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CCEMC Announces Project Funding for 30 Clean and Green Projects

The Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") issued a press release this week that of the 223 projects submitted in its EOI process, thirty clean and green projects were being asked to submit Full Project Proposals under the CCEMC's 2009 Call for Proposals: Initial Full Project Proposal Stage.

The CCEMC has up to $120 million available for clean, green projects which address energy conservation and efficiency, greening energy production and carbon capture and sequestration. The CCEMC's Chair, Eric Newell, commented that "clean technologies will reduce emissions and enhance the economic and environmental value of energy resources - by supporting ideas and initiatives at the leading edge of the green economy, we will reduce emissions, and in the process, support green jobs".

The CCEMC's announcement demonstrates its commitment to technology, conservation and greening the energy mix. The projects and investments the CCEMC will be making, which are demonstrated in the projects being selected to move to the Full Project Proposal Stage, undoubtedly have collateral benefits associated with the establishment of green jobs and the development of the green economy.

Stay tuned - we'll keep you up to date on the CCEMC's process and the projects being selected to move forward.

223 Proponents Apply for CCEMC Funding

The Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") issued its 2009 Call for Proposals: Initial Expression of Interest Stage (the "EOI") on August 5, 2009. The response to the EOI has been, to say the least, overwhelming. According to the CCEMC website, 223 proponents have requested funding from the CCEMC for a total ask of $1.6 Billion Dollars.

This is astounding news. Why you ask? Keep reading.

What Does It Mean?

1. The response to the EOI has been overwhelming. Remember that the CCEMC was only incorporated in February. The Climate Change and Emissions Management Fund Administration Regulation, which delegates the powers, duties and functions of the Minister of Environment (Alberta) to the CCEMC was only enacted in May, 2009. That in less than a year the CCEMC has been able to request EOIs and receive responses from 223 proponents is staggering.

2. The sheer number of proponents and amount of the ask demonstrates how interested Albertans and Industry in Alberta are in climate change technology and initiatives. There's a lot going on in Alberta right now in the area of climate change initiatives as evidenced by the fact 223 proponents have applied for funding.

3. The number of proponents and the success of this first EOI shows that Alberta Environment and the Government of Alberta were absolutely right in anticipating and recognizing the importance of establishing a climate change technology fund and the structure of the CCEMC. (For more information on the importance and uniqueness of the Climate Change and Emissions Management Fund, click here.

4. The CCEMC has up to $120 million for project funding for the 2009 Call for Proposals. Up to 50 percent of monies will be invested in green energy production, 20 percent in energy conservation and energy efficiency and 30 percent in implementing carbon capture and storage. Although there is only $120 Million available at this time, there will be further rounds of calls for proposals as more funds are received from the current and future compliance years. The CCEMC will consider the EOIs and the funding envelopes outlined above and select the very best for the full proposal stage.

5. The fact that the CCEMC is through the first stage in its process for calling for projects is a first in Canada and is clearly the most significant event in the world of climate change innovation in this country. The model for climate change funding in Alberta is working to create action.

The evaluation of the EOIs received by the CCEMC is currently in progress. Proponents whose projects are being selected to submit full project proposals will be notified by November 13, 2009. An annoucement of those selected to submit full project proposals will be made shortly thereafter....just in time for the UNFCCC Conference of Parties in Copenhagen in December. Alberta will truly have the technology fund showpiece at the conference and has much to be proud of.

$865 MILLION in CCS Funding Announced Today

The Alberta and Federal Governments formally announced $865 of funding for a commercial carbon capture and storage project today. Shell Canada was "first out of the gate in the carbon capture effort [today], winning pledges of $865 million in provincial and federal aid for its Quest pilot project", the Edmonton Journal reports. The funding was announced by Alberta Energy Minister Mel Knight and federal Natural Resources Minister Lisa Raitt who said "the most viable emissions-reducing technology for fossil fuels is carbon capture and storage. The government of Canada is delivering results by supporting new, clean technology innovation, positioning Canada as a leader in this technology development and resulting in significant benefits for our environment".

