NRT Annual Report 2008-2009

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National Round Table on theEnvironment and the Econom

Annual Report


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NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY

344 Slater Street, Suite 200Ottawa, Ontario, K1R 7Y3

Canada

Tel.: (613) 992-7189Fax: (613) 992-7385

E-mail: [email protected]

www.nrtee-trnee.ca

National Round Table on the Environment and the Economy, 2009

Printed on Rolland Opaque30, which contains 30% post-consumer fibre, is certified Environmental Choice and manufactured using biogas energy.

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LETTER FROM THE CHAIR AND PRESIDENT AND CEO

July 2009Dear Minister:

We are pleased to submit to you the 2008-2009Annual Reporto the National Round able on the Environment

and the Economy (NREE).

Tis year was particularly busy or the NREE. In the summer o 2008 we released an advisory note entitled

Developing Ambient Air Quality Objectives or Canada. Te note completed our work in response to the

Government o Canadas request or advice on long-term climate change and clean air strategies or Canada.

Te Round able marked its 20th Anniversary in 2008 with a unique orum called Securing Canadas Future in

a Climate-Changing World. It consisted o three roundtable sessions with Canadian leaders in sustainability

discussing Canadas environmental and economic security as seen through the lenses o our ecosystems, energy

economy, and Arctic environment. Te resulting report, Climate Forward, was published in June 2009.

Te NREE continued its ocus and research on the critical issue o climate change. In early 2009, the NREE

released Geared or Change: Energy Ef ciency in Canadas Commercial Building Sector, a collaborative report with

Sustainable Development echnologies Canada (SDC), setting out a policy pathway to overcome barriers

to technology deployment that would improve the energy ef ciency o commercial buildings and cut

greenhouse gas emissions.

Over 2008 and the winter o 2009 the NREE conducted ground breaking research into the ways in which

Canada can meet the governments goals on greenhouse gas (GHG) reduction targets, or 2020 and 2050.

Te results were published in April 2009, as Achieving 2050:A Carbon Pricing Policy or Canada, whichrecommended an economy-wide cap and trade system to meet our environmental targets at least economic cost.

We also ullled our obligations under the Kyoto Protocol Implementation Act, undertaking a review and

assessment o the governments 2008 KPIA Action Plan. A companion report, Greenhouse Gas Emissions

Forecasting: Learning rom International Best Practiceswas also released to provide guidance to policy-makers.

In 2008-2009, the NREE commenced work on two major policy research programs: Economic Risks and

Opportunities o Climate Change or Canada, and Water Sustainability and Canadas Natural Resource Sectors.

Over two decades, the NREE has developed expertise that positions us well to provide a unique and substantial

contribution to Canadas sustainable development. We look orward to continuing to provide you, the

Government o Canada, and Parliament with useul, timely and relevant policy advice throughout 2009-2010.

Yours sincerely,

Robert Page, Ph.D. David McLaughlin

Chair President and CEO


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NRTEE MEMBERS(APRIL 1, 2008 TO MARCH 31, 2009)

NRTEE ChairRobert Page, Ph.D.Calgary, Alberta

NRTEE Vice-ChairDavid ChernushenkoOttawa, Ontario

Janet BenjaminNorth Vancouver,British Columbia

he HonourablePauline Browes, P.C.

Toronto, Ontario

Elizabeth BrubakerToronto, Ontario

Angus BruneauSt. Johns, Newoundland andLabrador

Anthony DaleToronto, Ontario

Francine DorionSt-Bruno-de-Montarville,Quebec

Robert DubMontreal, Quebec

imothy HaigOakville, Ontario

Christopher HilkeneToronto, Ontario

Mark JaccardVancouver, British Columbia

Donald MacKinnonToronto, Ontario

Ken McKinnonWhitehorse, Yukon

Richard ProkopankoVancouver, British Columbia

Wishart RobsonCalgary, Alberta

Robert SlaterOttawa, Ontario

Robert SopuckWinnipeg, Manitoba

NRTEE President and CEO

David McLaughlin

President & CEODavid McLaughlin

Acting Executive Assistant tothe President and CEOammy Robillard

Director o Policy andResearchRen Drolet

Senior Policy AdvisorsLiza CampbellAlex Long

Policy AdvisorsDale Beugin

Jimena EyzaguirreChristina ParadisoAnnika amlyn

Research AssociatesKatherine BalpatakyWill McDowall

Director, Communications &Public Aairs (term position)Robert Paterson

Director, Communications &Public Aairs (leave oabsence)Caroline Bisson

Communications Advisorony Bgin

Website CommunicationsOicerEdwin Smith

Communications Coordinator

ania remblay

Corporate Secretary andManager, Member ServicesSara Melamed

Acting Director, CorporateServices, and

Manager, Finance and

ContractsJim McLachlan

Records and InormationManagement SpecialistFosca Omara

Corporate Planning andReporting OicerDarlene Springall

IT Security, Systems andNetwork AnalystKevin rudeau

Finance OicerClaude Simard

Finance AssistantsLinda CharbonneauCatharine White

Contracting AdministratorDenise Johnston

Manager o Human Resourcesand Administrative ServicesHlne Sutton

Human Resources and OiceManagement AssistantKim Laorge

Oice Manager (leave oabsence)Cathy Heroux

Administrative AssistantsDenise Edwards

Isabella KavaianRichard Pilon

NRTEE SECRETARIAT(AS OF MARCH 31, 2009)


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Emerging rom the amous Brundtland Report,Our Common Future, the National Round able on the

Environment and the Economy (NREE) has become

a model or convening diverse and competing interests

around one table to create consensus ideas and viable

suggestions or sustainable development.

Te NREE ocuses on sustaining Canadas prosperity

without borrowing resources rom uture generations

or compromising their ability to live securely.

