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HomeMy WebLinkAboutDSD-2023-216 - CorCAP (Corporate Climate Action Plan) 2.0Staff Report r NJ :R Development Services Department www.kitchener.ca REPORT TO: Special Council DATE OF MEETING: May 8, 2023 SUBMITTED BY: Anna Marie Cipriani, Corporate Sustainability Officer, 519-741-2200 ext. 7322 PREPARED BY: Anna Marie Cipriani, Corporate Sustainability Officer, 519-741-2200 ext. 7322 WARD(S) INVOLVED: Ward(s) All DATE OF REPORT: May 4, 2023 REPORT NO.: DSD -2023-216 SUBJECT: CorCAP (Corporate Climate Action Plan) 2.0 RECOMMENDATION: For Discussion. REPORT HIGHLIGHTS: • City of Kitchener closed -out its first -generation corporate climate action plan (CorCAP) in 2022 and there is an opportunity to renew our plan and deepen our commitment more in line with the magnitude of the Council approved TransformWR community GHG reduction targets • As recent re -inventories indicate neither corporate nor community greenhouse gas (GHG) emission reductions have been sustained over time • There is a broad, global consensus that net -zero emissions (reducing GHG emissions to as close to zero as possible with any remaining GHG emissions being re -absorbed from the atmosphere) are needed by mid-century in order for the planet's temperatures to stay below the 1.50C -20C threshold to avert the worst impacts of climate change • Over 90% of City of Kitchener's Corporate GHG emissions come from Facilities, and Fleet and Equipment • Greater than 80% of our corporate GHG emissions come from our use of fossil fuels (natural gas, gasoline, diesel, and propane) • As staff renew the City's corporate climate action plan (Part 1 of CorCAP 2.0) we are seeking feedback from Council on whether the focus should be on energy demand from two corporate focus areas: Facilities, and Fleet and Equipment and three pathways: energy conservation, fuel switching and generating local renewable energy • Staff anticipate that sustained corporate GHG emission reductions will require strategic, systemic, and deeply integrated changes to corporate processes, business planning and policies *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 4 of 44 • With Council input and guidance staff will build the next generation plan EXECUTIVE SUMMARY: In this strategic session of Council, staff are seeking to provide Council with insight into our corporate GHG emissions and seek Council's guidance to develop the next generation Corporate Climate Action Plan. Council will be asked the first three questions as listed below and Council will be invited to use Menti to provide responses on a 5 -point agreement scale. For consideration by Council: 1. For consideration by Council: "I am interested in exploring strategies to achieve net -zero corporate emissions by 2050, which goes beyond Council's community commitment of an 80% reduction by 2050, recognizing that this may increase the associated costs over the next 26 years." 2. "I am interested in prioritizing corporate efforts in the next Corporate Climate Action Plan on GHG reductions along these three pathways: Energy Conservation, Fuel Switching and Generating Local Renewable Energy" 3. For consideration by Council: "I am interested in prioritizing efforts in the next Corporate Climate Action Plan on corporate GHG reductions from two focus areas: a. Facilities - especially arenas, pools, and administrative buildings b. Corporate Fleet, and Equipment - especially fuel switching gasoline vehicles now to electric and fuel switching diesel vehicles in the future" The fourth and final question listed below will provide Council with an opportunity to provide further guidance through a more open, roundtable -type discussion: 4. For Discussion: "It is anticipated that sustained corporate GHG emission reductions will require strategic, systemic, and deeply integrated changes to corporate processes, business planning and policies. As we develop the plan and seek support to adopt a new plan with a deeper commitment what are you looking for in a plan?" BACKGROUND: The organization has the opportunity to strategically focus, deepen and align its commitment to municipal climate action having closed -out its first -generation corporate climate action plan (CorCAP) in 2022. Through the Council approved TransformWR plan the organization has committed to supporting community targets of 50% GHG reduction by 2030 and an 80% reduction by 2050 (from 2010 baseline). Table 1 below