgary Regional Health Authority BP Canada Energy Company Metroland Printing, Publishing and Cambior inc. British Columbia Institute of Technology Distributing - Tempo Division Cambridge Shopping Centre Ltd. Cambridge Memorial Hospital Moosehead Breweries Ltd. Cambridge Towel Utilities Canadian Electricity Association Norfolk General Hospital Canada Hair Cloth Company Canadian Forest Products Ltd. North West Catholic School Division No. 16 Canadian American Railroad Co. Canadian Hunter Exploration Ltd. Ottawa-Carleton District School Board Canadian Association of Oilwell Drilling Canadian National Railway Company Panasonic Canada Inc. Contractors Canlan Ice Sports Corp. PCS Potash New Brunswick Division Canadian Association of Petroleum Producers Cégep de Lévis-Lauzon Regina Health District Canadian Energy Pipeline Association Cégep Marie-Victorin Sabre Energy Ltd. Canadian Environment Industry Association Celanese Canada Inc. Saint Mary's University Canadian Fertilizer Institute Cement Association of Canada School District No. 44 (North Vancouver) Canadian Forest Oil Ltd. Centra Gas Manitoba Inc. St. James-Assiniboia School Division No.2 Canadian Gas Association City of Calgary St. Lawrence Cement Co. Canadian Industry Program for Energy City of Regina Town of New Glasgow Conservation Collège François-Xavier-Garneau Volvo Canada Ltd. Canadian Pacific Hotels and Resorts Commission scolaire des Hautes-Rivières Weyerhaeuser Canada Ltd. Canadian Pacific Railway Commission scolaire des Patriotes Canadian Steel Producers Association Consoltex Inc. Canadore College of Applied Arts and Domtar Inc. Technology Edmonton Regional Airports Authority Other Registrants CanAmera Foods EMCO Building Products Cape Breton and Central Enbridge Pipelines Inc. 3M Canada Company Enviros RIS Canada Company Accuride Canada Inc. Casco Inc. Express Pipeline Ltd. Agassiz School Division No.13 Gazifère Cavalier Textiles Agence Métropolitaine de Transport Cégep de Chicoutimi Genesis Exploration Ltd. Agmont Inc. Grand & Toy Limited Cégep de Air Canada Cégep de Saint-Hyacinthe Gulf Canada Resources Ltd. Air Products Canada Inc. Hamilton Health Sciences Corporation Cégep de Sept-Iles Akita Drilling Ltd. Cégep Joliette - De Lanaudière Howe Sound Pulp and Paper Limited Akzo Nobel Chemicals Ltd. Partnership Centra Gas British Columbia Inc. Alberta College of Art & Design IBM Canada Ltd. Alberta Hospital Edmonton Imperial Tobacco Canada Limited Central Western Railway Alberta Research Council Centre d'expérimentation des véhicules Koch Canada, L.P. Alcan Aluminium Ltd. Kruger Inc. électroniques du Québec Inc. Centre hospitalier Jonquière Metroland Printing, Publishing and Algoma Steel Inc. Distributing - Wolfedale Division CETAC-WEST Algonquin College of Applied Arts and Champion Drilling Inc. Norske Skog Canada Technology Northrock Resources Ltd. Champion Feed Services Ltd. Alta Gas Utilities Inc. Chemical Lime Company of Canada Novotel Canada Inc. Altana Exploration Company \ Papiers Stadacona Chemin de fer Baie des Chaleurs Roan Resources Ltd. Chemin de fer Charlevoix Inc. Paramount Resources Ltd. Aluminerie Alouette inc. PCS Potash Allan Division Chemin de fer de la Matapédia et du golfe Aluminerie de Bécancour inc. Children's and Women's Health Centre of PCS Potash Cory Division Aluminium Association of Canada PCS Potash Patience Lake Division British Columbia Amtrak Chinook Health Region PCS Potash Rocanville Division Andrés Wines Ltd. Pembina Pipeline Corporation CIBA Specialty Chemicals Annapolis Valley Regional School Board CIBC Development Corporation Pine Falls Paper Company Apache Canada Ltd. Queen Elizabeth II Health Sciences Centre City of Abbotsford Arnaud Railway City of Brantford Red River College ASCOLECTRIC Limited Richland Petroleum Corporation City of Burnaby t 200 Ashland Chemicals Canada or 1 Rio Alto Exploration Ltd. City of Campbell River p Aspen View Regional Division No. 19 City of Cold Lake e Riverside Forest Products, Armstrong Plywood Association of Canadian Community Colleges R Royal Roads University City of Coquitlam l Athabasca Oil Sands Developers a