Te NREE is in the unique position o being an

independent policy advisory agency that advisesthe ederal government on sustainable development

solutions. We raise awareness among Canadians and

their governments about the challenges o sustainable

development. We advocate or positive change. We

strive to promote credible and impartial policy

solutions that are in the best interest o all Canadians

based on research, stakeholder engagement, and

consideration by Round able members.

We accomplish that mission by ostering sound, well-

researched reports on priority issues and by oeringadvice to governments on how best to reconcile and

integrate the oten divergent challenges o economic

prosperity and environmental conservation.

Te NREE brings together a group o distinguishedsustainability leaders active in businesses, universities,

environmentalism, labour, public policy, and

community lie rom across Canada. Our members are

appointed by the ederal government or a mandate o

up to three years. Tey meet in a round table ormat

that oers a sae haven or discussion and encourages

the unettered exchange o ideas leading to consensus.

Tis is how we reconcile positions that have traditionally

been at odds.

We also reach out to expert organizations, industries,and individuals to assist us in conducting our work

on behal o Canadians. Tese partners help spark

our creativity, challenge our thinking, and generate

the momentum needed or success.

Te NRTEE Actunderlines the independent nature

o the Round able and its work. Te NREE reports,

at this time, to the Government o Canada and

Parliament through the Minister o the Environment.

Te NREE maintains a secretariat, which commissions

and analyzes the research required by its members intheir work. Te secretariat urnishes research,

administrative, promotional, and communications

support or NREE activities and operations.

NATIONAL ROUND TABLE ON THE ENVIRONMENTAND THE ECONOMY: ABOUT US


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TABLE OF CONTENTS

THE YEAR IN REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

COMMUNICATIONS AND PUBLICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

A LOOK AHEAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

AUDITORS REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

STATEMENT OF FINANCIAL POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

STATEMENT OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

STATEMENT OF EQUITY OF CANADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

STATEMENT OF CASH FLOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Authority and Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Summary of Significant Accounting Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Tangible Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Accounts Payable and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Employee Future Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Parliamentary Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Donations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

Comparative Figures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22


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ANNUAL REPORT 2008-2009 1

POLICY AND RESEARCH PROGRAMS

Te Round able strives to ensure its policy and

research activities are directly relevant to Canadas

national interest.

Te Round able oers an opportunity or our

stakeholders to gather and share in the development

o eective insights and understanding. Trough its

research and analysis the Round able is a catalyst

or innovative, eective public policy in sustainability.

Te NREE oers independent advice to governmentson how best to address the challenges and seize the

opportunities associated with creating a sustainable,

twenty-rst century economy or Canadians.

Over the 2008-2009 scal year, the NREE has

ocused its attention on a number o critical issues

and research areas:

Ambient air quality standards or Canada;

Climate change;

Energy ef ciency; Northern inrastructure, and adaptation to our

changing climate;

Water sustainability and Canadas natural resource

sectors; and,

Te NREEs role in reviewing the Government o

Canadas implementation o the Kyoto Protocol.

We released ve reports in 2008-2009 related to our

work. We held nineteen consultation meetings across

the country on various issues. We also held a majororum on climate change to mark the Round ables

20th anniversary.

Developing Ambient Air QualityObjectives for Canada

In the all o 2006, the ederal government asked the

NREE to provide advice on national ambient air

quality objectives or particulate matter (PM) and

ozone or the medium- (2020-2025) and long-term

(2050). Tis request or advice was part o a broader

reerence to the Round able on climate change and

clean air. Te Round ables climate change advice was

delivered in 2008 with the publication oGetting to

2050: Canadas Transition to a Low-emission Future.

From the outset o its research, the NREE concluded

that providing advice on specic numerical air quality

objectives would require a level o expertise and time

commitment beyond the scope and timeline o the

governments ormal request. Te NREE thereore

concluded that its best value-added advice would be toocus on the purpose o ambient air quality objectives

and the process o setting them. Te NREE research

ocused not on recommending specic quantitative

standards or objectives, but instead on providing advice

with respect to the process o setting national objectives.

THE YEAR IN REVIEW

Developing Ambient Air

Quality Objectives for

Canada, released in July

2008.


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NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY2

Te NREEs report, Developing Ambient Air Quality

Objectives or Canadalaid out a ramework in which

governments might create an eective system to

regulate ambient air quality. Tat ramework included

three key principles:

1. National long-term objectives need to be supported

by the establishment o medium-term regulatory

standards.

2. Te Government o Canada should take the lead in

developing national objectives.

3. An independent science-based process is required

to develop national standards based on the best

international data and experience. Te process

would involve the provinces, territories and

municipalities.

A copy oDeveloping Ambient Air Quality Objectives or

Canadacan be ound at: http://www.nrtee-trnee.ca/

eng/publications/ambient-air-report/ambient-air.pdf

Climate Change

Troughout the scal year the NREE conducted

signicant new research into how to address greenhouse

gas emissions in Canada and meet the governments

goals towards combating climate change. Tis workbuilt on our successul 2008 report, Getting to 2050:

Canadas Transition to a Low-emission Future.

Te report concluded that an economy-wide price on

carbon was the most cost-eective way to achieve

deep, long-term emission reductions. Our next phase

o research considered how best to establish a unied

carbon pricing policy or Canada that would meet

Canadas environmental goals at least economic cost.

It was published in April, 2009, entitledAchieving 2050:

A Carbon Pricing Policy or Canada, and consisted oan advisory report and a technical backgrounder. Te

NREEs research included wide consultation with

stakeholders, on-going input rom an Expert Advisory

Committee, a review o global experiences, and the

creation o new economic modelling and analysis.

