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vcr inc. CANADA'S CLIMATE CHANGE voluntary challenge & registry inc. To provide through leadership, the Mission means for promoting, assessing, and recognizing the effectiveness of the voluntary approach in addressing climate change.

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.

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n A Table of Contents

Retrospective 2000 ...... 6

1.0 Challenge Registry ...... 9

1.1 Linkages and Parterships ...... 11 1.2 Sector Profiles ...... 13 1.2.1 Context ...... 13 1.2.2 Energy ...... 16 1.2.3 Manufacturing and Metal Mining ...... 24 1.2.4 Commercial Transportation ...... 34 1.2.5 Institutional and Commercial ...... 36 1.2.6 Service and Retail Industry ...... 40 1.2.7 Households ...... 40

2.0 Reduction Registry ...... 43

2.1 Baseline Protection ...... 43 2.2 Emissions Trading ...... 43 2.3 Champions in Actions (CIA) ...... 44

3.0 Credit Registry ...... 48

4.0 Leadership Awards ...... 50

5.0 Communications ...... 54 5.1 VCR Inc. Website ...... 54 5.2 Publications ...... 54 5.3 Media Relations ...... 56 5.4 Annual Survey ...... 56

6.0 Management and Organization ...... 62 6.1 Strategic Planning ...... 62 6.2 Structure ...... 62

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2 0 0 0 Appendices

Board of Directors (Year 2000) ...... 64 Council of Champions ...... 64 Members of VCR Inc.’s Technical Advisory Committee (TAC) ...... 66 List of Organizations with Registered Action Plans ...... 68 2000 Funding Partners ...... 76 List of Acronyms ...... 77 List of Tables:

Table One: Linkages and Partnerships ...... 13 Table Two: National 1998 GHG Emissions Inventory Breakdown ...... 15 Table Three:ABC Statistics ...... 41 Table Four: Satisfaction Quotient of Executive Contacts ...... 59 Table Five: Satisfaction Quotient of Technical Contacts ...... 60

List of Charts:

Chart 1-1: Challenge Registry Growth ...... 10 Chart 1-2: Cumulative Action Plans and Related First Progress Reports 1997-2000 ...... 10 Chart 1-3: Percentage of Sector GHG Emissions Represented at VCR Inc. . . .11 Chart 1-4: Growth in Linkages and Partnerships – VCR Inc. Registry ...... 13 Chart 1-5: GHG Emission Trends ...... 14 Chart 1-6: Canada’s GHG Emissions Inventory, 1998 ...... 14 Chart 1-7: Sources of GHG Emissions ...... 16 Chart 1-8: Electric Utility Sector GHG Emissions ...... 17 Chart 1-9: Upstream Oil and Gas Industry Production Energy Intensity . . . .19 Chart 1-10: Intensity Index, Trends for CPPI Member Refineries ...... 20 Chart 1-11: Energy Pipeline GHG Emissions ...... 21 Chart 1-12: GHG Emissions From Natural Gas ...... 22 Chart 1-13: Canadian Coal Industry GHG Emission Trends ...... 23 Chart 1-14: GHG Emissions Chemical Manufacturing ...... 25 Chart 1-15: GHG Emissions From Metal Mining ...... 27 Chart 1-16: GHG Emissions Mineral Processing ...... 27 Chart 1-17: 1998 Aluminium Emissions ...... 29 Chart 1-18: Pulp and Paper Industry Fossil Fuel Emissions ...... 30 Chart 1-19: Steel Industry Energy Intensity Index (1990-2010) ...... 31 Chart 1-20: Textiles Energy Efficiency ...... 32 Chart 1-21: Canadian Auto Manufacturing Emission Trends ...... 33 Chart 1-22: Commercial Transportation Energy Use and Activity Rates ...... 34 Chart 1-23: Railway Transportation CO2 Emission Trends ...... 34 Chart 1-24: Commercial and Institutional Sector, Energy use and Floor Space Trends ...... 36 Chart 5-1: Monthly Hits and Page Views ...... 54 t 200 or 0 p Chart 6-1: VCR Inc. Organizational Structure ...... 63 e R l

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n A Readers’ Comments and Requests

Any comments or questions regarding the content of this report and/or requests for copies of this or other reports, contact the office of Canada’s Climate Change Voluntary Challenge and Registry Inc. at

170 Laurier Avenue West, Suite 600 Ottawa, Ontario K1P 5V5 Telephone: (613) 565-5151 Fax: (613) 565-5743 E-mail: [email protected] Web site: www.vcr-mvr.ca

Other publications available from VCR Inc. include the following: • VCR Inc. Annual Report 1998 • VCR Inc. Annual Report 1999 • VCR Inc. Annual Report 2000 • VCR Inc. Registration Guide 1999 • Champion News

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

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4 0 0 0 Global climate change is a global issue that compels us to seek global solutions VCR Inc. has successfully completed its first Retrospective three years of operation as a standalone entity. Our objectives, as stated in our 1998-2000 Strategic Plan have been met and surpassed. 2000 We are indeed fortunate to have a very strong and engaged Board of Directors made up of industry and government leaders who play an active role in the development and monitoring of our annual and long-term strategies and performance. We would like to take this opportunity to thank two members of the Board specifically, Ron Munkley, our Past Chairman and Tayce Wakefield, the Chair of our Audit Committee, for their stalwart service since our inception. Both have chosen this year to pass the torch to others to carry into the future.

We are pleased to report, based on our annual survey of a broad range of stakeholders, that the high satisfaction level of our executive and technical contacts gained a further 16% and 12% respectively over the results of our original 1998 Survey. The observations and opinions shared with us in this Annual Survey continue to be valuable in choosing VCR Inc. activities that best support your initiatives.

Two significant activities that were undertaken in 2000 over and above those identified in our original Strategic Plan are worth noting. We have implemented the registry element of the Baseline Protection initiative, announced by the joint Federal/Provincial Ministers of Energy and Environment as an element of the First Business Plan within the new National Implementation Strategy for Climate Change. In addition, we introduced a new initiative called Champions in Action (CIA) which provides an opportunity for leading Canadian organizations to make formal agreements with VCR Inc. to reduce their net greenhouse gas (GHG) emissions over time in a planned and rigorous way, and to have their progress toward that goal validated and publicly recorded. This initiative is also providing a forum for testing the design and implementation of enhanced voluntary approaches to GHG emission reductions.

During 2000, we continued to improve the breadth, depth and momentum of our voluntary challenge. There are now more than 760 organizations with Action Plans registered in our Challenge Registry. Champion-level reporting has doubled since 1999 to 165 organizations, comprised of 74 Gold-level, 59 Silver-level and 32 Bronze-level reporters. We have increased the number of linkages and partnerships to 45 from 21 three years ago. Use of our website continues to grow at a rate of 160% year over year. Our Challenge Registry has become the primary source of research material for studies related to the impact of voluntary climate change mitigation efforts at the individual facility and entity level.

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6 0 0 0 Our Leadership Awards continued to be a great success. On March 2, 2000, 224 people attended our third annual Leadership Awards ceremony where federal Ministers Goodale and Anderson presented 14 awards and 14 honourable mentions to Canadian individuals and organizations from the majority of sectors in our economy. In addition, a special award was made to the Canadian Industry Program for Energy Conservation (CIPEC) that celebrated 25 years of continuous reduction in the GHG emissions intensity of their products.

The Board of VCR Inc. has approved the 2001-2003 Strategic Plan that will guide our activities for the next three years. Your continued support will be a vital force in the successful implementation of this aggressive plan. Working together, we can clearly demonstrate the major positive impact voluntary efforts by corporations, governments and individuals across Canada are having on the challenging task of reducing Canada’s greenhouse gas (GHG) emissions.

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

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n A The level of reporting across all sectors has continued to improve dramatically The Challenge Registry is Canada's only publicly 1.0 accessible national registry of historic and projected voluntary greenhouse gas emissions and reductions based on individual facilities and Challenge entities. As a public forum for sharing voluntary GHG emissions reduction information, it is at the heart of VCR Inc.'s core function. Any entity with Registry operations in Canada can register an Action Plan and 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 grown three-fold to over 1400 over the past three years. Action Plans have more than doubled to 757 and almost half of those have been followed up with regular Progress Reports. These reports are publicly available by accessing the Challenge Registry within the VCR Inc. web site (http://www.vcr-mvr.ca)

There are many valuable uses for the comprehensive information contained in the Challenge Registry. In addition to demonstrating progress to reduce GHG emissions through voluntary rather than legislated policies, the reports provide a powerful public demonstration of leadership in addressing environmental issues. VCR Inc. cultivates credible public recognition for Challenge Registry participants. All registered reports are scrutinized and the most rigorous reporters are assigned Bronze, Silver or Gold Champion Level Reporter status, as described in the VCR Inc. Registration Guide. All publicly registered reports are also considered for the prestigious VCR Inc. Leadership Awards. In order to share best practices, VCR Inc. also publishes success stories in a bimonthly newsletter, Champion News and includes a "Champion Reporter of the Week" profile on the VCR Inc. main web page. Perhaps the most valuable application for the detailed information contained in these reports is in the preparation of the following Sector Profiles which are written to provide a summary of the GHG emission trends in each sector and to provide an assessment of the potential impact of emerging initiatives at a facility level on Canada's Greenhouse Gas Emissions and Removal Inventory (CGERI)1.

The level of reporting across all sectors has continued to improve dramatically with the introduction of Champion-level reporting and the work of Champions in Action. The accuracy and consistency of the point-source inventories registered by Champion-level reporters has improved through more rigorous reporting and the use of standardized calculation methodologies. This information is becoming instrumental in reducing the uncertainties inherent in the current CGERI estimates, which can reach levels as high as 40%2 for some non-combustion sources of GHG

t 200 or 0 1 Environment Canada. Canada’s Greenhouse Gas Inventory, 1990-1998. Final Submission to the UNFCCC p e Secretariat, 2 vols., 2000. R 2 Environment Canada. Canada’s Greenhouse Gas Inventory, 1990-1998. Final Submission to the UNFCCC l a

Secretariat, Volume 1 of 2, p. 115, 2000. u

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n A emissions. This will allow VCR Inc. to begin to calculate, with a reasonable degree of certainty, the current and future positive impact that voluntary actions to reduce GHG emissions provide. The multi-stakeholder Technical Advisory Committee of VCR Inc. has formed a task group to help develop a standard protocol for these calculations.

Chart 1-1: Challenge Registry Growth 1997-2000 1500 1488 1200 1176

900 864 600

Posted Documents 517 300 19971998 1999 2000 Year

Chart 1-2: Cumulative Action Plans and Related First Progress Reports 1997-2000 800 757 700 681 600 Action Plans 500 547 400 343 Participation 354 300 258 200 168 Progress Reports 112 100 1997 1998 1999 2000 Year

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10 0 0 0 Chart 1-3: Percentage of Sector GHG Emissions Represented at VCR Inc.

Auto Manufacturing 90% 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 37% 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% 0 20406080100

1.1 Linkages and Partnerships

In 2000, VCR Inc. devoted a good deal of its efforts to maintaining, developing, and initiating partnerships with other organizations. In cooperation with some of the organizations listed below, VCR Inc. has developed a series of reporting templates that can be accessed on-line from our website. These templates simplify the process of registering an Action Plan and help to ensure consistency of reporting within a sector.

A prime example of this activity is the way CIPEC and VCR Inc. are working together to reduce Canada's greenhouse gas emissions. CIPEC is a voluntary organization with primary focus on reducing the energy intensity of Canadian goods and services. VCR Inc. on the other hand, is focused on promoting and documenting voluntary actions to reduce greenhouse gas (GHG) emissions. Since energy consumption produces 79% of Canada's inventory of GHG, these two organizations have developed natural linkages on several fronts. At the Executive level, the Chair of CIPEC's Executive Board and several of its members are also members of the Board of VCR Inc. In addition, VCR Inc.'s President is an active member of CIPEC's Task Force Council and provides technical support to their Executive Board. Action Plans prepared by CIPEC members to document their efforts to reduce energy-based carbon dioxide (CO2) emissions are utilized in the operation of CIPEC and are also posted in VCR Inc.'s Challenge Registry as the basis for their GHG emissions reduction planning. In this way, an organization may support both energy conservation and climate change mitigation at the same time with minimal overlap in reporting requirements. t 200 or 0 p e R l

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n A The Table below lists the 45 linkages and partnerships that were active in 2000, representing a 32% increase over last year and an 80% increase over 1998.

1. Action By Canadians (ABC) 2. Air Transport Association of Canada (ATAC) 3. Aluminium Association of Canada (AAC) 4. Association of Canadian Community Colleges (ACCC) 5. Atomic Energy of Canada Limited (AECL) 6. Automotive Parts Manufacturers' Association (APMA) 7. Canadian Association of Oilwell Drilling Contractors (CAODC) 8. Canadian Chemical Producers' Association (CCPA) 9. Canadian College of Health Service Executives (CCHSE) 10. Canadian Electricity Association (CEA) 11. Canadian Energy Pipeline Association (CEPA) 12. Canadian Fertilizer Institute (CFI) 13. Canadian Foundry Association (CFA) 14. Canadian Gas Association (CGA) 15. Canadian Home Builders' Association (CHBA) 16. Canadian Industry Program for Energy Conservation (CIPEC) 17. Canadian Lime Institute (CLI) 18. Canadian Petroleum Products Institute (CPPI) 19. Canadian Pulp and Paper Association (CPPA) 20. Canadian School Boards Association (CSBA) 21. Canadian Steel Producers Association (CSPA) 22. Canadian Textiles Institute (CTI) 23. Canadian Vehicle Manufacturers Association (CVMA) 24. Cement Association of Canada 25. Clean Development Mechanism & Joint Implementation Office (CDM/JI) 26. Climate Change Central - Alberta 27. Climate Change Secretariat 28. Coal Association of Canada (CAC) 29. ÉcoGESte 30. Electro-Federation of Canada 31. Federation of Canadian Municipalities (FCM/PCP) 32. GHG Verification Centre 33. Greenhouse Gas Emissions Reduction Trading (GERT) Pilot 34. Hotel Association of Canada 35. Mining Association of Canada (MAC) 36. National Dairy Council of Canada (NDCC) 37. National Pollutant Release Inventory (NPRI) 38. Office of Energy Efficiency (OEE) 39. Ontario Centre for Environmental Technology Advancement (OCETA) 40. Petroleum Services Association of Canada (PSAC) 41. Pilot Emissions Reduction Trading (PERT)/Clean Air Canada Inc. (CACI) 42. Railway Association of Canada (RAC) 43. Rubber Association of Canada 44. Technology Early Action Measures (TEAM) 45. World Energy Council (WEC)

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12 0 0 0 Table One: Linkages and Partnerships

1996 1997 1998 1999 2000

12 21 25 34 45

Chart 1-4: Growth in Linkages and Partnerships – VCR Inc. Registry

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48

36

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1.2 Sector Profiles

1.2.1 Context

Chart 1-5 illustrates the relationship between Canada's GHG Inventory (1998 is the latest available), the "Policy as Usual" forecast for future GHG emissions, Canada's real Gross Domestic Product (GDP), and the forecast of GDP underlying the "Policy as Usual" forecast. It is important to note that 1997 was the first year that the domestic GHG emissions inventory broke away from the pattern of directly following growth in GDP. That is, Canada was successful in de-coupling economic growth from the GHG emissions necessary to execute that growth. A significant part of this success may be attributed to the continued gains that all sectors are making in reducing the GHG-intensity of their products and services.

Canada's 1998 GHG emissions inventory confirms that this trend is continuing. In spite of experiencing a GDP growth well in excess of that projected when developing projections for GHG emissions under a "Policy as Usual" scenario, Canadians were able to reduce their GHG emissions to a level below that forecast. It is clear that all of the efforts made to limit GHG emissions by industries, governments and individuals everywhere in Canada are bearing fruit. In reviewing the more current Action Plans posted in the Challenge Registry during 1999 and 2000, there is no reason to doubt that Canada's GHG emissions trend line will continue to bend downward as entities capitalize on new opportunities to reduce their individual GHG emissions footprint.

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n A As we enter the new millennium, we are facing dramatically higher energy costs and a potential slowdown in GDP growth. Both of these events, while not ideal circumstances for the Canadian economy, will serve to reinforce the downward trend line in gross annual GHG emissions.

Chart 1-6 serves to illustrate the influence that each sector of our society has on Canadian GHG emissions and Table Two provides the detailed information that supports this figure. It is estimated that 75% of the total opportunity for industry and government to reduce GHG emissions is represented by those entities registered in the VCR Inc. Challenge Registry.

Sources: Natural Resources Canada. Canada's Emissions Outlook: An "Events-Based" Update for 2010, Working Paper 1998, Page 9, GDP 1990-1997, 1998.

Environment Canada. Backgrounder, Canada's GHG emissions 1990-1998, p. 1, 2000.

Natural Resources Canada. Canada's Emissions Outlook: An "Events-Based Update for 2010; Working Paper, GDP forecast, 1998.

Environment Canada. Canada's Greenhouse Gas Inventory 1990-1998 Final Submission to the UNFCCC, Volume 2 of Chart 1-5: 2, Appendix 2a, Table 10 Emissions Trends, GHG GHG Emissions Trends Emissions Inventory, 2000.