u

n 67

n A City of Delta Ferroequus Railway Co. Ltd. Kolter Property Management Limited - Toronto City of Edmonton Fibrex Insulations Inc. Portfolio City of Guelph Fielding Chemical Technologies Inc. Kraft Canada Inc. City of Hamilton First Real Properties Limited Kronos Canada Inc. City of Kamloops Fleetline Products Limited Kwantlen University College City of Kitchener FMC of Canada Limited La Corporation d'achat régionale de biens et City of Lachine Foothills Pipe Lines Ltd. services de la Montérégie City of Langley Forest Products Association of Canada La Régie régional de Montréal-Centre City of London Fort Garry School Division No. 5 Labatt Breweries of Canada City of Mississauga Four Seasons Hotel - Toronto Lafarge Canada Inc. City of New Westminster Freightliner of Canada Ltd. LaGran Canada Inc. City of North Vancouver FuelMaker Corporation Laidlaw Inc. City of Port Alberni George Brown College of Applied Arts and Lakeland & Waterways Railway City of Port Moody Technology Lakeshore School Division No. 23 City of Surrey Georgian College of Applied Arts and Lambton College City of Thunder Bay Technology Landwest School Division No. 123 City of Toronto Glendale Yarns Inc. Le Conseil scolaire de district du Centre-Sud- City of Vancouver GO Transit Ouest City of Victoria Goderich-Exeter Railway Co. Limited LePage City of Weyburn Government of New Brunswick Lethbridge Community College City of Whitehorse Government of Newfoundland and Labrador Lincoln Fabrics Ltd. City of Winnipeg Government of Nova Scotia Lloydminster Public School Division City of Yellowknife Government of Ontario London Health Sciences Centre Clearview School Division No. 71 Government of Saskatchewan Loyalist College of Arts & Technology Coal Association of Canada Government of the Northwest Territories Lubrizol Canada Limited Coats Bell Division of Coats Canada Inc. Government of Yukon M & M Meat Shops Cognis Canada Corporation Grand Erie District School Board Mackenzie Northern Railway Collège de Rosemont Grande Prairie Public School District No. 2357 Magin Energy Collège de Shawinigan Grant MacEwan Community College Maksteel Service Centre - Division of Collège Lionel-Groulx Graymont (NB) Inc. Makagon Industries Ltd. Collège Notre-Dame de l'Assomption Graymont (Qc) Inc. Malaspina University College College of New Caledonia Great Canadian Railtour Company Ltd. Malette Kraft Pulp & Power College of the Rockies Greater St. Albert Catholic Schools Maple Leaf Foods Collins & Aikman Greater Vancouver Regional District Maple Lodge Farms Ltd. Cominco Ltd. (merged with Teck Corporation) Greenarm Corporation Marathon Canada Ltd. Compost Management Greenhouse Emissions Management Marathon Pulp Inc. Concordia Hospital Consortium (GEMCo) Maritime Electric Country Style Food Services Inc. Greif Containers Inc. Maritime Paper Products Ltd. County of Strathcona Grenfell Regional Health Services MARSULEX Inc. Coyle & Greer Awards Canada Ltd. H.J. Heinz Company of Canada Ltd. Maxx Petroleum Ltd. Crompton Co./Cie. H.L. Blachford Ltd. McFadzen Holdings Limited Crown Cork and Seal Canada Inc. H.R. West Holdings Inc. MDS Nordion Inc. CSX Transportation Inc. Halifax Regional Municipality Memorial University Cuddy Food Products Inc. Halton Catholic District School Board Methanex Corporation