Vermont Business Magazine The Province of Québec on Monday announced an aggressive plan to further electrify the economy and thus reduce greenhouse gases. The goals are to reduce GHG emissions by 37.5 percent of 1990 levels by 2030 and to be carbon neutral by 2050. Like Québec, Vermont has struggled to meet its own GHG reduction goals, but Québec is starting from a stronger position. PQ right now has the lowest GHG emissions of any province or US state. Quebec also is a major supplier of electricity, via Hydro-Québec contracts, and sole supplier of natural gas, via Énergir and its subsidiary Vermont Gas Systems, to the state of Vermont.
Québec Premier François Legault and the Minister of the Environment and the Fight Against Climate Change and Minister responsible for the Laval Region, Benoit Charette, on Monday unveiled the 2030 Plan for a Green Economy (2030 PGE) along with its first implementation plan covering 2021-2026, backed by a budget of C$6.7 billion over five years.
The magnitude of the amounts earmarked for this electrification and climate change framework policy is indicative of the government’s intent to make Québec a leader in the green economy by building on its major strength: its clean electricity.
With the 2030 PGE, the government is laying the groundwork for a green economic recovery and reiterating Québec’s commitment to reduce its greenhouse gas (GHG) emissions by 37.5% below 1990 levels by 2030. In so doing, it is charting the course that will lead Québec to carbon neutrality in 2050. The Plan will also contribute to our collective resilience by providing our society with the tools it needs to cope with the already significant impacts of climate change.
In a context of uncertainty caused by the health crisis that continues to put workers and various economic sectors to the test, the government is introducing an initial implementation plan for 2021-2026 which, in addition to reducing GHG emissions, will stimulate economic recovery and job creation. The government estimates that by 2030, this ambitious electrification and climate change project should add C$2.2 billion to Québec’s GDP in real terms and create more than15,500 new jobs. The added investments to support green industrial development in areas such as battery manufacturing and green hydrogen will perforce have a major impact.
Making electrification a priority
The government is launching a major electrification undertaking mainly in the transportation industry, but also in the building heating and other industrial sectors. Over the next five years, 3.6 billion dollars stemming from the 2030 PGE implementation plan will be invested in the transportation sector, which alone accounts for over 43% of Québec’s GHG emissions. In addition to those dollars, an unprecedented 15.8 billion dollars will be invested in public transportation through the 2020-2030 Québec Infrastructure Plan.
Light trains, city and school buses, taxis, cars and trucks will all be progressively electrified. An ever greater number of Quebecers will travel in electric vehicles that are equipped as much as possible by means of Québec know-how and manufactured by local resources. The target is to have 1.5 million electric vehicles on Québec roads by 2030.
Vermont Governor Phil Scott also has been pushing to electrify Vermont's transportation sector to a greater degree. This has included rebates for electric vehicles. He and regional governors want assurances from the grid operator ISO New England that it will be able to handle increased electric load as the economy becomes more electrified, especially in transportation and heating.
Vermont’s 2016 GHG emissions are still 13 percent above 1990 levels.
According to the Energy Action Network: "Governor Scott committed Vermont to the US Climate Alliance, a collection of states that vowed to meet the pollution reduction targets required by the Paris Climate Agreement (a 26-28% reduction below 2005 levels by 2025). However, as of 2016, Vermont is only 5% below its 2005 emissions levels. The forecast provided by ANR of future statewide emissions levels does not show Vermont meeting its Paris Climate commitment by 2025, nor does it project the state to meet any of its statutory or administrative goals for emissions reductions."
"Vermont’s biggest climate pollution challenge and opportunity, as underscored by this report, is reducing emissions in the transportation and thermal energy sectors. While Vermont has made important progress in cleaning up its electricity sector—having already reduced electricity related emissions 26% since 1990 as of 2016—emissions from electricity consumption have always been only a small portion of the climate pollution we generate and have never been higher than 12% of our statewide emissions total since 1990. In contrast, in 2016, transportation made up 44% of Vermont’s climate pollution and residential, commercial, and industrial thermal fuel use (heating) accounted for 27% of our emissions.
"Additionally, because of our high fossil fuel use for transportation and heating, the report shows that Vermont has the highest per-capita GHG emissions (15.6 tons per person) of any state in the region—producing more climate pollution per person than residents of any other New England state or New York or Quebec. Compared nationally, however, Vermont’s emissions are below the U.S. average of 20.1 tons per person."
Vermont Gas Systems (VGS) previously announced that it is committed to a 30 percent reduction in customer greenhouse gas emissions by 2030.