Our report concluded:

An economy-wide carbon price signal is the most

eective way to achieve the Government o Canadas

medium- and long-term emission reduction targets.

Tat price signal should take the orm o an

economy-wide cap-and-trade system that unies

carbon prices across all jurisdictions and emissions and

prepares us or international linkages with our majortrading partners.

An eective carbon pricing policy needs to nd a

balance between certainty and adaptability it should

be certain enough to transmit a clear, long-term price

signal to the economy to encourage technology and

change behaviour, yet adaptable to circumstances

and uture learning.

echnology development and deployment, along with

the electrication o the energy system, is central to

emission reductions and is stimulated through aneconomy-wide carbon price signal.

Complementary regulatory and technology policies in

the transportation, buildings, oil and gas, and

agricultural sectors are required to ensure broad-based

emission reductions.

Achieving 2050: A

Carbon Pricing Policy forCanada (Advisory Note),

released in April 2009.

Achieving 2050: A Carbon

Pricing Policy for Canada

(Technical Report),

released in April 2009.


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New ederal/provincial/territorial governance

mechanisms and processes should be put in place.

Copies o the report and inormation on the research

process can be ound at: http://www.nrtee-trnee.ca/eng/

publications/carbon-pricing/carbon-pricing-eng.php

NRTEEs 20th Anniversary Forum

On October 30, 2008, the NREE marked its

20th anniversary by hosting a unique roundtable orum

with leading Canadian sustainability experts, advocates

and practitioners entitled Securing Canadas Future

in a Climate-Changing World. Te Forum ormat

consisted o three moderated roundtable sessions

ocusing on how climate change was impacting

Canadas economic and environmental security through

the lenses o three themes: Canadas ecosystems, its

energy economy, and our Arctic environment.

Te Forum objectives included engaging the roundtable

participants to identiy:

Te priority climate change issues acing Canada

or each round table theme;

Current policy gaps and potential policy solutions

or addressing these issues; and,

Implications or policy development and

governance.

o eed the discussion and outline the key issues, the

NREE commissioned a number o commentaries by

widely respected experts and key opinion leaders on

each o the three themes. Te commentaries were

published along with a Forum Guide, setting out the

key issues, and were made widely available on the

Round ables website. A real-time audience survey was

conducted over the course o the Forums deliberations

to get input rom all attending.

Te Forum served as an opportunity to convene

Canadas leading thinkers on the environment and the

economy and raise awareness o current and emerging

challenges arising rom the eect o climate change on

Canadas environment, economy, and Arctic.

Discussions ormed the groundwork or a orward

climate policy research agenda or Canada which the

Round able released in the next scal year (June,

2009) called Climate Forward.

More inormation and all documents on the Forum

can be ound at: http://www.nrtee-trnee.ca/eng/

news-media/events/other/20th-anniversary/

20th-anniversary.php

1 The commentaries were provided by: Dr. Roger Gibbons, Preston Manning, Mel Cappe, Stephen Williams, Dr. David Keith, Peter Robinson, David

Runnalls (and others at the International Institute for Sustainable Development), Thomas Homer-Dixon, and Ian Church.

Forum Guide for the

NRTEEs 20th Anniversary

Forum Securing

Canadas Future in a

Climate-Changing World,

released in October

2008.

Forum Commentariesfor the NRTEEs

20th Anniversary Forum

Securing Canadas

Future in a Climate-

Changing World,

released in October

2008.


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Geared for Change: Energy Efficiency inCanadas Commercial Building Sector

In January 2009, the NREE released with Sustainable

Development echnology Canada (SDC) a joint

report entitled Geared or Change: Energy Ef ciency inCanadas Commercial Building Sector. Tis collaborative

research linked the NREEs policy advisory role and

convening power with SDCs proven clean tech

expertise and market knowledge. It proposes a policy

pathway to promote energy ef ciency within the

commercial building sector, and recommends ways to

overcome barriers to the deployment o technology that

would reduce greenhouse gas emissions.

Te NREE and SDC outlined a suite o teen

policy recommendations grouped in our broadcategories:

Implement an economy-wide price signal;

Incorporate command and control regulations;

Use a variety o subsidies to overcome nancial

risks; and,

Promote voluntary actions and inormation

resources.

Canadas commercial building sector is a signicant

energy user and producer o carbon emissions. Itaccounts or 14% o end-use energy consumption and

13% o the countrys carbon emissions. Energy ef cient

technologies exist that could reduce costs to businesses

and consumers while reducing the environmental

impact o this major economic sector. But these

technologies are not being taken up, with the result

that energy use and carbon emissions continue to grow.

From January to March 2009, the NREE and SDC

held outreach sessions in oronto, Haliax, Montreal,

and Vancouver on the report. Each o these sessionswere hosted by a partner local organization, with guest

speakers invited to give a regional and local context

to the report recommendations. Te purpose o the

sessions was to communicate the research ndings andbuild local networks to promote action or increasing

energy ef ciency in commercial buildings. Participants

engaged with presenters, allowing or an opportunity to

increase understanding o relevant issues and policy

options. Invitees ranged rom the public and private

sectors, academia and non-government organizations.

Te eectiveness o these outreach activities was clearly

demonstrated by a signicant increase in report

downloads surrounding each event. Tis pattern o

release ollowed by engagement has become theNREEs normal pattern o outreach. Over 2,064

downloads o the report (to March 31, 2009) occurred.

Te Geared or Changereport can be downloaded rom

the NREE website at: http://www.nrtee-trnee.ca/

eng/publications/commercial-buildings/commercial-

buildings.php

Geared for Change:

Energy Efficiency in

Canadas Commercial

Building Sector,

published in

January 2009.


