Clean Innovation II: Applying Policy Tools to AccelerateClean Tech / Clean Innovation

North American Climate Policy ForumUniversity of Ottawa

June 22, 2016

Presentation by Brent Lakeman

Executive Director, Technology Partnerships and InvestmentsScience & Innovation Division

Alberta Economic Development and Trade

Alberta’s New Ministry of Economic Development and Trade

• Focus on building a “resilient, robust and dynamic economy for all Albertans”.

• Develop and implement economic development strategies and policies.

• Foster sustainable growth, support small and medium‐sized enterprises, enhance market access to attract trade and foreign investment.

• Leverage science and technology to make Alberta a world‐leading knowledge economy.

What Have We Already Done? Recapitalized Alberta Enterprise Corporation by $50 million

Partnered with ATB Financial and Business Development Bank of Canada to facilitate access to capital

$5 million in new funding to enhance Alberta Innovates Voucher Program

$500 million Petrochemical Diversification Program

$10 million for Commercialization Accelerators and Incubators

A New $5 million Small Business Innovation and Research Initiative (ASBIRI)

OF ESTIMATED

GHG REDUCTIONSBY 202011.8

MEGATONNES

$349.8 IN FUNDINGDEDICATED BY THE

Climate Change and Emissions Management Corporation (CCEMC)

$2.2 BILLIONTOTAL VALUE IN PROJECTS

YEARS INOPERATION6

MILLION RECEIVED$425.5

CLEANTECHNOLOGYPROJECTS APPROVED

109

ROUNDSOFFUNDING

10 FUNDED PROJECTSHAVE REACHEDCOMPLETION

13

TO FIND INNOVATIVEUSES FOR

$35MILLION

GRAND CHALLENGE

CO2

6 CLEANTECHNOLOGYFUNDING AREAS

1. CARBON CAPTURE ANDSTORAGE

2. ENERGY EFFICIENCY3. GREENING FOSSIL FUELS4. RENEWABLE ENERGY5. CARBON USES6. BIOLOGICAL

Looking back – 12 months of Climate Leadership

• June 2015 ‐ Renewed climate change regulations, increasing the carbon price and reduction requirements

• August 2015 ‐ Launched Climate Change Advisory Panel engagement with public, stakeholders and Indigenous peoples

• November 2015 ‐ Climate Leadership Planreleased 

• May 2016 – Bill 20 Climate Implementation Leadership Act

• June 2016 – Energy Efficiency Panel launched engaging and advising on EE Agency and programs 

2007 -2015

$15/t12%

2016$20/t15%

2017$30/t20%

Alberta Research and Innovation Framework

6

Alberta’s Priority Innovation Sectors

DRAFT – FOR DISCUSSION ONLY – NOT FOR DISTRIBUTION

Energy Environment Health Fiber Food

Information and Communication Technologies, Nano, Omics – platform technologies 

2030 Innovation Targets

Partners, Roles and Relationships in Alberta

Technology Commercialization PartnersPriority Innovation Sectors

Alberta’s Innovation System

Clean Technology

Nanotechnology

Industrial Biotechnology

Forestry

Life Sciences

ICT and Geomatics

Oil & GasRenewables

Manufacturing Agriculture

Alberta Climate Change Leadership PlanPriority Initiatives

Coal Phase Out Renewable Energy Carbon Pricing Consumer 

Rebates

Small Business Rebates

Energy Efficiency

Micro‐generation

Carbon Fund Management

Innovation and Technology Framework

Oil Sands Emissions Limit

Performance Standards Bioenergy

Methane Climate Change Action Plan

Innovation and Technology Framework

Alberta Climate Leadership

11

Budget 2016 Highlights

2018-19 2019-202016-17 2017-18

Large Final Emitters

carbon price of $20/tonne

Bioenergy and Renewables ($3.4B)

Projects that target emission reduction and diversification

2020-21

Large Final Emitters carbon price of $30/tonne

Carbon levy of $20/tonne

$9.6 billion gross revenue reinvested

Transition to a lower-carbon economy

$6.2 billion

$3.4 billion

Green Infrastructure and Public Transit ($2.2B)

Energy Efficiency Alberta ($645M)

Consumer Rebates SME Business Tax Reduction

Community Transition Programs

Carbon Pricing

Carbon levy on transportation and heating fuels of $30/tonne

Strategic Technology Partnerships

13

Alberta Technology

Industry

Global Technology

Leaders

Alberta Research and Technology Assets

Alberta Innovation System

Small Medium EnterprisesMultinational Enterprises

Alberta’s Technology Partnerships 

Alberta-Ontario Innovation ProgramCCEMC-OCE Partnership

Alberta-Zhejiang Global Partnership Program

Alberta-Jalisco Innovation & Commercialization Program

Alberta-France Collaboration Fund

Alberta-Germany Collaboration Fund

Alberta-UK Low Carbon Innovation &Growth Framework

Alberta-SDTC Partnerships

Enhancing Commercialization Support in Alberta

Build on Regional Innovation Networks model and improve entrepreneurs’ linkages to innovation resources

