Section I: Organizational Overview

If Canada’s actions to meet international climate change commitments are insufficient and if Canada fails to keep pace in adapting to climate change, then the competitiveness of Canada’s natural resource sectors could be threatened.

In 2015-16, NRCan’s risk response included:

• Engaging with provinces and territories to advance the pan-Canadian Framework on Clean Growth and Climate Change and the Canadian Energy Strategy, to support the transition towards a lower carbon future and ensure Canada is a global leader in the sustainable development and the use of the full range of its energy assets; and
• Increasing collaboration with the U.S. and Mexico by signing the Memorandum of Understanding (MOU) on Climate Change and Energy Collaboration, which not only addresses climate change and clean energy innovation, but also creates new business opportunities for Canadian energy technologies, products and services.

Budget 2016 also provided funding for electric transportation infrastructure and demonstrations of clean technologies while earmarking over $1 billion for the development of a clean technology strategy including for natural resource sectors.

Canada’s Natural Resource Sectors are Globally Competitive

Natural Resource Sectors and Consumers are Environmentally Responsible

If Canada fails to respond to changing market dynamics such as shifting energy demand to new markets and declining demand from the U.S. or fails to maintain an appropriate investment climate, then energy resource sectors may lose opportunities.

In 2015-16, NRCan’s risk response included:

• Promoting international partnerships through bilateral and multilateral engagement at G7 and G20 meetings to position Canada as the partner of choice for trade and investment in key markets, increasing Canada’s stature and credibility and creating opportunities for Canadian industry;
• Joining Mission Innovation, a global initiative of 20 countries and the European Union (EU), to take action to push clean energy research, development and demonstration, driving transformative clean energy solutions for the future;
• Strengthening partnerships with the U.S. and Mexico on key North American energy priorities through the successful signing of the Canada-U.S.-Mexico MOU on Climate Change and Energy Collaboration;
• Building on partnerships with provinces and territories to identify and advance areas for collaboration including the Canadian Energy Strategy;
• Updating the legislative and regulatory regime for oil and gas development including:
  • Supporting Environment and Climate Change Canada (ECCC) as it undertakes its review of the federal environmental assessment process;
  • Leading the modernization of the NEB;
  • Implementing measures to ensure that decision-making processes for federally-regulated pipeline projects which have already been initiated are inclusive and demonstrate effective use of evidence from consultations and public engagement; and
• Collaborating and engaging with Northerners and their institutions to maximize benefits for Northerners from NRCan’s Geo-Mapping for Energy and Minerals program.

Funding was announced in Budget 2016 to:

• Demonstrate electric vehicle charging infrastructure ($46.1 million over two years);
• Demonstrate renewable energy, energy storage and clean transportation technologies to reduce diesel ($82.5 million over two years);
• Demonstrate energy-efficient steam generation technologies to reduce emissions and water use in unconventional oil and gas operations ($50 million over two years); and
• Develop, with StatsCan and Innovation, Science and Economic Development Canada (ISED), core metrics for the clean energy sector and its impact ($2.1 million over two years).

Budget 2016 also earmarked over $1 billion over four years, starting in 2017-18 to support clean technology including in the natural resource sector.

Canada’s Natural Resource Sectors are Globally Competitive

Natural Resource Sectors and Consumers are Environmentally Responsible

If Canada does not have sufficient safeguards in the event of a natural or human-driven incident, then it may negatively impact Canadians, the security of Canada’s natural resource infrastructure and Canada’s overall economy.

In 2015-16, NRCan’s risk response included:

• Providing advice and information (e.g., seismic hazard models) to inform the 2015-2020 update of National Building Code of Canada;
• The coming into force of the Pipeline Safety Act, which strengthens Canada’s pipeline safety system based on prevention, preparedness and response, liability and compensation;
• Securing support through Budget 2016 to build the science base (e.g., information, tools) to support climate change adaptation and resilient infrastructure;
• Continuing support for a major 5-year refresh of the technology underlying the National Earthquake monitoring infrastructure;
• Conducting annual offshore emergency preparedness incident simulations in conjunction with provinces, boards and other government departments;
• Providing new climate change geoscience data and developing a preliminary coastal erosion model to support the construction and security of critical infrastructure in northern Canada;
• Disseminating notifications for all earthquakes within Canada larger than magnitude 4.0, within four minutes or less from the time of sufficient data availability, to emergency management organizations, critical infrastructure operators, media outlets, and the public through web sites and social media; and
• Collaborating with and providing geohazards information, knowledge products and services to governments, the private sector, media and non-governmental organizations.

Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks

NRCan will work with the provinces and territories on the Canadian Energy Strategy, to support the transition towards a lower carbon future and to ensure Canada is positioned as a global leader in the sustainable development and use of the full range of its energy assets.

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The Government of Canada has made a commitment to work with the provinces and territories to advance joint actions to support Canada's transition towards a lower carbon future.

In March 2016, First Ministers tasked federal, provincial and territorial Energy Ministers to collaborate on specific actions undertaken through the Canadian Energy Strategy – energy efficiency, clean energy technology and innovation, and delivering energy to people – and to report back on progress in fall 2016.

NRCan has also worked with provinces and territories to develop technical reports, including on areas such as Adaptation, the Built Environment, Electricity Generation and Transmission, and Agriculture and Forestry, which will support key objectives of both the Canadian Energy Strategy and the Pan-Canadian Framework on Clean Growth and Climate Change.