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Adaptation of Northern Infrastructureto Climate Change

Te impacts o climate change are already evident

across Canadas North and could intensiy over the next

decades regardless o successes in reducing uture globalemissions o greenhouse gases (GHGs). Many o these

changes will result in direct impacts to ecosystems,

human inrastructure, and to our economies, saety and

well-being.

Initiated in June 2006, the purpose o this NREE

program is to examine the inuence o Canadian public

policy on how our communities and economic sectors

plan or and manage the eects o climate change. Te

program ocuses on exploring public policy options or

improving the management o climate change risks inrespect o northern physical inrastructure. Tis

recognizes the unique vulnerability o Canadas North,

to the impacts o climate change. Northern physical

inrastructure is especially vulnerable, since it was oten

developed in the special context o an extreme climate,

making it extremely vulnerable to change. Tis

inrastructure must adapt eectively to the new reality

to ensure sustainable regional development and to

saeguard national security and saety.

Specically, the program is evaluating how keymechanisms within existing policy areas might be

adjusted, strengthened or restructured to recognize that

the impacts o climate change are a serious risk. Te

NREE decided to examine disaster management;

codes, standards and related instruments; and insurance

as three areas in which public policy could play an

enabling role in mainstreaming climate change risks as

part o the management o northern physical

inrastructure.

Signicant data, inormation, and stakeholder viewswere collected as part o the program. Te research

process included three study teams, each ocused on

one approach to risk management.

Te NREE also commissioned research on the role

o governments in adaptation, and legal liability as a

barrier or driver o adaptation. Input rom northern

stakeholders and technical experts was a key part o

the research process, in some cases, involving travel to

northern communities. Overall, the NREE involved

close to 100 stakeholders in the research process.

Te NREE will make recommendations relating to

the three policy areas examined, highlighting barriersand opportunities to proactively build the resilience

o northern inrastructure and related services to a

changing climate. Te report will be released in the

all o 2009.

Inormation on the program and its activities can be

ound at: http://www.nrtee-trnee.ca/eng/issues/

programs/adaptation/adaptation.php

Water Sustainability and Canadas

Natural Resource Sectors

In Fall 2008, the NREE launched a program on

Water Sustainability and Canadas Natural Resource

Sectors. Te program is designed to examine the

relationship between the energy, mining, orestry and

agriculture sectors and water sustainability, how water

is used by these sectors, how it contributes to their

economic livelihood, and how we can ensure the

sustainability o this resource in the uture. One key

element in the program is the expected changes in

supply, availability and distribution owing romclimate change.

Phase I (which ended in March 2009) developed clear

objectives and a research ramework or the program.

Charting a Path

Synthesis of Workshop

Discussion.


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In order to achieve this, the NREE held a

multi-stakeholder workshop on February 24, 2009.

Among the participants were industry sector leaders,

representatives o governments, academics, leaders o

non-government organizations, Aboriginal peoples,

and civil society. Teir input was vital in setting the

direction o the programs work. A report on the

conclusions and directions rom this orum called

Charting a Path is publicly available on our website.

In addition, a Sub-Committee on Water comprising

members o the NREE was created to allow or

additional involvement and guidance in the program. Tis

group is complemented by an Expert Advisory Committee

(EAC), made up o leading Canadian water experts. Te

EAC and the NREE Sub-Committee will be in place

over the course o the Program to provide ongoing advice.

Inormation on the Water Sustainability and

Canadas Natural Resource Sectors can be ound at:

http://www.nrtee-trnee.ca/eng/issues/programs/

water/water.php

Kyoto Protocol Implementation Act

Te Kyoto Protocol Implementation Act (KPIA) was

passed by Parliament in June 2007. It calls on

Canada to meet its international commitment underthe Kyoto Protocol by reducing greenhouse gas

emissions to 6 per cent below 1990 levels by 2012.

Every year, the government must prepare a Climate

Change Plan describing the measures and policies it

enacted to ensure that Canada meets its obligations

under the Kyoto Protocol. Tis plan must also detail

the expected emission reductions resulting rom the

governments measures and policies.

Subsection 10(1) o theActrequires the NREE to:

a) Undertake research and gather inormation and

analyses on the Plan or statement in the context

o sustainable development; and

b) Advise the Minister on issues that are within its

purpose, including the ollowing:

i) Te likelihood that each o the proposed

measures or regulations will achieve the

emission reductions projected in the Plan

or statement;

ii) Te likelihood that the proposed measures

or regulations will enable Canada to meet

its obligations under Article 3, paragraph 1,

o the Kyoto Protocol; and,

iii) Any other matters that the Round able

considers relevant.

Te NREE undertook the required analysis to

comply with our obligations under KPIA and our

ndings were provided in a report to the Minister o

the Environment in July, 2008. Te NREE oeredthe ollowing conclusions in its report:

Overall, the 2008 KPIA Plan was a more transpar-

ent and more accurate representation o projected

emission reductions. In particular, the Plan was

improved through use o integrated modelling

approaches.

While the 2008 Plan showed substantial improvement,

some methodological issues may still contribute to an

overestimation o emission reductions, particularly in

the assessment o individual policies or programs. With respect to the realization o Canadas

Kyoto commitments, we concluded that the

Plan will likely not allow Canada to meet those

commitments. However, we also suggested that

including longer-term orecasts would allow or

a more complete picture o the eectiveness o

climate policy measures.

Response of the

National Round Table

on the Environment

and the Economy to

its Obligations Under

the Kyoto Protocol

Implementation Act,

delivered to the Minister,

Environment Canada,

released in July 2008.