illustrates the three phases of CorCAP 2.0. Part 1 of this next generation corporate plan focusses on corporate demand for energy and is the focus of this report. Part 2 will be focussed on community demand and corporate supply of energy to the community and Part 3 on Adaptation. Parts 2 and 3 will be discussed in future reports. Table I CorCAP 2.0 Phases Mitigation Adaptation Corporate Part 1 Part 3 Community Part 2 Page 5 of 44 Our community is already experiencing climatic changes. Our decade long efforts have not demonstrated sustained GHG emission reductions. Net -zero GHG emissions by mid- century are needed globally to keep global temperatures below a 1.50C -20C threshold to avert the worst impacts of climate change. The impact of cumulative GHG emissions from decisions we make now are locked -in for generations. Our corporate GHG emissions profile illuminates priority areas to focus on and pathways to developing our next generation corporate climate action plan (Part 1 focussed on corporate energy demand). REPORT: Municipal climate action is increasingly focussed on an energy transition. This is because burning fossil fuels releases greenhouse gases that are warming the planet. Local climate modelling completed in 2015 by the Interdisciplinary Centre on Climate Change at the University of Waterloo shows that our community's climate will be warmer, wetter, and wilder as a result of climate change. By 2050 our community's projected average temperature increase is approximately 2-3° Celsius. Current global surface temperatures have already increased by approximately 1.1 °C. Municipal climate action work involves four domains: Adaptation: actions to manage the risks of climate change impacts (e.g., convert to permeable surfacing, plant shade trees) Mitigation: actions to reduce emissions that cause climate change (e.g., right size equipment, fuel switch, heat recovery) Corporate Emissions: GHG emissions our organization emits through the delivery of service to the community; we have some direct control Community Emissions: GHG emissions within our region; we have some influence (e.g., complete communities, increased density, active transportation infrastructure, etc.) 1. For consideration by Council: "I am interested in exploring strategies to achieve net -zero corporate emissions by 2050, which goes beyond Council's community commitment of an 80% reduction by 2050, recognizing that this may increase the associated costs over the next 26 years." Our community mitigation work has evolved through two generations of plans (Our Progress, Our Path, and TransformWR). Through the Council approved TransformWR plan the organization has committed to supporting community targets of 50% GHG reduction by 2030 and an 80% GHG reduction by 2050 (from 2010 baseline). Our corporate mitigation work has completed one generation with a 2026 target of 8% GHG reduction from our 2016 baseline year. What we are seeing in the climate action work locally is that our collective efforts to date have not led to sustained GHG emission reductions over time. The decisions we make now lock -in the impacts of GHGs for generations. There is a broad, global consensus that net -zero emissions (reducing GHG emissions to as close to zero as possible with any remaining GHG emissions being re -absorbed from the atmosphere) are needed by mid-century in order for the planet's temperatures to stay below the 1.50C -20C threshold to avert the worst impacts of climate change. There is need for a many fold increase in financing and resourcing for this work. Staff propose that sustained corporate emission reductions will require strategic, systemic, and deeply integrated changes to corporate processes, business planning and policies. Page 6 of 44 2. Cor consideration by Council: "I am interested in prioritizing corporate efforts in the next Corporate Climate Action Plan on GHG reductions along these three pathways: Energy Conservation, Fuel Switching and Generating Local Renewable Energy" The TransformWR plan as approved by Council points to three action pathways to GHG reductions and staff propose that our organization align our next plan with these pathways as well: • Energy Conservation — use less/demand less energy and use energy more efficiently • Fuel Switching —convert to lower carbon energy sources • Generate Energy — generate local renewable Energy 3. For consideration by Council: "I am interested in prioritizing efforts in the next Corporate Climate Action Plan on corporate GHG reductions from two focus areas: a. Facilities - especially arenas, pools, and administrative buildings b. Corporate Fleet, and Equipment - especially fuel switching gasoline vehicles now to electric and fuel switching diesel vehicles in the future" Understanding our corporate GHG emissions helps to illustrate what to prioritize in the municipal climate action work we will undertake in this second -generation effort. Figure 1 below illustrates that over 90% of our corporate emissions come from two focus areas: our Facilities, and Fleet and Equipment focus areas. 