Section I: Overview

Major resource projects are an important driver of long-term economic growth and job creation for Canada. A federal review process for major resource projects that is timely, predictable, transparent and accountable is critical to the resource sectors’ ability to secure investments for resource development, while maintaining strong environmental protection for Canada. All commitments that support this priority have been completed.

Key achievements for this priority in 2011-12

• Through the Major Projects Management Office¹⁷ advanced the development of a suite of legislative, regulatory and policy measures aimed at delivering predictable and timely project reviews, reduced duplication, strengthened environmental protection and enhanced Aboriginal consultations for major project reviews. These measures are a key part of the Government’s plan for Responsible Resource Development ¹⁸, announced in Budget 2012, and modernization of Canada’s regulatory system.
  
• Provided overall management of the federal regulatory review process for 74 major resource projects, which represented approximately $185 billion of potential new investment in Canada. This included several high-profile projects such as theNorthern Gateway Pipeline¹⁹, New Prosperity Gold-Copper Mine²⁰, Pierre River Oil Sands Minet²¹, and Lower Churchill Hydroelectric Generation²².
  
• Developed project agreements (PAs) for all MPMO projects undergoing a federal regulatory review to ensure timely, integrated and well-coordinated environmental assessments and regulatory decision-making, including standards related to Aboriginal consultation responsibilities. Project agreement timelines were reduced by 50%, to 23 weeks, compared to 2008-09.
  
• Maintained robust tracking, monitoring, reporting and issue resolution mechanisms on MPMO projects to ensure target timelines and service standards were maintained, which resulted in exceeding the service standard of completing 80% of reviews within 8 weeks of their target timelines. Overall, project reviews have been reduced, on average, from 4 years to 22 months.
  
• Worked collaboratively with Aboriginal Affairs and Northern Development Canada, to support the development of a suite of policy proposals designed to improve northern regulatory regimes and align policy approaches both North and South of the 60th parallel.
  
• Completed a horizontal evaluation²³ of the Major Projects Management Office Initiative with partner departments and agencies in March 2012. The extensive evaluation found that there was a continued need for the central coordination function performed by the MPMO. The 8 recommendations from the process will be addressed by all implicated departments based on the developed action plan.

The current and future competitiveness of Canada’s natural resource sectors is dependent on their ability to access markets, increase investments and develop innovative products and processes. Competitive sectors mean jobs and growth in Canada. All commitments that support this priority have been completed.

Several forest-related initiatives received funding in Budget 2011. These initiatives (i.e., Transformative Technologies Program²⁴.(TTP), the Value to Wood Program²⁵ (VWP), the Canada Wood Export Program²⁶ (CWEP), and the North American Wood First Initiative²⁷ (NAWFI)) encourage a competitive forest sector in Canada by supporting forest product innovation to transition away from volume-based commodities towards a more diversified, higher-value product mix as well as encourage market diversification.^* Work also included the promotion of Canada’s leadership in sustainable forest management in both international and domestic markets.

Commitments related to earth sciences and minerals and metals were also met in 2011-12. These included the signing of collaboration agreements with academia and industry as part of the Targeted Geoscience Initiative 4²⁸. (TGI-4) and the completion and publishing of a number of reports and web products, including through the Green Mining Initiative²⁹.

Key achievements for this priority in 2011-12

• Contributed in 2011 to a 73.9% increase in wood exports to China (valued at $1.45 billion) and a 39.9% increase in exports to Korea (valued at $202 million) through the Canada Wood Export Program.
  
• Influenced the choice of wood in more than 350 non-residential building projects through the North American Wood First Initiative. This represented $130 million in wood sales for Canada’s wood products sector.
  
• Provided more than 20 science-based information products, through the Leadership for Environmental Advantage in Forestry Initiative, to forest sector stakeholders (e.g., Canadian wood product producers and related industry associations) that address key environmental reputation and market acceptance issues both domestically and internationally.
  
• Signed 8 collaborative agreements with academia and industry partners, as part of the Targeted Geoscience Initiative 4, which generated new geoscience knowledge in support of mineral exploration.
  
• Delivered more than 50 presentations on geophysical, geochemical and geological results based on TGI-4 results at provincial and territorial open houses and at international conferences (e.g., the Cordilleran Roundup in Vancouver and Prospectors and Developers Convention in Toronto). These presentations highlighted new ore system knowledge and tools developed by TGI-4.
  
