Post on 21-Mar-2017
Post-‐Paris: Ontario June 7, 2016, Presentation to the Responsible Investment Association
Dianne SaxeEnvironmental Commissioner
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Overview
� Three new laws since May 19
� Energy Use in Ontario
� Climate related financial risk
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Three new laws since May 19
� 172: Climate Change Mitigation and Low-‐Carbon Economy Act
� 151: Waste-‐Free Ontario Act
� 135: Energy Statute Law Amendment Act
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Climate Cap and Trade
� Climate Change Mitigation and Low-‐Carbon Economy Act� Legal requirement to cut GHGs, from 1990 baseline:
� 15% by 2020. � 37% by 2030. � 80% by 2050!
� Fossil fuel costs to rise� $1.9 B/year to Greenhouse Gas Reduction Account
� To be spent as per Action Plan
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Why 80%?
� IPCC 5 computer model� Consistent with 2 degrees?� What’s not in the model?
� Model may be way too optimistic…
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Circular Economy
� Waste-‐Free Ontario Act� Resource Recovery and Circular Economy Act
� Individual producer responsibility� All forms of waste, not just packaging� No more diversion monopolies
� Waste Diversion Transition Act� Blue Box stranded assets?
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Energy
� Energy Statute Law Amendment Act� Amends:
� Green Energy Act� Disclosure of energy and water use� Access to usage data� Conservation plans
� Electricity Act� Long term energy planning
� Ontario Energy Board Act
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Overview
� Three new laws
� Energy Use in Ontario
� Climate related financial risk
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Energy Conservation and Efficiency
� eco.on.ca/reports/2016-‐lets-‐get-‐serious/
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80% fossil fuel dependent
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80% reduction by 2050?
� Climate mitigation is mostly about energy� Reduction targets are total consumption, not per capita� Population to rise >50%� Reduce fossil fuels from 80% to 10% or less� In 34 years!
� And we’re starting late
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Energy use in Ontario
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• Total use f lat from 2007 to 2014• Energy use per capita down 7%
Electricity use is down• Use down 6% from 2007 (8% excluding embedded gen.), summer peak down 17%• 91% low emission
• Our smallest, cleanest major energy source
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Transportation fuel: use is up
• No dedicated conservation funding• Government targets: no action (10% Low Carbon Fuel Standard), or poor performance (land use; only 1% of the way towards 2020 EV target)
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Natural gas: use is up
• Twice as much energy use as electricity, but 1/6 the conservation spending ($66M in 2014)
• Weather impact (e.g. 2014 “polar vortex”)� Price?
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Policy bottlenecks
� Fossil Fuel Subsidies� Inadequate data� Lopsided focus
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End to fossil fuel subsidies?
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• $628 M in Ontario tax breaks for fossil fuels
• $650 B world
• At cross-‐purposes to cap and trade
• G7 pledge to eliminate by 2025
Transparency
� Poor energy use data� Mandatory reporting of energy use for 15,000 buildings in the Broader Public Sector (O. Reg. 397/11)
� Who are the energy hogs?
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Admin & Storage Facilities
2,057,002,060 ekWh/yr
Hospitals & Emergency Response
4,746,486,624 ekWh/yr
Schools, Universities, Colleges and Libraries
8,548,905,751 ekWh/yr
H2O & Sewage1,595,722,106 ekWh/yr
Community, Sports, & Rec Centres1,774,408,680
ekWh/yr
Where energy is used in the BPS
Large variations in energy intensity
� Buildings with the same function perform very differently…
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Lopsided funding
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Transportation: what matters most
� Largest source of emissions but toughest to tackle� Key levers:
� Land use planning (reduce travel distances)� Transit/shared transportation (reduce vehicle km per person)� Cleaner/more efficient vehicles (reduce energy/emissions intensity)
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Overview
� Three new laws
� Energy Use in Ontario
� Climate Related Financial Risk
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Which risks?
� Mitigation� Energy
� Adaptation� Water
� Divesting from energy sector not enough
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Getting ready for massive disruptions
� 100 year storm every 10 minutes?
� wildfires� floods� droughts� storms� heat waves
� Who’s insurable?
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More Gradual, Perhaps
� Sea level rise (what’s in danger?)� Coastal erosion� Loss of coral reefs� Salt water intrusion� Loss of ice roads� Heat and water stress� Loss of species� Diseases and pests� What will still grow?� Uncontrollable migration?
� When will the Arctic be ice free?
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Climate-‐Related Financial Risk Disclosure
� Financial Stability Board Task Force� inadequate disclosure of climate risk a threat to world financial
system
� Curtis Ravenel meetings in Toronto� Koskie Minsky opinion on fiduciary duty� Our letters to OSC and CAPSA:
� Ontario needs to catch up
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Conclusions
� Wrenching shifts in the rules
� Huge changes needed in energy, some already happening
� Climate-‐related financial risks in most sectors
� Financial industry role in the transition? – be a winner, not a victim
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Thanks!
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Dianne SaxeEnvironmental Commissioner
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