I’m collaborating with a prominent Canadian University which calls for me to research what I call the macro energy sector. This is the holistic picture of the Canada’s energy industry, inclusive of upstream and downstream components, transmission, the energy mix and its challenges.

This is important for Canadian current affairs because of the Cap & Trade program that recently moved to auctioning. It means the Government is determining who has to participate, price per GHG tonne, deadlines etc. They can calculate total GHG reduction after that. That program will be linked to the California-Quebec Auction System and has generated just over $500 Million. That’s excellent but let examine its drawbacks?

Large Sectors

The industrial sector is large and integral to Canada’s economy. Cap & Trade poses a challenge in reducing GHG as it warrants major redesign and some disrupting of “normal” life. Think of the car you drive and think what an engine retrofit would mean for you (cost, time, logisitcs wise). We need to overcome these and similar challenges in the road to emitting less GHG.

Existing Operations

Fossil fuel production is Canada’s largest GHG contributor which excludes consumption. However, fossil fuels account for 43% of all energy generated within Canada and 27% of Canada’s GHG load.

Implementation

There’re challenges in implementing the program, but a number of Provinces, States, and Countries have valuable experience and can guide Ontario. A cleaner future means manufacturers will pass extra costs to the consumer but we must pay for something in life. It just so happens that it’s clean air.

Marcus