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HomeMy WebLinkAboutDSD-2025-133 - 2024 Pivot Net-0 UpdateStaff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 5, 2025 SUBMITTED BY: Anna Marie Cipriani, Corporate Sustainability Officer 519-783-8970 PREPARED BY: Fionnula Wade, Sustainability Advisor, 519-707-1464 Luke Reesor-Keller, Project Manager Facilities Energy Management, 519-783-8576 WARD(S) INVOLVED: All Ward(s) DATE OF REPORT: April 10, 2025 REPORT NO.: DSD -2025-133 SUBJECT: 2024 Pivot Net -0 update RECOMMENDATION: For information REPORT HIGHLIGHTS: • The three -fold purpose of this report is to provide a progress update on 2016-2024 corporate greenhouse gas emissions (GHG) (Appendix A) and our near-term target of an 8% greenhouse gas emissions reduction for 2026; update on the 19 annual progress reporting metrics (Appendix B) and the 47 action items (Appendix C) as identified in Pivot. Net -Zero • The key finding of this report is that the City of Kitchener's corporate GHG emissions have seen a 6% reduction overall from 2016-2024. • Historical trends alone would predict the City of Kitchener to be on track to meet its near-term target of 8% GHG reduction from 2016 baseline. Historical trends however are not predictive. There are two external threats particularly noteworthy — an increase in carbon intensity of Ontario electricity and a 2025 winter season that likely demanded more energy for space heating and snow clearing than recent years. • To make progress on our goals we need to continue to prioritize the 3 pathways of energy conservation, fuel switching, and generating renewable energy along with continued advocacy to other levels of government and industry to support these pathways • Of the 47 actions listed in Pivot: Net -Zero, 24 (51%) have been completed and/or are on-going, 14 (30%) are in progress, 8 (17%) have not been started but are on track for the intended completion date, and 1 (2%) is underway and slightly delayed (Appendix C). *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 134 of 177 • Community engagement included presentation and discussion with Kitchener's Climate Change and Environment Advisory Committee in their March and April 2025 committee meetings. • This report supports Cultivating a Green City Together: Focuses a sustainable path to a greener, healthier city; enhancing & protecting parks & natural environment while transitioning to a low -carbon future; supporting businesses & residents to make climate -positive choices. BACKGROUND: The City of Kitchener has identified a corporate near-term target of achieving an 8% reduction in corporate greenhouse gas (GHG) emissions by 2026 from the baseline year of 2016; as well as a long-term goal of achieving net -zero by 2050. Achieving net -zero emissions means cutting greenhouse gas (GHG) emissions from human activities to as close to zero as possible, with any remaining emissions being absorbed from the atmosphere. This is the first progress report on the organization's second -generation corporate climate action plan called Pivot: Net -Zero (2024-2027); approved by Council on April 22, 2024 (DSD -2024-074). The three -fold purpose of this report is to: 1. Provide a progress update on 2016-2024 corporate greenhouse gas emissions (Appendix A) and our near-term target of an 8% greenhouse gas emissions reduction target for 2026; 2. Provide an update on the 19 annual progress reporting metrics (Appendix B), and; 3. Share progress on the 47 action items (Appendix C), as identified in Pivot: Net -Zero. This reporting is provided annually in April/May to align closely with Earth Day. REPORT: Progress on Corporate GHGs 2016-2024 (Appendix A) The City of Kitchener corporate GHG emissions have seen a 6% reduction overall from 2016-2024. Significant and sustained GHG reductions are maintained in the Streetlighting focus area. This is due to the extensive, efficiency -focused LED conversion project completed in 2017 for the cobra head streetlights, and 2022 for decorative post -top lights. The City of Kitchener's Facilities and Fleet operations continue to grow. Kitchener is among the fastest growing communities in Canada and likewise City of Kitchener service delivery is expanding. As we expand service delivery to the community, we acquire new assets (e.g. buildings, roads, park, utility infrastructure) that must be maintained. The GHG reduction from 2023-2024 is in part due to a warmer winter (less demand of energy for space heating), in addition to efforts to reduce the carbon intensity of our operations. While Fleet & Equipment has seen an increase in GHG emissions from 2016 baseline levels, assets have continued to grow on an annual basis as well. In 2022 alone, fleet assets have increased by approximately 8%, while overall emissions decreased by 3%. This is a promising trend, that may be indicating a decoupling of Fleet growth and GHG emissions that can be sustained into the future with the further implementation of Pivot: Net -Zero actions. There has been a 2% reduction in corporate GHG emissions annually since 2022. This has occurred despite growth in our service delivery to the