We've blogged a number of times that Alberta, with its small population of 3.6 million, is leading the way, certainly within Canada, but perhaps in North America, in directing funds to address climate change. The announcment today is the first "spend" from Alberta's $2 billion CCS Fund. The federal government has a $1 billion Clean Energy Fund. $850 million of the Clean Energy Fund can be used to developing commercially viable technologies including CCS.

Alberta has signed a letter of intent with Shell to contribute $745 million in funding for the Quest CCS project over the next 15 years. Ottawa kicked in an additional $120 million through the Clean Energy Fund.

Shell Canada spokesman Graham Boje praised the province and federal government "for their leadership and vision on advancing the deployment of CCS...finding ways to reduce greenhouse gas emissions is one of the most important challenges facing society, and developing a substantial CCS capability with governments and key stakeholders is one of our greatest priorities".

Shell Quest aims to store up to 1.2 million tonnes of CO2 per year from its current upgrader in Fort Saskatchewan and that upgrader's expansion, which is under construction. The existing upgrader produces 155,000 barrells of synthetic oil per day and 1.5 million tonnes of CO2 per year. The expansion will produce an additional 100,000 barrells per day with proportionate CO2 emissions.

It's October. It can't be a coincidence that this annoucement comes a mere 59 days before the Conference of the Parties starts in Copenhagen, Denmark. Right now, CCS is one of Canada's good news climate change stories. But if you're thinking that CCS is the only thing in Alberta's bag of climate change tricks, think again.

Don't forget that Alberta has this unique creature called the Climate Change and Emissions Management Fund, which is administered by the CCEMC. The CCEMC closed its 2009 Call for Proposals: Initial Expression of Interest Stage on September 30. Stayed tuned in the next few days to learn more about the EOI process.

California Establishes a Carbon Fee to Fund Emissions Reductions

Despite industry objections, the California Air Resources Board, the entity tasked with the administration of that state's 2006 global warming law, voted 9-0 on Friday to approve the United States' first statewide carbon fee on utilities, oil refineries and other industries contributing to carbon emissions.

According to the press release from Sacramento, about 350 businesses in California which make, sell or import gasoline, diesel, natural gas and coal would be charged roughly 15 cents (USD) for every ton of carbon dioxide that they and their customers emit into the atmosphere.

The fee will be imposed beginning at the end of 2010 and is expected to raise $63.1 million in its first three years, levelling off to $36.2 million by the fifth year. The money raised by the fee is intended to pay for "the bureaucratic expenses of carrying out the state's 2006 global warming law, which requires greenhouse gas emissions statewide to be reduced by 25 percent over the next decade".

The California fee is not the first of its kind anywhere. In 2007 Alberta established the Specified Gas Emitters Regulation under the Climate Change and Emissions Management Act, which requires industry to meet certain emissions reductions obligations and permits the payment of $15 / tonne of CO2 over a threshold into the Fund.

The Alberta Fund currently sits at about $122 million and is administered by the Climate Change and Emissions Management (CCEMC) Corporation. The CCEMC is presently wrapping up its 2009 Call for Proposals: Initial Initial Expression of Interest Stage and will be selecting promising projects from those in the EOI phase to submit full project proposals in October and November.

CN unveils on-line GHG Emissions Calculator to allow customers to assess transportation carbon footprint

CN today unveiled an upgraded on-line greenhouse gas emissions (GHG) calculator that estimates total carbon emissions for shipments across multiple modes of transportation.
CN, recognized as the most fuel-efficient railway in North America, provides the free on-line GHG calculator to the general public on its website. Upon entering basic shipment point-to-point information, the tool generates carbon-emission estimates using a combination of vessel, rail and truck, such as containers moving internationally from Asia to North American destinations along CN's network or domestic shipments using a combination of rail and truck or a single mode of transportation.
The GHG calculator allows manufacturers, importers, exporters, shippers, wholesalers or retailers to assess the carbon footprint of their shipments using single or multiple modes of transportation. Use of the GHG calculator to estimate GHG emissions makes clear the environmental advantage of rail over truck, which has been shown to be up to six times more energy-efficient, because rail consumes a fraction of the fuel to transport one tonne of freight one kilometre. In fact, CN claims that it can move one tonne of freight 197 kilometres on just one litre of fuel. Certainly a convincing argument to invest in the North-American rail system!
In addition to being a powerful environmental conscience-raising initiative, dissemination and use of such tools once again demonstrates the growing competitive advantage that reducing one's carbon emissions represents.