Natural Resources Canada. Canada's 1.5 Emissions Outlook: An Update, p. 42 Forecast GDP 1.4 (October 1999) . Forecast 'Policy as (1998) Usual' GHG Emissions, 1999. 1.3 Performance Index (1990=1) 1.2 GHG Emissions 1.1 Inventory Forecast "Policy as Usual" GHG Emissions (1999) 1.0 GDP 0.9 1990 1995 2000 2005 Chart 1-6: Canada's GHG Emissions Inventory, 1998

Transportation Agriculture (Commercial) 10.1% Institutional and 9.9% Commercial (Incuding Waste) Oil, Gas and Coal 7.4% 17.6% For Other 0.8% GH

Households 18.3% Electric Utilities 18.1% Manufacturing and Metal Mining 17.8%

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14 0 0 0 Table Two: National 1998 GHG Emissions Inventory Breakdown Estimate of Sector 1998 GHG Portion of GHG Emissions Sector Details Emissions National (Mt CO eq) Coverage 2 Total within Registry

Includes residential space and water heating (43.7 Mt), Households and personal transportation 126.8 18.3% – (83.1 Mt)4

Includes aluminum, cement, Manufacturing chemical, forestry, general and manufacturing, metal mining, 123.0 17.8% 72%5 Metal Mining pulp and paper, steel, textiles, vehicles and parts manufacturing.

Includes all generation Electric Utilities facilities operated by 124.9 18.1% 100%6 utility companies.

Includes production, Oil, Gas transformation and pipeline 121.9 17.6% 7 and Coal transportation related 95% to oil, gas and coal.

Includes air, marine, rail, Transportation off-road and road vehicles. 68.6 9.9% 8 (Commercial) All fleet vehicle emissions 26% are also included.

Includes non-combustion Agriculture 70.0 10.1% related emissions.

Includes energy-related emissions from federal, provincial and Institutional and municipal governments Commercial (including 23Mt9 emissions from 51.1 7.4% 35%10 (including waste) waste treatment and disposal); health and educational institutions; and commercial buildings.

Other 5.6 0.8% – Total 691.911 100.0% 75%12

3 Environment Canada. Canada’s Greenhouse Gas Inventory 1990-1998, Backgrounder, p. 6, 2000. 4 Environment Canada. Canada’s Greenhouse Gas Inventory 1990-1998, Backgrounder. Cars and Light-duty Trucks, p. 6, 2000. 5 VCR Inc. estimation. 6 Canadian Electricity Association. 7 Weighted average using oil, gas and coal sector statistics 8 VCR Inc. estimation. 9 Environment Canada. Canada’s Greenhouse Gas Inventory 1990-1998, Backgrounder, Waste, p. 6, 2000. 10 Assumes 100 per cent of government emissions, in addition to 10 per cent of other buildings.

11 A 20Mt reduction of CO2 from Land Use Change & Forestry is not included in Inventory totals. 12 VCR Inc. registrants represent 75% of the GHG emissions from all sectors except Households, Agriculture and Other. t 200 or 0 p e R l

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n A 1.2.2 Energy - 246.8 Mt Direct emissions

Energy-related industries as a whole, including coal mining, downstream petroleum, electric utilities, energy pipelines, natural gas distribution, and upstream oil and gas, accounted for almost 36% of Canada's GHG emissions in 1998. It should be recognized that considerable GHG emissions are produced from the combustion of fossil fuels at the customer 'burner-tip'. These 'burner-tip' emissions are accounted for Chart 1-7: Sources of GHG Emissions in each end-use sector. Only emissions related to the generation and Industrial Processes 7.6% transmission of electrical power Solvent and Other (indirect emissions) are entirely Product Use 0.1% attributed to the primary energy

Energy Other Agriculture source, electric utilities. Combined 78.7% 21.3% 10.0% with all economic sectors, energy land-Use Change consumption in Canada is and Forestry 0.3% responsible for approximately 79% Waste 3.3% of national emissions. As a result, energy efficiency tends to be a major focus for GHG emission reduction activities.

Source: Environment Canada. Canada's Greenhouse Gas Inventory, 1990-1998 Final Submission to the UNFCCC Secretariat, Volume 2 of 2, Appendix 2a, Table 10 Emission Trends (Summary), 2000.

1.2.2.1 Electric Utilities 124.9 Mt Direct emissions, 16 Action Plans (10 Champion-level), 100% of sector emissions

Electric Utilities supply a key ingredient to Canada's diverse economy, reliable electric energy, available at the flick of a switch. In 1998, electricity met 22.2% of Canada's secondary energy needs.13,14 The electric utilities sector is responsible for the generation, transmission and distribution of electric energy to residential, commercial, institutional and industrial customers across Canada. As well, many Canadian electric utilities participate in cross-border energy transactions, buying and selling power to the United States. The vast majority of Canadian electricity customers are part of the North American Interconnected System (NAIS), which provides reliable electricity by connecting every major generating station, transmission system, and distribution system in North America. (Only Newfoundland, Yukon Territory, Nunavut Territory, the Northwest Territories, and certain remote locations are not connected to the common electricity grid.) Electric grids always operate in conditions where generation slightly exceeds demand, which ensures that virtually any unplanned generation loss, transmission interruption, or increase in demand will result in the least possible service

13 Secondary energy use: Energy used by final consumers for residential, agricultural, commercial, industrial and transportation. (Source: Natural Resources Canada : Energy Efficiency Trends in Canada, 1990-1998, Glossary of Terms u 2000, p. 131, 2000.) nn al R A e p o 14 Natural Resources Canada. Energy Efficiency Trends in Canada, 1990-1998, Figure A-2.2: Commercial r

t Greenhouse Gas Emissions, Energy Use and Greenhouse Gas Intensity, Commercial Sector, 1990-1998, p. 81,

2 2000.

16 0 0 0 interruption to customers. Interruptible service contracts with large industrial customers allow grid systems to reduce the generation/demand thereby minimizing related GHG emissions.

Electricity utilities use a variety of energy sources. Many produce little, if any, GHG emissions, such as wind, solar, tidal, biomass, hydro and nuclear. However, burning fossil fuels such as coal, natural gas, and oil generates a significant share of Canada's electricity. Fossil fueled electricity generation in 1998 contributed 31% more than in 1990 to Canada's national emission inventory.15 While every sector of the economy is responsible for its own electricity consumption, the resulting indirect GHG emissions are tracked through the electric utilities to avoid double counting.

The sector, as a whole, continued to aim for a net reduction of GHG emissions by 2000 of six percent below 1990 levels. This is being achieved through a combination of direct emissions reduction, development of green power infrastructure, demand side management, sequestration and investment in other offsetting projects worldwide.

Internal energy efficiency initiatives have reduced EPCOR's GHG emissions by 16 25,000 tonnes CO2 eq per year. As well, EPCOR developed a 12.7 MW small hydro project in partnership with the Canadian Hydro Developers Inc. "Energy produced by this project will displace power generated from conventional fossil fuel sources and is expected to effectively reduce carbon dioxide emissions 17 provincially by an average of 44,000 tonnes CO2eq per year."

Northwest Territories Power Corporation has increased the fuel efficiency of its diesel generating systems by over 10%, from 3.29 to 3.64 kWh generation per litre diesel consumed.18 While externally, they use waste heat from diesel generators to reduce the heating Chart 1-8: load of nearby commercial and Electric Utility Sector institutional facilities with an GHG Emissions estimated reduction of over 140 19 132.3 1000 tonnes CO2 annually. 130 120 References Forecast 120 110 Net GHG Actual Emissions 110 105.5 Emissions Target Emissions 99.1 (Mt CO2 eq) 100 to 2000 Source: Canadian Electricity Association. 90 Overview of 1998 Electricity Submissions of 80 Year End Data to Canada's Voluntary Challenge and Registry Inc., p. 9, 1997. 1990 1992 1994 1996 1998 2000 2002

15 Environment Canada. Canada’s Greenhouse Gas Inventory 1990-1998, Final Submission to the UNFCC Secretariat, Volume 2 of 2, Appendix 2a Common Reporting Format - 1998, and Appendix 2b Common Reporting Format Ð 1990, Table 1.A(a) Sectoral Background Data for Energy, p.3/62, 2000. 16 EPCOR. EPCOR Voluntary Action Plan 1999, p. 10, 2000. 17 EPCOR. EPCOR Voluntary Action Plan 1999, p. 12, 2000. t 200 or 0 18 Northwest Territories Power Corporation. First Annual Progress Report In support of Canada’s Climate Change p e Voluntary Challenge and Registry Program, p. 9, 2000. R 19 Northwest Territories Power Corporation. First Annual Progress Report In support of Canada’s Climate Change l Voluntary Challenge and Registry Program, pp. 10-11, 2000. a

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n A 1.2.2.2 Upstream Oil & Gas 56.1 Mt Direct emissions, 68 Action Plans (36 Champion-level), 93% of sector emissions

Canadian upstream oil and gas operations provide petroleum feedstocks and sales of natural gas to Canadian and US markets. Production includes light crude, heavy crude, synthetic crude, natural gas, sulphur, natural gas liquids and pentanes+ (C5+) liquids. In 1999, Canada produced 111 million m3 of crude and 198,000 million m3 of natural gas. Approximately half of this production was exported, primarily by pipeline to Midwest US markets.

Current industry indicators point towards increased oil and gas production growth, both in the Western Canadian Sedimentary Basin and in the Offshore East Coast fields of operation.20 While 10,608 wells were drilled in 1999 (including 13 east- coast offshore wells21, drilling activity continues to expand significantly: The Petroleum Services Association of Canada is estimating 15,529 wells drilled in Western Canada for year 2000, with an additional 16,699 in the first part of 2001.22, 23 At "We will invest a total of the same time as this conventional exploration $500 million in research and is escalating, non-conventional oil sands are development programs over the being tapped at an expanding rate. Today, 1990-2008 period. "crude from heavy oil and oil sands ...we are focusing on what we do best - development already accounts for roughly Canadian R&D on new technologies that are 57% of Canada's crude production." Over even more energy efficient." the next ten years, oil sands production is Syncrude Canada projected to more than double.

Greenhouse gas emissions are increasing as production increases. New technology and efforts to conserve energy expect to reduce the impact “Results determined that of these increases. Emissions per unit methane emission factors from production for natural gas production and thermal heavy oil operations crude are expected to be approximately were 20 times smaller than the 8.5% lower in 2000 than in 1990. Oil sand generic emission factor predicted.” production shows more dramatic reductions. BP Canada Energy By 1997, the industry produced 45% less emissions per unit output than in 1990.24 Unfortunately, studies indicate that conventional crude production will require 33% more energy in 2000 compared to 1990; most likely because as conventional oil fields mature, additional energy will be required to dispose of higher produced water volumes produced with the crude oil.

20 Canadian Association of Petroleum Producers. Industry Performance, http://www.capp.ca/02b.html, 2000.

21 CanadianAssociation of Oilwell Drilling Contractors. Wells Drilled on a Completion Basis. http://www.caodc.ca/Public%20Statistics/Well%20Counts/annual%20well%20completions.htm, 2000. u nn al R 22 Petroleum Services Association of Canada. Media Release: "PSAC Forecasts An Increase in Wells For 2000", A e p htttp://www.psac.ca/whatsnew/newsclip.html, 2000. o r t 23 Petroleum Services Association of Canada. Media Release: "PSAC Forecasts Record Year of Activity for 2001",

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18 0 http://www.psac.ca/whatsnew/newsclip.html, 2000. 0

0 24 Athabasca Oil Sands Developers. Progress in Canada’s Oil Sands, p. 12.2000. Most companies in this sector use the Production Carbon Intensity (PCI) measurement established by the Canadian Association of Petroleum Producers as a standard to measure progress.25 The upstream oil and gas sector 3 PCI has improved from 0.252 tonnes CO2E/m OE Chart 1-9: Upstream Oil and Gas (carbon dioxide eq per cubic metre of oil eq) Industry Production Energy Intensity 3 in 1990 to 0.236 tonnes CO2E/m OE in 1.78 1.76 1997. The projected value for 2000 is 3 1.74 0.233 tonnes CO2E/m OE. Production 1.72 Energy Intensity1.70 3 (GJ/m oil eq) 1.68 1.66 1.64 1.62 Source: Michelussi, Tom. Examination of Measures for 1.60 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Greenhouse Gas Reductions in Canada's Upstream Petroleum Industry, ALTUS Environmental Engineering Ltd., 2000.

1.2.2.3 Downstream Petroleum 27.2 Mt Direct emissions, 9 Action Plans (6 Champion-level), 100% of sector emissions

Downstream Petroleum operations refer to the processing of crude oil (from domestic and international sources) into products such as gasoline, diesel, aviation fuels, heating oils, lubricants, asphalt and petrochemical feedstock. In 1998, downstream petroleum products met 36.4% of Canada's secondary energy needs.26,27

The Canadian Petroleum Products Institute (CPPI) represents the vast majority of Canada's downstream petroleum industry. Many member companies can be classified as Integrated Oil and Gas Companies, meaning that they are active participants in both the upstream and downstream aspects of the oil and gas industry. GHG emissions from the downstream petroleum sector result almost entirely from the energy consumed in the refining process. Natural gas, heating oil and electricity are the primary energy sources for the industry. Refinery emissions in 1998 were only 0.4% higher than 1990 levels, despite a 20% increase in production.28

The refining industry uses an energy performance standard called the Solomon Energy Intensity Index (EII). Downstream petroleum companies use the EII to measure their performance and target improvements, as well as for reporting energy and emissions reduction progress to VCR Inc. and the Canadian Industry

25 Mobil Canada. Mobil Canada 1999 Annual Progress Report to the Voluntary Challenge & Registry Inc. The Energy to Make a Difference, p. 11, 2000.

26 Secondary energy use: Energy used by final consumers for residential, agricultural, commercial, industrial and t 200 transportation. (Source: Natural Resources Canada. Energy Efficiency Trends in Canada, 1990-1998, Glossary of or 0 p Terms, p. 131, 2000.) e R l 27 Natural Resources Canada. Energy Efficiency Trends in Canada, 1990-1998, Figure A-2.2: Commercial Greenhouse a

Gas Emissions, Energy Use and Greenhouse Gas Intensity, Commercial Sector, 1990-1998, p. 81, 2000. u n 19 n

28 Canadian Petroleum Products Institute. 1998 Progress On Environmental and Safety Performance, pp. 13-14, 1999. A Program for Energy Conservation (CIPEC). The national average EII for the downstream petroleum sector dropped from 114 to 94 between 1990 and 1998.29

Sunoco, Suncor Energy Inc.'s refining division, has implemented Convection Section Cleaning and a Tall Stack Economizer to capture additional waste heat Chart 1-10: Trends for CPPI Member Refineries and reduce overall energy consumption. Implemented between 1993 and 1997,

both these projects have combined to 120

reduce emissions by nearly 25 kt CO2 110 30 Target eq each year. 100 Actual 90 Intensity Index Solomon Energy 80 Source: CanadianPetroleum Products Institute. Progress

on Environmental and Safety Performance 1998, p. 15, 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1999.

1.2.2.4 Energy Pipelines - 17.0 Mt Direct emissions (2.3 Mt Indirect), 15 Action Plans (9 Champion-level), 100% of sector emissions

Canada has over 100,000 km of pipelines dedicated to transporting natural gas and liquid petroleum products exports. In 2000, the Alliance Pipeline began moving gas from northeastern British Columbia to Chicago dramatically improving producers' access to US markets. As well, with new production in Nova Scotia, the Maritime & Northeast Pipeline is used to bring natural gas to Nova Scotia, New Brunswick and the Northeast US, replacing oil and coal as fuel sources and reducing GHG emissions.

Greenhouse gas emissions for this sector have climbed with North American energy consumption throughout the 1990's and into 2000. For 1998, estimated direct emissions were 17.0 Mt CO2 eq, 62% higher than 1990. During the same time period, natural gas volumes increased by 76% and oil volumes by 43%. Emissions increases were also driven by "longer distances traveled to tap into new markets of natural gas production, which has shifted to the northern parts of the Western Canada Sedimentary Basin... (and) transportation of heavier crude oils and bitumen blends that have a higher flow resistance and require additional power to travel the same distance."31

While some direct CO2 emissions are produced through operation of natural gas compressors, these pale in comparison to the industry's CH4 (methane) emissions.