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Te 2008 NREE KPIA Response also recommended:

Tat evaluation o policies also ocus on the longer

term and progress toward the governments targets;

Tat the integrated modelling be extended to assess

incremental eects o individual policies;

Tat updates to the most current reerence case

be well documented and not be combined with

reporting under the KPIA;

Tat emission reductions attributed to the

technology und be accounted or in the year

they are to occur rather than the year in which

contributions to the und are made;

Tat uture integrated modelling account or all

potential osets to minimize likely rebound and

ree-rider eects;

Tat only the impacts o announced and reasonably

expected provincial actions be included in the

modelling or the KPIA plan; and,

Tat orecasting techniques used continue to strive

to meet international best practices in orecasting

techniques and governance.


process can be ound at: http://www.nrtee-trnee.ca/

eng/issues/programs/KPIA/KPIA.php

GHG Emissions Forecasting: Learningfrom International Best Practices

In July 2008, the NREE released a report entitled:

Greenhouse Gas Emissions Forecasting: Learning rom

International Best Practices. Tis report was released in

tandem with our 2008 Response to our obligations

under the KPIA.

Tis report builds on key concerns highlighted by theRound able in its 2007 Response to its obligations

under the Kyoto Protocol Implementation Act(2007

KPIA Response). Chie among those concerns were

diering and inconsistent orecasting methods used

among various ederal departments to describe the

greenhouse gas (GHG) emission reductions accruing

rom a particular policy measure or initiative, leading

to issues o additionality, ree ridership, rebound eect,

and policy interaction eects.

Based on these concerns, the NREE elt it would be

useul or the ederal government i international best

practices could be identied and highlighted in the

orecasting o emission reductions resulting rom

government policies, rom both a methodological and

a governance perspective.

Key ndings and recommendations rom the analysis

contained in the report include the ollowing:

From amethodologicalperspective:

Hybrid energy-economy models are more eective

in producing accurate GHG emissions orecasts as

they integrate the strengths o both the traditional

bottom-up and top-down approaches to modelling

emissions orecasts.

Te use o a consistent baseline rom year-to-year

(including baseline data), assumptions, and

conditions across the board is undamental to

ensure emissions orecasts can be accurately

compared rom year to year. Te use o consistent and agreed denitions

o terms and concepts, such as or ree ridership

and additionality, across government departments

involved in orecasting would ensure greater

transparency o emissions orecasts and acilitate

assessment o the orecasts accuracy.

Greenhouse Gas

Emissions Forecasting,

released July 2008, as

a supplement to the

NRTEEs obligations

under the Kyoto Protocol

Implementation Act,

released in July 2008.


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Tere is need or an international perspective in the

model so that it can respond appropriately to world

events (since in most cases, Canada is a price taker

or both commodities and energy, and a primary

trader o goods and energy). Canada is acting in

concert with other countries on climate policy and

its orecasting approaches need to reect this reality.

From agovernanceperspective:

Use o an independent orecasting agency

is preerable to provide more accurate and

transparent emissions orecasts or consideration

by government policy makers, external analysts,

and Parliamentarians and to acilitate ongoing

audit and evaluation.

Multi-source emissions orecasting rom a group

o individual government departments can be

accurate, but works best both when centrally

coordinated and with independent authority by

the central coordinating department or agency

to question other departmental orecasts.

Regular independent reviews, audits and

evaluations o government orecasts and orecasting

methods by a third-party agency or process helps

ensure accuracy o orecasts and that orecasting

methodologies are up-to-date and robust.

Forecasting must be suf ciently resourced and

nanced by governments to ensure data is up

to date and most recent improvements in

orecasting methodologies are incorporated or

the benet o policy makers taking decisions

based on these orecasts.

Regular, ongoing evaluation o past orecasts

or accuracy and eectiveness is necessary to

ensure continuous improvement o government

orecasting methodologies and approaches.

Ensure transparency and clarity with respect to

key assumptions and methods.


process can be ound at: http://www.nrtee-trnee.ca/

eng/issues/programs/KPIA/KPIA.php


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Over 2008-2009 the NREE increased its overall

communications prole and activities, supportingin the release o the Round ables ve reports, revamping

our website with a new look and improved unctionality

and communicating advice regularly and directly with

stakeholders.

A signicant actor in this success and in the success

o the other reports detailed below, was the ocus NREE

communications has placed on the Round ables

website. Te site was re-designed to create a tool that

would be more useul or stakeholders by taking into

account new technological innovations and by ocusingon delivering targeted, relevant and important

inormation. Te re-design also brought the NREE look

much closer into line with the Government o Canadas

Common Look and Feel. Te website has continued to

develop and improve in response to our stakeholders

needs. Website visits have jumped since then.

In conjunction with the re-design o the website the

NREE moved to make electronic access to its reports

easier. Te Round able has always sought to deliver its

advice and conclusions to the widest possible number o

interested Canadians. Electronic distribution o reports

has many advantages over traditional printing, saving

costs and using less paper. It also makes it possible or the

NREE to get its reports out to stakeholders immediately.

As a strategic goal, e-distribution will become more andmore a part o the Round ables way o delivering its

message. Te Round able saw a ratio o about eight to

one between electronic and print versions o our reports.

Te 20th anniversary orum was a major public

event or the Round able in the all o 2008. Te

communications section brought both media and public

attention to the proceedings. Tis included ull video

coverage rom CPAC, allowing a wide audience across

Canada to see the discussions which were also made

available on our website. Te report rom the session,Climate Forward: A Next Step Policy Agenda for Canada

was released, online only, in June 2009, but it did achieve

signicant downloads rom the website. Within a week o

release it had been downloaded more than 3,407 times.

Media relations are a key part o the work o the NREE

communications team. In 2008-2009 the Round able

achieved signicant presence both in the national and

regional media in support o its various reports, especially

the 20th Anniversary Forum and Geared for Change. In

addition to earned media the NREE has also sought

exposure through opinion items where appropriate,

including the Hill Times, in support o our work on

climate change, water and energy ef ciency.

