Pembina Institute Response to the Clean Electricity Standard Discussion Paper

14 Pembina Institute Pembina Institute Response to the Clean Electricity Standard Discussion Paper | 2 Context The Clean Electricity Standard (CES) is the key regulatory instrument that the federal government is proposing to achieve a net-zero emissions electricity system by 2035 (referred to by Environment and Climate Change Canada as NZ2035 in the CES discussion paper).1 The federal government i. [...] Should interim standards be included in the period before 2035? Yes, interim standards are essential to send an immediate and clear signal to invest in zero- and negative-emission electricity generation assets in the short and medium term, and to ensure that the Clean Electricity Standard leads to early and deep reductions of greenhouse gases rather than relying on greater reductions closer to 203. [...] How might the treatment of electricity under the OBPS have to change to align with the CES? We recommend that the electricity sector be removed from the OBPS, and all of its emissions be exposed to the carbon price. [...] Depending on the size of the electricity load of the industrial facility, there may be some flexibility and consideration applied to the component of the electricity output that supplies the facility. [...] Parallel implementation of programs to support provinces and consumers The investments and programs suggested in the response to Q20 on affordability and additional efforts to support particularly difficult-to-decarbonize provinces should be planned for and communicated at the same time as the CES.