NRCan, in collaboration with partners, will develop a strategy for investing in clean technology across Canada. This will include engaging nationally to develop measures to support clean technology producers and clean technology development and use in the natural resource sectors. It will also include implementing Mission Innovation commitments, a new global initiative aimed at accelerating clean energy technology innovation over the next five years to address climate change, provide affordable and reliable clean energy, and promote economic growth.

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In November 2015, Prime Minister Trudeau announced Canada’s participation in Mission Innovation, a global initiative of 20 countries and the EU, working together to accelerate clean energy innovation. Canada agreed to double federal investments in clean technology innovation over five years, promote greater private sector investment in early stage clean technology development in Canada and increase collaborative efforts with key domestic and international partners.

NRCan, in collaboration with ISED, Agriculture and Agri-Food Canada (AAFC) and the Department of Fisheries and Oceans (DFO), is developing a whole-of-government strategy to advance clean technology, including in the natural resource sectors. This strategy is being informed by comprehensive engagement including ten ministerial roundtables and outreach to more than 300 stakeholders since late 2015. It will identify priorities for the Budget 2016 commitment to invest over $1 billion over 4 years in clean technology, including in the natural resource sectors, as well as maximize the range of federal clean technology policy and program instruments.

Budget 2016 announced funding for programs to improve energy efficiency and to reduce the environmental impacts of energy production and use while increasing productivity and competitiveness.  NRCan led the design on these programs including new energy research, development and demonstration (RD&D) programming for the deployment of electric vehicle infrastructure, clean energy technology, cleaner oil and gas technologies, and improved data on the clean technology sector.

Under the leadership of ECCC, NRCan is working with federal partners to review and restore confidence in Canada’s environmental assessment processes by ensuring that views from the public being sought and considered, and that decisions are based on science, traditional knowledge of Indigenous peoples and other relevant evidence.

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In January 2016, NRCan, together with ECCC, developed an Interim Strategy comprised of five principles to guide federal decision-making on major natural resource projects while the Government undertakes a review of the federal environmental assessment process.

For two significant projects under NEB review, the Trans Mountain Expansion Project and the Energy East Pipeline, interim measures were implemented to ensure consistency with the five principles including:

• Enhanced consultation with Indigenous peoples, maximizing consultation time through a multiple team approach, and identifying and providing concrete accommodations to Indigenous groups, where appropriate; and
• The announcement of a panel to increase engagement with local communities and Indigenous peoples on their views of the proposed Trans Mountain Expansion Project.

The principles and specific measures for pipeline reviews (e.g., time limit extensions that create space for deeper consultations with Indigenous peoples), are key first steps in delivering the Government’s commitment to review and restore public confidence in the federal environmental assessment processes.

NRCan established a governance structure to coordinate mandated reviews related to environmental assessments between the Canadian Environmental Assessment Agency (CEAA), Fisheries and Oceans Canada (DFO), and Transport Canada (TC).

NRCan also contributed advice to ECCC on the application of GHG emissions targets to non-energy projects, such as mining.

NRCan will take steps to modernize the NEB, to ensure that its composition reflects regional views and that it has sufficient expertise in fields such as environmental science, community development, and Indigenous traditional knowledge.

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NRCan is leading a review of the NEB’s structure, role and mandate, to position the NEB as a modern, efficient, and effective energy regulator. To commence the review, in 2015-16 NRCan:

• Engaged with stakeholders, including industry, academia, and Indigenous groups, to hear their views on what would help restore the trust of Canadians in their energy regulatory system and how to improve the quality of Indigenous engagement;
• Established working groups with CEAA, DFO, and TC to align its efforts with other mandated reviews of regulatory agencies;
• Implemented an Interim Strategy comprised of five principles to guide decision-making on major natural resource projects while the Government undertakes a review of environmental assessment processes;
• Facilitated the coming into force of the Pipeline Safety Act; and
• Developed a new process for appointing NEB temporary board members.

NRCan will work in partnership with the U.S. and Mexico with the objective of strengthening and advancing continental clean energy cooperation in support of an ambitious North American clean energy and environment agreement.

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In February 2016, Minister Carr and his counterparts from Mexico and the U.S. met in Winnipeg, Manitoba, for the North American Energy Ministers Meeting. The energy leaders signed a MOU on Climate Change and Energy Collaboration, which expanded and deepened the energy relationship between the three countries.

Under the MOU, 18 projects are at various stages of implementation across the four broad themes of energy data, clean energy, infrastructure and Mission Innovation. Examples of projects include:

• Developing comparative federal measures to reduce methane emissions;
• Designing technology roadmaps;
• Conducting infrastructure resilience workshops;
• Launching a tri-lateral renewable energy integration study; and
• Aligning regulation on energy efficiency.

The MOU has increased collaboration and information-sharing on key areas such as low-carbon electricity, clean technologies, energy efficiency, carbon capture and storage, climate change adaptation, and reducing emissions from the oil and gas sector (including methane).

Trilateral cooperation has contributed directly to the successful statement announced by Leaders’ on continental clean energy and environmental collaboration in June 2016.

Results from early collaboration are now being analyzed to determine next steps to continue to advance North American Energy Cooperation.