Cullen Gardens and Miniature Village Health Care Corporation of St. John's Mines Wabush Cytec Canada Inc. Heating Refrigeration and Air Conditioning Molson Breweries Degussa Canada Inc. Institute Moose Jaw Roman Catholic Separate School Delmar Chemicals Inc. Hercules Canada Inc. Division No. 22 Denim Swift High Prairie School Division No. 48 Moose Jaw School Division No. 1 of Denro Management Ltd. Hillsborough Resource Limited Saskatchewan Difco Performance Fabrics Inc. Holy Spirit Roman Catholic Separate Morgan Falls Power Company District of Hudson’s Hope Regional Division No. 4 Mount Saint Vincent University District of North Vancouver Honeywell Ltd. Municipality of Chelsea District of Saanich Hôpital Général Juif de Montréal Murphy Oil Company Limited Division Scolaire Franco-Manitobaine No. 49 Hôpital Laval Nabors Drilling Limited Dominion Energy Canada Ltd. Hôpital Sainte-Croix Nacan Products Limited Downie Timber Ltd. Hub Meat Packers Ltd. - Sunrise Brand Nalco/Exxon Energy Chemicals Canada Inc. Drive Well Servicing Hudson Bay Mining and Smelting Co. Ltd. National Silicates Ltd. Durez Canada Company Ltd. Hudsons Bay Company NCE Resources Group Inc. Durham College of Applied Arts & Technology Humber River Regional Hospital Nestlé Canada Inc. Dynea Canada Ltd. Hunt Oil Company of Canada, Inc. New Brunswick Community College - East Central Alberta Catholic Separate Huntsman Chemical Company of Canada Inc. Bathurst Campus Schools Regional Division # 16 Huntsman Corporation Canada Inc. New Brunswick Community College Ecologix Heating Technologies Inc. Huntsman Tioxide Canada of Craft and Design Edmonton Catholic Schools New Brunswick East Coast Railway Edmonton Public Schools Hydrogenics Corporation New Brunswick Power Eka Chemicals Canada Inc. IMC Potash New Brunswick Southern Elk Island Catholic Separate School Imperial Home Decor Group Railway Company Limited Regional District No.41 Ingersoll Lime Ltd. Newfoundland and Labrador Hydro Elk Island Public Schools Regional Inland Cement Limited Newfoundland Power Division No. 14 Interface Flooring Systems (Canada), Inc. Newmont Canada Limited Energy Reduction Audit Services International Paper Industries Ltd. Nexen Chemicals Canada Ltd. Enmax Corporation Iron Ore Company of Canada Nitrochem Ensyn Technologies Inc. ITT Sheraton Centre Toronto Norfolk Southern Corporation Envirogard Products Ltd. Ivaco Rolling Mills Nortel Networks Company J.L. de BALL Canada Inc. Northern Gateway Regional Division No.10 ESSROC JemPak Canada Inc. Northlands Park Ethyl Canada Inc. JNE Consulting Ltd. Northwest Catholic District School Eurocan Pulp and Paper Co. John Abbott College Northwoodcare Incorporated F.F. Soucy Inc. Jones Packaging Inc. Nova Scotia Community College Fabrene Inc. KC Environmental Group Ltd. Nova Scotia Textiles, Limited Famous Players Inc. Keewatin-Patricia District School Board Nova Ski Ltd. (Ski Martock) Famz Foods Kelsey Hayes Canada Ltd. Novotel Ottawa Fanshawe College Kerr Heating Products NRI Industries Federated Co-operatives Kimberly-Clark Nova Scotia Nu-Air Ventilation Systems Inc. u Limited Kindred Industries Okanagan University College nn al R A e Federation of Canadian Kingston General Hospital OMG Belleville Limited p o Municipalities Kodak Canada Inc. ONDEO Nalco Canada Co. r

