Canada eliminates support programs for renewables

OTTAWA, Ontario, CA, May 03, 2006 (Refocus Weekly)

The federal energy department in Canada will eliminate at least four programs created to provide direct support for renewable energies.

“The new government under prime minister Stephen Harper is committed to putting an end to the massive increase in GHG emissions that Canada has seen over the past decade,” says energy minister Gary Lunn. “To do that, we need a new approach to addressing climate change that is effective and realistic for Canada.”

The Conservative administration is developing a ‘made-in-Canada’ plan for reducing emissions and ensuring clean energy for Canadians, and will terminate 15 programs in the energy department that have completed their mandate or which require a different approach.

The C$25 million Market Incentive Program was an initiative of the action plan on climate change to “stimulate emerging markets for renewable electricity” by establishing emerging green power sources as “full-fledged competitors in the electricity market by 2010.” Funding was to expire in March 2006.

Electric utilities, retailers and marketers developed projects to develop market-based programs and promote the sale of green power to residential and small commercial customers. The federal government provided a financial incentive of up to 40% of eligible costs, to a maximum of $5 million per recipient, and projects were selected on their ability to reduce GHG emissions and to stimulate green power markets.

NRCan says MIP and continued momentum in the market would prompt the purchase of 4,000 GWh of new generation a year by 2010 and reduce GHG emissions by 2 Mt annually. Agreements were signed with Enmax Energy of Calgary, Hearthmakers Energy Cooperative of Kingston, Manitoba Hydro of Winnipeg, Maritime Electric of Charlottetown, NB Power of Fredericton, Nunavut Power of Iqualit, SelectPower of Guelph, and TransAlta Energy (VisionQuest Windelectric) of Calgary.

Other cancellations include the ‘On-Site Generation at Federal Facilities’ program that promoted adoption of renewable energy technologies for on-site electricity generation in federal operations; the ‘Federal House in Order Leadership Measures - Built Environment’ that provided demonstration funding for renewable energy technologies in government facilities; and the ‘Pilot Emission Removals, Reductions & Learnings Initiative’ that provided companies with an incentive to reduce GHG emissions through renewable energy projects, methane emissions and carbon sinks.

Before the government released its final list of cancelled programs, rumours had indicated that the $1 billion Wind Power Production Incentive and the anticipated Renewable Power Production Incentive would be affected by the cuts.

“We will develop solutions that have clear environmental benefits to Canada and involve all Canadians - provinces, territories, stakeholders, private sector and individuals,” says Lunn. The ‘made-in-Canada’ approach will focus on achieving sustained reductions in emissions in Canada while ensuring a strong economy.

Other climate change programs that were eliminated include a program for passenger transportation in urban areas, the benefits of concrete roads for emissions reductions in the transportation sector, a program to assess regulatory and economic issues related to interprovincial electricity trade, a program to analyze environmental information associated with electricity generation, a project to encourage industry to become more energy-efficient, an initiative to explore the feasibility of afforestation for carbon sequestration, a program to explore tree plantations for carbon sequestration, a series of tools for off-road vehicles and equipment, studies on GHG reduction opportunities, cost-sharing with provinces and territories, and the high-profile ‘One-Tonne Challenge’ to encourage individuals to reduce personal GHG emissions by 20%.

Federal environment minister Rona Ambrose has said Canada may drop its support for the Kyoto Protocol and join the Asia-Pacific Partnership on Clean Development & Climate developed by the United States, China, India, Australia, Japan and South Korea. That process focuses on trade and transfer of technologies to reduce emissions without setting targets or timelines.


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