community. If we were to Page 135 of 177 extrapolate based on historical data alone, and try to predict the future, one might conclude that we are on track to reach the near-term target of an 8% reduction by 2026 from the 2016 baseline year. Historical trends however are not predictive. Several external threats outside of our control threaten our ability to reach our 8% GHG reduction target by 2026, including increasing carbon intensity of Ontario electricity and heating degree days. External Threats to reaching near-term target goal of 8% reduction Increasing Carbon Intensity of the Ontario Electricity Grid Ontario's Electricity Grid is known for being "clean," with nearly 90% of electricity coming from zero emissions sources. Ontario currently has one of the lowest carbon intensity factors in the world. Between 2016 and 2024, our corporate electricity consumption fell by 10%, however emissions fell by 34%. It is important to note the potential risks and benefits associated with changes in the carbon intensity of the electricity grid. Such changes are largely out of our control. Recently, there has been a need for high carbon intense electricity generation in Ontario that has resulted in increasing emissions factors for electricity. In 2025, the emissions factor will rise to 38gCO2e/kWh (from 30gCO2e/kWh in 2024), which are anticipated to result in an approximate 4% increase in Facilities emissions. When we set our corporate baseline year in 2016, the carbon intensity of the Ontario electricity grid was low. While positive changes to the electricity grid have benefited the City of Kitchener's emissions in the past, this is not anticipated into the future. Anticipated increase in demand for energy in 2025 Heating degree days (HDD) is a way of quantifying energy demand to heat buildings based on outside temperatures. During colder winters with more heating degree days, it is anticipated that energy consumption for space heating (i.e., natural gas), and the associated GHG emissions, would be higher. When looking ahead to our 2025 reporting, it is probable that there will be an increase in overall corporate GHGs. The first months of 2025 were marked by significant cold weather and heavy snowfall. Energy use for both space heating in our facilities and fleet utilization associated with winter maintenance activities is anticipated to be higher than previous years. Despite modest, incremental emissions reductions to date, we cannot confidently state that these reductions will be sustained into the future. Calls to Action Focussing energies where we can, to make an impact on corporate GHGs is the best way to protect our organization from external threats and disruptions while building resiliency towards meeting our long-term net -zero goal. Our capital and operating decision-making today needs to prioritize deep GHG reductions, similar to the net zero choices that have been made with the Kitchener Indoor Recreation Complex. We need to prioritize the 3 pathways of energy conservation, fuel switching, and generating renewable energy. Lastly, continued advocacy to other levels of government and industry to support these pathways is important. Page 136 of 177 Corporate Indicators (Appendix B) Appendix B contains a detailed list of the 19 annual reporting metrics for 2024, including but not limited to GHG emissions, carbon intensity, costs, and energy usage across corporate, Fleet and Equipment, and Facilities operations. Pivot Net -Zero Progress on 47 actions (Appendix C) Pivot: Net -Zero outlines 47 actions that are foundational to developing a roadmap to align net -zero actions with multiple priorities across the organization (e.g., deferred maintenance, asset renewal, capital planning), streamlining the most strategic approach to making progress on new net -zero target. Of the 47 actions listed in Pivot: Net -Zero, 24 (51 %) have been completed and/or are on-going, 14 (30%) are in progress, 8 (17%) have not been started but are on track for the intended completion date, and 1 (2%) is slightly delayed. STRATEGIC PLAN ALIGNMENT: This report supports Cultivating a Green City Together: Focuses a sustainable path to a greener, healthier city; enhancing & protecting parks & natural environment while transitioning to a low -carbon future; supporting businesses & residents to make climate -positive choices. FINANCIAL IMPLICATIONS: None COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting and presented for discussion with Kitchener's Climate Change and Environment Advisory Committee in March and April 2025 committee meetings. PREVIOUS REPORTS/AUTHORITIES: • DSD -2024-074 CorCAP 2.0 Pivot. Net -0 (April 22, 2024) APPROVED BY: Justin Readman, General Manager Development Services Denise McGoldrick, General Manager Infrastructure Services ATTACHMENTS: Attachment A Pivot. Net -Zero 2024 Progress Update Page 137 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) Table of Contents 1. Introduction..............................................................................................................4 2. Corporate GHG Inventory........................................................................................ 