29 Canadian Petroleum Products Institute. 1998 Progress On Environmental and Safety Performance, p. 15, 1999. u nn al R 30 Suncor Energy Inc. Canada’s Climate Change Voluntary Challenge and Registry Program Sixth Annual Progress A e p Report, pp. 73-74, 2000 o r t 31 Canadian Energy Pipeline Association. Fifth Report to the Climate Change Voluntary Challenge and Registry,

2

20 0 Volumes and Emissions, 1999. 0 0 Pipeline CH4 emissions are as a result of venting, leakage and incomplete combustion. TransCanada has taken an active role in minimizing these emissions. "In 1999, TransCanada continued to make progress in reducing emissions from pipeline blowdowns.32 These emission mitigation initiatives have resulted in emission savings of 1.5 million tonnes of carbon dioxide eq."33 As well, TransCanada pioneered modern advances in pipeline connections, such as hot tapping, that dramatically reduce GHG emissions (113,000 t CO2 eq in 1999). Hot tapping is "a procedure that allows for piping connections to be made to an operating pipeline at the maximum allowable operating pressure. The technology eliminates the venting of gas completely, and allows for improved planning of work by eliminating the need for outages."34

Chart 1-11: Energy Pipeline GHG Emissions

25 Total Emissions Direct Emissions 20 Indirect Emissions

eq 15 2 Source: Canadian Energy Pipeline 10 Association. Fifth Report to the Climate Mt CO 5 Change Voluntary Challenge and Registry 0 Inc., 2000. 1990 1991 1992 1993 1994 1995 1996 1997 1998

1.2.2.5 Natural Gas Distribution (See Energy pipelines emissions), 9 Action Plans (6 Champion-level) 100% of sector emissions

Natural gas distribution systems serve a large portion of industrial, commercial, institutional and residential energy needs across Canada. In 1998, natural gas met 25.1% of Canada's secondary energy fuel needs.35,36 Like electricity, natural gas is a key ingredient in Canada's economic engine, with customers expecting safe and reliable fuel available on demand. Unlike electricity, a finite quantity of natural gas can be stored to meet peak demands. However, this requires additional energy and generates GHG emissions. In combination with gas storage, interruptible service contracts with large industrial customers enable natural gas utilities to meet peak demands, but this requires customers to have backup fuel and equipment. Back-

32 Blowdown: To vent or flare the contents of a pipe or piece of equipment. Operators' blowdown equipment or pipelines in emergency situations (such as a pipeline leak) as well as before maintenance or repairs is carried out.

33 TransCanada. Submission to the Climate Change Voluntary Challenge and Registry, p. 24, 2000.

34 TransCanada. Submission to the Climate Change Voluntary Challenge and Registry, p. 26, 2000.

35 Secondary energy use: Energy used by final consumers for residential, agricultural, commercial, industrial and transportation. (Source: , Natural Resources Canada, Energy Efficiency Trends in Canada, 1990-1998, Glossary of t 200 or 0 Terms, p. 131, 2000). p e R 36 Natural Resources Canada. Energy Efficiency Trends in Canada, 1990-1998, Figure A-2.2: Commercial l Greenhouse Gas Emissions, Energy Use and Greenhouse Gas Intensity, Commercial Sector, 1990-1998, p. 81. a

u n 21

2000.

n A up equipment usually operates on diesel or heating oil. Both of these choices generate much higher levels of GHG emissions than natural gas, so natural gas utility efforts to enhance their service reliability can significantly reduce customer GHG emissions.

The Canadian Gas Association is the national organization for Canada's natural gas distribution businesses represents the entire gas industry, which includes natural gas distributors. (Other CGA members include pipeline companies, manufacturers of gas appliances and equipment, brokers and marketers.)

GHG emissions from the sector originate from three primary sources: fugitive emissions, operative emissions, and combustion emissions. "Fugitive emissions are most easily defined as unintentional emissions. An example would be leaks from system, equipment seals or pressure relief valves. Operative emissions include releases of methane due to equipment design and operational practices. Examples are emissions from items such as valve pumps and motors that use energy in pressurized natural gas to drive equipment, as well as gas released from the pipeline system to allow repairs and alterations to be performed safely. Combustion emissions from energy consumption include emissions from natural gas burned to heat buildings and exhaust emissions from the company's vehicles and compressors."37 While natural gas distributors are not Chart 1-12: directly responsible for customer GHG Emissions From Natural Gas emissions (since over 67% of Transmission Distribution natural gas related GHG 9% 2% emissions occur at the customer Processing burner-tip), there is huge 12% potential for GHG emissions reduction through utility-lead, they have been very active in Production End User leading effective demand side 10% 67% management initiatives. The following chart shows all emissions related to natural gas, including distribution and end use.

Source: Canadian Gas Association

SaskEnergy and TransGas, reduced reduced emissions significantly by reducing the impact of fugitive emissions. "SaskEnergy and TransGas screened screening "Pressure Relief Valves throughout their system to measure leakage rates and establish baseline data. Hard seats were replaced by soft seats primarily in valves at compressor stations, resulting in greenhouse gas savings of 3,905 tonnes of carbon dioxide eq."38

u nn al R A e 37 Canadian Gas Association. Canadian Gas Association Response to the Voluntary Challenge and Registry Inc., p o p. 1, 1999. r

t

2 38 SaskEnergy and TransGas. Action Plan & Progress Report for the Year 1999, p. 10, 2000.

22 0 0 0 1.2.2.6 Coal 1.3 Mt Direct emissions, 4 Action Plans (2 Champion-level), Virtually 100% of sector emissions

Canada mines and processes coal on a significant scale - 72.4 million tonnes in 1999, 70.7 million tonnes of which was produced in Western Canada. Canadian coal mining companies sell coal, not only Chart 1-13: domestically, but also to foreign markets, Canadian Coal Industry GHG Emissions Trends especially the Pacific Rim (including the US). Two companies, Luscar Ltd. and Fording Coal Limited, 1.600 produce the majority of Canada's coal. eq)

2 1.400

1.200 eq/t raw coal) (Mt CO 2 Net Emissions Net Emissions 1.000 Per Unit Production (t CO

0.800 Source 1: Luscar Ltd. Voluntary Challenge and 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Registry Action Plan Update 2000, 2000, Table 1. Summary of Luscar Ltd. Emission Reduction Action Plan, 2000. Source 2: Fording Coal Limited. 1999 Report to the Voluntary Challenge and Registry Inc., Section 7.0, 2001.

GHG emissions in coal mining are created primarily from the use of energy in the mining, processing and transportation sectors of the business. Emissions reductions are achieved through adopting more efficient mining practices, including switching to large capacity, high-efficiency mining equipment as well as improved land reclamation and reforestation.

While significant GHG emissions reductions can be achieved by improving coal production efficiency, immense GHG emissions reductions could be achieved by revolutionizing the way coal is used. Several projects are currently under consideration. The Zero Emission Coal Alliance, through the Los Alamos National Laboratory, is researching a zero emission coal plant that would produce hydrogen from a coal/water slurry to fuel a solid oxide fuel cell. Carbon Dioxide would be sequestered in a solid mineral carbonate. A proposal registered by the Alberta Research Council, involves sequestering carbon dioxide in deep coal beds to displace the methane (natural gas). Conservative estimates indicate that Canada could annually sequester 380 Mt CO2 eq (over half of our current emissions) and produce 3.6 trillion cubic metres of natural gas by 2025. A more recent initiative is the Canadian Clean Power Coalition, which aims for the construction and operation of a full-scale demonstration project for the removal of GHGs and all other emissions of concern from an existing coal-fired power plant by 2007.

t 200 or 0 p e R l

a

u

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n A 1.2.3 Manufacturing and Metal Mining 103.5 Mt Direct emissions, 235 Action Plans (48 Champion-level), 72% of sector emissions

Of the total GHG emissions assigned to this sector within the national inventory, 51.0 Mt are the result of industrial process emissions. The remaining 52.5 Mt are attributed to direct energy emissions or products of combustion. Not included in this accounting is a large share of indirect emissions from electricity consumption.39 These indirect emissions are accounted for in this report within the electric utilities sector profile.

1.2.3.1 Cement 10.5 Mt Direct emissions, 6 Action Plans (1 Champion- level), 95% of sector emissions

Canada's cement and concrete producers comprise this sector and are represented by the Cement Association of Canada (CAC).

Over the past 25 years, capital stock turnover of cement production capacity has resulted in an overall 30 per cent reduction in energy consumption per tonne of Portland cement primarily by converting from a wet kiln to a dry kiln process. By 1999, virtually all Canadian cement production employed the dry kiln process. More advanced pre-heater/heat recovery systems are now being installed to improve their efficiency by an additional 15%.

Gross GHG emissions have also decreased as a result of utilizing such cement additives as blast furnace slag, silica fume and fly ash.

Switching to less GHG intensive fuels is another way these industries are reducing their GHG emissions.

1.2.3.2 Chemicals 13.35 Mt Direct emissions, 73 Action Plans (11 Champion level), 100% of sector emissions

Greenhouse gas emissions from the industry result, primarily from energy consumption, but also from industrial process emissions and fugitive emissions. GHG emissions from this sector have decreased by 22 million tonnes over 1997 figures and 40 million tonnes over 1992 figures. The Canadian Chemical Producers' Association (CCPA) projects a further decrease of 26% to occur over the next three years.

u 39 In the document, Energy Efficiency Trends in Canada 1990 to 1998, Natural Resources Canada attributes more nn al R A e than 30% of total (155.2 Mt CO2 eq) Industrial GHG emissions to electricity (+46.6 Mt CO2 eq). However, the p o Industrial sector definition used by Natural Resources Canada differs from the Manufacturing and Metal Mining r sector defined by VCR Inc. using Canada’s official GHG emissions inventory. It is currently beyond our capabilities t

2 to determine how much of the +46.6 Mt could be attributed to the Manufacturing and Metal Mining sector.

24 0 0 0 Consuming fossil fuels for process energy is by far the largest emissions source, producing 11.4 Mt CO2 in 1998 and again in 1999. Industrial processes release small quantities of HFCs, PFCs, SF6 and N2O.

The most significant industrial process emission is N2O from DuPont's Maitland facility, which historically produced 11.5 Mt CO2 eq emissions per year. Current N2O process emissions from this facility are nearly 85% below this peak rate, a 10.3 Mt reduction. DuPont is on-track to achieve their goal of reaching 93.9 percent reduction by 2001.

Dow Chemical Canada Inc. significantly reduced GHG emissions per unit output by implementing a variety of energy saving initiatives. One of these initiatives was a partnership between "Dow Canada, Canadian Liquid Air and Enterprises Corporation. This agreement resulted in a new highly-efficient co-generation facility being built on Dow's Fort Saskatchewan site."40 Between 1990 and 1999, Dow's GHG emissions per unit production had decreased by 50%.41

NOVA Chemicals, like Dow, has made use of the best technology available and installed a cogeneration unit in Joffre, Alberta. In conjunction with, a new cogeneration facility will be built in Sarnia to supply electricity and steam to NOVA, Dow, and Bayer facilities (and expects to commission another in Sarnia, Ontario by 2002).42 As well, near Joffre, NOVA has partnered with local oil production companies to inject 62 kt CO2 per year into underground reservoirs. This prevents 43 the CO2 from reaching the atmosphere and improves oil production.

Chart 1-14: GHG Emissions Chemical Manufacturing

25 125

20 100 GHG Emissions eq)

Chart Source: Canadian Chemical 2 15 75 Producers' Association. Reducing 10 50

Emissions 8: 1999 Emissions Inventory (Mt CO GHG Emissions Index GHG Emissions Output, 1992=100) and Five-Year Projections, p. 27, 2000. 5 25 Emissions Per Unit GHG Emissions Index 0 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

40 Dow Chemical Canada Inc. Voluntary Challenge and Registry 1999 Update of the Annual Progress Report, p. 3., 2000.

41 Dow Chemical Canada Inc. Voluntary Challenge and Registry 1999 Update of the Annual Progress Report, p. 5., 2000.

42 NOVA Chemicals. Managing Greenhouse Gas Emissions, 2000. Voluntary Climate Change Challenge and Registry t 200 or 0 Submissions, pp. 3, 14, 2000. p e R 43 NOVA Chemicals. Managing Greenhouse Gas Emissions, 2000. Voluntary Climate Change Challenge and Registry l Submissions, p. 17, 2000. a

u

n 25

n A 1.2.3.3 Lime - 4 Action Plans, 45% of sector emissions

Canada's merchant lime sector manufactures products that are essential to basic industry, water treatment and the environment.

In the past eight-year period from 1990 to 1997, lime production increased by 26 per cent. Lime production fell in 1998 by two per cent. The primary GHG emission is CO2, with approximately 60 per cent of emissions resulting from disassociation of CO2 in the calcination process and 40 per cent from combustion of fossil fuels. The production of lime requires very high temperatures (in excess of 1200oC) that require combustion fuels as the principle source of energy. Natural gas is the largest energy source with petroleum coke and coal making up most of the balance. GHG emissions resulting from the production of lime are offset to some extent through re-absorption of CO2 by lime during its life cycle. The National Lime Association estimates that approximately 25 per cent of lime produced in Canada and the U.S. reabsorbs CO2 either in process or naturally.

Energy intensity has decreased by 15.5 per cent from 1990 through 1998. Capital stock turnover rates within the industry will dictate the ability of lime manufacturers to continue to make significant energy intensity improvements.

The sector's energy intensity target is an improvement of 0.3 to 0.5 per cent per year through to the year 2001.

1.2.3.4 Metal Mining 3.6 Mt Direct emissions, (2.0 Mt Indirect emissions), 19 Action Plans (4 Champion-level), 90% of sector emissions

Metals mined in Canada include copper, gold, iron, lead, nickel, silver, uranium and zinc. Ore production is included in this sector profile, while the processing of the ore is included in the Mineral Processing and Steel sectors. Most large Canadian mining companies operate in “Atlas Specialty Steels both the Metal Mining and the Mineral Processing sector. Roughly 80 percent of the mining has set a target for energy efficiency 44 improvement at an average of industry's production is exported. 1% per year for the period of 1998-2005” Atlas Specialty Steels "Attempt to reduce energy consumption by 2% per year, from 1998 levels to 2008, by implementing cost effective energy management initiatives throughout its campus." Mount Saint Vincent University

u nn al R A e p o r

t

2 44 Global Climate Change Ð Taking Action, 2000. p. 1.

26 0 0 0 GHG emissions for this sector result exclusively from energy consumption. Various fossil fuels are consumed, including various grades of liquid petroleum products, plus coke, natural gas and coal. These fossil fuels Chart 1-15: are all consumed to provide 55% of the GHG Emisssions from Metal Mining mining operations energy needs. Electricity and steam, produced by

8,000 outside organizations, supplied Total nearly 45% of the industry's total 6,000

eq) 45 2 energy requirements. 4,000 Direct

(kt CO 2,000 Indirect Data Source: Mining Association of Canada. GHG Emissions 0 Energy Use and GHG Emissions, p. 5, 2000. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Falconbridge Limited, achieved a variety of energy and emissions reductions in its mine activities near Sudbury, Ontario. "The Mine Ventilation Automation Project was completed in 1999. This undertaking makes use of sophisticated underground communications and control technologies to control main and auxiliary ventilation fans, as well as to monitor air quality and vehicle location... The potential total reduction in energy consumption is 25 (gigawatt hours per year). This equates to a 4.7 kilotonnes CO2 eq reduction of indirect GHG emissions, and an annualized savings of $1.4 million. There will also be a 0.72 kilotonnes CO2 eq reduction in direct GHG emissions as a result of diminished natural gas use for mine air heating."46

1.2.3.5 Mineral Processing 2.5 Mt Direct emissions, (1.9 Indirect emissions), 8 Action Plans (2 Champion-level), 90% of sector emissions

This sector includes the smelting and refining Chart 1-16: GHG Emissions of base metals: copper, zinc, lead, nickel Mineral Processing and cobalt. (Processing emissions related to uranium, iron, aluminum, 6.0 5.0 magnesium and precious metals are Total 4.0 eq)

not included in this sector profile.) 2 3.0 The Canadian companies that Direct 2.0 (Mt CO Indirect GHG Emissions process these base metals are also 1.0 involved in Metal Mining. About 80 0.0 percent of the mining industry's production is exported.47 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: Mining Association of Canada. Energy and Climate Change, P. 5, 2000.

45 Mining Association of Canada. Canadian Industrial Energy End-use Data and Analysis Centre (CIEEDAC), 1999, as referenced by the Mining Association of Canada, Global Climate Change Ð Taking Action, p. 4, 2000. t 200 or 0 p e 46 Falconbridge Limited, Energy Intensity Improvement and Greenhouse Gas Reduction Action Plan 2000, p. 21, R 2000. l a

u n 27

47 Mining Association of Canada. Global Climate Change Ð Taking Action, p. 1, 2000.

n A GHG emissions from the Mineral Processing sector result almost exclusively from energy consumption. Fossil fuels provide over 48% of the energy used by the sector. These fuels are predominantly natural gas and heavy fuel oil, but other fossil fuels used include coal, coke, petroleum coke, middle distillates and liquid petroleum gases. Electricity and steam, produced by outside organizations, supplied nearly 52% of the industry's total energy requirements.48

Cominco Ltd. demonstrated considerable leadership by reducing GHG emissions by 35%.49 A large share of this reduction can be attributed to installing a Kivcet Lead Smelter. This new multi-million-dollar investment not only reduced energy consumption and global greenhouse gas emissions, but also reduced particulate emissions and metal emissions, which improved local air quality in and around the town of Trail, British Columbia.50

1.2.3.6 Primary Aluminium 10.76 Mt Direct emissions, 6 Action Plans,100% of sector emissions

"Canada's Aluminum sector ranks fourth in the world in annual primary aluminum production. The combined output of the industry's 10 aluminum plants in Quebec and one in British Columbia is a major contributor to Canada's national and local economies."51

Unlike most manufacturing sectors, only about 11% of the aluminum sector's direct GHG emissions are from fossil fuel combustion. 89% of the direct GHG emissions from this sector are industrial process emissions related to aluminum smelting. The consumption of carbon anodes produces large quantities of carbon dioxide and anode effects generate CF4 and C2F6, both members of the PFC gas family.

Considerable efforts have been made since 1992 to reduce PFC emissions, and industry wide emission measurement program has been carried out in 2000 enabling the industry to better understand the anode effect phenomena and to then better control it.