2021 Corporate Emissions by Focus Area (eCO2 1% Facilities 39% Corporate Fleet and Equipment ■ Streetlights ■ Corporate Waste Figure 12021 Corporate GHG Emissions by Focus Area 53% M The majority of the emissions from Facilities come from three facility types: arenas, pools, and administrative buildings (Figure 2). The top ten facilities within these categories contribute approximately 67% of our total corporate GHGs. Page 7 of 44 ■ Utility Biodiesel 20 diesel ■ Ethanol 10 ■ Natural gas ■ Waste GHG ■ Biodiesel5 ■ Electricity ■ Gasoline ■ Propane Figure 2 GHG emissions by asset tvpe Figures 3 and 4 illustrate how some sources of energy we rely on are more carbon intense than others. While almost half of our corporate energy use comes from electricity, this energy source only accounted for 10% of our corporate GHGs in 2021. By contrast, 33% of our energy use was natural gas which accounts for 44% of our emissions. Similarly, diesel, gasoline and propane combined accounted for 21% of our energy use and 39% of our corporate GHG emissions. 2021 Corporate Energy by Source Electricity Figure 3- 2021 Corporate Energy Use by Source ■ Fuel (Diesel, Gas, Propane) Page 8 of 44 ems Pump. g Gaeaaes C�df � II Markel ' II ' CEs VYasle Mal[nals ' ' FSS G4 Hall MF ' Pods Arerus ' uenmes, Fw�urnem 1,w0 lav 2,w0 3000 awn o su0 loco 4 D GHG emissions (CO2e�Y,) ■ Utility Biodiesel 20 diesel ■ Ethanol 10 ■ Natural gas ■ Waste GHG ■ Biodiesel5 ■ Electricity ■ Gasoline ■ Propane Figure 2 GHG emissions by asset tvpe Figures 3 and 4 illustrate how some sources of energy we rely on are more carbon intense than others. While almost half of our corporate energy use comes from electricity, this energy source only accounted for 10% of our corporate GHGs in 2021. By contrast, 33% of our energy use was natural gas which accounts for 44% of our emissions. Similarly, diesel, gasoline and propane combined accounted for 21% of our energy use and 39% of our corporate GHG emissions. 2021 Corporate Energy by Source Electricity Figure 3- 2021 Corporate Energy Use by Source ■ Fuel (Diesel, Gas, Propane) Page 8 of 44 2021 Corporate Emissions by Source (eCO2 ) Figure 4- 2021 Corporate GHG emissions by energy source ■ Electricity ■ Natural Gas ■ Fuel (Diesel, Gas, Propane) Approximately 80% of natural gas use in facilities goes towards space heating and domestic hot water. Gasoline is often used in lighter duty vehicles and diesel in heavier duty vehicles. Transitioning away from fossil fuel reliance is part of a focus of what is called an energy transition. GHG reduction modelling completed in December 2022 by WalterFedy for the City of Kitchener offers key insights into the strategic paths forward to corporate GHG reduction. There are four key observations (Table 2) on what to prioritize and how to focus efforts. Table 2 Corporate GHG emissions profile observations — what to prioritise and how OBSERVATIONS PRIORITIZE - WHAT PRIORTIZE - HOW City Facilities followed Prioritize GHG reduction from Reduce energy demand by Corporate Fleet and Facilities, and Fleet and and switch to lower Equipment have the Equipment. carbon energy sources. greatest contribution of GHG emissions. The other focus areas make a minor contribution to corporate GHGs. Arenas and pools have Natural gas use has the Focus on water heating the greatest contribution greatest contribution to GHG (ice resurfacing, pools, to GHG emissions of all emissions. Prioritize fuel and showers) and space facility types. And most switching, retrofitting many heating of the GHG emissions facilities especially the top 10 are due to natural gas greatest contributing assets consumption which contribute >67% of the total corporate GHGs. Administrative buildings Focus on reducing energy Increase efficiency. (KOF, CH) demand and fuel switching. Reduce natural gas use Most significant end use GHG Page 9 of 44 OBSERVATIONS PRIORITIZE - WHAT PRIORTIZE - HOW emissions come from water and associated with water and space heating space heating. Fleet and Equipment Reduce fleet and equipment Increase efficiency, fuel fossil fuel use switch, and convert to electric vehicles and equipment In addition to these more tactical approaches, staff anticipate that a sustained reduction in corporate GHG emissions will require strategic, systemic, and deeply integrated changes to corporate processes, business planning and policies. 