WATER SUSTAINABILITY AND CANADAS

COMMUNICATIONS AND PUBLICATIONS


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WATER SUSTAINABILITY AND CANADASNATURAL RESOURCE SECTORS

Te Water Sustainability and Canadas Natural

Resource Sectors Program has an ambitious set o

goals or Phase II which runs rom April 2009 to

March 2010. During this time, the NREE will

urther engage with each o the sectors and other

relevant stakeholders to learn, rsthand, about the

issues, risks and barriers associated with water and

sector sustainability. o that end, the NREE will

initiate our sectoral roundtables (agriculture,orestry, energy and mining) in the Fall o 2009.

Tis will lead to a rst report on implications and

opportunities or the sectors and water sustainability.

Tis will orm the basis o a next step o research

and consultations leading to ormal advice and

recommendations to governments and industry.

ECONOMIC RISKS AND OPPORTUNITIES

OF CLIMATE CHANGE FOR CANADA

Tis program is a two-year initiative to assess the

economic risks and opportunities or Canada related

to climate change. It will develop strategic policy

recommendations to secure Canadas economic uture in

a changing climate. Te program recognizes that climate

change is not solely an environmental issue it is an

issue o long-term strategic importance or Canadas

economy. Te work will not only underscore the need

or Canada to participate in global eorts to reduce

greenhouse gas emissions and how best to do so, butwill also highlight the importance o adapting to the

changing climate.

Work on the program in 2009 will ocus on tworesearch streams, with a program-wide ocus on

stakeholder and citizen engagement.

Te rst research stream deals with the physical

impacts o climate change. Climate change will bring

risks to the economy, or example rom sea-level rise

and rom extreme events such as storms and oods.

Tere will also be some economic benets or Canada

rom climate change, at least in the short-term, such

as reduced heating bills as winters become less cold.

Currently, there is insuf cient knowledge about whatthe physical impacts o a changing climate will mean

or Canadas economy and regions, and the costs o

adaptation.

Te second research stream addresses the risks and

opportunities that are created by a global transition to

a low-carbon economy. As the world enacts policies

to reduce emissions, new industries and technologies

will emerge. Research will need to identiy sectors

with greatest opportunities or risks, and to benchmark

Canadas perormance in terms o low-carbon

innovation. Tis stream o work will explore how

Canada can seize the opportunities that a global

transition to a low-carbon economy will create.

A LOOK AHEAD


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Responsibility or the integrity and objectivity o the accompanying nancial statements or the year ended March31, 2009 and all inormation contained in this report rests with the NREE management. Tese nancial

statements have been prepared by management in accordance with accounting policies issued by the reasury

Board o Canada Secretariat which are consistent with Canadian generally accepted accounting principles or the

public sector.

Management is responsible or the integrity and objectivity o the inormation in these nancial statements. Some

o the inormation in the nancial statements is based on managements best estimates and judgment and gives due

consideration to materiality. o ull its accounting and reporting responsibilities, management maintains a set o

accounts that provides a centralized record o the NREEs nancial transactions. Financial inormation submitted

to the Public Accounts o Canadaand included in the NREEs Departmental Perormance Reportis consistent with

these nancial statements.

Management maintains a system o nancial management and internal control designed to provide reasonable

assurance that nancial inormation is reliable, that assets are saeguarded and that transactions are in accordance

with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary

authorities, and are properly recorded to maintain accountability o Government unds. Management also seeks to

ensure the objectivity and integrity o data in its nancial statements by careul selection, training and

development o qualied sta, by organizational arrangements that provide appropriate divisions o responsibility,

and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities

are understood throughout the NREE.

Te nancial statements o the NREE have been audited by theAuditor General o Canada, the independent

auditor or the Government o Canada.

David McLaughlin Jim McLachlan

President and CEO Director, Corporate Services

Ottawa, Canada

June 5, 2009

MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTSfor the year ended March 31, 2009


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AUDITORS REPORT


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STATEMENT OF FINANCIAL POSITIONAt March 31

2009 2008$ $

ASSETSFinancial Assets

Due from Consolidated Revenue Fund 431,901 533,369

Receivables (Note 4) 58,447 94,886

490,348 628,256

Non-Financial Assets

Prepaid expenses 16,415 32,614Tangible capital assets (Note 5) 201,967 158,601

218,382 191,215

TOTAL ASSETS 708,730 819,471

LIABILITIES AND EQUITY OF CANADA

Accounts payable and accrued liabilities (Note 6) 589,662 705,145

Employee future benefits (Note 7) 532,206 427,731

1,121,868 1,132,876

EQUITY OF CANADA (413,138) (313,404)

TOTAL LIABILITIES AND EQUITY OF CANADA 708,730 819,471

Contractual obligations (Note 8)

The accompanying notes form an integral part of these financial statements.

Approved by:

David McLaughlin Jim McLachlan

President and CEO Director, Corporate Services


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STATEMENT OF OPERATIONSFor the year ended March 31

2009 2008$ $

EXPENSESOperating

Salaries and employee benefits 3,000,872 2,668,157

Professional and special services 1,342,926 1,442,184

Rentals 435,605 430,649

Publications 187,673 197,691

Travel 165,169 263,157

Communication 96,718 92,762

Furniture and equipment 81,021 77,862

Amortization of tangible capital assets 66,631 67,062

Repairs and maintenance 47,255 34,664

Utilities, materials and supplies 35,771 32,584

5,459,641 5,306,772

Executive Committee

Travel and living expenses 629 10,280

Honoraria 4,866 13,423

5,495 23,703

Other Committees

Travel and living expenses 100,751 139,499

Honoraria 133,868 154,095

234,619 293,594

TOTAL EXPENSES 5,699,755 5,624,069

REVENUES

Donations (Note 10) 105,000 -

Funding from other government departments - 17,625

Sale of publications - 988

Miscellaneous 885 663

TOTAL REVENUES 105,885 19,276

NET COST OF OPERATIONS 5,593,870 5,604,793



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STATEMENT OF EQUITY OF CANADAFor the year ended March 31