Aluminerie Lauralco inc., an Alcoa facility, has reported significant reductions in GHG emissions per unit production. Focusing on CF4 and C2F6, the company has reduced its emission index from approximately 2.6 kg CO2 eq per kg aluminum to 1.7 kg CO2 eq per kg aluminum. "Two sampling campaigns on the distribution tank conduits enabled us to continue to use the best emission factor for use in the calculation of these emissions. These two campaigns, carried out with different but comparable methods, between them, showed that the emissions rate had to be revised lower." 52

48 Canadian Industrial Energy End-use Data and Analysis Centre (CIEEDAC), 1999, as referenced by the Mining Association of Canada. Global Climate Change Ð Taking Action, p. 6, 2000.

49 Cominco Ltd. Commitment to Reducing Greenhouse Gases, 1998 Progress Report, p. 3, 2000.

u 50 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, p. nn al R A e 17, 2000. p o r t 51 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report,

2 p. 38, 1999.

28 0 0

0 52 Aluminerie Lauralco inc. Translation, La forêt de Lauralco en 1999, p. 14, 2000. Chart 1-17: 1998 Aluminum Emissions

Total=10.76 Mt CO2 eq Process Emissions Source: Environment Canada's Greenhouse Gas Inventory 1990-1998, Final

CO2 Process Emissions Submission to the UNFCC Secretariat, Volume 2 of 35.5% 2, Appendix 2a, Common Reporting Format -

CF Process Emissions 1998, Table 2, 2000. 4 50%

Total Combustion Combustion Energy Source: Natural Emissions 8.9% Resources Canada, Canadian Industry program for Energy Combustion Energy / GHG Conversion Factors: VCR Inc. 1999 C2F6 Process Emissions 5.6% Registration Guide, Section 5, 1999, and Ontario Propane Association. http://www.propane.ca/facts/defin.html, 2000. Combustion Emissions are over 99% CO2

1.2.3.7 Pulp and Paper 11 Mt Direct emissions, 26 Action Plans (13 Champion-level), 75% of sector emissions

Canadian Pulp and Paper companies produced 31,410 kilotonnes of paper products in 1998.53 The Canadian Pulp and Paper Association (CPPA) represent these companies.

Manufacturing pulp and paper is an energy intensive process. GHG emissions from the pulp and paper sector originate almost exclusively from the combustion of fossil fuels for energy. Other energy sources used by the industry include electricity and biomass. While many registrants track biomass emissions, they are usually separated from fossil fuel emissions. Biomass emissions are assumed to have a net zero CO2 value, since the original wood was produced from sustainable forests. (CH4 and N2O produced when burning biomass are counted with fossil fuel emissions since forests do not absorb these emissions.) Biomass grew from 50.5% to 54.5% of the industry energy supply mix between 1990 and 1999.54

The pulp and paper sector has decreased voluntarily GHG emissions by 19.3% on an absolute basis (total emissions) and by 33.4% on a specific basis (emissions per tonne of product).55

Spruce Falls Inc., a subsidiary of Tembec, has achieved great emission reduction results at their mill at Kapuskasing, Ontario. "Through extensive modernization efforts over the past nine years, Spruce Falls Inc. has significantly reduced its GHG emissions (45.7%), while increasing production, by reducing overall energy consumption and substituting use of fossil fuels with renewable biomass energy sources."56

53 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, p. 67, 1999.

54 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, p. 67, 1999. t 200 or 0 p e 55 Canadian Pulp and Paper Association Correspondence, Dec. 1, 2000. R l

a

56 Spruce Falls Inc. Greenhouse Gas Action Plan, p. 2, 2000. u

n 29

n A Stora Enso of Port Hawkesbury has used fuel switching to achieve significant GHG emissions reductions. They are aiming at stabilizing their net GHG emissions from fossil fuels while dramatically increasing production (47%). GHG emissions reduction will be attributed primarily to displacing heavy oil with natural gas.57

Chart 1-18: Pulp and Paper Industry Fossil Fuel Emissions

15 0.600

13 0.500 GHG Emissions 10 0.400 Source: The Canadian Pulp and Paper Institute

eq) Emissions Intensity 2 8 0.300

(Mt CO 5 0.200 GHG Emissions 3 0.100

0 0.000 1990 1992 1994 1996 1998 2000

1.2.3.8 Steel 17.3 Mt Direct emissions, 12 Action Plans (2 Champion-level), 100% of sector emissions

Canada's steel sector is one of the country's largest industries, producing more than 11,153 million dollars worth of steel in 1999, 47% destined for export markets. One important feature of today's steel industry is that over half of Canada's steel production is produced utilizing recycled material.58

Steel production is energy intensive and produces significant GHG emissions. In 1998, the industry consumed 251,743 TJ (tera joules) of energy, with fossil fuels meeting 85.7% of this energy demand. Fossil fuel combustion is the sector's primary GHG emissions source. The remaining energy demand, 14.7%, is drawn from electricity and results in GHG emissions on the part of electric utilities. Over the last decade, technological advances in steel production have lead to GHG emissions reductions. Energy consumption per unit output has decreased by 5% between 1990 and 1998.59 In 1998, the industry consumed 15.4 million BTU per ton steel shipped.60

Dofasco Inc. recently reduced its boiler fuel consumption in its #1 and #2 coke plants. A comprehensive steam system audit was done. Based on this, barometric condenser vacuums were improved on both units and steam traps were repaired on the #1 unit. "Combined, these two projects yield direct CO2 reductions in boiler 61 fuel of 39,600 tonnes CO2 / year."

57 Stora Enso Port Hawkesbury Ltd. An Action Plan for Reduction Green Gas Emission, p. 5, 1999.

58 Canadian Steel Producers Association. Snapshot of Canadian Steel 1999, http://www.canadiansteel.ca/industry/snapshot_steel99.html, 1999. u nn al R A e 59 Cominco Ltd. Commitment to Reducing Greenhouse Gases, 1998 Progress Report, 1999, p. 3, 2000. p o r t 60 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, p.

2 17, 2000.

30 0 0

0 61 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, p. 38, 1999. Stelco has implemented a number of energy reduction initiatives across its nine wholly owned subsidiaries. In 1999, the company completed three energy efficiency projects at Stelco Inc. Hilton Works. These three projects affected the walking-beam bloom furnace, a coke oven battery, as well as a blast furnace cooling system. "The result will be improved energy efficiency of more than 3% relative to base year and reduced annual CO2 emissions of nearly 15,000 (tonnes) per year."

Chart 1-19: Algoma Steel Inc. has installed a Direct Strip Steel Industry Energy Intensity Index (1990-2010) Production Complex, which produces a high grade of strip steel. This process 22 Actual greatly reduces energy consumption 20 Target 1990–2000 by eliminated conventional slab 18 Target 2000–2010 reheating. As well, production time 16 is reduced from weeks to minutes. 14 Cooling/de-scaling water consump- GJ/tonne shipped 12 tion is greatly reduced. The energy 10 conservation from this technology has 1990 1995 2000 2005 2010 significantly reduced Algoma's GHG emissions intensity.62

1.2.3.9 Textiles 21 Action Plans (2 Champion-level), 60% of sector emissions

The Canadian textiles industry can be divided into three separate sectors: primary textiles (manufactured fibres and filament yarns, spun yarns, and woven and knit fabrics), textile products (carpets, narrow fabrics, household textiles, and firms engaged in contract dyeing and finishing), and motor vehicle fabric accessories.

Textiles manufacturing requires energy, typically in the form of fossil fuels, steam and electricity. Steam and electricity do not contribute directly to textile sector GHG emissions and they represent 45.3% of the sector's total energy consumption. (Electric utilities and steam suppliers may use fossil fuels to produce energy, so some indirect emissions are an indirect result of the textiles industry.) Fossil fuels, primarily natural gas, provide 54.7% of the textile sector's energy needs. Many organizations are taking steps to make their processes more efficient, greatly reducing overall energy consumption.

DuPont Canada Inc.'s Kingston Plant operates a hexamethylene diamine (HMD) distillation process that generates waste heat. This heat was formerly discharged to cooling water, but with some process changes, low-pressure steam is generated and this is used to provide heat to other equipment in the plant. This project not only reduced energy consumption by steam boilers, also reduced the cooling load for the plant. The waste-heat used by the steam equipment is eq to 2,000,000 m3 of natural gas per year, or over 3,760 t CO2 eq direct emissions. By reducing the cooling water load, electricity required is reduced by 555 MWh per year.

t 200 or 0 p e R l 62 Stelco Inc. Canadian Industrial Program For Energy Conservation, Industrial Energy Innovators Action Plan Report for a

Stelco Inc Group of Businesses, Executive Summary, 2000. u n 31

n A Chart 1-20: Textiles Energy Efficiency 13.0

11.6

Chart data source: Barry, Eric. 10.2 Canadian Textiles Institute, 2000.

8.8 TJ/$1,000,000) 7.4 Energy Per GDP Output Energy 6.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

St. Lawrence Corporation implemented a number of measures, including an energy audit sponsored in part by the Ontario Ministry of Environment. One project implemented is a system that uses waste heat from air compressors to preheat water for the de-aerator.63 Company-wide GHG emissions (from indirect and direct emissions sources) for year 2000 are estimated to be 4,688 tonnes CO2 eq, less than half the emissions produced in 1990.

1.2.3.10 Transportation Manufacturing 1.9 Mt Direct emissions, (3.0 Mt Indirect emissions), 14 Action Plans (4 Champion-level),90% of sector emissions

The Transportation Manufacturing sector includes vehicle manufacturers, aerospace manufacturers, and parts suppliers. Several global leaders in the industry operate in Canada. Significant Canadian production from this sector is exported to US and overseas markets.

It is difficult to extract GHG emissions figures for the transportation manufacturing group within this sector based on the official nation inventory. However, according to the Canadian Industry Program for Energy Conservation (CIPEC), electricity and natural gas dominate their energy mix. The 23,959 TJ (tera joule) natural gas consumed by the industry in 199864 generated emissions equal to approximately 65 1.9 Mt CO2. Other fossil fuels consumed add marginally to these emissions.

63 St. Lawrence Corporation. Energy Conservation Action Plan, p. 2, 1999.

64 Natural Resources Canada. Canadian Industry Program for Energy Conservation, 1998/1999 Annual Report, u 1999, Figure: Energy Sources, p. 77. nn al R A e p o 65 23,959 TJ natural gas converts to 1.9 Mt CO2 using a variety of emission and conversion factors published in r the VCR Inc. 1999 Registration Guide, Sections 5.2 and 5.4, pp. 32, 34-35. The factors used were first published by t

2 Environment Canada (1999) and Natural Resources Canada (1997).

32 0 0 0 Chart 1-21: DaimlerChrysler Canada Inc. 2000 Action plan Update for Canadian Auto Manufacturing Manufacturing and Assembly Facilities, p. 14, 2000. Emission Trends

Emissions Index Ford Motor Company of Canada Ltd. Revised 1999 Production Action Plan for Manufacturing and Assembly 2.50 Emissions 1.0 Facilities, p. 13, 2000. 2.00 0.8 Production General Motors of Canada Ltd. An Action Plan (million vehicles) Emissions Index for Reducing Greenhouse Gas Emissions, 1.50 0.6 and Emissions (t CO2 eq./vehicle) Updated for 1999, October 30 2000. (Mt CO eq) 2 1.00 0.4

0.50 0.2

0.00 1995 1996 1997 1998 1999 0.0

Ford Motor Company of Canada, Limited, made significant reductions at its Windsor Casting facility. As part of their 5-year action plan to reduce natural gas consumption, in 2000, upgrades were performed to the Heat Treat gas oven and Venetta Dryer controls.66 These upgrades resulted in an annual emission reduction of 8,000 tonnes CO2 eq.

In addition to GHG emissions reductions through energy-efficient technology, General Motors of Canada Limited (GMC) has created GHG emissions education and awareness programs targeted at employees, suppliers, and the public. Staff is addressed through email and a well-developed intranet. Their "intranet website is currently being updated to include over 40 pages of environmental and energy information."67 At the same time, GMC recognizes that for Canada to emit less GHG emissions, the public must be aware how their actions influence the environment. "All vehicle owner's manuals contain information for the public on the need to maintain their vehicles properly and ensure that all emission control technology is functioning as designed. Manuals also offer information to the public about the need to complement vehicle technology with appropriate fuels to ensure that emissions performance is optimal.

1.2.4 Commercial Transportation 68.6 Mt Direct Emissions

Commercial transportation is a large source of GHG emissions. Fleets of trucks, ships, trains and aircraft move goods and people across town and across the continent. In 1996, Canada's commercial transportation system moved 292.3 billion tonne-kilometres of freight and 81.6 billion passenger-kilometres.

t 200 66 Ford Motor Company of Canada Limited. Revised 2000 Action Plan Update for Manufacturing and Assembly or 0 p Facilities, p. 8, 2000. e R l 67 General Motors of Canada Ltd. An Action Plan for Reducing Greenhouse Gas Emissions, Section 9.2, p. 38, 2000. a

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n A Chart 1-22: Commercial Transportation Energy Use and Activity Rates

1.30 Energy Use 1.25 Source: Natural Resources Canada. Energy 1.20 and Activity Rates Energy Use Efficiency Trends in Canada 1990 to 1.15 1998, Figure A-6.9: Freight (1990=1.00) 1.10 Transportation Energy Use, Aggregate 1.05 Activity (tonne-kilometre) 1.00 Energy Intensity, Activity and Energy 0.95 Efficiency, 1990-1998, 2000. 0.90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

1.2.4.1 Railways 6.1 Mt Direct emissions, 48 Action Plans (1 Champion-level), 100% of sector emissions

Canadian Railways provide efficient transportation for countless commodities. 51 railways serve Canada, operating a network of 50,000 km of track. In 1998 the industry transported 297 billion tonne-kilometres of freight.68 All Canadian railways are registered, through independent reporting and/or participation in the Locomotive Emissions Monitoring Programme (a Railway Association of Canada and Environment Canada partnership).

The vast majority of emissions from railway operations are from locomotive emissions. (Other emissions sources include non-rail fleet vehicles, maintenance facilities, and administrative facilities.) While companies have taken action to reduce GHG emissions from all sources, locomotive emissions reductions are most significant. Railways continue to upgrade locomotive fleets with newer, more efficient engines. As well, dynamic brakes, rail gauge face lubrication, low idle features and automatic start/stop systems all contribute to increased fuel efficiency. In addition to Chart 1-23: upgrading rolling stock, railways are Railway Transportation upgrading track to accommodate 8.7% CO2 Emission Trends more weight than previously born on main lines. This additional capacity 6,400 35 6,200 Emissions per Freight Traffic Unit 30 increases the efficiency of railway 6,000 25 69 CO2 5,800 20 operations. These changes have Emissions 5,600 15 been implemented continuously CO Emissions 5,400 2 10 since 1990, resulting in relatively 5,200 5 continual efficiency improvement, as 5,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 illustrated in Chart 1-23.

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

68 Ballantyne, Robert H. Welcome to the web site of the Railway Association of Canada (RAC), u nn al R http://www.railcan.ca/en/welcome/default.htm, 2000. A e p o r 69 Railway Association of Canada. Locomotive Emissions Monitoring Programme, Reporting Year 1998, t Environment Canada, pp. 23-24, 2000.

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34 0 0 0 1.2.4.2 Commercial Trucking 42.4 Mt Direct emission, 7 Action Plans (3 Champion-level)

Trucks deliver the lion's share of the goods distributed through Canada's retail sector and supply virtually 100% of all Canadian service industries. The Canadian trucking industry has also developed a unique niche within Canadian industry, specializing in "just-in-time" delivery, which improves economic efficiency by reducing or eliminating large inventories of goods in many industrial operations. 450,000 trucks operate in the sector. According to the 1996 national census, 225,000 people claimed the job title "Truck Driver", more than any other occupation.70

GHG emissions from the trucking industry are exclusively from the consumption of fossil fuels and represent 6.1% of all Canadian GHG emissions (Chart 1-6). While some emissions come from operating maintenance facilities, these are small and are accounted for in commercial sector. Diesel-powered heavy-duty truck fleets operating in Canada were responsible for 42.4 Mt CO2 eq emissions in 1998. An additional 2.0 Mt CO2 eq is attributed to natural gas and propane vehicle fleets, which includes many intra-city courier fleets, taxis and vanpooling as well as non- commercial fleets operated by governments, public institutions and private companies.

Technology is playing a major role in reducing emissions of large diesel carrier fleets. Trucks are now computerized. Most have electronic governors that allow fleet managers to set maximum speeds for their vehicles. Fleet operators can also dispatch goods to customers more efficiently since they can track loads using satellite technology. Over 12,500 Canadian trucks have some form of satellite communications or tracking system.71 Despite all these improvements, the best way to reduce GHG emissions and operating costs is to improve driving habits. Education and rewards for performance help, as does peer pressure from more efficient drivers.