Measures that will stimulate the PQ electrification of transportation, buildings and industries and reduce GHG emissions include:
- Renewing rebates for acquiring or leasing electric vehicles and charging stations for individuals, as well as aid programs for businesses and the taxi industry;
- Tightening the zero-emission vehicle standard to encourage manufacturers to supply the Québec market with more vehicles and a greater diversity of models;
- Prohibiting the sale of new gasoline-powered vehicles as of 2035;
- Accelerating the deployment by Hydro-Québec of fast-charging stations and standard charging stations;
- 768 million dollars to make the industrial sector greener and more competitive (support for GHG emission reduction projects, program improvement and personalized guidance);
- Injection of more than $550 million to reduce GHG emissions linked to heating residential, commercial and institutional buildings by 50%. This target will be achieved by optimal complementarity between the electricity and gas networks and by the use of bioenergy, energy efficiency, and converting from fuel oil to electricity, as well as through the use of renewable natural gas and other renewable energy sources.
Boosting the most promising green sectors
The 2030 PGE will help build the economy of tomorrow. Over the 2021-2026 period, 401 million dollars will be used to implement a set of strategies to foster the emergence of new businesses in strategic and innovative fields. The government will support the development of a dynamic industrial ecosystem focusing on electric vehicles, charging infrastructure and batteries.
In addition to electricity, new renewable energy sources will diversify Québec’s energy portfolio over the coming years. Investments of 213 million dollars are planned to support the emerging renewable natural gas sector and 15 million dollars in investments to support development and the search for innovation in the green hydrogen sector. The very first Québec green hydrogen and bioenergy strategy, whose aim is to establish Québec as a future leader in these fields, will be unveiled in 2021. The government’s ambition is for Québec to be recognized worldwide for its green hydrogen, just as it already is for its clean electricity.
Energy efficiency: Less is more
The government will continue to focus on energy efficiency and responsible consumption. More than 307 million dollars will be invested over the next five years through the following measures:
- The EcoPerformance program will see 113 million dollars invested to support energy conversion and efficiency in commercial and institutional buildings. An additional 75 million dollars are set aside to encourage heat recovery and re-use;
- The 2018-2023 Energy Transition, Innovation and Efficiency Master Plan is extended to 2026;
- Concurrently, Hydro-Québec will double its energy efficiency objective, raising it to 800 gigawatt hours (GWh) annually starting in 2021.
Improving our resilience to future changes
Climate change is already having a significant impact on the economic activities, well-being, health and safety of many citizens and communities, as well as on infrastructure and ecosystems. By stressing prevention and taking future climate into account in all of its decisions, the government is acting responsibly to minimize costs associated with the impacts of climate change and will dedicate more than 389 million dollars to adaptation to the impacts of climate change over the next five years.
A responsible and exemplary government
The government will do its part by reducing its carbon footprint, particularly through the acquisition of Québec products and services and the sustainable management of its real estate holdings and vehicle fleet. Its objectives in this regard are as follows:
- Reduce emissions from its real estate holdings by 60% by 2030, compared to their 1990 levels. This target is even higher than the one set for Québec as a whole;
- Maximum electrification of its light vehicle fleet so that by 2030, 100% of its cars, vans and SUVs and 25% of its light trucks run on electricity.
A pragmatic approach
The five-year implementation plan will be reassessed annually and systematically cover the following five years, thereby resulting in a predictable, flexible and pragmatic approach. Thanks especially to the governance that was put in place following the adoption of Bill 44, the government will take achieved results, changes in climate, scientific knowledge, the economic context, the level of public buy-in and technological innovations into account in each of its updates.
Quotes:
“Of all U.S. states and Canadian provinces, Québec emits the least amount of greenhouse gas per capita. This is a reality we can be proud of! But rather than stop there, I invite Quebecers to build on that source of pride by going further to tackle the challenge of climate change and profoundly transform our economy. The focal point of our project is to electrify our economy. The invaluable asset of hydroelectricity, along with wind power and other forms of clean energy, will enable us to significantly reduce our greenhouse gas emissions while creating greater wealth. With our clean electricity, we can become the green battery of northeastern America and overcome our climate challenge.”
François Legault, Premier of Québec
“The 2030 Plan for a Green Economy is a strong move by our government to address the many collective challenges posed by the climate emergency. It’s a solid and ambitious plan to transform our society in a sustainable manner and replace fossil fuels as much as possible with our clean electricity. Our government is already at work and I am confident that with the collaboration of my Cabinet colleagues, as well as municipalities, businesses and citizens, we will succeed in our climate transition and achieve a balanced transition that will take into account the differences between regions, generations and economic sectors. Together, we will build a greener, more resilient and more prosperous Québec.”