t

2

68 0 0 1 Ontario Centre for Environmental Technology Seine River School Division No. 14 University of Northern British Columbia Advancement Seven Oaks School Division No. 10 University of Regina Ontario Northland Transportation Commission Sheridan College University of Saskatchewan Ontario Southland Railway Inc. Sherritt International University of Toronto Orion Bus Industries Signalta Resources Ltd. University of Victoria Simcoe County District School Board University of Waterloo Ottawa Hospital / L'Hôpital d'Ottawa Simmons Canada Inc. University of Winnipeg Slater Steel Inc. Unocal Canada Management Limited Oxford Automotive Sleeman Brewing and Malting Co. Ltd. UPM-Kymmene Miramichi Oxford Properties Group Inc. Smurfit-Stone Container Corporation Upton Resources Inc. Pacific Northern Gas Ltd. Société Canadienne de Métaux Reynolds Vancouver School Board - Parkland Refining Ltd. limitée School District No. 39 PCI Chemicals Canada Inc. Société de transport de la communauté Venator Group Canada Inc. PCS Potash Lanigan Division urbaine de Montréal Versacold Corporation Peace Wapiti School Board No.33 Solutia Canada Inc. VFT Inc. Pembina Hills Regional Division No. 7 South East Health District Canada Inc. Peoples Park Tower inc. VicWest Steel * Les Aciers VicWest Petrobank Energy and Resources Ltd. South Westman Regional Health Authority Village of Anmore Petroleum Services Association of Canada Southern Manitoba Railway Village of Fort Simpson Petromet Resources Ltd. Ville de Boucherville Pétromont Inc. Southern Railway of British Columbia Ltd. Ville de Laval Petrorep (Canada) Ltd. Spinrite Inc. Ville de Montréal Placer Dome North America Ltd. St. Anne-Nackawic Pulp Company Ltd. Ville de Montréal-Est Polytainers Inc. St. Clair College of Applied Arts & Technology Ville de Québec Polywheels Manufacturing Ltd. St. Lawrence & Atlantic Railroad (Quebec) Inc. Vision Quest Windelectric Inc. PPG Canada Inc. St. Marys Paper Ltd. Wabash Alloys Ontario Precision Drilling Limited Standard Products (Canada) Limited Prévost Car Inc. Stepan Canada Inc. Waterloo Region District School Board Procter & Gamble Inc. Sterling Pulp Chemicals, Ltd. PRO-ECO Ltd. St-Jean PhotoChemicals Inc. West Fraser Timber Co. Ltd. Quebec Cartier Mining Company Stuart Energy Systems Inc. Westaim Corporation Quebec North Shore & Labrador Railway Sudbury Catholic District School Board Western Health Care Corporation Company Sulco Chemicals Limited Western Québec School Board - Quebec Southern Railway Suncurrent Group Commision scolaire Western Québec Québec-Gatineau Railway Inc. Superior Propane Inc. Westmont Hospitality Queen's University Sydney Steel Corporation Westwind School Division No. 74 Railway Association of Canada Taylor Munro Energy Systems Inc White Pass & Yukon Route Rainbow District School Board TD Canada Trust Williams Energy (Canada) Inc. Raylo Chemicals Inc. Teknion Furniture Systems Winchester District Memorial Hospital Reagens Canada Limited Thames Valley District School Board Windsor & Hantsport Railway Recochem Inc. The Avalon East School Board Windsor-Essex Catholic District School Board Red Deer College The Hospital for Sick Children Winners Apparel Ltd. Regent Resources Ltd. Tilbury Cement Limited Winnipeg Technical College Regina School Division No.4 of Saskatchewan Tirino Corporation Wisconsin Central Ltd. Region 7 Hospital Corporation Toronto District School Board Woodbridge Foam Regional District of Central Kootenay Toronto East General Hospital and Wyeth-Ayerst Canada Inc. Regional Municipality of Sudbury Orthopaedic Hospital, Inc. Yellowknife Education District No. 1 of the Reichhold Chemicals, Inc. Toronto Hydro Northwest Territories Réno-Dépôt inc. Toronto Renewable Energy Cooperative York University Resort Municipality of Whistler Toronto Terminals Railway Company Limited Yugo-Tech Conversions Gas Systems Inc. Rhodia Canada Inc. Town of Banff Zellers Inc. Rife Resources Ltd. Town of Canmore River East School Division No.9 Town of Collingwood Roberval and Saguenay Railway Company Town of Didsbury Rockwell Servicing Inc. Town of Fort Smith Rohm and Haas Canada Inc. Town of Perth RohMax Canada Inc. Town of Port Hope Ross Kennedy Town of Quispamsis Royal Alexandra Hospital Town of Swan River Royal Bank of Canada Town of The Pas Royal Host Corp. Township of Scugog Royal Ottawa Health Care Group Toyota Motor Manufacturing Canada Inc. Ryerson Polytechnic University Trans Mountain Pipe Line Company Ltd. S.C. Johnson and Son, Limited Trans-Northern Pipelines Inc Saanich School District No. 63 Co. Ltd Safety-Kleen Ultramar Limited Sandvik Tamrock Loaders Inc. Union Carbide Canada Inc. Sask Central School Division No. 121 Union Gas Limited Saskatchewan Minerals Université de Moncton Saskatchewan Valley School Division No. 49 Université de Montréal Saskatoon (West) School Division No.42 Université du Québec - École de technologie Scapa Tapes North America - Renfrew supériere School District No. 2 (Northern Université du Québec à Chicoutimi Peninsula/Labrador South) Université du Québec à Hull School District No. 3 (Corner Brook-Deer Université du Québec à Montréal Lake-St. Barbe) Université Laval School District No. 38 (Richmond) University College of Cape Breton School District No. 46 (Sunshine Coast) University of Alberta School District No. 57 (Prince George) University of British Columbia School District No. 62 (SOOKE) University of Calgary School District No. 67 (OKANAGAN SKAHA) University of Guelph School District No. 71 (Comox Valley) University of Manitoba Scott`s Food Services Inc. University of New Brunswick - Sears Canada Inc. Fredericton Campus

