Annual Report 2002 CANADA'S CLIMATE CHANGE voluntary challenge & registry inc. Readers’ Comments and Requests We welcome your comments, questions and requests. Please visit our web site at www.vcr-mvr.ca or contact us at: Canada's Climate Change Voluntary Challenge & Registry Inc. (VCR Inc.) 170 Laurier Avenue W, Suite 600 Ottawa, Ontario K1P 5V5 Telephone: (613) 565-5151 Fax: (613) 565-5743 E-mail: [email protected] Other publications available from VCR Inc. include: •VCR Inc. Annual Report 1998 •VCR Inc. Annual Report 1999 •VCR Inc. Annual Report 2000 •VCR Inc. Annual Report 2001 •VCR Inc. Annual Report 2002 •VCR Inc. Registration Guide 1999 •VCR Inc. Guide to Entity & Facility-Based Reporting • Champion News (bi-monthly) Toutes publications du bureau de MVR Inc. sont disponibles en français. Mission To provide, through leadership, the 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. 1 To provide a national registry for initiatives which lead to early voluntary action to reduce A L R E P O R A N N U GHG emissions. To prepare progress and annual reports, and identify issues for consideration in the evolution of VCR Inc. T 2 0 0 2 Retrospective 2002 In a year that culminated in the ratification of the Kyoto Accord, it is significant to report that growth in voluntary participation has continued unabated. The success indicators we laid out in our 2001 - 2003 Strategic Plan two years ago and in the associated 2002 Business Plan have been achieved, and in many cases surpassed. You are one of 931 entities to have submitted 2179 documents for posting in the Challenge Regis- try. By doing so, you have provided a wealth of information and documented best practice in the measurement, reporting and ultimate mitigation of Greenhouse Gas emissions. Even more impres- sive is the fact that 233 of you successfully reached Champion-level reporting status, 111 Gold, 78 Silver, and 44 Bronze, a full year ahead of plan. This is, in large measure, a result of the accomplish- ments of the 59 organizations and programs linked to the registry. Use of our web site has expanded at a phenomenal rate, 170% per year over the past two years. Our most recent annual survey reveals that 93% of registry participants actively visit our web site and consider it to be equal to Champion News as a source of information about our activities. That’s up from 65% two years ago and confirms our belief in this inexpensive yet comprehensive means of communication. Our Champions in Action initiative members have provided Peer Reviews for the Action Plans of four organizations. One of them, Dupont, has signed a formal Understanding with VCR and has been awarded Champion in Action status by our Board. An inherent objective over the life of VCR has been to build the capacity of our data warehouse and web site in a way that would support more comprehensive registry elements. The Baseline Protec- tion Initiative and Credit Registries are prime examples of this planning process. Late in 2002 we posted our new Guide to Entity and Facility-Based Reporting on our web site. It is an electronic document that will be revised regularly throughout the year as new standards are established. It will provide continuous support for the capacity of our registrants to respond to increasing demands for detailed standardized GHG emissions information. As a result, together we will be better prepared to face the reporting challenges of a post-Kyoto ratification environment with diligence, efficiency, and uniformity. 2 Over 2003 we will be developing our 2004 - 2007 Strategic Plan by analyzing and clarifying our future role. The old adage “may you live in interesting times” has taken on a whole new meaning! Thank you for your support and interest during 2002. We look forward to working with you in the coming year. T 2 0 0 2 James Burpee Robert A. Flemington, P. Eng. Chair, VCR Inc. Board of Directors President, VCR Inc. A N N U A L R E P O R A N N U Table of Contents Chapter One: Analysis of Sector Participation within Canada’s GHG Profile..........................................................8 1.1 Context ......................................................................................................................8 Chart 1 Sources of GHG Emissions in 2000 .............................................................. 8 Chart 2 Canadian GDP and GHG Emissions ............................................................ 9 Chart 3 Canada’s GHG Emissions 2000 ..................................................................... 9 Table 1 National 2000 GHG Emissions Inventory Breakdown ................................ 10 1.2 METHODOLOGIES ................................................................................................. 11 1.3 Electricity Generation .................................................................................................. 13 Chart 4 Electric Utilities Historic Actual Thermal Generation.................................. 13 1.4 Fossil Fuels................................................................................................................... 13 1.4.1 Upstream Oil and Gas ................................................................................................. 13 Chart 5 Upstream Oil and Gas Emissions Intensity Trends....................................... 14 1.4.2 Downstream Oil and Gas ............................................................................................ 14 Chart 6 Energy and Emissions Intensity Index Trends for CPPI Member Refineries ....................................................................... 14 1.4.3 Oil Sands and Heavy Oil Upgrading............................................................................ 15 Chart 7 Emissions Intensity Trends in the Oil Sands and Heavy Oil Upgrading Sector ................................................................. 15 1.4.4 Energy Pipelines .......................................................................................................... 16 Chart 8 Energy Pipeline GHG Emissions ................................................................. 16 1.4.5 Natural Gas Distribution ............................................................................................. 16 1.4.6 Coal Mining ................................................................................................................16 Chart 9 Primary Canadian Coal Industry GHG Emissions Trends ........................... 17 1.5 Manufacturing and Mining ......................................................................................... 17 3 1.5.1 Cement .................................................................................................................... 17 Chart 10 Cement Manufacturing Emissions Intensity Trend ...................................... 18 1.5.2 Chemicals .................................................................................................................... 18 A N N U A L R E P O R A N N U Chart 11 Global Warming Potential vs. Product Output from CCPA Member Operations................................................................. 18 1.5.3 Metal Mining .............................................................................................................. 19 Chart 12 Metal Mining Direct Emissions Intensity Trends ......................................... 19 1.5.4 Nonferrous Metal Smelting and Refining..................................................................... 19 Chart 13 Nonferrous Metal Smelting and Refining .................................................... 20 1.5.5 Primary Aluminium ..................................................................................................... 20 T 2 0 0 2 Chart 14 Primary Aluminium Emissions Trends......................................................... 20 1.5.6 Pulp and Paper.............................................................................................................21 Chart 15 Pulp and Paper Direct Emissions and Direct Emissions Intensity Trends................................................................ 21 1.5.7 Steel .................................................................................................................... 21 Chart 16 Steel Industry Energy Intensity Trends......................................................... 22 1.5.8 Textiles .................................................................................................................... 22 Chart 17 Textiles Industry Direct Emissions Intensity and Energy Intensity Trends ............................................................................... 22 1.5.9 Transportation Manufacturing ..................................................................................... 23