Bison Transport, based in Winnipeg, operates a fleet of 550 units. They have achieved an average fuel economy of 37.3 litres per 100 kilometres (7.57 mpg) and are pushing to achieve an average fuel economy of at least 35.3 l / 100 km (8.00 mpg). One method of improving fuel economy was using electronic governors to prevent their vehicles from exceeding 105 km/h (65 mph). SGT 2000 inc. is a Québec-based company with 350 units operating in Canada, the US and Mexico. It has used electronic governors to limit the maximum speed of their vehicles to 98 km/h (60 mpg). This, combined with the posting drivers fuel economy (making all drivers aware of fuel economy and competitive with peers), improved fuel economy nearly 4% since 1993, with 1999 results at 39.4 l / 100 km (7.17 mpg).

t 200 or 0 p e 70 Canadian Trucking Alliance. "Industry Profile", http://www.cantruck.com/faq-e.html, 2000. R l

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n A 1.2.5 Institutional and Commercial 51.1 Mt Direct emissions, (26.5 Indirect emissions)

The Institutional and Commercial sector includes many facilities including all levels of government, education and health facilities, and commercial and retail buildings. Energy use in buildings represents 53% of GHG Chart 1-24: emissions. The remaining 47% is the result of Commercial and Institutional Sector waste disposal and treatment plus Energy Use and Floor Space Trends construction activities.

1.16 Energy Use 1.14 1.12 Floor Space Trends The winter of 1990 1.10 was 7.5% warmer (1990=1.00) 1.08 than normal, but 1.06 1998 was 15.2% Source: Natural Resources Canada. Energy 1.04 warmer than normal. 1.02 Efficiency Trends in Canada 1990 to 1998, Figure A- 1.00 0.98 4.3: Distribution of Commercial Energy Use and 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Activity by Building Type, 1998, p. 35, 2000.

1.2.5.1 Federal, Provincial and Territorial Governments 1.9 Mt Direct emissions, (1.7 Indirect emissions), 14 Action Plans (3 Champion-level), 90% of sector emissions

Governments have pledged to lead by example, reducing GHG emissions from their own operations and providing the tools to assist Canadians reduce their own emissions impact. However, based on past reporting, in general, building operations and fleet vehicles dominate the government inventories. Including the indirect emissions from electricity consumption, government buildings are responsible for 75% to 80% of the total government emissions. The remaining 20% to 25% is due almost exclusively to the operation of vehicle fleets. In the case of the federal government, these fleet emissions include armed forces activities.

Governments are taking other actions that, while harder to quantify, are also demonstrating their own leadership. For example, some governments are implementing initiatives to educate staff of the climate change issue and opportunities for reducing GHG emissions at work as well as at home and on the road. Some governments are also piloting leading edge technologies (e.g. advanced lighting design) to reduce greenhouse gas emissions from their own operations. Double-digit reductions have been documented in the VCR Inc. Challenge Registry by several government bodies.

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36 0 0 0 1.2.5.2 Municipal Governments 24.9 Mt Direct emissions, (1.7 Mt Indirect emissions), 66 Action Plans (5 Champion-level), 37% of sector emissions

Municipal Governments have the potential to encourage dramatic reductions in GHG emissions. They can influence their constituents to reduce environmental impacts in ways that no other form of government can. While not all municipalities operate waste disposal facilities, they can influence behaviors by educating the public about recycling, composting, and general waste reduction. Waste treatment accounted for 23.0 Mt CO2 eq emissions in 1998, or 3.3% of the national total. As well, municipal governments provide public transit services to encourage more efficient modes of transportation.

The Federation of Canadian Municipalities is one of VCR Inc.'s key partners. Their Partners for Climate Protection program has initiated emissions reductions in dozens of communities across Canada, many of which publicly registered their results at VCR Inc..

Regina's ambitious information campaign, 'Cool Down the City', targeted industrial, commercial, transportation, residential, and student audiences. This program not only promotes awareness of climate issues, but also provides everyone with the basic knowledge to influence GHG emissions in their everyday work, school and home life.

Through energy and GHG emissions reduction initiatives targeted at facilities, fleets and through employee education, the City of Ottawa's 1998 GHG emissions were 19% lower than 1990 levels.72 The Regional Municipality of Ottawa-Carleton focused emissions reduction initiatives on traffic lights as well as water and sewage facilities, achieving a 9% emissions reduction within the regions core activities between 1990 and 1997. As well, the region created composting and recycling 73 initiatives that would reduce over 5 Mt CO2 eq from external emissions sources.

1.2.5.3 Education 3.7 Mt Direct emissions, 3.6 Mt Indirect emissions (Education and Health Services combined), 33% of sector emissions

Emissions associated with the education sector are based on energy needs for space heating, water heating, lighting and equipment (copiers, projectors, TV's, etc.). Fleet vehicles such as school buses are not included in this sector profile. Education facilities are responsible for 13.6% of the total energy consumed by Institutional and Commercial buildings.74 If the GHG emissions for buildings in this broad sector are representative of education facilities, estimates of education facility emissions impacts can be made.

72 Robinson, E.M. letter to Louise Comeau. Partners for Climate Protection Program, December 16, 1999. t 200 73 Region of Ottawa-Carleton. Region of Ottawa-Carleton Corporate Climate Change Action Plan: Technical Report, or 0 p Table 1: Comparison of RMOC Corporate Emissions by Sector: 1990 and 1997, p. 10, 2000. e R l 74 Natural Resources Canada. Energy Efficiency Trends in Canada, 1990-1998, Figure A-4.3: Distribution of a

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n A 1.2.5.3.1 Community Colleges 53 Action Plans (15 Champion-level)

VCR Inc. has worked closely with the Association of Canadian Community Colleges (ACCC), and in conjunction with their formal partnership with the Office of Energy Efficiency (OEE) at Natural Resources Canada, to develop linkages and reporting synergies to encourage and simplify VCR Inc. registration. Participation has increased 23% over 1999 levels. Reporting colleges indicate that over the past three years, $29 million was spent on energy efficiency projects resulting in annual savings of $8 million. These activities not only reduce operating and maintenance costs, they contribute to a healthier environment and help Canada to meet its international commitment to reduce greenhouse gas emissions.

1.2.5.3.2 School Boards 64 Action Plans (5 Champion-level)

School Boards have faced reduced funding and increased financial demands. Energy conservation, GHG emissions reduction and subsequent cost savings are very attractive to school boards looking for additional funding. While behavioral changes such as turning off lights and closing windows reduces energy costs, the majority of energy and cost savings achieved by the sector involved capital projects, especially building energy management systems that optimize space heating, hot water heating and / or lighting controls. Some school boards were able to use a portion of their capital budgets to invest in energy saving technology in-house. However, many others faced drastically reduced capital budgets or did not have the human resource capacity required to install energy-saving equipment. These school boards often opted to use energy service contractors (ESCOs). ESCOs would typically install energy-efficient technology at little or no initial cost, and are repaid incrementally, over two to five years, based on the difference between pre- installation and post-installation energy costs.

Rocky View School Division No. 41 found that some best cost-savings occurred by retrofitting the lighting in existing schools. This included the "replacement of existing T12 lamps and magnetic ballast with T8 lamps and electronic ballasts, improved lenses and reflectance of lighting fixtures, use of higher efficiency lamps, use of high/low level switching and occupancy sensors, and revised room surface finishes and other measures to improve reflectance."75 These changes would reduce lighting energy consumption by 40% to 69%. The pilot emissions reduction project was implemented in three of the board's 27 schools and results are remarkable: energy costs dropped from $144,290 in 1990 to approximately $85,022 in 2000.

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38 0 0 0 1.2.5.3.3 Universities - 34 Action Plans (3 Champion-level)

In addition to managing the GHG emissions resulting from their plant operations, universities play a role in dealing with Climate Change as research institutions. They contribute immeasurably to the science of GHG measurement and reduction. For example, Simon Fraser University hosts the Canadian Industrial Energy End-Use Data and Analysis Centre (CIEEDA), which is dedicated to improving the quality and accessibility of practical and unbiased information related to energy use in Canadian Industry. (CIPEC uses CIEEDA data to assist industrial energy innovators with measuring energy and greenhouse gas emissions.) Several universities have created unique environmental programs, including the York University Faculty of Environmental Studies, which actively supported VCR Inc. research and technical advisory committee initiatives since 1998.

The University of Ottawa earned Gold Champion Level Reporter status after submitting a detailed action plan in early 2000. Several improvements to the university's heating and cooling facilities have been implemented and many more are planned. One unique project implemented in 1996-1997 is a free cooling system that reduced electrical consumption by 1000 megawatt hours per year. During 2000, the university installed motion sensors connected to building energy management systems, as well as new energy-efficient chillers. With these initiatives plus the effect of a staff training and awareness program, between 1990 and 2015, the University of Ottawa anticipates a total GHG emissions reduction of at least 6% despite a nearly 40% increase in student enrolment.

1.2.5.4 Health Services 1.9 Mt Direct emissions, (1.8 Mt Indirect emissions), 36 Action Plans (2 Champion-level), 33% of sector emissions (Education and Health Institutions combined)

Health service institutions including hospitals are energy-intensive compared to offices of other commercial facilities. Unlike many commercial facilities, health institutions must be in operation 24 hours per day, seven days per week. Temperature and lighting must be precisely controlled. Ventilation systems require specialized filtration that increases energy demands. Medical equipment may draw considerable electrical power. As well, back-up electricity systems must be in place. All of these factors compound to make energy demands for health service facilities costly and GHG emissions intensive. However, aggressive energy and emissions reduction has greatly reduced operating expenses, enabling institutions to better cope with reduced funding from governments. The Office of Energy Efficiency (OEE) and the Canadian College of Health Service Executives (CCHSE), have a formal partnership, and are each assisting health institutions with reducing GHG emissions through cost reduction, as well as by sharing their results with others through VCR Inc. registration. t 200 or 0 p e R l

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n A Capital Health's University of Alberta Hospital, Edmonton, has reduced its total 1999 greenhouse gas emissions to eight per cent below the total in 1996, or by 6,204 tonnes of CO2 eq. As a result of the Hospital's voluntary initiatives, 1999 emissions of carbon dioxide and other greenhouse gases decreased through more efficient use and consumption of energy. At the end of 1999, 81,356 gigajoules of energy had been saved over the figure of 590,358 gigajoules of energy at the end of 1996. The University of Alberta Hospital has been a registered Energy Innovator since 1994, and has worked with the Innovators to achieve these results.

1.2.6 Service and Retail Industry 15.8 Mt Direct emissions, (14.5 Mt Indirect emissions), 77 Action Plans (10 Champion-level), 33% of sector emissions

The GHG emissions impact of the service and retail industry's operations is primarily from "We feel it important to assume responsibility to be a VCR leader for the energy consumed to maintain a small companies and businesses. quality working environment and It is our intent to reduce our emissions and providing services to customers. implement offset projects over the next Emissions related to employee 5 years, achieving a zero transportation are tracked by some emissions target." organizations, depending on the nature of Enviros RIS Canada their activities.

Typical GHG emission reduction activities “It is the intention of involve heating, ventilation and air M & M Meat Shops to reduce conditioning (HVAC) upgrades and its energy consumption and greenhouse gas lighting upgrades to reduce energy emissions by 20 % over 1997 consumption. Employee awareness and levels by the year 2005.” training is critical to achieving GHG M&M Meat Shops emissions reductions on an ongoing basis.

1.2.7 Households 126.8 Mt Direct emissions, (31.9 Mt Indirect emissions)

Individual households play an important role in reducing both direct and indirect GHG emissions in Canada. By far the largest household emission source, cars and light trucks, involved over 84 MtCO2 emissions. Direct emissions from residential dwellings, primarily home heating systems, account for an additional 44 MtCO2 emissions. Indirect emissions from electricity consumption (included in the

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40 0 0 0 Homeowners are discovering that home energy retrofits provide multiple benefits including increased home comfort, and attractive economic paybacks. The energy wise household could cut its emissions by over one third through simple measures such as using energy-efficient appliances and other practical energy savings ideas.

In order to begin the process of bringing these opportunities to the attention of the public, the Energy Council of Canada has initiated and successfully piloted a national program to engage Canadians on the climate change issue. The program, ACTION BY CANADIANS® on Climate Change (ABC), shows that individuals, by acting together, can effectively contribute to Canada's climate change commitments.

In its first year, ABC was supported by a contribution from the federal Climate Change Action Fund (CCAF) and by matching contributions and in kind commitments from its Table Three: ABC Statistics private sector partners. Demonstrating their support Action Category Achieved Reductions (kg) for the program, ABC partner companies offered Transportation 465,945 climate change education to over 3,600 Canadians. The tool for this activity was an Home Heating 48,432 award-winning workshop comprising a number of Lights and Appliances 308,925 elements including an opportunity for participants Water and Water Heating 196,198 to join in ABC's national greenhouse gas reduction Miscellaneous 135,895 pledge program: ABC developed a monitoring Total 1,055,396* program to assess whether

* CIPEC members have implemented the same program under the name “Count Me In” and how participants and their results are included in this summary. followed through on their voluntary pledges. The greenhouse gas reduction impacts of achieved actions were entered into the ABC database. The information is reflected in the table above.

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.

VCR Inc. and ACTION BY CANADIANS© agreed in 2000 to explore a possible partnership that would allow Canadians to submit their individual pledges directly online to the VCR Inc. Reductions Registry. This affiliation is another means to highlight the need to take personal action on Climate Change and to engage the Canadian public as a whole in the task. t 200 or 0 p e R l

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n A Business works best in addressing environmental issues if it has the freedom to innovate This Registry was created at the request of Natural 2.0 Resources Canada to satisfy the need to track emission reductions associated with the Baseline Protection Initiative that forms part of the First Business Plan within Reduction Canada's new National Implementation Strategy on Climate Registry Change. In addition, the Reduction Registry is available to a variety of initiatives that involve the assessment of the authenticity of project or entity-based GHG emission reductions. It was selected to be the registry for the Greenhouse Gas Emission Reduction Trading (GERT) pilot, and is the home for the registry element of VCR Inc.'s new Champions in Action (CIA) Initiative. 2.1 Baseline Protection

On January 12, 2000, the joint Federal/Provincial Ministers of Energy and Environment Ministers officially announced the climate change Baseline Protection Initiative.

To participate, businesses and institutions are invited to register their actions with VCR Inc., on a national basis, and/or ÉcoGESte for organizations whose operations are in Québec.

Baseline Protection is intended to reduce the uncertainty of business and to facilitate long-term corporate planning. It will ensure that businesses that take early actions to reduce greenhouse gas emissions will not be disadvantaged if future policy actions allocate obligations to reduce greenhouse gases on the basis of emissions levels. In this event, Baseline Protection would allow businesses and institutions to reconstruct their emissions baselines to include reductions in emissions achieved through investment in early actions. 2.2 Emissions Trading

One GHG management option -- emission trading -- is being explored through the Greenhouse Gas Emission Reduction Trading Pilot (GERT). Launched by a multi- stakeholder partnership in June 1998, the Pilot provides practical experience with this market-based approach. Similar work is underway in the Pilot Emissions Reduction Trading (PERT) Program in Ontario, and its successor Clean Air Canada Inc. (CACI). VCR inc. is an active member of GERT and PERT/CACI.

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. t 200 or 0 p e R l

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n A Buyers and sellers of emission reductions submit documentation on traded projects to a multi-stakeholder committee for review. If the emission reductions satisfy their requirements, they are registered and will be eligible for recognition against future compliance obligations.

Pilot projects can be located anywhere, but either the buyer or the seller must be Canadian. If the project is located outside Canada, the buyer must report the reduction only in Canada. As well, if either the buyer or seller is outside the country, use of the emission reduction for compliance purposes will depend on future international trading agreements signed by Canada. 2.3 Champions in Action (CIA)

The VCR Inc. Board of Directors has approved the next step in continuously improving the impact of voluntary activities on GHG emissions reductions through the creation of a level of participation and reporting beyond Champion-level reporting.

The purpose of this initiative is to improve the impact of VCR Inc. registrants’ activities on greenhouse gas (GHG) emission reductions and to provide Canadian organizations and governments with the ability to test the design and implementation of enhanced voluntary approaches that are intended to accelerate early action to reduce GHG emissions.

Participating companies, municipalities, governments and other responsible entities would enter into voluntary agreements with performance targets for Canadian entity-wide, 'net' GHG emission reductions, which may include the use of offsets. VCR Inc. would then review, validate, track and report over time, the achievement of these agreements.

Needs

• Progress needs to be made in the development of a means to recognize early GHG reduction efforts. • Governments, industry, and other organizations need to 'learn by doing' as it relates to the ability to reach voluntary agreements. • VCR Inc. needs to define the next step in continuous improvement in coordinating efforts to reduce GHG in a way that links real, measurable and verifiable reductions to voluntary actions.

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44 0 0 0 • In parallel with the advancement of international and domestic policy, it is important to have active experimentation and learning underway at an accelerated pace in order to ensure that future policy choices are made with the benefit of on-the-ground experience • It is critically important that Canadian organizations, potentially impacted by future international and domestic climate change policy, be advanced in their ability to successfully adapt their processes, activities, and business strategies accordingly.

VCR has a unique partnership structure, which brings government and industry together in a high level forum with the common goal of encouraging the implementation of enhanced voluntary initiatives to address climate change. The Council of Champions, the Board and the multi-stakeholder Technical Advisory Committee provide an operational infrastructure with the knowledge, commitment and credibility to bring this initiative to rapid fruition.

In addition, the detailed technical experience associated with this initiative can be rapidly brought to the attention of all entities reporting to VCR Inc.'s Challenge Registry to reinforce standardized measurement and reporting of GHG emission reductions achieved domestically and internationally.