4. For Discussion: "it is anticipated that sustained corporate GHG emission reductions will require strategic, systemic, and deeply integrated changes to corporate processes, business planning and policies. As we develop the plan and seek support to adopt a new plan with a deeper commitment what are you looking for in a plan?" With Council's support in this strategic session, staff across the organization will begin to build the corporate demand side plan strategies in the remainder of 2023 as part of phase 1 of CorCAP 2.0 and will report back for endorsement. STRATEGIC PLAN ALIGNMENT: This report supports Environmental Leadership by implementing a Corporate Climate Action Plan. FINANCIAL IMPLICATIONS: Significant capital investments will be required to sustain deeper corporate GHG reductions. It is estimated that $250M in additional capital funding will be needed over the next 25 years (or $10M/year) to work towards achieving net -zero GHG emissions by mid-century. Such a substantial investment in this corporate focus would likely require the use of several financing options such as external grant funding, ongoing funding from the City's energy reserve fund, issuing debt, and consideration of other funding strategies such as a special tax levy. For context, a 1% increase to the City's tax rate generates $1.4M in additional revenue. Ongoing advocacy with other levels of government for funding will be important as well. COMMUNITY ENGAGEMENT: The Climate Change and Environment Committee was informed of this work at their March 2023 meeting. They will be consulted throughout the next phase of the plan's development. The terms of reference for this project outlines a working and steering committee comprised of staff from across all focus areas that the project lead regularly collaborates with to develop the plan. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports on developing this second -generation corporate climate action plan. APPROVED BY: Justin Readman. General Manager of Development Services ATTACHMENTS: none Page 10 of 44 �/ CORCAP 2.0 Y-..iTCHE-NER paw, follo TIT M m&.w Je r. 40. 10 0 • • 71 PF JIPPW - I I IF .0 m "N ;Krtinn cjvPrvI-F • Climate Change Primer • Municipal Climate Action Recap • Corporate GHG profile • Calls to Action • Discussion Page 12 of 44 Climate Change Primer Page 13 of 44 Greenhouse gases (GHGs) (including carbon dioxide CO2 and methane CH4) trap heat from the sun inside Earth's atmosphere. As more greenhouse gases are released into our atmosphere (largely through the burning of fossil fuels) more GHGs are released into atmosphere and more heat is trapped. This raises the temperature of this planet, changing our living conditions and increasing the likelihood of extreme weather events both globally and locally. F,i,l comha O,nn LW dmposag 4'rcuu[:1 ,r ,r JA 140.4 C7uF9aurved ac Qie3 ue'h ides Global planet surface temperatures are already 1.1°C above pre -industrial temperatures... Call to action = net -zero GHG emissions by mid-century The Changing Climate of Waterloo Region Our local climate is projected to get WARMER, WETTER, AND MORE EXTREME More Extreme Summer Heat Global Greenhouse Gas Emission scenarios • If current emissions continue Aggressive emissions reduction 0 Net -zero emissions i Annual average temperature projection t 2-30C by the 2050s' Projected average number of days over 30°C per year currant' More Intense Rain and Storms Large-scale rainfalls and wind storms are projected to happen more Irequeriliv 00 jo� 7, annual precipitation is proMaed to increase by approximately 4-6% by Me 20201' and 8+11% �n 4©% mor freezing rain events by tnr- . . December' January and February iamok i� tt 60 that's like 28 two full months 15 of extreme heat Warmer Winters The nKantt:iy average temperature in February in the 2050s is expected to be 3-5'C higher than it is today, meaning it will hover around 0°C Municipal Climate Action Recap Page 16 of 44 