Western Premiers Sign MOU on CCS Technology and Policy

The Premiers of Alberta, Saskatchewan and Manitoba held a joint cabinet meeting in Calgary on September 11, 2009. During the meetings, the provinces signed two key agreements, including a Memorandum of Understanding on Carbon Capture and Storage Technology and Policy, which "focuses on advancing co-operation on energy research and technology". Also highlighted were the concepts of "strengthening internal trade, innovation and international marketing, further developing Canada-U.S. relations and committing to improvin pension coverage for workers".

Of the MOU, Premier Stelmach remarked "collaboration in the West has best positioned our provinces to lead Canada both economically and in the development of clean energy technologies such as carbon capture and storage. By joining forces with B.C. and Saskatchewan, we can better develop and deploy this innovative technology, helping to meet climate change objectives and making us international leaders in this technology".

The second key agreement, the "Western Economic Partnership" is an interprovincial trade agreement designed to be the largest barrier-free trade and investement market in Canada.

The CCS MOU is the next in a series of steps Alberta has taken to advance CCS technology and deployment. Alberta announced its $2 billion CCS fund in 2008. The monies in the CCS fund are in addition to monies in the province's Climate Change and Emissions Management Fund, which is administered by the CCEMC. For the 2009 Call for Proposals, 30% of available funds may be used to advance CCS technologies and innovation.

When Canada goes to Copenhagen in a few months, this newest announcement by the Western provinces will be another point of climate change achievement.

We will continue to keep you posted about the Memorandum of Understanding among the three provinces. Stay tuned!

International Climate Funds Disburse Billions?

With Copenhagen just around the corner, developing governments are expressing an urgent need for greater financial contributions from industrialised nations. And how are industrialised nations going to help? One way is climate change funds. Most developing nations, (see our article on India and US protectionism) believe that the industrialised world should pay for their efforts to cope with and adapt to climate change.

It's an expensive proposition.

The world will need a "phenomenal amount of money" to change its energy supply from fossil fuels to cleaner sources and to adapt to climate change, states Yvo de Boer, head of the UN Climate Change Secretariat. Mr. de Boer estimates that beginning in 2020, the cost of reducing greenhouse gas emissions will be $200 billion a year with an additional $100 billion required for adaptation measures. (Adapation refers to people and business adapting to the effects of climate change in order to deliver a sustainable economy vs. mitigation, which is the reaction to rising emissions in order to limit future climate change - most regulatory frameworks address mitigation).

Hundreds of Billions? That's big money.

One of the topics of discussion at Copenhagen in December, will be which countries are going to contribute to climate funds to help developing countries address climate change and to what extent (ie.: how much) are they going to do that.
According to Point Carbon Data collected by the UK's Overseas Development Institute (ODI), has showed that six international multilateral and bilateral funds are responsible for approximately $3 billion in disbursements to more than 830 projects in the developing world which are aimed at reducing greenhouse gas emissions.

The largest contributor is the Global Environment Facility's (GEF) Trust Fund as it relates to Climate Change. The GEF is responsible for nearly $2.4 billion in disbursements to 591 programs. From its inception in 1994, the GEF has supported programs that minimize climate change damage by reducing the risk, or the adverse effects of climate change. On average 32 to 36 countries have contributed, and in its last replenishment in 2006, Canada contributed $131 million, making it the 6th largest contributing nation.

The German Government administered International Climate Change Initiative has disbursed $347 million to 128 international projects supporting climate change mitigation, adaptation and biodiversity projects with climate relevance. The fund intends to focus on countries with a high potential for emissions reduction in view of their significant and rising greenhouse gas emissions.

