Final Energy Essay

Exam No: Y1475719 Word Count: 2988
To what extent have environmental considerations contributed to Canada’s current
position on energy production and use? Are concerns about the environmental issues
helping to shape strategies for the future?
1.0 The present conflict
Energy is the essential element to the worlds; harnessing it is vital to the working and
development of human societies (Boyle, Everett and Ramage, 2012). Energy is a major trading
commodity, fuelling economic development (Block et al, 2009). Energy security has become
a focus in governments with the increasing awareness of the environmental problems
associated with energy production and consumption (Sovacool and Brown, 2010). A global
energy-environment conflict has arisen globally; trying to meet growing demands whilst
respecting the limits of the natural environment, particularly the excessive consumption of
fossil-fuels (Hufbauer, Charnovitz and Kim, 2009). For future energy security, environmental
consideration must be at the forefront of national energy policies (Sovacool and Brown, 2010).
1.1 Canada
With a stabilised population just overtaking 35 million and a gross domestic product (GDP) on
a ‘purchasing power parity basis of $1.526 billion’ (13th largest globally) (EIA, 2013), Canada,
a member of the Organisation of Economic Cooperation and Development (OECD) is among
the ten largest economies worldwide (Yildirin and Aslan, 2012). Part of the G8 group of leading
industrialised countries, it is acknowledged as the trading nation, relying on the natural resource
industry to fuel their economic growth (Hamit-Haggar, 2012). Therefore, it is important that
their energy production and use mirrors considerations for the environment. Securing a position
as an energy superpower is creating a massive surge in energy demand; industrial energy
demand increased 17% 1990 to 2009 (Natural Resources Canada, unknown); expanding their
dependent industries to aid the recovery from the global recession. It is dependent on its
established trade networks, with the North American Free-Trade Agreement (NAFTA), World
Trade Organisation (WTO) and the Asia-Pacific Economic Cooperation (APEC).
Canada has diverse and abundant natural resources reserves, with great potential to harness
natural energy, ranking among the fifth largest energy producers globally (EIA, 2013). Their
total primary energy production in 2013 was 19.1 quadrillion British thermal units (Btu),
following 3.3% annual increase rate from 2010 (World Bank, 2013). Crude oil accounted for
42.9%, natural gas 34.9%, coal 8.6% and renewable energy 4%. Production and consumption
mirror one another; in 2013, 13.3 quadrillion Btu of primary energy was consumed (EIA,
2014). Of this, refined petroleum products contributed 38.1%, natural gas at 30.8% and primary
electricity 22.5% (U.S Energy Information Administration, (EIA), 2014). The demand for
consumption comes primarily from the industrial and transportation sectors, respectfully 48%
and 25% of the total demand (EIA, 2014). Canada’s has one of the cleanest electricity systems
globally, with hydroelectricity and nuclear generating 70% and 14.5% respectfully (Pineau,
2012). Exports of Canadian energy increased 5.3% in 2012 to 11,234 petajoules from 2010,
exporting 73% of its crude oil and 56% of its natural gas (Dedeogli, D. and Kaya, H., 2013).
Canada’s dependence on fossil-fuels is undeniable, as is the detrimental environmental impacts
which combustion of them will have caused.