• Completed and published a report entitled Taxation of Mineral Income 2012 – How Canada Compares³⁰ , which was tabled at the Energy and Mines Ministers Conference 2011 and uploaded to the NRCan website in June. NRCan also published a series of timely and topical web products including Canada’s Positive Investment Climate for Mineral Capital³¹ (October 2011), The Geographic Distribution of Canada’s Mining Assets³² (January 2012), and Canadian Mineral Exploration and Deposit Appraisal³³ (February 2012) bulletins, effectively replacing the Overview of Trends in Canadian Mineral Exploration publication.
  
• Advanced green mining innovation in areas ranging from deep mining risk reduction to innovative technologies for mine worker safety. Through the Green Mining Initiative, 123 R&D publications on environmental technologies, including technical reports, cost recovery reports, presentations and journal publications were published; 20 projects were completed with industry and government stakeholders on green mining; and 16 projects were completed on ground control, safe mining or innovative projects.

Energy is a significant segment of the economy and Canada’s leading export. NRCan supports a clean energy transition by delivering programs that encourage the adoption of energy-efficient and renewable and alternative energy products and processes by consumers and industries as well as the development of new clean energy technologies. NRCan’s clean energy programming (ecoENERGY³⁴ programs) was renewed in Budget 2011.

Key achievements for this priority in 2011-12

• Improved energy efficiency in Canada, through the renewed ecoENERGY Efficiency³⁵ and ecoENERGY for Retrofit – Homes³⁶ programs, which resulted in energy savings in 2011-12 of 5 Petajoules and more than 4 Petajoules respectively.
  
• Established and maintained a number of partnerships with industry and provincial stakeholders through contracts and contribution agreements to cost-share clean-energy technology projects. This included:
  • Co-funding five teams through the Equilibrium Communities Initiative³⁷ with Canada Mortgage and Housing Corporation to improve community-scale designs and planning, through reductions in energy demand, the use of waste heat and water reductions.
  • Collaborating with the University of Waterloo and leading industrial partners (Cosma and Meridian) to design, build and test a lightweight structure for vehicles to promote energy fuel efficiency and test safety.
  • Developing a biomass gasification-based burner that meets the majority of specified industrial process requirements. The next phase will focus on detailed feasibility analysis and testing with two Canadian iron ore company partners.
  • Collaborating with other government departments and international partners to develop materials for the next generation nuclear reactor systems (GEN IV). This led to the development of new material for cleaner high-temperature energy systems.
  • Completing, as part of the contribution agreement with TransAlta Corporation, Front End Engineering and Design (FEED) studies, a proposed integrated carbon capture and storage project in the area of coal fired electricity. The results of the FEED studies add to the knowledge base for regulatory development and technology application as it pertains to carbon capture and storage in the coal-fired electricity sector.
    
• Monitored current and new projects related to clean energy science and technology, as well as geoscience, and ensuring results were achieved, including through:
  • Signing a contribution agreement with SaskPower to reduce the cost and increase the efficiency of carbon capture and storage for applications in coal-fired electricity.
  • Making significant progress toward completion of the Best Practices Manual under the International Energy Agency GHG Weyburn-Midale CO2 Monitoring and Storage Project. Once complete, it will provide practical protocols for the design, implementation, monitoring, and verification of CO2 geological storage projects as well as effective public consultation and outreach processes.
  • Publishing a report with industry and academia titled Geothermal Energy Resource Potential of Canada³⁸ on the potential of geothermal energy.
  • Developing the Marine Renewable Energy Technology Roadmap³⁹, unveiled at the 2011 Ocean Renewable Energy Group annual conference, which has successfully brought together key stakeholders to develop a vision and strategy for Canada’s marine renewable energy sector.
    
• Enabled the Pulp and Paper Green Transformation Program⁴⁰ to exceed its targets for renewable energy production and energy efficiency improvements by signing contribution agreements for an additional 21 projects. In total, this program funds 98 projects at 43 mills across Canada and is expected to add nearly 200 MW of capacity to generate renewable electricity and save 8.5 GJ million of energy annually.

Nuclear energy plays a critical role in Canada’s energy mix. Managing nuclear issues is based on established policy objectives, involving meeting Canada's energy and environmental needs safely, economically and reliably, reducing costs and risks for taxpayers, while maximizing returns on Canada's investments in nuclear, and positioning Canada's nuclear industry to seize domestic and global opportunities.