The Least Developed Countries Fund is managed by the GEF with an aim to address the special needs of the Least Developed Countries. From its inception in 2002, the Fund has aided the 48 Least Developed Countries through disbursements totalled at $47.5 million to over 60 programs. As of May 2009, 19 contributing nations have contributed to the Fund, with Canada being the 10th largest contributor.

The MDG Achievment Fund was established by the Government of Spain and the United Nations Development Programme and made operational in 2007. It has since disbursed $85.5 million to 16 programs aimed at reducing poverty and vulnerability in eligible countries by supporting improvements to environmental management and enhanced climate change adaptation. As of now, Spain and the US are the only two contributing nations to the Fund.

Mexico, Canada's partner in NAFTA, has proposed an "imaginative" climate fund, which aims to bridge the gap between developing and wealthier nations. We previously reported that the Mexican model proposes that countries pay into and are able to receive monies from a fund that may amount to $10 billion a year to help everyone, not just the developing world, adapt to the effects of global warming. Mexico, classified as a developing country by the UN, has suggested that all countries pay into the fund based on that country's economic output, population and fossil-fuel output. Not a bad idea. But still one which is probably subject to governmental budgetary restrictions.

Maybe a better way is the Alberta model. We've told you before about Alberta's climate fund initiative, the Climate Change and Emissions Management Fund (the "Alberta Fund"). The Alberta Fund is a different sort of animal from the aforementioned funds. Why? The Alberta fund, as we've mentioned before, is very unique. The funds mentioned above are funded by government. Because of a link with the compliance mechanism, the Alberta solution is an industry based and funded model. Once the money is paid into the Alberta Fund, the money is segregated and not subject to government allocation processes, unlike the international funds.

The Alberta Fund may only be used for purposes related to reducing emissions of greenhouse gases or improving Alberta's ability to adapt to climate change. Mr. de Boer says that the world is going to need a "phenomenal amount of money" to address climate change globally. The Alberta Fund will, over time, amount to a phenomenal amount - just think - in only one and a half years of compliance, contributions to the Alberta Fund are $122.4 million, with future yearly contributions anticipated to be as high as $100 million. If every jurisdiction had fund like that, imagine the dollars flowing into combating climate change!

And while the objects of the Alberta Fund are different than those international funds listed above, everyone's ultimate goal is the same. Implement effective solutions, bend the emissions curve and ultimately find an answer.

The CCEMC Issues 2009 Call for Proposals: Initial Expressions of Interest Stage

By Robert A. Seidel, Q. C. and Jennifer Cleall

On August 5, 2009 Alberta's Climate Change Emissions Management (CCEMC) Corporation ("CCEMC") announced the 2009 Call for Proposals: Initial Expressions of Interest Stage (" 2009 Call for Proposals"). The CCEMC is inviting Expressions of Interest from project proponents wishing to obtain funding for developing and demonstrating projects that reduce greenhouse gas emissions.

What Does This Mean

"The time for talking is done, it's time for action" - a typical conclusion when Industry and Policy Makers get together in Alberta. Industry has collaborated with policy makers to establish a sustainable funded model that is calling for real innovative projects and in return the CCEMC is committed to funding the projects that meet or exceed its standards.

The plan, based on real dollars in hand, is; before the end of November to notify the best projects to make their full project proposals. From there the project proponents of the best projects are to have their full project proposals in by January 30th of 2010. Meteoric speed in the talk filled world of Climate Change. The fact that the CCEMC has now begun the process of calling for projects is a first in Canada and is clearly the most significant event in the world of climate change innovation in Canada. The model for climate change funding in Alberta is working to create action. In answer to the critics who would rather wait because ________ (fill in which ever of the many reasons you have heard), these actions taken have very sound underpinnings including the conclusion of the consultations summarized in Alberta's Climate Change Strategy as "Albertans also said: Don't wait.". Industry and policy makers obviously listened. Stay tuned and we'll keep you posted on its progress!

The 2009 Call for Proposals

The CCEMC has up to $120 million for project funding for the 2009 Call for Proposals. Up to 50 percent of monies will be invested in green energy production, 20 percent in energy conservation and efficiency and 30 percent in carbon capture and storage.