Most local environmental concerns seen in Canada specifically correspond to production and
usage of renewable and non-renewable energy, particularly oil in the eastern region;
deforestation, habitat destruction, land use, water and air pollution, interruption to migratory
species and prolonged disturbance to local site are some the main impacts seen (Jacobson,
2008). The global phenomenon of climate warming is directly related to the excessive
consumption of fossil-fuels resources in the last decade, emitting excessive CO² into the
atmosphere. Oil has long been the dominant energy source in Canada, contributing to the
accumulation of nitrogen oxide (NOx) atmospheric pollutant around urban areas (Pope et al,
2013).
2.0 Extent of environmental considerations
Over the last decade, Canadian renewable capacity has grown. The positive movement of
renewable energy integration into the fossil-fuel dominated systems was driven by rigorous
and cooperative legislations and actions by governments (Energy and Mines Ministers’
Conference, 2013). Although, it is questioned to what extent these actions were implemented
with environmental protection incentive, or were other driving forces the primary motivations.
2.1 Renewable Fuels Strategy (RFS)
Canada’s RFS, established 2006, aimed to improve environmental degradation, and
demonstrates the legislative commitment to renewable fuel production, a competitive fossil-
fuel alternative. It was annexed from sections 140 and 326 of the 1999 Canadian Environmental
Protection Act (CEPA) and corresponds with the Clean Air Regulatory Agenda (CARA, 2006),
and ‘Turning the Corner’ Climate Plan 2007, promoting reduction in air pollution (Canadian
Minister of Justice, 2014 and Environment Canada Federal Renewable Fuels Regulation
Overview (CFRFRO), 2013). There is a commitment to require a 5% average renewable
content in Canadian gas and diesel fuel by 2010 (Conservative Party of Canada Platform, p.37
in Canadian RFS, 2006) which are estimated to result in a cumulative reduction of 47.4 million
tonnes of CO² in GHG emissions (CFRFRO, 2013). This requirement led to several changes,
notably the creation of federal and provincial Renewable Fuel Standards, which stipulated
liquid fuels in Canada be blended with approximately 5% biofuel for gasoline and 2% for diesel
(Canadian RFS, 2006). The GHG emission reductions for 2 billion litres per year of ethanol is
calculated to be 2.8 megatonnes of CO²-equivalent emissions (Resources Canada’s GHGenius
lifecycle model) and Section 139 of (CEPA, 1999) (Canadian RFS, 2006). In reaction to the
regulation, between 2006 and 2010 biodiesel production in Canada increased by approximately
120 million litres (Le Roy and Klein, 2012), showing commitment to environmental
consideration as biofuels are more costly to produce than conventional fuels.
2.2 Energy Efficiency Act (EEA)
The EEA adopted 1992, with a reinvented 2007 ecoENERGY Efficiency programs tackling
energy consumption (Government of Canada, unknown) have seen significant success. Energy
efficiency in Canada improved by 23.5% between 1990 and 2009 (Natural Resource Canada,
2012); these efficiencies reduced energy use by approximately 1560 PJ and decreased GHG
emissions by 81.1 Mt in 2009 (Natural Resource Canada, 2012). ecoENERGY, energy
consumption per GDP lowered by an average on 20% from 2007 to 2012 (World Bank, 2014).
There was an improvement in energy intensity 1990 to 2009 as energy use grew less rapid than
the economy; although energy use grew 23%, Canada’s population grew 22% and GDP

increase by 57% (World Bank, 2014 and Natural Resource Canada, 2012). Canada is a global
leader in renewable energy production, providing them with a lot of persuasive leverage in
promoting energy efficiency and reduced consumption; The Energy Efficiency Act gives the
Government of Canada authority to make and enforce performance targest. Canada introduced
the ecoENERGY Retrofit – Home Evaluation program, ENERGYSTAR qualified products for
rebates and sale tax exemptions and driver education on fuel efficiency with Auto$mart Driver
Education Kit; all of which contribute to meeting the national climate goal of reducing GHG
emissions by 65% by 2050 and Energy-Use Intensity targets.
These articles demonstrate that environmental considerations are seen as an important
component of current energy policies. A clear shift from the reliance of fossil-fuels, which are
the most convenient and cheapest is clear, with assertive investments into biofuel production
amongst others. This proves a clear commitment to improving environmental quality, and
meeting government emission targets.
3.0 Suggest of other considerations
Without reliable, reasonably-priced sources of energy, economies around the world would
eventually conclude. It is argued that the motivation for the implementation energy policies
within Canada was not environmental protection; elements such as energy security, economy
and trading dependence may have an influence.
3.1 Economic Incentive
The U.S-Canada Clean Energy Dialogue Action Plan I and II (2009 and 2012), focus a
significant amount of research and development (R&D) into improving energy consumption
as a climate change partnership (Chu and Kent, 2012 and Robertson, 2011). Since this cross-
border collaboration was adopted, Canada’s energy efficiency has improved by 7% (World
Bank, 2014). This is through a number of different strategies; a Building Energy Benchmarking
System, ENERGY STAR has been improved and widely applied to benchmark different
building types energy use, to manage and reduce it (Ryan and Jahangir, 2013). This border-
cooperation can be seen to directly influence Canadian’s consumption awareness; REALpac in
collaboration with Canada Green Building Council adopted in 2010 an energy consumption
target for office buildings of 20 equivalent kilowatt-hours of total energy use per square foot
of building area per year (“20 ekWh/ft2/year”), to be achieved by 2015; showing initiative taken
by consumers (So, Katz and Wacks, 2014). Although successful in showing environmental
consideration, it may not have been the prominent motivation for this agreement.
By making more ties with the U.S agreeing to Action Plan II, Canada are protecting and
securing their economic relationship and growth, as the two economies are highly integrated
(Fergusson, 2011). The U.S and Canada already conduct the greatest bilateral trade
relationship. Creating more intricate ties encourages foreign direct investment (FDI); the US
FDI in Canada in 2012 was $351.5 billion, a 6.0% increase from 2011 (Nichols, 2012 and US
Trade Representative, unknown). Looking directly at increased investment in energy efficiency
technology in Canada, it significantly increases GDP and stimulates growth in employment
(Acadia Center, 2014). Therefore, the incentive for economic gain shadows environmental
protection. Evidence of the ulterior economic motive is the need for the program to be re-
examined in 2012, proving some targets were not achieved (Environment Canada, unknown),
and the environment was not the main concern.