4 3. Variations in GHG Intensity......................................................................................6 4. Strategic Priorities by Focus Area............................................................................ 7 4.1. Facilities............................................................................................................7 4.2. Fleet & Equipment.......................................................................................... 10 4.3. Streetlighting................................................................................................... 11 4.4. Staff Travel...................................................................................................... 12 4.5. Corporate Waste............................................................................................. 12 5. Corporate and Community Emissions.................................................................... 12 6. Trends....................................................................................................................12 6.1. Sustained GHG Reductions in Streetlighting.................................................. 15 6.2. Service Growth and GHG's............................................................................. 15 6.3. Electricity Grid................................................................................................. 15 6.4. Heating Degree Days...................................................................................... 15 7. Threats to reaching our reduction target................................................................ 16 8. Calls to Action........................................................................................................ 16 9. Appendices............................................................................................................ 17 9.1. Appendix A — Corporate GHG Inventory - Methodology & Adjustments ......... 17 9.1.1. Methodology............................................................................................ 17 9.1.2. Assets in GHG Inventory ......................................................................... 17 9.1.3. Adjustments............................................................................................. 18 9.2. Appendix B — Annual Progress Reporting Metrics .......................................... 20 9.3. Appendix C — Summary of CorCAP 2.0: Pivot Net -Zero Actions .................... 23 List of Figures Figure 1 - 2024 Corporate GHG Emissions by Focus Area.............................................4 Figure 2 - 2024 Facilities and Fleet & Equipment GHG Emissions by Energy Type ....... 5 Figure 3 - 2024 Energy Consumption vs. Emissions by Energy Source ......................... 7 Figure 4 - 2024 Corporate GHG Emissions by Energy Source and Facility Type ........... 8 Figure 5 - 2024 Top 10 GHG Emitting Facilities.............................................................. 9 Figure 6 - 2024 GHG Emissions by Fleet Vehicle Class (excluding small equipment).. 11 K Page 139 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) Figure 7 - Corporate GHG Emissions 2016 — 2024 ....................................................... 13 List of Tables Table 1 - 2024 Utility and Fuel Costs.............................................................................. 6 Table 2 - Corporate GHG Emissions vs Consumption by Focus Area .......................... 14 9 Page 140 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) 1. Introduction The City of Kitchener has identified a corporate near-term target of achieving an 8% reduction in corporate greenhouse gas (GHG) emissions from the baseline year of 2016; as well as a long-term goal of achieving net -zero by 2050. Achieving net -zero emissions means cutting GHG emissions from human activities to as close to zero as possible, with any remaining emissions being absorbed from the atmosphere. This is the first progress report on the organization's second -generation corporate climate action plan called Pivot: Net -Zero; approved by Council April 22, 2024 (DSD -2024-074). The threefold purpose of this report is to track corporate GHG progress from 2016- 2024, provide an update on the 19 annual progress reporting metrics (Appendix B) and the 47 action items (Appendix C), as identified in Pivot: Net -Zero. 2. Corporate GHG Inventory The City of Kitchener reports on GHG emissions in five corporate focus areas, presented below in Figure 1. These corporate focus areas are consistent across most, if not all municipalities. GHG emissions are calculated based on energy consumption (fuel, electricity, natural gas) and emissions factors from verified sources (these details are further described in Appendix A). Facilities m Fleet & Equipment Staff Travel Streetlighting Waste % Figure 1 - 2024 Corporate GHG Emissions by Focus Area Il Page 141 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) In 2024, the City of Kitchener emitted 10,847 tonnes of GHGs (tCO2e). Ninety percent of these emissions came from two corporate focus areas — Facilities (54%) and Fleet & Equipment (36%), which is consistent distribution of corporate emissions from baseline. When we look at our corporate sources of energy within these two focus areas (Figure 2), particularly the types of fossil fuels we rely on, we see natural gas continuing to play an important role in our facilities (for space heating, and domestic hot water). Space heating alone accounts for approximately 80% of natural gas use in Facilities. While in our fleet & equipment — gasoline and diesel are significant. Gasoline is used primarily for lighter duty vehicles and diesel is used in medium and heavy-duty vehicles. Facilities Fleet & Equipment 0 11000 2,000 3,000 4,000 5,000 6,000 7,000 tCO2e 111111 Diesel uuuuu Biodiesel Electricity uuuuul Ethanol Blend (10%) Gasoline uuuuil Natural Gas Propane Figure 2 - 2024 Facilities and Fleet & Equipment GHG Emissions by Energy Type As GHG emissions on their own can be difficult to relate to, utility costs offer an alternative way to look at energy consumption across the organization. Table 1 below outlines 2024 costs by energy source for both Facilities, and Fleet & Equipment focus areas. 5 Page 142 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) Table 1 - 2024 Utility and Fuel Costs Energy Source 2024 Cost Fleet & Equipment Gasoline (includes gasoline and ethanol blend) $1,012,731 Diesel (includes petroleum diesel and biodiesel blends) $1,070,168 Propane — fleet & equipment $5,667 Fleet Total $2,088,582 Facilities Propane $11,598 Electricity $4,751,414 Natural Gas $1,000,120 Facilities Total $5,763,132 Grand Total $7,851,698 3. Variations in GHG Intensity When it comes to GHG emissions, not all energy sources are equal. Some energy sources are more carbon intense than others. This becomes clear when comparing energy consumption to GHG emissions for different energy sources (Figure 3). For instance, electricity is the source for 47% of our corporate energy used in 2024, yet only accounts for 12% of our corporate GHGs. Natural gas by comparison is the source of 41 % of our energy used — yet accounts for 64% of our corporate GHGs. Similarly, fleet fuels account for 12% of total corporate energy used, but 23% of corporate GHGs emissions. This data provides insight into how transitioning to lower carbon energy sources is important, why it is sound for this to be a corporate priority and how a corporate energy transition can make a significant impact on our corporate GHGs and in our corporate journey to net -zero. C.1 Page 143 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) Energy Consumption by Energy Emissions by Energy Source Source Electricity Fleet Fuels Natural Gas Propane 0.05% 47% 1% Figure 3 - 2024 Energy Consumption vs. Emissions by Energy Source 4. Strategic Priorities by Focus Area 4.1. Facilities Facilities are responsible for just over half of Kitchener's corporate GHG emissions (54%). 84% of these GHG emissions are due to natural gas consumption used for space and water heating - equivalent to 45% of total corporate emissions. Looking at the data with both a facility and energy type lens, enables a more granular and strategic understanding of Facilities and their contribution to corporate GHGs. Certain facility types emerge as priority areas for making impact including Arenas, Administrative Buildings and Pools (Figure 4). This is underscored by looking at the corporate Top 10 GHG emitting facilities (Figure 5), 8 of which fall into these 3 categories, including 6 within the Sport Division (Arenas and Pools). 7 Page 144 of 177 C) 0 0 0 0 0 N O C) C) r (3) 0 O 0 00 I C) CDN iiiiiiiiiiiiiiiiiiiiii O ai C •� CD > U p>' LL uJ 06 N yL U �+ E E O O cocc U •�O � Q U O L J cn L U O U O cu U Q (II M C� L N L E O U i Q U LL N O N O 4.10- D D co C a 0 a� N z O r I 0 N a U L O A, a t H Old ►4 X N Q 0 QL U) c� U El co C a 0 V- 0 Q Al O O 0- (D N U Q ca t O m Q J c� 0 O 0- cn i 0) 2 en O O LL RWA u1 Im 00 0 0 rl I 0 0 IR O LL 0 O N — LL �U �1 L U +r O L1J co LL cn 2 ca � U o o C> N C � IIIIIz N O o O N LO d i 7 O LL 0 As Facilities transitions towards lower carbon fuel sources for heating, we should begin to see the carbon intensity of buildings decrease, which can be done through tracking the carbon intensity per area of building owned. In 2024, the carbon intensity for facilities was 28.5kg CO2e/m2 (0.028tCO2e/m2), excluding pumping stations. Generating renewable energy The solar panels installed on the roof of the Kitchener Operations Facility generated a total of 570,263 kWh in 2024. The energy produced from these solar panels is sent back to the electrical grid. 4.2. Fleet & Equipment The Fleet Division at the City of Kitchener is an integral part of service delivery across many departments. In total, Fleet is responsible for approximately 650 on and off-road vehicles and equipment. In addition, the City of Kitchener has many smaller handheld equipment. Due to the refueling practices, it is difficult to track exactly how much fuel they use, rather the fuel used in these units is captured under the associated vehicle's fuel usage. Fleet assets continue to grow annually. In 2024, 18 additional on and off-road vehicles and equipment were added to the