According to the 2009 Call for Proposals, applications are open to all organizations, including out-of-province and out-of-country entities. Preference will be given to projects where the lead applicant is from industry and projects must take place in Alberta - although applied research and development and technology development may occur outside Alberta.

The CCEMC's investment will be limited to a maximum of $25 million over the life of the project. Projects will last for a term of up to five years. Project proponents must have a minimum of 1/2 of project funding for cost shared projects with the CCEMC. If government funds are available for the project, the project proponent must provide a minimum of 1/3 of the project funding, such that the total funds from government and the CCEMC are 2/3 or less. It is expected that the recipient's contribution to the project will be cash or cash equivalents.

Organizations can submit their proposals online beginning in mid-August up to September 30, 2009. The CCEMC will invite the proponents of the most promising projects to submit full project proposals following the Expressions of Interest stage.

Details of the funding requirements and for more are outlined in the 2009 Call for Proposals Guide: Initial Expression of Interest Stage available at www.ccemc.ca.

We have outlined the importance of the Fund before, but it bears repeating:

• Because of a link with the compliance mechanism, the Alberta solution is an industry based and funded model. Unlike the talk or promise of technology funds Alberta's action assures there is no question about whether money will actually find its way through governmental and political processes to the Fund.
• Money in the Fund is segregated and not subject to normal government budget allocation processes. Rather, monies are collected by Alberta Environment and segregated separately from general revenue to be used to address climate change. This concept is specifically incorporated in the Act, which requires that monies from the Fund "may be used only for purposes related to reducing emissions of specified gases or improving Alberta's ability to adapt to climate change".
• The Fund helps the government of Alberta achieve its policy objectives. By legislating that the Fund be used to specifically focus on emissions reductions and climate change adaptation, it allows Alberta to integrate greenhouse gas solutions with resource management and energy supply strategy and keeps money where it is most needed - to face the challenge of developing and deploying transformative technology.
• The model of the Fund accomplishes a significant goal - the engagement and commitment of industry. The Fund also acts as a sort of "safety valve" to enable a focus on things like greening energy production and consumption along with emissions reduction. All of these are points of engagement for industry rather than some solutions that have been suggested which result in having industry's attention focused only on the availability of offsets, the quality of those offsets, being out of compliance, the price of carbon and whether a market exists.

About the CCEMC

The CCEMC is a not-for-profit, arm's length organization, independent of government, whose mission is to achieve real reductions in greenhouse gas emissions by stimulating transformative change through investments in climate change knowledge, technology development and operational deployment. The Government of Alberta has granted monies to the CCEMC to be used for the purposes of the Climate Change and Emissions Management Fund, which are specified under Alberta's Climate Change and Emissions Management Act.

As we have previously mentioned, under Alberta's climate change regulatory framework, persons responsible for regulated facilities must comply with the Act and supporting Specified Gas Emitters Regulation ("Regulation"). Persons responsible have three choices for meeting their regulated facility's compliance requirements:

• A reduction in the release of greenhouse gases;
• The application of emissions offsets in the Alberta-based offset system; or
• Obtain credits by contributing $15 per tonne to the Fund

The Fund

The monies paid into the Fund do not go into general revenue and must be allocated toward the purposes set forth in the Act and Regulation. The structure of the Fund is unique in the world as a regulatory compliance and climate change financing mechanism and the 2009 Call for Proposals marks a significant step in driving low-carbon investments in Alberta and Canada.

With assistance from Grant Boyle, Articling Student

The CCEMC and the administration of the Climate Change and Emissions Management Fund

We introduced you to the Climate Change and Emissions Management (CCEMC) Corporation in May. Since then the CCEMC has announced its Board and has received $43,000,000.00 from the Climate Change and Emissions Management Fund.

As we reported in our bulletin, the CCEMC is an independent, arm's length, not for profit organization which is tasked with administering the Climate Change and Emissions Management Fund, to which industry contributes as a compliance option under the Climate Change and Emissions Management Act. Compliance monies have been received into the Fund for 2 periods - the "stub" period for 2007/2008 and the 2008/2009 year, ending March 31, 2009. Alberta Environment reports that the Fund now sits at $122.4 million.