3.2 Energy Superpower
In 2009 the Green Energy Fund (CEF) was announced, investing $146 million for carbon-
capture-storage (CCS) and recently Alberta $1.4 billion (Mitrovic, M. and Malone, A., 2011).
In 2007, Canada’s total GHG emissions were 26% higher than 1990 levels (Natural Resources
Canada, unknown). Shell have invested in the technology, on the Muskeg River in 2010/11 as
an example. The installation of CCS technologies onto oil sands industrial units are vital for
future trading with their most beneficial commodity, to meet GHG emission targets (Bolea,
Checa and Romeo, 2014). Alberta Oil Sands, with 168 billion barrels of recoverable bitumen,
the Environmental Impact Assessments (EIA) was been completed for the oil sands production
in Alberta in 1978, although a licence must be obtained to view it, suggesting many may not
be in favour of it being approved. In 2012, the energy intensive and inefficient in-situ oil sands
production exceeded mined oil sands production here (Bolea, Checa and Romeo, 2014). The
most optimistic estimates claim reductions CO² from upstream operations to be 10-30% in the
med-term and 30-50% in the long-term, but would need 85% to meet conventional oil
extraction CO² releases (Alberta Government, unknown).
Canada is driven to maintain its energy superpower status, thereby wants to maximise
production and exports of the globally most demanded energy commodity: shale oil (Angevine
and Green, 2013 and Haluza-DeLay and Carter, 2014). They are pursuing greater ties with Asia
through oil sands foreign direct investment (FDI), such as a recent bid by China’s National Oil
Offshore Cooperation (CNOOC), to secure future trade partners (Burt, Crawford and Arcand,
2012). Therefore, they wouldn’t want to hinder shale production for the economic loss. They
have the third largest petroleum reserves (EIA, 2014) and the CEF has provided them with a
loophole to maximise the ‘most destructive process on Earth’ (Bolea, Checa and Romeo, 2014).
This primarily emphasizes the lack of environmental management regimes and consideration;
installing CCS does not prevent the local environmental problems of the ‘carbon bomb’
production (Greaves, 2013) and Athabasca River is polluted by oil sand developments (Dillon
et al, 2011 and Kelly et al, 2009). Further, an assessment (2012) on tailing ponds stated under
regulatory requirements that ‘under Directive 074, each project must reduce its fluid tailings’,
although expectations have the Directive have not been met’ (Energy Resources Conservation
Board, 2013). Critically, when conventional oil reserves dwindled, Canada did not embrace the
transition to renewable resources, but have turned to more fossil-fuels in remote places with
truly disastrous extraction impacts (Bolea, Checa and Romeo, 2014). This emphasises their
disregard for environmental considerations in regards to political leverage.
3.3 Energy Security
Canada currently provide the U.S with the majority of their electricity supply, whilst boasting
their own supply being from ‘the cleanest electricity system’, supplied by hydroelectricity
(Pineau, 2012). However, it can be debated how environmentally-friendly Canada’s dams are.
The environmental impact statement (EIS) assessment for the Site C Dam, on the border of
Alberta and British Columbia in Peace Valley, projected to provide 1100 megawatts of capacity
and 5100 gigawatt hours of electricity per year (BChydro, unknown); revealed concern.
Threats such as mercury pollution, water flow and silt modifications, promotion of methane
(CH4) and CO² release with stagnant water, with cumulative effects limited to songbird
species, bats and four endemic plant species (Environment Canada, 2013 and Canadian
Environmental Assessment Agency, 2013). Despite the Canadian Environmental Assessment
Agency voiced concern over underestimated cumulative effects on valued ecosystem