2009 2008

$ $

Equity of Canada, beginning of year (313,404) 18,884

Net cost of operations (5,593,870) (5,604,793)

Services provided without charge (Note 3) 433,976 417,511

Net change in due from Consolidated Revenue Fund (101,471) 2,544

Net cash provided by government (Note 9) 5,161,630 4,852,448

EQUITY OF CANADA, END OF YEAR (413,138) (313,404)



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STATEMENT OF CASH FLOWFor the year ended March 31

2009 2008$ $

Operating ActivitiesNet cost of operations 5,593,870 5,604,793

Non-cash items included in cost of operations:

Less: Amortization of tangible capital assets (66,631) (67,062)

Services provided without charge (433,976) (417,511)

Statement of financial position adjustments:

Decrease in receivables (36,439) (53,579)

Decrease in publication inventory for resale - (25,426)

Decrease in prepaid expenses (16,199) (16,869)

Decrease in accounts payable and accrued liabilities 115,483 41,287

Increase in employee future benefits (104,475) (235,422)

Cash used by operating activities 5,051,632 4,830,211

Capital Investment ActivitiesAcquisition of tangible capital assets 109,998 22,237

Cash used by capital investment activities 109,998 22,237

Net Cash Provided by Government of Canada 5,161,630 4,852,448



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NOTES TO THE FINANCIAL STATEMENTSFor the year ended March 31

1. AUTHORITY AND OBJECTIVES

Te National Round able on the Environment and the Economy (NREE) was established in 1994 under the NationalRound Table on the Environment and the Economy Actand is a departmental corporation named in Schedule II o theFinancial Administration Act. Te NREE ulls its objective o promoting sustainable development, and the integrationo the environment and economy in decision making in all sectors, by conducting studies, organizing stakeholderdialogues on specic issues and economic sectors, providing advice, carrying out educational and communicationactivities, and by acting as a catalyst or change. Its operating expenses are unded mainly by a budgetary lapsing authorityand, to a lesser extent, rom cost recovery and cost sharing or specic activities. Te NREE is not subject to theprovisions o the Income Tax Act.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tese nancial statements have been prepared in accordance with the reasury Board Secretariat accounting policies whichare consistent with Canadian generally accepted accounting principles or the public sector, and year-end instructionsissued by the Of ce o the Comptroller General. Signicant accounting policies are as ollow:

a) Parliamentary Appropriations

Te NREE is nanced mainly by the Government o Canada through Parliamentary appropriations.Appropriations provided to the NREE do not parallel nancial reporting according to Canadian generallyaccepted accounting policies or the public sector, as they are based in a large part on cash ow requirements.Consequently, items recognized in the Statement o Operations and the Statement o Financial Position are not

necessarily the same as those provided through appropriations rom Parliament. Note 9 provides a high-levelreconciliation between the two basis o reporting.

b) Due from Consolidated Revenue Fund

Te NREE operates within the Consolidated Revenue Fund (CRF). Te CRF is administered by the ReceiverGeneral or Canada. All cash received by the NREE is deposited to the CRF and all cash disbursements made bythe NREE are paid rom the CRF. Due rom the CRF represents the amount o cash that the NREE is entitledto draw rom the Consolidated Revenue Fund, without urther Parliamentary appropriations, in order todischarge its liabilities.

c) Revenues

Revenues are accounted or in the period in which the underlying transaction or event occurred that give rise tothe revenues. Revenues that have been received but not yet earned are presented as deerred revenues. Fundsreceived rom external parties or specied purposes are recorded upon receipt as deerred revenues. Tese revenuesare recognized in the period in which the related expenses are incurred.


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d) Expenses

Expenses are recorded on the accrual basis:

Employees severance benets are accrued as earned and are calculated using inormation derived romthe results o the actuarially determined liability or employee severance benets or the Government as

a whole. Employee severance benets on cessation o employment represent obligations o the NREEthat are normally unded through uture year appropriations.

Vacation pay and compensatory leave are expensed as the benets accrue to employees under theirrespective terms o employment.

Contributions to the Public Service Pension Plan are charged to expenses in the year incurred andrepresent the total NREE obligation to the Plan. Current legislation does not require the NREE tomake contributions or any actuarial deciencies o the Public Service Pension Plan.

Services provided without charge by other government departments are recorded as expenses at theirestimated costs. A corresponding amount is credited directly to the Equity o Canada.

e) Receivables

Receivables are stated at amounts expected to be ultimately realized; a provision is made or receivables whererecovery is considered uncertain.

f) Tangible Capital Assets

angible capital assets with an acquisition cost o $2,000 or more are capitalized at cost and amortized over theirestimated useul lives on a straight-line basis. Te estimated useul lie o each tangible capital asset class is as

ollows:

ASSET CLASS USEFUL LIFE

Leasehold Improvements lower o lease term and 10 years

Inormatics Equipment and Purchased Sotware 3 years

Furniture and Equipment 10 years

g) Measurement Uncertainty

Te preparation o these nancial statements in accordance with reasury Board o Canada Secretariat accountingpolicies, which are consistent with Canadian generally accepted accounting policies or the public sector, and year-end instructions issued by the Of ce o the Comptroller General, requires management to make estimates andassumptions that aect the reported amounts o assets, liabilities, revenues and expenses reported in the nancialstatements. At the time o preparation o these statements, management believes the estimates and assumptions tobe reasonable.