Objectives

• To lead by example. • To encourage accelerated early action to reduce GHG emissions. • To provide input for the development of economically efficient and environmentally effective policy approaches that encourage enhanced voluntary action. This may include voluntary agreements and the application of offsets. • To demonstrate leadership in the development and implementation of corporate commitments and strategies to address climate change. • To develop specific proposals, where appropriate, and provide a forum for testing and evaluating selected policy approaches. • To communicate the experience from this initiative to appropriate audiences.

Participation in the initiative is voluntary and is intended to be inclusive of any and all organizations having an interest in promoting accelerated action by providing leadership.

Conditions

• Participants must join the VCR Inc. Council of Champions with a t 200 commitment to maintain membership for a minimum of three years. or 0 p e (The current annual membership fee is $5,000.) R l

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n A • Participants must have already achieved Champion-level reporting status. • Participants would be required to enter into negotiations leading to a voluntary agreement to enhance climate change action. • Supplementary quality assurance may be required over and above Champion- level reporting to ensure the integrity of the initiative and to advance the state of knowledge related to GHG emission reduction measurement, credibility, and reporting.

The normal decision making structure within VCR Inc. will be employed to administer this initiative. In addition, a Coordinating Committee drawn from CIA participants within the Council of Champions will be formed to advise the Board on substantive issues and to provide guidance for initiative implementation.

Benefits

• The CIA will provide experience in the implementation of this voluntary agreement and offset registry process. • The initiative would provide key findings for input into government decision- makers. • Enhanced credibility for climate change efforts through affiliation with a formal collaborative having defined obligations and enhanced quality assurance. • Enhanced leadership identity for participants.

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46 0 0 0 Economic and environmental sustainability go hand in hand In 1998, at the request of the joint federal and provincial 3.0 Ministers of Environment and Energy in preparation for the implementation of a Credit for Early Action system in Canada, VCR Inc. created the Canadian GHG Credit Credit Registry. In order to avoid confusion, this Credit Registry has been reserved exclusively for the posting and tracking of government sanctioned GHG reduction credits. Registry To date, this state of the art registry element remains dormant because the rules and procedures for credit creation have not yet been established.

Several corporations and industry associations registered in the Challenge Registry have made a point of noting that the implementation of a Credit for Early Action system would be a significant stimulus to enhance voluntary action to reduce GHG emissions. However, the design and implementation of such a system has proven to be more complex than originally anticipated.

International negotiations concerning the ground rules under which credits might be created are continuing and it is possible that the resulting Clean Development Mechanism and Joint Initiative (CDM/JI) projects will become the first credits to be registered.

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48 0 0 0 Recognizing outstanding achievement VCR Inc.'s annual Leadership Awards are granted based on 4.0 the results achieved by registrants, with the intention of recognizing them for their contributions in meeting Canada's commitment to reduce GHG emissions. The Leadership independent judging panel is drawn from the membership of VCR Inc.'s Technical Advisory Committee.

Awards 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 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 and also provides the judging panel for the program:

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 addition to 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?).

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50 0 0 0 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. c) Assisting peers in planning actions to address GHG emission reductions. d) The organization's efforts result in an increased numbers of participants (at all levels of engagement) in VCR Inc. or in a related energy efficiency program related to the climate change challenge.

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 who are recognized for leadership are drawn from a list of nominated individuals or associations that have been widely active as advocates for the voluntary climate change challenge.

Last year's Leadership Awards Ceremony was held at the Canadian Museum of Civilization in Hull, Québec, on March 2, 2000. Fourteen organizations and individuals received awards for their achievements toward the voluntary reduction of GHG emissions. More than 200 persons attended the event, including Ministers Goodale and Anderson, VCR Inc. Council of Champions/Board members, association heads, and government and industry representatives.

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n A 1999 Leadership Award Winners

Best New Submission Transportation Northwest Territories Power Corporation No winner. Canadian National Railway Company Sector leadertship Awards (HM) Oil and Gas - Integrated Mining Suncor Energy Inc. Cominco Ltd. Imperial Oil and Shell Canada Limited Inco Limited, Falconbridge Limited and (Honourable Mention - HM) Luscar Ltd. (HM)

Oil and Gas - Pipelines and Forest Products Natural Gas Distribution Spruce Falls Inc. TransGas Limited Stora Enso Port Hawkesbury Limited Sask Energy Incorporated & (HM) TransCanada(HM) Educational Institutions Oil and Gas - Downstream Rocky View School Division No. 41 No winner. Langara College (HM) Irving Oil Limited - Refining Division (HM) Health Services No winner. Oil and Gas - Upstream Glenrose Rehabilitation Hospital & Mobil Canada Energy Centre (HM) Koch Oil Co. Ltd. (HM) Governments Electric Utilities No winner. EPCOR Government of Canada (HM) Northwest Territories Power Corporation City of Regina (HM) (HM) Association Leadership Award Manufacturing - General Canadian Industry Program for Energy Husky Injection Molding Systems Ltd. Conservation Kodak Canada Inc., IBM Canada and Metroland Printing, Individual Leadership Award Publishing & Distributing Ltd. (HM) Rahumatula Marikkar, Interface Flooring John Donner, Government of Alberta Manufacturing - Primary Metals No winner or HM.

Manufacturing - Chemicals Dow Chemical Canada Inc. NOVA Chemicals (HM)

Manufacturing - Transportation Ford Motor Company of Canada Limited General Motors of Canada Ltd. (HM)

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52 0 0 0 Placing greater emphasis on communications Over the past year, VCR Inc. has placed a 5.0 greater emphasis on communications to inform its publics of achievements, progress and new initiatives. With these Communications communications activities and vehicles now firmly in place, the Corporation uses them regularly to increase the awareness of VCR Inc.'s mandate, role and activities among a diverse cross-section of economic sectors and publics. These communications activities and vehicles are outlined below. 5.1 VCR Inc.'s Website

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 then, the number of Chart 5-1: visitors to the site has grown Monthly Hits and Page Views considerably. 260000 240000 220000 200000 180000 160000 Hits 140000 The number of page 120000 100000 views on a one-month 80000 60000 40000 daily average has 20000 increased by 260% 40000 0 over three years and 30000 the number of Page Views 20000 successful hits for the entire VCR Inc. site has 10000 grown 360%. 0 May Jul Sep Nov Jan Mar May Jul Sept Nov Jan Mar May Jul Sept Nov Jan

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- u nn al R A e p mvr-ca under the What's New Section. Its purpose is to keep readers o r t apprised of VCR Inc. activities, providing them with information on a

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54 0 0 0 variety of topics from success stories to welcoming new registrants to the announcement of new VCR Inc. initiatives. The current readership of the newsletter is approximately 2500, and is constantly increasing. As part of VCR Inc.'s efforts to promote the best practices and achievements of VCR Inc. registrants, a success story or more is included in every issue of Champion 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 52-page 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.

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. The Report documents, using identified sources, graphs and tables, the sectors of Canada's economy that have achieved significant progress in GHG emission reductions. The Report is distributed widely following its initial release.

5.2.4 Progress Reports

VCR Inc.'s Progress Report is distributed electronically on the 15th of every month to an interested group of 179 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. stakeholders apprised of the Corporation's progress on a month-to-month basis.

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n A 5.3 Media Relations

Dealing with the media on a planned and ongoing manner has brought an increasing amount of publicity to VCR Inc. initiatives in 2000. Continuous efforts have been made over the last year to sensitize mainstream electronic and print media to VCR Inc.'s activities - through: launch news releases, backgrounders, "canned" feature articles, ongoing contact with environment and business editors of dailies, mailings of success stories to editors of financial, business and pertinent trade publications, and mailings to pertinent corporate, association and union newsletters. During 2000, VCR Inc. developed its own (4360) media database divided into five categories and targeted for maximum exposure of VCR Inc. activities.

Efforts have also been made to plant success stories of VCR Inc. registrants with the editors of dailies/weeklies in the respective communities where the success stories originate.

5.4 Annual Survey

COMPAS, a Canadian research firm, was commissioned in 2000 to conduct VCR Inc.'s Third Annual Survey to measure stakeholder awareness and satisfaction with the activities of VCR Inc. The survey is a follow-up to ones undertaken in February- March 1999 and December 1999.

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, 846 surveys were mailed out in October: 386 to technical stakeholders and 460 to executive stakeholders. In total, 255 surveys were completed on-line (106), by fax (111), and by email (38). This represents an overall response rate of 30%, a high response rate and equal to the response rate of previous surveys.

5.4.1 Familiarity and Perceived Importance

• 84% of technical stakeholders claim to be at least moderately familiar with the activities of VCR Inc. (35% say very familiar). Familiarity is only slightly higher, but much stronger among executive stakeholders: 87% are at least moderately familiar (50% say very familiar). Familiarity among technical stakeholders is virtually identical to what it was in previous surveys, both in terms of level and intensity. Among executive stakeholders strong familiarity has increased since tracking began (from 37% to 50% who say they are very familiar).

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56 0 0 0 • 87% of technical stakeholders consider VCR Inc.'s work to be important: half consider the work to be moderately important, while 37% consider it to be very important. Executives are as likely to view VCR Inc.'s work as moderately important, though more likely to say it is very important (43%). Since the baseline survey, there has been a noticeable decrease in the number of technical stakeholders who consider the work to be very important (from 51% to 37%). This downward trend is noteworthy. The number of executives who consider the work to be very important has not changed significantly.

• 76% of technical respondents view participation in VCR Inc. as at least moderately important to their organization (29% say very important). Executives are slightly more likely to view participation as important (82%). The overall importance of participation among technical stakeholders has changed little over time (76-78% range), but, once again, there has been a gradual decrease in those who consider participation to be very important (from 35% to 29%). Executive perceptions in this area have changed little over time.

5.4.2 Perceptions of Satisfaction and Benefits

• Half 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 (42%) rather than strong (8%). One-quarter think that their expectations have been somewhat met. Executive stakeholders tend to express greater satisfaction: 64% say their expectations have been met (5% say greatly, 59% say satisfactorily), while 18% say they have been somewhat met. Over time, the level of expectations being met (greatly or satisfactorily) has changed little among technical stakeholders. After increasing noticeably among executive stakeholders, it has remained relatively steady (64% vs. 65% in Fall 99 and 52% in Feb. 99).

• When asked to explain why their expectations had been met, technical stakeholders most often noted that VCR Inc. is a good source of information (25%). They also noted that VCR Inc. gives them the ability to gauge or monitor their progress (21%), provides a motivation or focus for their efforts (20%), and increases awareness (18%). Executives most often pointed to VCR Inc. as promoting greater awareness (20%). They also noted that it allowed comparison with others (16%) and was helpful in terms of giving them the ability to gauge or monitor their progress (15%).

• When asked to explain why their expectations had not been met, technical stakeholders indicated that they had just recently joined and that it was therefore too early to say (30%), and that they did not participate much in VCR Inc. (25%). Some also noted that that they had no expectations (13%) or that their efforts had been well underway before they joined VCR Inc. (12%). Executives were more likely to emphasize that they participated little in VCR Inc. (31%), and had joined mainly for public recognition (12%). They were t 200 less likely to emphasize that they had just recently joined (14%), and or 0 p e that their efforts had been underway before they joined VCR Inc. (6%). R l

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n A • 67% of technical stakeholders say that participation in VCR Inc. helps their organization achieve or promote its emission reduction targets. This compares to 71% of executives. Results for technical stakeholders are virtually identical to those in previous surveys (64-65% range). By contrast, executive perceptions have fluctuated: 71% think that participation helps them achieve their reduction targets vs. 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 promoting awareness (17%), access to information (15%), and public recognition (14%). Executive stakeholders tended to focus on the same benefits but put more emphasis on public recognition (19%), monitoring/gauging progress (14%) and promoting the voluntary approach (13%).

• Just under two-thirds of technical stakeholders (61%) expressed satisfaction with their working relationship with VCR Inc (28% said they were very satisfied). Just over one-third (34%) was neither satisfied nor dissatisfied, while almost no one expressed any degree of dissatisfaction with the working relationship. Since tracking began there has been a noticeable increase in 'neutrality' regarding satisfaction with the working relationship with VCR Inc. This question was only asked to technical stakeholders.

5.4.3 Communications Issues

Note that these issues were asked only to technical stakeholders. • Just over three-quarters of technical stakeholders indicated that they have not, and do not, refer other organizations to VCR Inc. so that they can register their greenhouse gas emission reduction action plans. Conversely, 22% indicated that they did, primarily businesses and business associations, schools and educational institutions. A few identified governments and government departments.

• During the past year, 83% received information from VCR Inc. through the newsletter, 58% through the annual report, and 49% through the website. After this, information comes most often by means of the progress report (36%), the annual meeting/awards ceremony (24%), the registration guide (23%), or personal contact (16%). A small number indicated that they had received no communication. The newsletter continues to be the main vehicle through which communication with VCR Inc. takes place. Since the last study, the annual report has moved ahead of the progress report, the website, and the annual meeting/awards ceremony as a vehicle through which communication with VCR Inc. has taken place.

• Just over two-thirds of technical stakeholders indicated that they would like to receive VCR Inc. information by email. Conversely, 28% said that they would not. This question was not asked in previous surveys. u nn al R A e p o r

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58 0 0 0 • 69% said that they have visited the VCR Inc. Website and Registry. Conversely, 31% have never visited it. The frequency of visits is relatively varied: 38% visit it a few times a year or less, while 27% visit it at least every 2-3 months (8%, a few times a month; 2% once a week or more). The number of stakeholders who have visited the website increased noticeably in Fall 99 (66% vs. 58%), but has not changed since then. The frequency of visits has not changed significantly either.

• 80% of those who visited the VCR Inc. website said it was easy to navigate while 4% said no; 16% of those eligible to provide a response did not.

As well, • Over three-quarters of technical stakeholders believe that VCR Inc.'s Leadership Awards Program is somewhat (52%) or very valuable (27%). Few think it is not valuable (12%).

• 40% are aware of VCR Inc.'s role in Canada's Baseline Protection system and registered traded emissions (58% are not aware of this).

• 43% claim to have heard about VCR Inc.'s Champions in Action Initiative (55% have not heard of it).

Table Four: Satisfaction Quotient of Executive Contacts “To what extent has participation in VCR Inc. met your organizations exectations?” 1998 1999 2000 Multiplier Percent Quotient Percent Quotient Percent Quotient Greatly 1.5 7.0 10.5 10 15 5.0 7.5 Satisfactorily 1.0 45.0 45.0 48.8 48.8 59.0 59.0 Somewhat 0.5 28.0 14.0 20.0 10.0 18.0 9.0 Not at all -1.0 6.0 -6.0 5.0 -5.0 2.0 -2.0 Don't know 0.0 14.0 0.0 16.2 0.0 16.0 0.0 Total 63.5 68.8 – 73.5 Source: VCR Inc. 2000 Stakeholder Survey, Perceptions of Satisfaction and Benefits, Compas Inc., December 2000

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n A Table Five: Satisfaction Quotient of Technical Contacts “Overall, how satisfied are you with your working relationship with VCR Inc.?” 1998 1999 2000 Multiplier Percent Quotient Percent Quotient Percent Quotient Very Satisfied 1.5 17.0 25.5 31.0 46.5 28.0 42.0 Somewhat Satisfied 1.0 49.0 49.0 38.0 38.0 33.0 33.0 Neither 0.5 23.0 23.0 11.5 22.0 11.0 34.0 17.0 Somewhat Dissatisfied -0.5 5.0 -2.5 2.0 -1.0 1.0 -0.5

Very -1.0 2.0 -2.0 4.0 -4.0 1.0 -1.0 Dissatisfied Don't know 0.0 4.0 0.0 3.0 0.0 3.0 0.0 Total 81.5 90.5 - 91.5 Source: VCR Inc. 2000 Stakeholder Survey, Perceptions of Satisfaction and Benefits, Compas Inc., 2000

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60 0 0 0 Representing over 75% of all GHG emissions in daily Canadian economic activity VCR Inc.'s purpose is to encourage 6.0 companies and organizations from all sectors of the economy to accept greater accountability for GHG generation, serving Management as a catalyst to ensure that Canada's overall climate change objectives are met by both private and public sectors alike through and voluntary actions. Organization The Registry component of VCR Inc.'s operations serves to record the actions planned and executed by registrants, providing them with the opportunity to exchange information and to share best practices with their peers. It serves as a means of demonstrating and recording the individual contributions being made in support of overall GHG emission reduction. 6.1 Strategic Planning

During 2000, the Board of VCR Inc. provided input to, and approved, two planning documents, the 2001-2003 Strategic Plan and the 2001 Business Plan.

The Strategic Plan outlines the key policy and organizational strategies which will be employed over the period of 2001 to 2003 to enhance the success of VCR Inc. in demonstrating the value of a voluntary approach to contributing to Canada's GHG emission reduction objectives.

It seeks to provide insight for program authorities and participants and to provide a clear roadmap for VCR Inc. activities in order that potential supporting partners and other interested parties understand the rationale and expectations for VCR Inc. as it executes its corporate Mission and Mandates.

The Business Plan identifies and tracks the specific activities to be undertaken in the year 2001 in support of our corporate mission. 6.2 Structure

VCR Inc. reports to a Council of Champions, comprised of 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.