components and Alberta communities First Nations preparing a prevention lawsuit (Canadian
Environmental Assessment Agency, 2013), dam construction is to start 2015. (Wohlberg,
2014). Simiarly, the Lower Churchill Project’s EIA, in Labrador underestimated the impact of
development to native fish and their habitats; severe consequences have been seen (Rosenberg,
Bodaly and Usher, 1995). These voiced concerns do not even mention the CO² released and
environmental concerns during construction, such as dust and noise pollution (Rosenberg,
Bodaly and Usher, 1995). These developments do highlight that environmental concerns have
not primarily driven Canada to pursue hydroelectric.
Canada is driven by the need to establish a secure, long-term energy system (Jacobson, 2008).
Despite presently being energy secure, the drive for energy here adversely affects the
environment and despite there being no imminent catastrophe on the horizon, serious concern
exists (Best et al, 2010). The drive for Canada may be purely on further establishing national
energy security rather than true environmental concern, which is evident by the lack of stricter
EIA legislations has meant the local environment has suffered, as mentioned (Marsden, 2008).
The Proportionality Clause negotiated in the 1993 FTA (under the NAFTA agreement) has
made Canada intricately linked to the U.S and question themselves how they would cope during
times of energy shortages if fifty percent of production is to continue going the U.S without
fail. It is a fact that oil reserves are finite and will run out, which will eventually leave Canada
dependent on imports or low-carbon energies if they do not establish environment
considerations for their own environment (Laxer and Dillon, 2008). Continuing to construct
clean energy productions which degrade the local environment is not sustainable, and they will
suffer the consequences eventually (Rosenberg, Bodaly and Usher, 1995). Another driver for
lenient dam construction is the ability of dams to promote crop diversification locally, which
in turn could improve the security of biofuel production for their transportation sector; this also
has its own environmental concerns, Rajagopal and Zilberman, 2007). This truly shows how
environmental considerations may not been a driving force for renewable energy policies.
4.0 Canada’s Energy Future
Canada’s disregard for the severe environmental impacts of their current energy production
and usage make it difficult to decide if any future policies will be driven by them. Highlighting
the current environmental degradation in Canada does emphasise that environmentally driven
policies are crucial for their future. Canadians cannot be said to be ignorant of the
environmental impacts associated with energy production and use, evident by their Gross
National Income (GNI) increasing by 67.5% 1980 to 2013, with a Human Development Index
(HDI) of 0.902 (World Bank, 2013). Therefore attitude and behaviour needs to change for any
future energy policy to be sustainable and effective, particularly because the accessibility and
economic incentive of fossil fuels is convenient.
These problems have been acknowledged in the Canadian Energy Strategy Framework (ESF)
proposed in 2012 by the Energy Policy Institute of Canada which is still going through
legislation authorities. It expresses economic development that is environmentally considerate
is the essential to the success of Canada’s energy future; this strategy builds directly upon the
environmental weaknesses of current Canadian energy systems and therefore should be greatly
considered by the federal government. Integrated carbon pricing policy approaches are
proposed, such as carbon tax, ‘cap-and-trade’ systems, and regulated emission performance
standards, with fossil-fuel consumption more strictly monitored (ESF, 2012); providing hope

that if the 2020 climate target isn’t met the 2050 will be. The development of greater smart grid
integration to supply greater amounts of renewable electricity is projected funded by the CEF;
this increases energy efficiency and reduced CO² emissions (ESF, 2012). As well setting targets
for intensity improvement up to 16%, biofuel production and electric-vehicle usage. This report
in hindsight provides Canada with reasonable and realistic strategies to develop sustainably–
with environment under equal consideration.
A secondary outlook for the future of environmental consideration is the stricter environmental
assessments, acknowledged in the 2013-2016 Federal Sustainable Development Strategy
(FSDT). It specifically incorporates renewal of the 2012 assessment schemes to prevent the
underestimation of environmental degradation (Pope et al, 2013 and FSDT, 2013) and integrate
environmental performance considerations into the procurement of goods and services.
4.1 Conclusion
In conclusion, the most prominent argument proposes that economic and political
considerations are driving Canada’s policies; evidence of this comes from developments and
attitudes of their government. This in hindsight shows that their national environmental attitude
has not on board with the current degradation their energy production and usage causes.
Environmental considerations have been shown mildly by the implementation of
environmentally considerate initiatives and policies, a diverse assortment of renewable
resources in current use and positive statistics reflecting improvements in production and use.
However the motives for these clean-energy actions and policies are more likely to relate to a
politic and economic advantage. There are promising statistics for renewable energy, although
even so-called clean energies need to be installed environmentally considerate, with
improvements needed in environmental assessment legislations, as is expected from an OECD
member. This essay highlights that energy is the backbone to Canada’s economy, and that
environmental concerns are currently second to their economic greed. The two potential future
strategies highlight weaknesses in Canada’s current energy systems, which no previous
strategy or initiative have before. They both highlight the need for a change in their current
energy production and usage systems, which requires a change in attitude and behavioural to
represent environmental consideration.

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