t 200 or 1 p e R l

a

u

n 69

n A u nn al R A e p o r

t

2

70 0 0 1 ANNUAL REPORT 2001 Appendices

TABLE 7: List of Acronyms AAC Aluminium Association of Canada ABC Actions By Canadians ACCC Association of Canadian Community Colleges AECL Atomic Energy of Canada Limited AFPA Alberta Food Producers Association APMA Automotive Parts Manufacturers’ Association ATAC Automotive Transportation Association of Canada CAC Coal Association of Canada CACI Clean Air Canada Inc. CAPP Canadian Association of Petroleum Producers CCAF Climate Change Action Fund CCPA Canadian Chemical Producers’ Association CDM Clean Development Mechanism CEA Canadian Electricity Association CEPA Canadian Energy Pipeline Association CFA Canadian Foundry Association CFI Canadian Fertilizer Institute CGA Canadian Gas Association CGERI Canadian Greenhouse Gas Emissions and Removals Inventory CHBA Canadian Home Builders’ Association CIA Champions in Action CIEEDAC Canadian Industrial Energy End-Use Data Centre CIPEC Canadian Industry Program for Energy Conservation CLI Canadian Lime Institute COG coke oven gas CPPA Canadian Pulp and Paper Association CPPI Canadian Petroleum Products Institute CSPA Canadian Steel Producers Association CTI Canadian Textiles Institute CVMA Canadian Vehicle Manufacturers’ Association ESCO energy service company FCM Federation of Canadian Municipalities FPAC Forest Products Association of Canada GDP Gross Domestic Product GERT Greenhouse Gas Emission Reduction Trading Pilot GHG greenhouse gas HA hectare HM Honourable Mention HMD hexamethylene diamine HVAC heating, ventilation and air conditioning JI Joint Initiative MAC Mining Association of Canada NPRI National Pollutant Release Index NRCan Natural Resources Canada OCETA Ontario Centre for Environmental Technology Advancement OEE Office of Energy Efficiency t 200 or 1 p PCI Production Carbon Intensity e R l

a

u

n 71

n A PCP Partners for Climate Protection PERT Pilot Emission Reduction Trading Program PSAC Petroleum Services Association of Canada RAC Railway Association of Canada RER Registered Emission Reduction TACTechnical Advisory Committee TEAM Technology Early Action Measures VCR Inc. Canada’s Climate Change Voluntary Challenge and Registry Inc. WEC World Energy Council

T ABLE 8: Greenhouse Gases Symbol Name Global Warming Potential

CH4 methane 21

CO2 carbon dioxide 1

CO2 eq carbon dioxide equivalent (a standard measure of global warming potential) 1 HFC hydrofluorocarbon 140 to 11,700

N2O nitrous oxide 310 PFC perfluorocarbon 6,500 to 9,200

SF6 sulphur hexafluoride 23,900

T ABLE 9: Measurement Units EII Energy Intensity Index (or in the context of petroleum products, the Solomon Energy Intensity Index)

GWP Global Warming Potential kt kilotonnes (1,000 tonnes) m3 cubic metre m3 OE cubic metre oil eq Mt megatonne = 1,000 kilotonnes = 1,000,000 tonnes MW megawatt MWh megawatt hour t tonne = 1,000 kilograms = 1,000,000 grams

u nn al R A e p o r

t

2

72 0 0 1