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62 0 0 0 VCR Inc.'s Board of Directors is drawn from the Council. Industry representatives are elected on an annual basis at the Council of Champions Meeting, while government representatives are appointed by the federal minister of Natural Resources Canada. 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 is comprised 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 is 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.

A Technical Advisory Committee was established to provide, at the request of the Board, recommendations concerning technical issues. It is comprised 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. The office is comprised of six staff functions: President, Executive Assistant, Communications,Data Administration, Registry Analysis and Web Site Development. Chart 6-1: VCR Inc. Organizational Structure

Council of Champions The Governance Committee Comprises senior industry deals with issues related to and government representatives the election and nomination of board who promote VCR. inc. members and assesses the performance initiatives within their of the Technical Advisory Committee own sector. The Audit Committee reviews the The Board of Directors audited year-end financial statements - has members drawn from the and liaises with the auditors. Council of Champions. Industry Technical Advisory Committee representatives are elected on an Provides technical advice to the annual basis, while the federal Minister Board representatives from of Natural Resources Canada appoints adacedmia, labour, environment government representatives. non government organizations, President the Indigenous community, industry and government.

Executive Administrative Assistant Assistant

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n A Mr. Ron Munkley Vice-Chairman Appendices Head of Power & Utilities Group CIBC World Markets Inc.

Board of Directors (Year 2000) Mr. Alan Nymark Deputy Minister of Environment Mr. Jim Burpee Government of Canada Senior Vice President Electricity Production Mr. Michael O'Brien (Chair) Ontario Power Generation Inc. Executive Vice President, Corporate Development and CFO Mr. Peter Cooke Suncor Inc. Executive VP, Cement North America Lafarge Corporation Dr. Bryne Purchase, Ph D Lafarge Canada Inc. Deputy Minister, Ministry of Energy, Science and Technology Mr. John Donner Government of Ontario Assistant Deputy Minister, Climate Change, Department of Environment M. Robert Tessier Bureau of Climate Change President and Chief Executive Officer Government of Alberta Gaz Métropolitain

Mr. Bob Eamer Ms. Katherine Trumper Senior Vice President Deputy Minister, Sustainable Development Corporate and Technology Development Government of Nunavut Domtar Inc. Mr. Gordon D. Ulrich Mr. Bob Flemington President President LUSCAR Ltd. VCR Inc. Ms. Tayce Ann Wakefield Dr. Peter Harrison Vice President Deputy Minister of Natural Resources Corporate and Environmental Affairs Government of Canada General Motors of Canada Ltd.

Mr. W. Warren Holmes Council of Champions Senior Vice President Canadian Mine Operations Mr. Chris Micek Falconbridge Limited Manager, Environment, Health & Safety Mr. Boris Jackman Agrium Executive Vice President Petro-Canada Mr. Robert Simpson Chairman & CEO Mr. Byron James A. G. Simpson Automotive Inc. Deputy Minister, Environment and Local Government Mr. Daniel Gagnier Government of New Brunswick Vice-President, Corporate and Environmental Affairs Mr. Paul Kelly Alcan Aluminum Ltd. President & CEO Slater Steel Inc. Mr. Christian L. Van Houtte President Mr. Hugh Klaassen Aluminium Association of Canada Corporate Compliance Officer Paramount Resources Ltd.

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64 0 0 0 Mr. Doug Hink Dr. Peter Harrison Vice President, Strategic Development Deputy Minister of Natural Resources Atomic Energy of Canada Limited Government of Canada

Mr. Hugh MacDiarmid Mr. Norman B. Brandson Executive Vice-President Deputy Minister, Conservation Commercial Government of Manitoba Canadian Pacific Railway Mr. Byron James Mr. Ron Munkley Deputy Minister, Vice-Chairman, Environment and Local Government Head of Power & Utilities Group Government of New Brunswick CIBC World Markets Inc. Ms. Ann Marie Hann Mr. Bob Eamer Acting Deputy Minister of Environment and Senior Vice President, Corporate and Labour Technology Development Government of Newfoundland Domtar Inc. and Labrador

Mr. David Colcleugh Mr. Brian Maynard President, CEO & Chairman Deputy Minister of Mines & Energy DuPont Canada Inc. Government of Newfoundland and Labrador Mr. David Lewin Senior Vice President, Mr. Daniel Graham Sustainable Development Deputy Minister of Natural Resources EPCOR Utilities Inc. Government of Nova Scotia

Mr. W. Warren Holmes Mr. Kevin McNamara Senior Vice President, Deputy Minister of the Environment Canadian Mine Operations & Labour Falconbridge Limited Government of Nova Scotia

M. Robert Tessier Ms. Katherine Trumper President and Chief Executive Officer Deputy Minister, Gaz Métropolitain Sustainable Development Government of Nunavut Ms. Tayce Ann Wakefield Vice President, Dr. Bryne Purchase, Ph D Corporate and Environmental Affairs Deputy Minister, General Motors of Canada Ltd. Ministry of Energy, Science and Technology Mr. John Donner Government of Ontario Assistant Deputy Minister, Climate Change, Department of Environment Mr. Jim Johnston Bureau of Climate Change Deputy Minister of Development Government of Alberta Government of Prince Edward Island

Mr. Derek Thompson Mr. Stuart L. Kramer Deputy Minister of Environment, Deputy Minister, Environment Lands & Parks and Resource Management Government of British Columbia Government of Saskatchewan

Mr. Jack Ebbels Mr. Ray Clayton Deputy Minister of Energy and Mines Deputy Minister of Energy and Mines Government of British Columbia Government of Saskatchewan

t 200 or 0 Mr. Alan Nymark Mr. Bob McLeod p e Deputy Minister of Environment Deputy Minister of Resources, R l Government of Canada Wildlife & Economic Development a

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n A Government of the Northwest Territories Mr. Bob Page Ms. Janet Moodie Vice-President, Acting Deputy Minister Sustainable Development of Economic Development TransAlta Corporation Government of Yukon Mr. Brian McConaghy Mr. R.L. (Dick) Bowman Vice President of Health, Safety & Environment Executive Vice President TransCanada Pipelines Limited Ingersoll Lime Ltd. TransCanada

Mr. Arthur Irving Jr. Mr. Bob Flemington, P.Eng. Irving Oil Limited President VCR Inc. Mr. Peter Cooke Executive VP, Cement North America Members of VCR Inc.'s Lafarge Corporation Technical Advisory Committee (TAC) Lafarge Canada Inc. Mr. Les Aalders Mr. Gordon D. Ulrich VP Engineering and Maintenance President Air Transport Association of Canada Luscar Ltd. Mr. David Bell (Chair) Mr. Larry MacDonald Director Senior Vice-President York University Manufacturing East McLaughlin College, York University NOVA Chemicals Faculty of Environmental Studies Mr. Jim Burpee Mr. David Black Senior Vice President, Electricity Production Senior Economist, Economic Issues Ontario Power Generation Inc. Government of Canada Mr. Hugh Klaassen Mr. Peter Chantraine Corporate Compliance Officer Manager, Energy and Environment Paramount Resources Ltd. DuPont Canada Inc. Mr. Boris Jackman Ms. Victoria Christie Executive Vice President, Advisor, Issues & Advocacy Downstream Sector Canadian Electricity Association Petro-Canada Mr. Ken Crane Mr. Tim W. Faithfull Director of Environmental Services President and Chief Executive Officer Luscar Ltd. Shell Canada Limited Mr. Sandor Derrick Mr. Paul Kelly Manager, Foundation Programs President & CEO Sustainable Communities Slater Steel Inc. & Environmental Policy Federation of Canadian Municipalities Mr. Michael O'Brien Executive Vice President, Mr. Bob Flemington, P.Eng. Corporate Development and CFO President Suncor Inc. VCR Inc. Mr. Phil Lachambre Mr. Fred Gallagher Executive Vice President Managing Director and Chief Financial Officer Vision Quest Windelectric Inc. Syncrude Canada Ltd. u nn al R A e p o r

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66 0 0 0 Mr. David Hajesz Mr. Rob Milne Climate Change Senior Policy Advisor, Technologies Coordinator Safety and Environment TEAM Operations Office Enbridge Consumers Gas Government of Canada Mr. Ron O. Nielsen Mr. Paul Hansen Manager, Environmental Affairs Manager, Environmental Affairs and Sustainability DaimlerChrysler Canada Inc. Alcan Primary Metal Group Alcan Aluminum Ltd. Mr. Lyle Hargrove Director of CAW Health and Ms. Susan Olynyk Safety Training Fund Senior Energy Specialist Canadian Auto Workers Dofasco Inc.

Ms. Dianne Humphries Ms. Merrell Anne Phare Environmental Management Centre for Indigenous Resources Consulting Inc. Lourie & Love Ms. Betty Rozendaal Director, Environment Mr. Paul Kovacs Atomic Energy of Canada Limited Executive Director Institute for Catastrophic Mr. Peter Telford Loss Mitigation Team Leader, Intergovernmental Relations Mr. Peter Love Energy Policy Branch, Energy Division Program Director Government of Ontario Lourie & Love, Ministry of Energy, Science Environmental Management and Technology Consulting Inc. Pollution Probe Ms. Lucie Veilleux Manager, Environment and Energy Mr. Nick Marty Canadian Pulp and Paper Association (CPPA) Director, Demand Policy & Analytical Division Mr. Rick Williams Government of Canada Head, Air Quality Issues - Air Resources Branch Mr. Scott McCoombs Government of British Columbia Energy Engineer British Columbia Department of Environment Ministry of Environment, Government of Nova Scotia Lands, and Parks

Mr. Tom Michelussi Altus Environmental Engineering Limited CAPP and CPPI Representative

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n A List of Organizations with Atomic Energy of Canada Limited ATS Automation Tooling Systems, Inc. Registered Action Plans Augustana University College Avalon East School Board, The Note: Bold companies have earned Avalon West School Board Champion Level Status B 3M Canada Company Banff, Town of Barrick Gold Corporation A Barrie-Collingwood Railway Abbotsford, City of Barrington Petroleum Ltd. Abitibi-Consolidated Inc. BASF Canada Inc. Acadia University Battle Mountain Canada Ltd.- Golden Accuride Canada Inc. Giant Mine Agassiz School Division No.13 Bayer Inc. - Rubber Division Agence Métropolitaine de Transport Baytex Energy Ltd. Agmont Inc. BC Gas Utility Ltd. Agrium BC Hydro Air Canada BC Rail Ltd. Air Products Canada Inc. BC Research Inc. Akita Drilling Ltd. Beaulieu Canada Inc. Akzo Nobel Chemicals Ltd. Beaver Drilling Ltd. Alberta College of Art & Design Berkley Petroleum Corp. Alberta Energy Company (AEC) Best Western International, Inc. (Canada) Alberta Hospital Edmonton BHP Diamonds Inc. Alberta Research Council Bishop's University Alcan Aluminium Ltd. Bison Transport Alcoa - Aluminerie Lauralco inc. Black Gold Regional Schools Algoma Central Railway Inc. Black Photo Corporation Algoma Steel Inc. Blue Circle Canada Algonquin College of Applied Arts and Boehme Filatex Canada Inc. Technology Boeing Toronto Ltd. Alliance Pipeline Ltd. Boliden Limited Alta Gas Utilities Inc. Bombardier Inc. Altana Exploration Company Boucherville, Ville de Aluminerie Alouette inc. Boundary School Division No. 16 Aluminerie de Bécancour inc. Bowater Inc. Amber Energy Incorporated Bowater Mersey Paper Company Limited Amtrak BP Canada Energy Anadarko Canada Corporation Brandon School Division No. 40 Anderson Exploration Ltd. Brantford, City of Andrés Wines Ltd. British Columbia Institute of Technology Anmore, Village of British Columbia Power Exchange Corp. Annapolis Valley Regional School Board Broan-Nutone Canada Apache Canada Ltd. Bruce-Grey Catholic District School Board Archean Energy Ltd. Buffalo Trail Regional Division #28 Arnaud Railway Burin Peninsula School Board ASCOLECTRIC Limited Burlington Northern (Manitoba) Ltd. Ashland Chemicals Canada Burlington Northern Santa Fe ATCO Electric Burlington Resources Canada Energy Ltd. ATCO Gas Burnaby, City of ATCO Pipelines Athabasca Oil Sands Developers C Atlantic Health Sciences Corporation Cabre Exploration Ltd. Atlantic Shopping Centres Cadillac Fairview Corporation Ltd - Ontario Atlas Cold Storage Portfolio u Atlas Specialty Steels Inc. nn al R A e Calahoo Petroleum Ltd. p ATOFINA Canada Inc. o r

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68 0 0 0 Calgary Board of Education Children's and Women's Health Centre of British Calgary Regional Health Authority Columbia Calgary, City of Chinook Group Limited Cambior inc. Chinook Health Region Cambridge Shopping Centre Ltd. CIBA Specialty Chemicals Cambridge Towel Corporation CIBC Development Corporation Camosun College - Lansdowne Campus Clearview School Division No. 71 Campbell River, City of Coal Association of Canada (CAC) Canada Hair Cloth Company Coats and Clark Canada Canadian Airlines International Inc. Coats Bell Division of Coats Canada Inc. Canadian American Railroad Co. Cognis Canada Corporation Canadian Association of Oilwell Drilling Cold Lake, City of Contractors Collège Communautaire de Nouveau Canadian Association of Petroleum Producers Brunswick-Campbellton Campus Canadian Chemical Producers' Association Collège Communautaire de Nouveau Canadian Electricity Association Brunswick - Dieppe Canadian Energy Pipeline Association Collège Communautaire de Nouveau Canadian Environment Industry Association Brunswick - Edmunston Campus Canadian Forest Oil Ltd. Collège de Rosemont Canadian Forest Products Ltd. (Canfor) Collège de Shawinigan Canadian Gas Association Collège François-Xavier-Garneau Canadian Hunter Exploration Ltd. Collège Lionel-Groulx Canadian National Railway Company Collège Notre-Dame de l'Assomption Canadian Natural Resources Ltd. College of New Caledonia Canadian Pacific Hotels and Resorts College of the Rockies Canadian Pacific Railway Collingwood Fabrics Inc. Canadian Petroleum Products Institute Collingwood, Town of Canadian Pulp and Paper Association Collins & Aikman Canadore College of Applied Arts and Columbia-Shuswap, City of Technology Cominco Ltd. CanAmera Foods Commute Ex Inc. Canlan Ice Sports Corp. Compost Management Canmore, Town of Concordia Hospital CANOR Energy Ltd. Conoco Canada Limited Cape Breton and Central Nova Scotia Railway Consoltex Inc. Capilano College Coquitlam, City of Cartier Railway Company Country Style Food Services Inc. Cavalier Textiles Coyle & Greer Awards Canada Ltd. Cégep de Chicoutimi Crestar Energy Inc. Cégep de Matane Crown Cork and Seal Canada Inc. Cégep de Saint-Hyacinthe CSX Transportation Cégep de Saint-Jérôme Cuddy Food Products Inc. Cégep de Sept-Iles Cullen Gardens and Miniature Village Cégep Joliette - De Lanaudière CXY Chemicals Canada Cégep Marie-Victorin Cytec Canada Inc. Celanese Canada Inc. Cement Association of Canada D Centra Gas British Columbia Inc. DaimlerChrysler Canada Inc. Centra Gas Manitoba Inc. Daishowa Inc., Division de Québec Central Kootenay, City of Degussa-Hüls Canada Inc. Centre d'expérimentation des véhicules Delmar Chemicals Inc. électroniques du Québec (CEVEQ) Delta Meadowvale Resort & Conference Centre Centre hospitalier Jonquière Delta, City of Champion Drilling Inc. Denim Swift Champion Feed Services Ltd. Denro Management Ltd. Chelsea, Municipality of Didsbury, Town of Chemical Lime Company of Canada Difco Performance Fabrics Inc.