Adaptation: actions to manage the risks of climate change impacts - e.g. convert to permeable surfacing, plant shade trees Mitigation: actions to reduce emissions that cause climate change - e.g., right size equipment, fuel switch, heat recovery Community Emissions — GHG emissions within our region; we have some influence (e.g., complete communities, increased density, active transportation infrastructure) Corporate Emissions — GHG emissions our organization emits through the delivery of service to the community; we have some direct control Page 17 of 44 Looking back... Adaptation Corporate Climate Action Plan Waterloo Region Community Climate Adaptation Plan (2019) Mitigation June 26, 2019 Council declaration CSD -13-108 of climate emergency CSD -17-046 INS -18-024 Corporate Climate Action Plan Our Progress our Path 2022 Update and Close Out DSD -2021-94 Transform WR Lookin rward CorCAP 2.0... April 17, 2023 progress update Part 3 Part 1 Part 2 (corporate energy demand) community demand for and corporate supply of energy (TransformWR, Kitchener Transition Strategy) Page 18 of 44 Corporate GHGs Community GHGs • City of Kitchener Corporate GHG emissions account for <1% of community total GHG emission • Municipalities have influence 50%-70% of GHG emissions nationally/globally (FCM, UN) Page 19 of 44 Corporate GHG emissions profile Thinking about the City of Kitchener as an organization and the GHGs we produce as we deliver core services to the community... Looking Back Moving Forward... Page 20 of 44 2021 Corporate Emissions by Focus Area (eCO2 Facilities ■ Corporate Fleet and Equipment ■ streets ghts ■ Corporate tial a st e 53% Page 21 of 44 Waste Materials '4,'e.ncies. Equipnsent 3HG emissions (tCO2eJyr) ■ Uii lift' Siodiesel 20 ■ Diesel ■ Ethanal 10 ■Natural gas NP.—Waste (:,HG ■ Siodiesel 5 ■ Electricity ■ Gasoline Propane Page lY52 44 I 1 Pumping Stations ' Waste Street Lighting Corporate Fleet Buildings 2, 000 1 I I I 3,000 GHG emissions (ICO2ejyr) 4,000 ® Utility Biodiesel20 ® Diesel ■ Ethanol 10 ■ Blodiesel5 ■ Electricity ■ Gasoline r, COC 6.c"'i Natural gas Waste [,HCS Propane 1 Page 1 of 44 2021 Corporate Energy by Source E I estrklty ■ Nivtural Gas ■ Fusel I Diel, Gar, Pro pa, -,l ej 2021 Corporate Emissions by Source (e ■ Electricity ■ Natural Gas i Fuel (Diesel, Gas, Propane ■ Wa5te Page 24 of 44 Corporate GHG reduction priority focus areas: — Facilities — Fleet and Equipment Corporate pathways forward: 1. Energy Conservation — use less/demand less energy and use energy more efficiently 2. Fuel Switch — convert to low carbon energy sources - switch facilities off natural gas 3. Generate Energy —generate local renewable Energy Page 25 of 44 Corporate Target Reduction of greenhouse gases by "o y 2026 Community Target 'ICLIMAI FAcTinNvm 80by5O and 50x30 • Renew, deepen and align our commitment • Net -zero by mid century • Strategic,, systemic, deeply integrated • Corporate processes, business planning and policies Page 26 of 44 Phase 1 Initiate (March 2022 -June 2022) / Phase 2 Scan (July 2022 - February 2023) Phase 3 Develop Plan (2023) Phase 4 Implement Plan (2023 -forward) Page 27 of 44 Go to: httDSGa www.menti.com enter the code 16963317 Page 28 Y44 For consideration by Council: 1. For consideration by Council: "I am interested in exploring strategies to achieve net -zero corporate emissions by 2050, which goes beyond Council's community commitment of an 80% reduction by 2050, recognizing that this may increase the associated costs over the next 26 years." 2. "1 am interested in prioritizing corporate efforts in the next Corporate Climate Action Plan on GHG reductions along these three pathways: Energy Conservation, Fuel Switching and Generating Local Renewable Energy" 3. For consideration by Council: "I am interested in prioritizing efforts in the next Corporate Climate Action Plan on corporate GHG reductions from two focus areas: a. Facilities - especially arenas, pools, and administrative buildings b. Corporate Fleet, and Equipment - especially fuel switching gasoline vehicles now to electric and fuel switching diesel vehicles in the future" Page 29 of 44 For Discussion: "Itis anticipated that sustained corporate GHG emission reductions will require strategic, systemic, and deeply integrated changes to corporate processes,, business planning and policies. As we develop the plan and seek support to adopt a new plan with a deeper commitment what are you looking for in a plan?" Page 30 of 44