Province urged to use technology funds on conservation

Carbon-levy cash could be used to slash greenhouse-gas emissions

Homeowners could save up to 25 per cent on energy bills and greenhouse gas emissions would fall substantially if the province takes the lead on conservation programs, says a new report by an alliance of oil companies, Calgary and Edmonton, and other groups.

With greenhouse gas emissions rising far above provincial targets, new steps are needed that could also save homeowners up to $430 million a year, said Jesse Row, the report’s author and executive director of the Alberta Energy Efficiency Alliance.

Conservation programs for houses, small industry and commercial buildings should be funded by a share of the province’s $385-million-plus new-technology fund currently used solely to develop new technology for carbon reduction in the energy industry.

“We’d like to see about onethird of the technology fund put into conservation measures and get some short-term emissions reductions,” said Row.

An array of conservation measures across all sectors would reduce GHG emissions by up to 27 megatonnes each year by 2020 — halfway to the official goal of a 50-megatonne reduction annually. The province has only reduced emissions by five megatonnes annually.

Under that scenario, consumers would achieve $1.45 billion in net savings over six years if the best technology were adopted for new buildings, such as replacing auxiliary engines and putting better insulation in houses, says the report.

“We do need some government leadership. We are not capitalizing fully on opportunities,” said Row.

The technology fund, called the Climate Change and Emissions Management Fund and run by former oilsands executive Eric Newell, is funded by the $15/ tonne carbon levy that industry pays on GHG emissions above the 2005 intensity level.

The province would have to change the mandate of the CCEMF to allow diversion of cash to conservation programs, said Row.

“But the (fund management) should take a diversified approach. We are offering them an idea to get much greater emissions in the short term.”

“We are not capitalizing fully on opportunities.”

JESSE ROW

The immediate reductions in carbon emissions from conservation would also help the Alberta government live up to its goal of being a leader in responsible energy production, says the report which does not provide details in incentive programs.

“This is a good time to consider conservation when the province is also reviewing its greenhouse gas reduction strategy” and the $15/tonne levy, said Row.

While in the past some people objected to putting tax dollars into conservation, the new technology fund gets its dollars from oil companies with excess emissions, said Row.

“We have this opportunity that no other province has,” said Row, noting that Alberta is the only province with a levy on excess GHG emissions.

As well as the two big cities, the alliance membership includes the Pembina Institute, Suncor, Cenovus, Stantech and ConocoPhillips.