We predicted back in May that the establishment of the CCEMC means that the monies the Fund will begin to be used for the purposes set forth in the Act - for reducing emissions of specified gases or improving Alberta's ability to adapt to climate change. The Fund is the first of its kind anywhere in the world - it is unique for a variety of reasons, not the least of which is that the monies have been specifically from general revenue of the Government of Alberta and segregated to address climate change. The CCEMC has been tasked with its administration - not a small feat.

What's the next step for the CCEMC? We should know very soon. The CCEMC will call for expressions of interest in the coming days - there will be more on the expressions of interest process to follow.

Whatever the next step looks like, one thing is clear. Because the Fund's purposes are set forth in legislation, the projects the CCEMC funds must provide for the reduction of emissions of specified gases or improve Alberta's ability to adapt to climate change. And what is particularly important is that it's not just the promise of reduction, but measurable change that is required of these projects - projects will require clear accountability on performance metrics in order that the monies from the Fund are meaningful.

Provinces, Canada, other countries - frankly the world - are watching the CCEMC and how the CCEMC works to measurably address climate change. They are watching now and they will be watching in December in Copenhagen. Stay tuned to our blog - we'll have much more information for you in the coming days.

Minister Prentice Concludes International Climate Change Trip

Environment Minister, Jim Prentice, concluded a series of important international climate change discussions today in London. The Minister participated in the World Business Summit on Climate Change in Copenhagen, the Major Economies Forum in Paris, and a carbon capture and storage conference in Bergen. The Minister ended his trip in London, where he had extensive discussions his UK counterpart, the Rt Hon David Miliband.

All roads continue to lead to Copenhagen, as we've been saying for a number of months (see here, here and in particular here. In a May 24 speech at the World Business Summit, to which he was invited by the Danish Minister, Minister Prentice remarked:

"I think the fundamental question for business leaders here today is how do we build confidence and momentum towards Copenhagen, and in particular for the business leaders and the companies [those business leaders] represent, what responsibility do you have and what role do you play in that process".

The Minister also indicated to that he is optimistic about the prospect of achieving international agreement on climate change strategy in Copenhagen and cautioned leaders about "green protectionism".

The Minister confirmed to media this morning that Canada's climate change policy would be unveiled in advance of Copenhagen and reiterated Canada's commitment to 20% by 2020 relative to 2006 levels. He advised that the specific domestic approach would be tabled first in Canada and then at the international level.

One of the most important points to come out of the discussion this morning, is the continental approach to climate change, which Minister Prentice has previously indicated is so vital.

Canada's trading relationship with the United States is the biggest trading relationship in the world. Clearly any federal climate change strategy must work in concert with the U.S. approach to climate change. Any policies which Canada develops to address climate change must also reflect Canada's national interest. We have blogged many times about meaningfulness of co-operation on both a North American and global basis. In his remarks to the media today, Minister Prentice further reiterated these important points.

However, the Minister also stressed that while Canada's climate policy must be concordant with that of its neighbour to the south, it does not mean that the policies will be exactly the same all the time. Minister Prentice gave fuel economy standards as an example of where it is in Canada's best interest to mirror that of the United States - the auto industry is truly cross border and having identical fuel standards makes sense. But there are other areas, electricity generation, for example he said, where they are not the same. The Minister asserted that while Canada's policies would work on an equivalent basis with those of the U.S., they need not be identical. For the time being, the United States has not yet arrived at a domestic policy or target. As a result, it is difficult for "Canada to define continental solutions".

What Canada's policy will ultimately be is important. But what is truly and fundamentally important is making progress - how will we find real solutions for climate change? The answer: Technology. Transformative change will only be able to occur through investments in technology. In his Copenhagen speech, Minister Prentice emphasized this point:

"[T]he challenge before us is all about technology. That just cannot be overemphasized, because we're talking fundamentally about a transformation of the capital stock, the technological investments in our society. This will take time. It will take massive investments...".

