GHGs: Early Action and New Regulation
 |
The belief that human activity is increasing greenhouse gas (GHG) concentrations and impacting global climate continues to be acted on at Rio Tinto Alcan Primary Metal BC. Early responses at the operation demonstrate adherence to the precautionary principle that when the risk is great enough, action need not wait on complete scientific certainty or legislative measures.
In 2007, absolute GHG emissions from Rio Tinto Alcan Primary Metal BC operations were down by approximately 50 per cent – and intensity-based emissions were down by 45 per cent – relative to their 1998 levels. (See graphs and discussion in "Climate Change".)
Feasible GHG reductions, within the limits of the technology currently in use at the Kitimat smelter, have largely been achieved. But Rio Tinto Alcan Primary Metal BC is poised for a further major reduction in GHG outputs when the Kitimat Modernization Project proceeds (final Board approval was outstanding when this report was prepared, see "Innovation and Industry Shifts: Modernization").
The new technology in the modernized smelter is expected to further reduce absolute GHG emissions by more than 40 per cent, at the same time that it supports an increase in production capacity of around 45 per cent. Kitimat Works is therefore positioned, as an individual plant, to exceed the total absolute GHG reduction target set by the British Columbia government (33 per cent by 2020 relative to 2007 levels).
However, definitive determinations remained pending, when this report was prepared, regarding various details of emerging provincial, federal, and regional regulation, including:
- the extent to which credit will be available for reductions already and voluntarily achieved, particularly on the part of early-adopters of GHG reduction programs and through application or installation of best available technologies (BAT);
- the means of allocating allowance units for future GHG emissions (on sector and operation-specific bases), and the extent to which costs will be associated with them; and
- the nature and scope of further reductions that may be required on a long-term basis.
The implications of the final resolution of these issues are significant, and include: the extent to which early-adopters will realize a return on their voluntary efforts, the extent to which economic growth is accommodated, cost and competitive implications for internationally exposed businesses, the effectiveness of incentives for further improvement, and the feasibility of future reduction targets relative to industry-specific technological realities.
| Sustainable Development Dimensions | ||
| Economic | Environmental | Social |
|
|
|