inventory. However, 40 electrified assets were added through replacements including 4 electricity utility vehicles, and 37 electric handheld equipment units. Light duty vehicles (LDVs) include cars, cargo vans, SUVs and smaller pick-up trucks and they make up 38% of our fleet assets but are only responsible for 21 % of fleet emissions (Figure 6). The marketplace currently offers electric options for many LDVs. This vehicle type is most ready to transition to zero -emission options. In 2024, Fleet has a total of 22 battery electric vehicles (BEV's) in operations. By contrast, the medium and heavy-duty vehicle marketplace is limited in its offering of zero emissions vehicle options. Vehicles in this category include dump trucks, large pick-up trucks (e.g., Ford 550) and fire trucks. These two categories represent 32% of our total fleet assets and 60% of our fleet and equipment emissions (Figure 6). Therefore, even by electrifying all our light-duty vehicles, the majority of emissions from this focus area will persist until viable options present in the marketplace. Making significant and sustained corporate fleet GHG reductions will continue to be a challenge not readily remedied within the next 5 years. Fleet is working on a Sustainable Fleet Transition Strategy (Appendix C, Action 27) that will explore alternate fleet fuels including hydrogen and renewable diesel options. Page 147 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) Equipment Heavy Duty Light Duty Medium Duty % of Fleet Assets % of Fleet Emissions Figure 6 - 2024 GHG Emissions by Fleet Vehicle Class (excluding small equipment) As we transition towards lower carbon fuel sources, we anticipate seeing the carbon intensity of Kitchener's fleet decrease. Tracking the carbon intensity per kilometer driven by fleet vehicles is an effective way to show the shift away from fossil fuels. In 2024, the carbon intensity of Kitchener's fleet is at 0.55 kgCO2e/km (0.00055tCO2e/km) for on - road licensed vehicles, which are classified as light and medium duty vehicles. This metric has not been reported on in previous years and will be tracked going forward. 4.3. Streetl i g hti ng The City of Kitchener is responsible for a network of approximately 18,325 Cobra Head streetlights and 2,689 decorative post -top lights. Acknowledging the opportunity to reduce GHG emissions from electricity to power lights and for impressive cost savings, the City undertook an extensive LED conversion project, converting 15,636 of its Cobra Head streetlights, over a 2 -year period from 2015-2017. Cost and energy savings were immediate and significant. In April 2017 (pre -completion), electricity use for streetlights was approximately 802,000 kWh, and the following April consumption fell to approximately 350,000 kWh. In 2022/2023, a similar project was done for all the City's decorative post -top lights, with an estimated pay -back period of 10.7 years. Not only has the transition to LED lighting resulted in emission reductions but it has also significantly decreased the waste associated with replacing streetlight bulbs. On average, the previously used high-pressure sodium (HSP) lightbulbs were replaced every 3 years. Following the transition to LED, many of the streetlights have not been replaced since their transition in 2015, making them 10 years old and still operating. Since the project was implemented in 2017, a sustained reduction in GHG emissions of approximately 71 % has been observed. (Table 2). Streetlighting is a successful example of achieving significant and sustained GHG emissions. 11 Page 148 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) 4.4. Staff Travel Staff travel includes vehicle mileage claimed by employees who used a personal vehicle for work purposes only. By tracking and reporting on this category, we are able to provide a more wholistic view of staff travel related to service delivery to the community to complement fleet reporting. Staff travel in 2024 accounted for only 1 % of the City of Kitchener's total emissions, 64t CO2e. Since 2021, emissions from staff travel have increased by approximately 48%, however, there was a 19% decrease in staff travel from 2023 to 2024. 4.5. Corporate Waste This focus area includes waste generated at City facilities and from street level and park waste receptacles. While waste may appear to be a small part of corporate emissions (8.5%), methane from waste is much more harmful and potent than other GHGs. From 2016 — 2024, GHG emissions from corporate waste have increased by 37%, which is an 11 % increase from 2023. Waste has been on an upward trend since 2016, with a large jump observed in 2022. In order to address this issue, additional information into the City of Kitchener's waste is needed. To help fill this gap, a Corporate Waste Assessment is an action identified in Pivot: Net -Zero to assess how the City of Kitchener's corporate waste is handled and identify opportunities for improvement (Appendix C, Action 35). 