Te most signicant items where estimates are used are the useul lie o tangible capital assets and assumptions

underlying the employee severance liabilities. Actual results could dier signicantly rom those estimates.Managements estimates are reviewed periodically and, as adjustments becomes necessary, they are recordedin the nancial statements in the year they become known.


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3. RELATED PARTY TRANSACTIONS

Te NREE is related in terms o common ownership to all Government o Canada entities. Te NREE enters intotransactions with these entities in the normal course o business and on normal trade terms, with the exception o servicesprovided without charge.

Te NREE incurred expenses with related parties o $1,190,572 (2008 - $1,108,896). From this amount, $433,976 (2008 -$417,511) represent services provided without charge which includes $370,976 (2008 - $367,511) or the rental o space.Revenues generated rom related parties amounted to $0 (2008 - $17,625) or cost sharing events organized by the NREE.

4. RECEIVABLES

2009 2008$ $

Other government departments 31,388 93,953

External parties 27,059 934

Total Receivables 58,447 94,886

5. TANGIBLE CAPITAL ASSETS

Cost as at Cost as at

March 31, 2008 Acquisitions Dispositions March 31, 2009

Leasehold improvements $282,315 $63,587 $192,477 $153,425

Informatics equipments and purchased software $366,913 $40,261 $201,726 $205,448

Furniture and equipment $180,191 $6,150 $13,850 $172,491

$829,419 $109,998 $408,053 $531,364

Current Year Accumulated Net Book Value Net Book Value

Amortization Amortization at March 31, 2009 at March 31, 2008

Leasehold improvements $12,724 $52,252 $101,173 $50,310

Informatics equipments and purchased software $46,018 $136,129 $69,319 $75,077

Furniture and equipment $7,889 $141,015 $31,475 $33,215

$66,631 $329,396 $201,967 $158,601

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2009 2008$ $

Trade 572,996 691,806

Other government departments 16,666 13,338

Total Accounts Payable and Accrued Liabilities 589,662 705,145


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7. EMPLOYEE FUTURE BENEFITS

i) Severance Benefit

Te NREE calculates its estimate or the liability or employee severance benet by using inormation derived

rom the results o the actuarially determined liability or employee severance benets or the Government as awhole. Te employee severance benet liability, including the current portion, is determined to be $532,206(2008 - $427,731). Te amount expensed to salary and benets in the period was $210,759 (2008 - $235,422),including the amount paid o $106,284 (2008 - $0).

ii) Pension Benefits

Te NREEs and employees contributions to the Public Service Pension Plan or the year were as ollows:

2009 2008$ $

NRTEE s contributions 257,023 247,226

Employees contributions 129,420 117,275

8. CONTRACTUAL OBLIGATIONS

Te nature o the NREE activities can result in some large multi-year contracts and obligations whereby the

NREE will be obligated to make uture payments when the services are rendered. Signicant contractual

obligations that can be reasonably established are summarized as ollow:

2010 2011 2012 2013 Total

& thereafter

Operating lease $27,948 $12,080 $1,259 - $41,287

9. PARLIAMENTARY APPROPRIATIONS

Te NREE receives the majority o its unding through Parliamentary appropriations, which are based primarily

on cash ow requirements. Items recognized in the Statement o Operations and Statement o Financial Position

in one year may be unded through Parliamentary appropriations in prior and uture years. Accordingly, the

NREE has dierent net results o operations or the year on a government unding basis than on an accrual basiso accounting. Tese dierences are reconciled on the ollowing page.


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a) Reconciliation of net cost of operations to current year appropriations used:

2009 2008$ $

Net cost of operations 5,593,870 5,604,793

Publication revenue in accordance with section 29.1(1) of

the Financial Administration Act - 988

Adjustments for items affecting net cost of operations but

not affecting appropriations:

Amortization of tangible capital assets (66,631) (67,062)

Services provided without charge (433,976) (417,511)


Other revenues 105,885 663

(394,722) (466,286)

Changes in accounts affecting net cost of operations but not affecting appropriations:

Increase in employee future benefits (104,475) (235,422)

(104,475) (235,422)

Adjustments for items not affecting net cost of operations but affecting appropriations:

Acquisitions of tangible capital assets 109,998 22,237

Decrease in publication inventory for resale - (25,426)

Decrease in prepaid expenses (16,199) (16,869)

93,799 (20,058)

Current year appropriations used 5,188,471 4,884,016

b) Appropriations provided and used:

2009 2008$ $

Vote 20 Program expenditures 5,167,183 4,980,916

Statutory appropriation:

Contributions to employee benefit plans 411,000 452,000

Expenses inccurred for publications for resale - 988

5,578,183 5,433,904

Less: Lapsed appropriations operations (389,712) (549,889)

Total appropriations used 5,188,471 4,884,016


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c) Reconciliation of net cash provided by government to currentyear appropriations used:

2009 2008$ $

Net cash provided by government 5,161,630 4,852,448

Publication revenue in accordance with section 29.1(1)

of the Financial Administration Act - 988

Adjustments for items affecting net cash provided by government but

not affecting appropriations:


Other revenues 105,885 663

105,885 18,288

Adjustments for items not affecting net cash provided by governmentbut affecting appropriations:

Variation in receivables 36,439 53,579

Variation in accounts payable and accrued liabilities (115,483) (41,287)

(79,044) 12,292

Current year appropriations used 5,188,471 4,884,016

10. DONATIONS

Donations o $105,000 (2008 - $0) received in 2008-2009 rom third parties were used towards the costso an event hosted by the NREE to mark the 20th anniversary o its establishment. All unds were spent

as o March 31, 2009.

11. COMPARATIVE FIGURESSome o the previous years comparative gures have been reclassied to conorm to current years presentation.


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NRT Annual Report 2008-2009

Documents

Transcript of NRT Annual Report 2008-2009