Benoit Charette, Minister of the Environment and the Fight against Climate Change and Minister Responsible for the Laval Region
Quick facts:
- To achieve its climate target, Québec must bring its GHG emissions down to 54 million tonnes of CO2 equivalent by 2030, compared to 79 million tonnes emitted in 2017 and 86 million tonnes emitted in 1990.
- According to recent data (2017), Québec has only reduced its GHG emissions by 8.7% compared to its 1990 emissions.
- In the course of its first 2030 PGE implementation plan, the government is currently forecasting a 12.4 megatons GHG reduction over the next 10 years. The action to be taken to enable additionally needed reductions so as to reach the 2030 target, will be determined in the annual updates to the plan.
- The 2030 PGE will rely on complementary policies and action plans such as the Energy Transition, Innovation and Efficiency Master Plan, the Energy Policy, the Sustainable Mobility Policy, the Québec strategy for developing the battery industry, the Québec Plan for the Development of Critical and Strategic Minerals, Québec’s International Vision and the Government Sustainable Development Strategy. These policies and action plans will help meet the GHG emission reduction target.
- A funding framework of unprecedented magnitude will add infrastructure investments of several billion dollars through the Québec Infrastructure Plan, as well as efforts undertaken by the government to reduce its own greenhouse gas emissions and action under the direct responsibility of Hydro-Québec, Investissement Québec and other government bodies.
Associated Links
- Appendix (main measures, status of Quebec's GHG emissions, reduction efforts)
- Learn about the 2030 Plan for a Green Economy and its 2021-2026 implementation plan at https://www.quebec.ca/en/government/policies-orientations/plan-green-economy.
In response to the PQ government's goals, Énergir, based in Montreal, stated Monday that it welcomes the measures announced under the plan for a green economy (PGE) by Minister Charrette, and stated it will be there to help meet the greenhouse gas (GHG) reduction targets set.
Énergir hailed the commitment to increase the use of renewable natural gas (RNG) by setting a minimum target of 10% RNG in the gas network in Québec by 2030, and to put in place the financial and regulatory means to achieve this. Énergir is already committed to reducing the environmental footprint of the natural gas it distributes by focusing on RNG, and the government target is consistent with its ambitions.
Also, an initial Québec green hydrogen and bioenergy strategy will undoubtedly foster the creation of a business environment conducive to their development. These are two avenues that Énergir is pursuing to decarbonize its network.
"As an energy company and as a public utility, we are aware that we are part of the problem, but we are also convinced that we can be part of the solution. That's why we have taken the lead in shifting our trajectory, reviewing our business model and identifying new strategies to contribute to the collective effort to reduce GHGs by 2030, or perhaps 2050," says Éric Lachance, President and Chief Executive Officer of Énergir.
Energy network complementarity to decarbonize buildings
Énergir also underscores the framework measure that aims to reduce GHGs linked to buildings by 50% and the complementarity approach between the two major electric and gas networks, in order to reduce this sector's carbon footprint at the lowest cost to society.
"The roadmap presented by the government today provides a framework and predictability that will allow us to continue and step up the initiatives already underway within our organization, including the intensification of energy efficiency efforts, the injection of RNG and the efforts to ensure complementarity between the electric and gas networks. To achieve this, we will move forward where we have added value to decarbonize our economy at the lowest cost to society," adds Lachance.
As requested by the government, the leading natural gas distributor intends to work with Hydro-Québec to operationalize the principle of complementarity between Québec's two main energy distribution networks, more specifically with respect to peak energy challenges.
In light of the measures presented in the PGE, Énergir sees an opportunity for the government to swiftly modernize the regulatory and legislative framework to enable the company to participate fully in achieving GHG reduction targets in the interest of Quebecers, its customers, partners and employees.
With more than $8 billion in assets, Énergir is a diversified energy company whose mission is to find increasingly sustainable ways to meet the energy needs of its 525,000 customers and the communities it serves. It is the leading natural gas distribution company in Québec, where it also produces electricity from wind power through its subsidiaries.
In the United States, the company operates through its subsidiaries in more than 15 states where it produces electricity from hydraulic, wind and solar sources, while serving as the leading electricity distributor and the sole natural gas distributor in Vermont (VGS).
Énergir invests both resources and efforts in innovative energy projects such as renewable natural gas and liquefied and compressed natural gas. It also offers a variety of energy services through its subsidiaries. Énergir aspires to become the partner of choice for those striving for a better energy future.