Key achievements for this priority in 2011-12

• Continued to implement the restructuring of Atomic Energy of Canada Limited (AECL) to reduce taxpayers' exposure to commercial risks and costs while positioning Canada's nuclear industry to take maximum advantage of domestic and international opportunities. This included:
  • Completing the divestiture of AECL’s CANDU Reactor Division in October 2011. Through the sale to Candu Energy Inc., a wholly owned subsidiary of SNC-Lavalin, the Government of Canada delivered on its objectives to achieve the best deal possible for AECL’s commercial arm, its employees, the nuclear industry and Canadians.
  • Making progress towards the restructuring of AECL’s Nuclear Laboratories.
    
• Supported the development of non-reactor-based technologies for the production of medical isotopes through the Non-reactor-based Isotope Supply Contribution Program (NISP). More than 30 partnerships were financed through the NISP and the program resulted in alternative technologies moving closer to commercialization.^*
  
• Met 17 milestones for the Nuclear Legacy Liabilities Program⁴¹ (NLLP), two of which were ahead of schedule. Two facilities related to this project were completed, which will improve the management and storage of degraded spent fuel and low-level radioactive waste. Three decommissioned buildings will allow for the shut-down of another facility by March 2014.
  
• Received $1.28 billion in funding and approvals for the implementation phase for the Port Hope Area Initiative⁴² (PHAI). This phase involves the clean-up of historic radioactive wastes through the construction of new waste management facilities and the transfer and transportation of wastes to these facilities. It will be carried out through two projects, the Port Hope Project, for which the first three implementation stages have been approved, and the Port Granby Project, for which implementation has been fully approved and licensed.

The development of Canada’s North will allow Canadians to realize the vast potential of this region, ensuring prosperity and job creation for Northern communities and strengthening Canada’s sovereignty while creating a sustainable resource future for generations of Canadians.

Key achievements for this priority in 2011-12

• Worked with Aboriginal Affairs and Northern Development Canada and the Canadian Northern Economic Development Agency (CanNor) in support of the Government of Canada's Northern Strategy to develop mineral resource development blueprints (MRDBs). MRDBs are regional action plans, produced through a robust multi-stakeholder dialogue process, that identify how to overcome barriers to development, manage environmental and social risks, and help communities to seize opportunities. This work is supported through a geospatial platform tool and the federal-provincial-territorial Advanced Minerals Projects Inventory (AMPI).
  
• Conducted high-resolution geophysical surveys to fill knowledge gaps and provide governments, communities and industry with fundamental geoscience required to make strategic investment decisions in new energy and mineral resources in the North through NRCan’s Geo-mapping for Energy and Minerals⁴³ (GEM) program; released 4 geophysical compilations, 27 bedrock geology maps, and geochemical data from 3 areas in Nunavut and 1 in British Columbia. In addition, 6 airborne surveys were conducted.
  
• Met annual obligations for land claim surveys, including the survey of 97 kilometres of boundary for the Tlicho Land Claim and 427 kilometres of boundaries for 14 parcels pursuant to the Yukon Land Claims Agreement.
  
• Worked towards meeting NRCan’s December 2013 deadline for the United Nations Convention on the Law of the Sea (UNCLOS) program. The coordinates in the Atlantic are being reviewed and those in the Arctic are in progress.
  
• Completed topographic mapping of Canada at the 1:50,000 scale through compiling 520 new maps and 92 revisited maps covering parts of Northwest Territories and Nunavut.
  
• Partnered with the Northern Projects Management Office, through MPMO, to improve the consistency of project management approaches both North and South of 60.

Timely and cost-effective internal services are critical to support the performance of the overall organization.

Key achievements for this priority in 2011-12

• Implemented a new governance structure with clear accountabilities to support thorough planning and reporting. As well, NRCan implemented a Science and Technology (S&T) Board, which includes external advisors, to ensure oversight and implementation of the department’s S&T Strategy.
  
• Implemented a renewed Program Activity Architecture, Performance Measurement Framework, and Integrated Risk Management Policy Framework supported by the Corporate Risk Profile.
  
• Supported the improvement of business processes for financial, materiel and project management through implementation of a new financial system (SAP) in partnership with Agriculture and Agri-Food Canada.
  
• Ensured strategic recruitment efforts in 2011-12, given the current and forecasted budgetary context. Based on rigorous staffing plans, recruitment was targeted to highly specialized professionals to address immediate capacity gaps.
  