"Massive" investments in technology and transformative change have already started. Canada, and Alberta in particular, has already demonstrated it is serious. The Canadian government has pledged $1 billion to carbon capture and storage technologies. The Alberta government another $2 billion.

Perhaps the most unique sources of funding is the Climate Change and Emissions Management Fund.. The $122.4 million from 2007 and 2008 compliance years will be specifically allocated for purposes related to the reduction of emissions or improving the ability to adapt to climate change. With all these investments in transformative technology, we are leading the way.

Introducing the Climate Change and Emissions Management (CCEMC) Corporation

Alberta Environment announced today that the Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") will manage and administer the Climate Change and Emissions Management Fund. The CCEMC is a not-for-profit corporation which is arm's length and independent from government.

Alberta is one of the few jurisdictions in North America with a functional climate change regulatory system. In enacting the Climate Change and Emissions Management Act (the "Act"), Alberta was first in North American to pass climate change legislation requiring industry to reduce emissions below a set threshold.

Large emitters have three compliance options under the Act:

1. Make facility improvements to reduce emissions below the required threshold

2. Purchase Alberta-based carbon offset credits; or

3. Pay $15 for every tonne over target into the Fund.

The Climate Change and Emissions Management Fund (the "Fund"), which is established under the Act, is a critical element of Alberta's long term Climate Change Strategy to achieve provincial and national greenhouse gas reductions targets. Its unique characteristic as a compliance mechanism under targeted climate change legislation makes it singular in the world. Monies flowing into the Fund are segregated and targeted specifically to addressing climate change.

Under the Alberta model, the Ministry of Environment collects monies paid into the Fund from specified emitters. These monies do not form part of the General Revenue of the Province of Alberta and cannot be diverted for other objects. Rather, these may only be used to satisfy the purposes of the Fund set out in the Act.

The Act provides that the Fund may only be used for purposes related to reducing emissions of specified gases or contributing to Alberta's ability to adapt to climate change. The CCEMC is aligned with the purposes of the Fund set forth in the Act. The Minister of Environment will maintain responsibility for receiving payments from industry and transferring the dollars to the CCEMC. The CCEMC will invest money collected from industry into initiatives and projects that support technologies to reduce greenhouse gas emissions and improve the ability to adapt to climate change.

It is expected that the CCEMC will begin accepting funding proposals in the second half of fiscal 2009/2010. Eric Newell has been named as the Chair of the CCEMC - Mr. Newell is the recipient of the Order of Canada and has extensive experience in industry.

Robert A. Seidel, Q.C., who is the National Managing Partner of Davis LLP and Jennifer Cleall are legal advisors to the Climate Change and Emissions Management (CCEMC) Corporation.

New Legislation Under Alberta's Climate Change Regulatory Framework

Further to yesterday's blog announcing that the Climate Change and Emissions Management (CCEMC) Corporation would be administering the Climate Change and Emissions Management Fund, the Alberta Government has also passed the Climate Change and Emissions Management Fund Administration Regulation, AR 120/2009.

The Regulation is passed pursuant to the Climate Change and Emissions Management Act , which permits the Lieutenant Governor in Council to make regulations "respecting the establishment or designation of delegated authorities (s. 60(1)(u) and "respecting the delegation to one or more delegated authorities of the performance of any of the Minister's duties or functions, or the exercise of any of the Minister's powers, under this Act or the regulations, other than a power to make regulations and a power to delegate" (s. 60(1)(v)(ii)).

Section 1 of the Regulation designates the CCEMC as a delegated authority. Section 3 of the Regulation delegates the "performance of the Minister's duties and functions and the exercise of the Minister's powers in respect of holding, administering and making payments of the money paid to the Corporation from the Fund under section 4(1) to the CCEMC. The Regulation also permits the Minister to pay all or some of the Fund to the CCEMC and states that the money paid to the CCEMC from the Fund "belongs to the Corporation" (s. 4(2)).

Other provisions of the Regulation address reporting requirements, compliance with FOIPP and the inspection and audit abilities of the crown.

Robert A. Seidel, Q.C., who is National Managing Partner of Davis LLP and Jennifer Cleall are legal advisors to the CCEMC.