Transmission Facilities - Iisd

Manitoba Hydros Emission Management Perspectives Bill Hamlin Emission Management Perspectives Period Voluntary Commitment - VCR

Chicago Climate Exchange - CCX Canadian Domestic Emission Trading 1990s to ? 2003 to 2006 ?

Manitoba Hydro Actions - Voluntary Commitment to keep emissions 6%lower than 1990 from 1990 to 2012 1330 MW Limestone hydro plant Retired four 33 MW coal units

Conversion of 132 MW coal to natural gas Connect diesel to grid Demand Side Management Environmental Dispatch Premium Maximum average kt eq.CO2/TWh Greenhouse Gas Emissions - Electricity Options 1400 1200 1000

800 600 400 200 0 Source: IEA Technical Report, May 2000. Hydropower and the Environment: Present Context and Guidelines for Future Action. Vol. II: Main Report, Ch.3: Comparative Environmental Analysis of Power Generation Options What Manitoba Hydro as a LIE and potential credit purchasers wants: Clear rules.

What are our emission reduction obligations? System that provides clear incentives for Canadas low cost domestic emission reductions. No concerns or liability with respect to offsets (no liability for purchaser). Simple, low cost transactions. Liquid market for emission trading so that they can buy and sell freely. What large industrial emitters dont want: to create credits (unless reductions are

related to core part of their business) liability, complications and costs associated with credit creation, validation etc. Considerations for MH Re: Brady Landfill Project Reductions available offer a good fit with our current offset requirements. Economy of scale - big project Landfill gas project is close to our core business Landfill gas is an energy product similar to natural

gas. Potential for electrical generation. Close to our core business. Reasonable chance recognition in the longer term. Concerns To date, not enough consideration given to the potential positive economic

impacts and how to incent them. Timelines too long. Projects take time to develop Need clearer idea of the rules in the near term (2005 to long for negotiations). Too many of Canadas best opportunities are on hold. THANK - YOU