• Implemented a talent management approach for all employees with a focus on strengthening the department’s Employee Performance Management Program.
  
• Developed NRCan’s Values and Ethics Code, launched in April 2012 in conjunction with the release of the new federal Values and Ethics Code for the Public Service⁴⁴ .
  
• Continued to implement the 2011-14 Official Languages Action Plan through designating sector champions, reminding employees of their rights and responsibilities, and offering tools and resources within NRCan to support compliance with the Official Languages Act⁴⁵. The 2012-15 Employment Equity Action Plan was also approved and is being implemented by incorporating an employment equity lens in various HR management approaches and planning processes.
  
• Implemented a re-engineered Access to Information⁴⁶ process to ensure timely and continuous review of active requests and, if necessary, to resolve delays to ensure processing time commitments are met; 97% of NRCan’s Access to Information requests were completed on time in 2011-12.
  
• Contributed to the government’s efforts to return to a balanced budget by identifying cost-saving and business transformation measures.

Canada’s ranking relative to other countries has improved slightly from the 2006 to 2010 period with respect to wood, wood products and paper (the most recent year for which data are available). With respect to minerals, Canada’s ranking relative to other countries has decreased somewhat.

Energy exports grew by 19.7% in 2011 from 2010 to $109.5 billion, or 26.1% of total merchandise trade. Mineral and metal processing industries in Canada grew their exports by 20% between 2010 and 2011, accounting for 23% of merchandise exports. Minerals and metals were Canada’s leading export to China, making up more than a third of exports to that country. The United States remains Canada’s most important trade partner, particularly in energy and forest-related products. China is now Canada’s second most important trading partner.

The Trade Performance Index (TPI) is defined and reported by the International Trade Centre (ITC) of UNCTAD/WTO. The ITC recently revised its methodology resulting in changes to previously reported rankings.

[Text Version - Canada's Greenhouse gas emissions]

Based on the most recent National Inventory Report 1990-2010: Greenhouse Gas Sources and Sinks in Canada⁵⁴ Canada’s greenhouse gas (GHG) emissions decreased by 6.5% (48 Mt from 2005 to 2010). The largest emissions reductions came from electricity and heat generation, which dropped by 22 Mt, and from manufacturing, which decreased by 17 Mt (driven by the economic downturn), accounting for 35% and 46% of the overall decline, respectively.

The decline in emissions from electricity and heat generation is primarily the result of a reduction of electricity and heat generation from coal and oil, as well as improved energy efficiency. Electricity production from renewable sources is increasing, including the contribution from wind, tidal and solar sources.

GHG emissions from fossil fuel industries (oil, gas and coal) decreased about 5.5 Mt between 2005 and 2010, primarily due to a 17% decrease in natural gas production and an ongoing trend of declining production of conventional light and heavy crude oil. GHG emissions from the oil sands increased by 16 Mt from 2005 to 2010 due to an increase in production. However, since 1990, the industry has reduced its emissions per barrel of oil produced by 26%.

[Text Version]

Canada has 397.3 million hectares of forest and other wooded land, representing 40% of the country’s total area⁵⁶ and 10% of the global forest cover⁵⁷. It is harvesting timber in a sustainable manner, below the Allowable Annual Cut. Sustainable forest management is a continuous process in which forest management practices and policies evolve in response to scientific advances and public participation. Underpinning sustainable forest management is the objective of meeting society’s need for forest products, while at the same time protecting forest health and the environmental and social values derived from Canada’s forests⁵⁸.

From 1990 until 2010, timber harvests in Canada were between 86% and 48% of the estimated supply of wood deemed sustainable for harvest. Canada’s wood supply has remained relatively stable since 1990 at an average of 242 million cubic metres. The total harvest volume reached a peak of 208 million cubic metres in 2004 and declined to a low of 117 million cubic metres in 2009, the smallest harvest since 1990.

The overall decline since 2004 in harvest is the result of economic factors, such as reduced demand for Canadian lumber because of the slowdown in the United States housing market, and reduced global demand for Canadian pulp and paper products.

[Text Version]

From 2006-07 to 2011-12, NRCan consistently exceeded its 90% target for timeliness and accessibility of landmass and natural hazard system data, as indicators of the quality of its data and knowledge sharing. The provision of this information helps other levels of government, international government bodies, the private sector and professional organizations to prepare for and mitigate natural disasters and make decisions for the effective management of Canada’s natural resources and lands.