Leverage relationships/foster a collaborative culture to support innovative product/service development and industry growth

Actively engage to promote commercialization opportunities

Facilitate information exchange among innovation system stakeholders and industry

Support “system wide” commercialization initiatives

Role of Government

• Drive optimal system performance for accelerated economic and social outcomes. Best client centric supports and services possible 

• Incent collaboration and alignment among stakeholders for an effective and efficient innovation system

• Provide system oversight to ensure accountability and overall system alignment with GOA mandate

• Enabling mechanisms:– Facilitation, roadblocks removal and conflict resolution– Policy development and implementation– Program development and funding allocation– Partnership facilitation with MNEs and International Jurisdictions

Thank You!

Contact:Brent LakemanExecutive Director, Technology Partnerships and InvestmentsAlberta Economic Development and Trade

Phone: 780 643‐6511E‐mail: brent.lakeman@gov.ab.ca

Climate Leadership Plan (November 2015)

Alberta released its Climate Leadership Plan focusing on • Carbon Pricing • Electricity •Oil Sands •Methane 

Climate Leadership Plan: Key Initiatives

Implementing a new carbon price• places an economy‐wide price on greenhouse gas emissions• New approach will generate funding that will be fully recycled back into the economy 

Phasing out emissions from coal‐generated electricity• by 2030 and replacing that capacity with electricity produced by renewable sources and natural gas

Climate Leadership Plan: Key Initiatives

Legislated oil sands limit • Limit of 100 megatonnes (Mt) emissions per year• Drives development and implementation of new technology

Implementing a new methane emission reduction strategy• the goal of reducing methane emissions by 45 per cent from 2014 levels by 2025

Bill 20Climate Leadership Implementation Act 

Proposed legislation that: 1. Provides authority to implement the carbon levy, outline 

carbon price and create the administrative framework (including consumer rebates and exemptions)

2. Proposes new Crown agency, called Energy Efficiency Alberta, tasked with delivering energy efficiency and community energy system programs

3. Enables government to use carbon revenue collected by the CCEMF for a broader range of climate related purposes.

Climate Leadership PlanBudget 2016

Over next five years, carbon levy is expected to raise $9.6 billion, all of which will be reinvested in the economy and rebated to Albertans• $6.2 billion will help diversify our energy industry and create new jobs: 

• $3.4 billion for large scale renewable energy, bioenergy and technology

• $2.2 billion for green infrastructure like transit• $645 million for Energy Efficiency Alberta, a new provincial agency that will support energy efficiency programs and services for homes and businesses

Research Priorities 

2030 Innovation Targets

ImpactsAlbertans will benefit from

new economic opportunities through value-add and advanced technologies

Increased economic benefits to all Albertans

from our natural resources

Alberta will be globally recognized as a leader in

environmental stewardship and action on climate change

Healthy, empowered Albertans will contribute to

the wellness of our province – creating conditions where others can prosper as well

Linking Research Priorities, Outcomes, 2030 Innovation Targets, and Impacts

Outcomes

GOA Strategic Plan & Business PlansAlberta Research & Innovation Framework (ARIF)

2030 Innovation Targets ▪ System Outcomes ▪ Elements for Innovation Success

Economic Dev Sector Strategies(in development)

Research & Innovation  Strategies

Climate Change Innovation and Technology Framework

(in development)

Science Policy(in development)

Platform Tech Strategy

• Cleantech Sector Roadmap

• Innovation contributions to diversification and productivity

• Water R&I Strategy 

• Health R&I Strategy

• ICT

• Nano

• Omics

Alberta Research and Innovation Framework

The Alberta Research and Innovation Framework provides strategic direction required for innovation partners to work

together to generate and apply knowledge that benefits Albertans

Establish desired outcomes for the

research and innovation system

Identify priorities for the research and innovation system and outline 2030

Innovation Targets

Recognize core roles and responsibilities of

stakeholders in the system

Describe the system enablers that support

research and innovation excellence

Climate Change Innovation & Technology Framework

26

Climate Change 

Innovation & Technology Framework

Principles

Outcomes

Roles & Responsibilities

Key Opportunities

(Themes)

Success Factors

Functions

Cleantech Sector Development

27Physical Facilities

Value Chain Integration

Strategy & Management

FundingEmerging

Technologies Industry

Knowledge

Tangible Assets