Chemin de fer Baie des Chaleurs Division Scolaire Franco-Manitobaine t 200 or 0 p Chemin de fer Charlevoix Inc. No. 49 e R Chemin de fer de la Matapédia et du golfe Dofasco Inc. l

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n A Domtar Inc. Fort Simpson, Village of Dow Chemical Canada Inc. Fort Smith, Town of Downie Timber Ltd. Four Seasons Hotel - Toronto Drive Well Servicing Fredericton, City of Dundas, City of Freightliner of Canada Ltd. DuPont Canada Inc. Durham College of Applied Arts & Technology G Gaz Métropolitain E General Motors of Canada Ltd. East Central Alberta Catholic Separate Schools Genesis Exploration Ltd. Regional Division # 16 George Brown College of Applied Arts and Ecologix Heating Technologies Inc. Technology ECORAIL Inc. Georgian College of Applied Arts and Edmonton Catholic Schools Technology Edmonton Public Schools Glendale Yarns Inc. Edmonton Regional Airports Authority Glenrose Rehabilitation Hospital and Energy Edmonton, City of Centre Eka Chemicals Canada Inc. Gloucester, City of Elk Island Catholic Separate School Regional GO Transit District No.41 Goderich-Exeter Railway Co. Limited Elk Island Public Schools Regional Division No. Government of Alberta 14 Government of British Columbia EMCO Building Products Government of Canada Enbridge Consumers Gas Government of New Brunswick Enbridge Pipelines (Saskatchewan) Inc. Government of Newfoundland and Labrador Enbridge Pipelines Inc. Government of Nova Scotia Encal Energy Ltd. Government of Ontario Energy Reduction Audit Services Government of Saskatchewan Enmax Corporation Government of the Northwest Territories Ensyn Technologies Inc. Government of Yukon Envirogard Products Ltd. Grand & Toy Limited Enviros RIS Grand Erie District School Board EOG Resources Canada Inc. Grande Prairie Public School District No. 2357 EPCOR Utilities Inc. Grant MacEwan Community College Essex Terminal Railway Company Graymont (NB) Inc. ESSROC Graymont (Qc) Inc. Ethyl Canada Inc. Great Canadian Railtour Company Ltd. Eurocan Pulp and Paper Co. Greater St. Albert Catholic Schools Express Pipeline Ltd. Greater Vancouver Regional District Greenarm Corporation F Greenhouse Emissions Management Consortium (GEMCo) F.F. Soucy Inc. Greif Containers Inc. Fabrene Inc. Grenfell Regional Health Services Falconbridge Limited Guelph, City of Famous Players Inc. Gulf Canada Resources Ltd. Fanshawe College Federated Co-operatives Limited Federation of Canadian Municipalities H Ferraz Shawmut Canada Inc. H.J. Heinz Company of Canada Ltd. Fibrex Insulations Inc. H.L. Blachford Ltd. First Real Properties Limited H.R. West Holdings Inc. Fleetline Products Limited Halifax Regional Municipality Fletcher Challenge Energy Canada Inc. Halton Catholic District School Board FMC of Canada Limited Hamilton Health Sciences Corporation Foothills Pipe Lines Ltd. Hamilton-Wentworth Municipality Ford Motor Company of Canada, Health Care Corporation of St. John's u nn al R A e Ltd. Heating Refrigeration and Air Conditioning p o Fording Coal Limited Institute r

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70 0 0 0 High Prairie School Division No. 48 Kolter Property Management Limited - Toronto Hillsborough Resource Limited Portfolio Holy Spirit Roman Catholic Separate Regional Kraft Canada Inc. Division No. 4 Kronos Canada Inc. Honeywell Ltd. Kruger Inc. Hôpital Général Juif de Montréal Kwantlen University College Hôpital Laval Hôpital Sainte-Croix L Hospital for Sick Children, The La Cité collégiale Howe Sound Pulp and Paper Limited La Corporation d'achat régionale de biens et Hub Meat Packers Ltd. - Sunrise Brand services de la Montérégie Hudson Bay Mining and Smelting Co. Ltd. La Régie régional de Montréal-Centre Hudsons Bay Company Labatt Breweries of Canada Hudson's Hope, District of Lachine, City of Humber College of Applied Arts and Lafarge Canada Inc. Technology LaGran Canada Inc. Humber River Regional Hospital Laidlaw Inc. Hunt Oil Company of Canada, Inc. Lakeshore School Division No. 23 Huntsman Chemical Company of Canada Inc. Lambton College Huntsman Corporation Canada Inc. Landwest School Division No. 123 Huntsman Tioxide Langara College Husky Energy Inc. Langley, City of Husky Injection Molding System Ltd. Laval, Ville de Le Conseil scolaire de district du Centre-Sud- I Ouest IBM Canada Ltd. LePage IMC Kallium Canada Ltd. Lethbridge Community College Imperial Home Decor Group Lincoln Fabrics Ltd. Imperial Oil Ltd. Lloydminster Public School Division Imperial Tobacco Canada Limited London Health Sciences Centre Inco Limited London, City of Ingersoll Lime Ltd. Loyalist College of Arts & Technology Inland Cement Limited Lubrizol Canada Limited Interface Flooring Systems (Canada), Inc. Luscar Ltd. Iron Ore Company of Canada Irving Oil Limited M ITT Sheraton Centre Toronto M & M Meat Shops Ivaco Rolling Mills Magin Energy Maksteel Service Centre - Division of Makagon K Industries Ltd. J.L. de BALL Canada Inc. Malaspina University College Janssen-Ortho Inc. Malette Kraft Pulp & Power JemPak Canada Inc. Manitoba Hydro JNE Consulting Ltd. Maple Leaf Meats John Abbott College Maple Lodge Farms Ltd. Jones Packaging Inc. Marathon Canada Ltd. Marathon Pulp Inc. Maritime Electric L Maritime Paper Products Ltd. Kamloops, City of MARSULEX Inc. KC Environmental Group Ltd. Maxx Petroleum Ltd. Keewatin-Patricia District School Board McFadzen Holdings Limited Kelsey Hayes Canada Ltd. MDS Nordion Inc. Kerr Heating Products Memorial University Kimberly-Clark Nova Scotia Methanex Corporation Kindred Industries Metroland Printing, Publishing and Kingston General Hospital Distributing - Tempo Division t 200 Kitchener, City of or 0 Metroland Printing, Publishing p e Koch Oil Company Ltd. and Distributing - Wolfedale R l Kodak Canada Inc. a

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n A Mikro-Tek North West Catholic School Division No. 16 Mining Association of Canada (MAC) Northern Gateway Regional Division No.10 Mississauga, City of Northlands Park Mobil Canada Northrock Resources Ltd. Molson Breweries Northstar Energy Corporation Montell Canada Inc. Northwest Catholic District School Montréal, Ville de Northwest Territories Power Montréal-Est, Ville de Corporation Moose Jaw Roman Catholic Separate School Northwoodcare Incorporated Division No. 22 NOVA Chemicals Moose Jaw School Division No. 1 of Nova Scotia Community College Saskatchewan Nova Scotia Power Inc. Moosehead Breweries Ltd. Nova Scotia Textiles, Limited Morgan Falls Power Company Nova Ski Ltd. (Ski Martock) Mount Saint Vincent University Novotel Canada Inc. Murphy Oil Company Limited NRI Industries Nu-Air Ventilation Systems Inc. N Numac Energy Inc. Nabors Drilling Limited Nacan Products Limited O NALCO CANADA INC. Okanagan University College Nalco/Exxon Energy Chemicals Canada Inc. OMG Belleville Limited National Dairy Council of Canada (NDCC) Ontario Centre for Environmental Technology National Silicates Ltd. Advancement NCE Resources Group Inc. Ontario Northland Transportation Commission Neste Chemicals Canada Inc. Ontario Power Generation Inc. (OPG) Nestlé Canada Inc. Ontario Southland Railway Inc. New Brunswick Community College - Bathurst Orenda Aerospace Corporation Campus Orion Bus Industries New Brunswick Community College - Ottawa Hospital / L'Hôpital d'Ottawa Miramichi Campus Ottawa, City of New Brunswick Community College - Ottawa-Carleton District School Board Moncton Campus Oxford Automotive New Brunswick Community College - Saint Oxford Properties Group Inc. John Oxy Vinyls Limited New Brunswick Community College - St. OxyChem Durez Canada Andrews Campus New Brunswick Community College - P Woodstock Pacific Northern Gas Ltd. New Brunswick Community College of Craft Pacifica Papers Company and Design Panasonic Canada Inc. New Brunswick East Coast Railway PanCanadian Petroleum Ltd. New Brunswick Power Paramount Resources Ltd. New Brunswick Southern Railway Company Parkland Refining Ltd. Limited PCI Chemicals Canada Inc. New Glasgow, Town of Peace Wapiti School Board No.33 New Westminster, City of Pembina Hills Regional Division No. 7 Newfoundland and Labrador Hydro Pembina Pipeline Corporation Newfoundland Power Penn West Petroleum Ltd. Nexen Inc. Peoples Park Tower inc. Nexfor Inc. Perth, Town of Nitrochem Petresa Canada Inc. Noranda Inc. Petro-Canada Norfolk Southern Corporation Petroleum Services Association of Canada Norseman Engineering Ltd. Petromet Resources Ltd. Norske Skog Canada Pétromont Inc. u Nortel Networks nn al R A e Petrorep (Canada) Ltd. p North Vancouver, City of o Pine Falls Paper Company (PFPC) r North Vancouver, District of t

2 Pioneer Natural Resources Canada Inc.

72 0 0 0 Placer Dome North America Ltd. Rockwell Servicing Inc. Polytainers Inc. Rocky View School Division No. 41 Polywheels Manufacturing Ltd. Rohm and Haas Canada Inc. Port Alberni, City of RohMax Canada Inc. Port Hope, Town of Ross Kennedy Port Moody, City of Royal Alexandra Hospital PCS Potash Allan Division Royal Bank of Canada PCS Potash Cory Division Royal Host Corp. PCS Potash Lanigan Division Royal Inland Hospital PCS Potash New Brunswick Division Royal Ottawa Health Care Group PCS Potash Patience Lake Division Ryerson Polytechnic University PCS Potash Rocanville Division PPG Canada Inc. S Precision Drilling Limited Prévost Car Inc. S.C. Johnson and Son, Limited Saanich School District No. 63 Prime West Energy Inc. Saanich, District of Procter & Gamble Inc. Sabre Energy Ltd. PRO-ECO Ltd. Safety-Kleen Saint Mary's Univeristy Q Sandvik Tamrock Loaders Inc. Quebec Cartier Mining Company Sask Central School Division No. 121 Quebec North Shore & Labrador Railway Saskatoon (West) School Division No.42 Company SaskEnergy Quebec Southern Railway SaskPower Québec, Ville de Scapa Tapes North America - Renfrew Québec-Gatineau Railway Inc. School District No. 2 Northern Queen Elizabeth II Health Sciences Centre Peninsula/Labrador South Queen's University School District No. 3 (Corner Brook-Deer Lake-St. Quispamsis, Town of Barbe) School District No. 43 (Coquitlam) School District No. 46 (Sunshine Coast) R School District No. 57 (Prince George) R.J. Burnside International Limited School District No. 62 (SOOKE) RaiLink - Central Western Railway School District No. 67 (Okanagan Skana) RaiLink - Lakeland & Waterways School District No. 71 (Comox Valley) RaiLink - Mackenzie Northern Scott`s Food Services Inc. RaiLink - Ottawa Valley Scugog, Township of RaiLink - Southern Ontario Sears Canada Inc. Railway Association of Canada (RAC) Seine River School Division No. 14 Rainbow District School Board Seven Oaks School Division No. 10 Raylo Chemicals Inc. SGT 2000 inc. Reagens Canada Limited Shell Canada Limited Recochem Inc. Shell Chemicals Canada Ltd. Red Deer College Sheridan College Red River College Sherritt International Regent Resources Ltd. Shiningbank Energy Ltd. Regina, City of Signalta Resources Ltd. Regina Health District Simmons Canada Inc. Regina School Division No.4 of Saskatchewan Simon Fraser University Region 7 Hospital Corporation Sir Sandford Fleming College Regional Municipality of Ottawa-Carleton Slater Steel Inc. Reichhold Chemicals, Inc. Sleeman Brewing and Malting Co. Ltd. Réno-Dépôt inc. Société Canadienne de Métaux Reynolds limitée Rhodia Canada Inc. Société de transport de la communauté urbaine Richland Petroleum Corporation de Montréal Rife Resources Ltd. Solutia Canada Inc. Rio Alto Exploration Ltd. South East Health District South Simcoe Railway t 200 River East School Division No.9 or 0 p South Westman Regional Health e Riverside Forest Products Limited R Authority l Roberval and Saguenay Railway Company a

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n A Southern Alberta Institute of Technology Trans Mountain Pipe Line Company Ltd. Southern Railway of British Columbia Ltd. TransAlta Corporation Spinrite Inc. TransCanada Spruce Falls Inc. Trans-Northern Pipelines Inc St. Anne-Nackawic Pulp Company Ltd. Trillium Railway Co. Ltd St. Clair College of Applied Arts & Technology Triumph Energy Corporation St. James-Assiniboia School Division No. 2 St. Laurent Paperboard Inc. / Cartons St-Laurent U Inc. Ultramar Limited St. Lawrence & Atlantic Railroad (Quebec) Inc. Union Carbide Canada Inc. St. Lawrence Cement Co. St. Lawrence Corp. Union Gas Limited Standard Products ( Canada ) Limited UNIROYAL Chemical Company Stanton Regional Health Board Université de Moncton Star Oil & Gas Ltd. Université du Québec - École de technologie Startech Energy Inc. supériere Stelco Inc. Université du Québec à Chicoutimi Stepan Canada Inc. Université du Québec à Hull Sterling Pulp Chemicals, Ltd. Université du Québec à Montréal St-Jean PhotoChemicals Inc. Université Laval Stora Enso Port Hawkesbury University College of Cape Breton Strathcona, County of University College of the Fraser Valley Stuart Energy Systems Inc. University of Alberta Sudbury Catholic District School Board University of Alberta Hospital Sudbury, Regional Municipality of University of British Columbia Sulco Chemicals Limited University of Calgary Summit Resources Limited University of Guelph Suncor Inc. University of Lethbridge Suncurrent Group University of Manitoba Superior Propane Inc. University of New Brunswick - Fredericton Surrey, City of Campus Swan River, Town of University of Northern British Columbia Sydney Steel Corporation University of Ottawa Syncrude Canada Ltd. University of Regina University of Saskatchewan University of Toronto T University of Victoria Talisman Energy Inc. University of Waterloo Taylor Munro Energy Systems Inc University of Western Ontario TD Canada Trust University of Winnipeg Teck Corporation Unocal Canada Management Limited Teknion Furniture Systems UPM-Kymmene Miramichi Tembec Inc. Upton Resources Inc. Thames Valley District School Board The Body Shop V The Pas, Town of VanCity Savings Credit Union Thunder Bay, City of Vancouver School Board - School District No. 39 Tilbury Cement Limited Vancouver, City of Tioxide Canada Inc. Vansco Electronics Ltd. Tirino Corporation Venator Group Canada Inc. Toronto District School Board Versacold Corporation Toronto Dominion Centre Leaseholds VFT Inc. Limited VIA Rail Canada Inc. Toronto East General Hospital and Victoria, City of Orthopaedic Hospital, Inc. VicWest Steel * Les Aciers VicWest Toronto Hydro-Electric Commission Vision Quest Windelectric Inc. Toronto Terminals Railway Viskase Canada Inc. u Toronto, City of nn al R A e Volvo Canada Ltd. p o Toyota Motor Manufacturing r t Canada Inc.

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74 0 0 0 W Windsor-Essex Catholic District School Board Winners Apparel Ltd. Wabash Alloys Ontario Winnipeg Health Sciences Centre Wabush Lake Railway Winnipeg Technical College Wascana Energy Inc. Winnipeg, City of Waterloo Region District School Board Wisconsin Central Ltd. Waterloo-St. Jacobs Railway Co. Ltd Witco Canada Inc. Weldwood of Canada Ltd. Woodbridge Foam ( Division of Woodbridge West Coast Express Group) West Fraser Timber Co. Ltd. Wyeth-Ayerst Canada Inc. Westaim Corporation, The Westcoast Energy Inc. Western Health Care Corporation Y Westmont Hospitality Yellowknife Education District No. 1 of the Westwind School Division No. 74 Northwest Territories Weyburn, City of Yellowknife, City of Weyerhaeuser Canada Ltd. York University Whistler, Resort Municipality of Yugo-Tech Conversions Gas Systems Inc. White Pass & Yukon Route Whitehorse, City of Z Winchester District Memorial Hospital Windsor & Hantsport Railway Zellers Inc.

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n A 2000 Funding Partners

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

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76 0 0 0 List of Acronyms

AAC Aluminium Association of Canada GERT Greenhouse Gas Emission ABC Actions By Canadians Reduction Trading Pilot ACCC Association of Canadian GHG greenhouse gas Community Colleges HFC hydrofluorocarbon CACI Clean Air Canada Inc. HM Honourable Mention CAPP Canadian Association of HMD hexamethylene diamine Petroleum Producers HVAC heating, ventilation and air CCAF Climate Change Action Fund conditioning CCPA Canadian Chemical Producers’ JI Joint Initiative Association kt kilotonnes (1,000 tonnes) CDM Clean Development Mechanism m3 cubic metre CEPA Canadian Energy Pipeline m3 OE cubic metre oil eq Association MAC Mining Association of Canada CGA Canadian Gas Association mpg Miles per gallon CGERI Canadian Greenhouse Gas Mt megatonne = 1,000 kilotonnes = Emissions and Removals 1,000,000 tonnes Inventory MW megawatt CH4 methane N2O nitrous oxide CIA Champions in Action MWh Megawaat hour CIEEDA Canadian Industrial Energy End- NRCan Natural Resources Canada Use Data Centre OCETA Ontario Centre for Environmental CIPEC Canadian Industry Program for Technology Advancement Energy Conservation OEE Office of Energy Efficiency CLI Canadian Lime Institute PCI Production Carbon Intensity CO2 carbon dioxide PCP Partners for Climate Protection CO2 eq carbon dioxide eq (a standard PERT Pilot Emission Reduction Trading measure of global warming Program potential) PFC perfluorocarbon CPPA Canadian Pulp and Paper SF6 sulphur hexafluoride Association t tonne = 1,000 kilograms = CPPI Canadian Petroleum Products 1,000,000 grams Institute TAC Technical Advisory Committee CTI Canadian Textiles Institute TEAM Technology Early Action EII Energy Intensity Index (or in the Measures context of petroleum products, VCR Inc. Canada’s Climate Change the Solomon Energy Intensity Voluntary Challenge and Registry Index) Inc. FCM Federation of Canadian WEC World Energy Council Municipalities GDP Gross Domestic Product

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n A

Notes Notes