5. Corporate and Community Emissions Climate Action Waterloo Region tracks community emissions across Waterloo Region. When comparing how the City of Kitchener's corporate GHG emissions contribute across the region, they account for less than 1 % of all community emissions. We all play a role in reducing the GHG emissions within our community, so while this number is small, it does not undermine the importance of our Corporate Climate Action Plan and target of achieving net -zero by 2050. 6. Trends The City of Kitchener corporate GHG emissions have seen a 6% reduction overall from 2016-2024. Figure 7 illustrates this progress with the dotted red line indicating the target of reducing emissions by 8% from 2016 levels. Table 2 describes the changes in energy consumption and greenhouse gas emissions over time and shows a decline in emissions over the last 2 years. 12 Page 149 of 177 O O O O O O N � r ti ti 4- 0 0 LO T- (3) 0) m n IIII.V,I.V.VV4� �IVIIIIIIIf R Co i idUbbbbbbbb�����,1`CR$- co CN i�7'�YIPPDhFFF�'6�'6'F'F� _ - U Gk4kk44ti ^ LU_ w cl) LD CU LL LL co LL N C)I ti ti 4- 0 0 LO T- (3) 0) m n N O N O 4.10- D D co c a 0 a� N Z 0 r 0 ^N LL a V O A, 0)o 0 0 o a o o Z cc N U c' + ti + 0 o LU N r N C O O 0 0 o a o 0 CU E O N Z T co ti Uc + + o U c — cn a� c cm o o\ o a o o 04T � 0 o W N r N C - o E � o a o 0 c �° + Z T co CD + U c o o U C cn O C 0 o a o o a a o 0 N co n ~ + \ Z co ~ + N U E N CD o LU co T- CD N C - 0 �P E o o a -Cc' Co M ZC.0+ r U') 1 U C T + + o o U o ( cn U' toCU �±_ ��X( C' C • L Fu W V a •5 ti::a) O f6 i C6 CO LU 00 Z LL LU CA U) 6.1. Sustained GHG Reductions in Streetlighting Significant and sustained GHG reductions are maintained in the Streetlighting focus area. This is due to the extensive, efficiency -focused LED conversion project completed in 2017 for the cobra head streetlights, and 2022 for decorative post -top lights. 6.2. Service Growth and GHG's The City of Kitchener's Facilities and Fleet operations continue to grow. Kitchener is among the fastest growing communities in Canada and likewise City of Kitchener service delivery is expanding. As we expand service delivery to the community, we acquire new buildings. The GHG reduction from 2023-2024 is in part due to a warmer winter (less demand for energy for space heating), in addition to efforts to reduce the carbon intensity of our operations. While Fleet & Equipment has seen an increase in GHG emissions from 2016 baseline levels, assets have continued to grow on an annual basis as well. It is important to note that emissions were slightly elevated in 2022 due to COVID-19 restrictions making single occupant vehicles necessary in operations. From 2022 alone, fleet assets have increased by approximately 8%, while emissions have decreased by 3%. This is a promising trend, that may be indicating a decoupling of Fleet growth and GHG emissions that can be sustained into the future with the further implementation of Pivot: Net -Zero actions. 6.3. Electricity Grid Ontario's Electricity Grid is known for being "clean," with nearly 90% of electricity coming from zero emissions sources. Ontario currently has one of the lowest carbon intensity factors in the world. Between 2016 and 2024, our electricity consumption fell by 10%, however emissions fell by 34%. It is important to note the potential risks and benefits associated with changes in the carbon intensity of the electricity grid. Such changes are largely out of our control. Recently, there has been a need for high carbon intense electricity generation in Ontario that has resulted in increasing emissions factors for electricity. In 2025, the emissions factor will rise to 38gCO2e/kWh (from 30gCO2e/kWh in 2024), which would result in approximately 4% increase in emissions in our facilities emissions. 6.4. Heating Degree Days Heating degree days (HDD) is a way of quantifying energy demand to heat buildings based on outside temperatures. During colder winters with more heating degree days, it is anticipated that energy consumption for space heating (i.e., natural gas), and the associated GHG emissions, would be higher. There were 4,174 HDD in 2022 (8% increase from 2016 at 3,856HDD) and Table 2 notes a 4% increase in natural gas consumption and emissions. 2023 had 5% less HDD compared to 2016 and correspondingly 4% less natural gas emissions. In 2024 there were 3,179 HDD (-9% to 2016) and a 12% decrease in natural gas consumption and emissions. This indicates Page 152 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) the significant impact of variations in the annual weather on the changes observed in natural gas emissions. 7. Threats to reaching our reduction target When we set our corporate baseline year in 2016 the carbon intensity of the Ontario electricity grid was low. The carbon intensity of the Ontario energy grid is now increasing. A 4% increase in Kitchener facilities emissions is anticipated for 2025. This anticipated increase is due to a more carbon intense electricity grid in Ontario that has resulted in increasing emissions factors for electricity. While positive changes to the electricity grid have benefited the City of Kitchener's emissions in the past, this is not anticipated into the future. There has been a 2% reduction in corporate GHG emissions annually since 2022. This has occurred despite growth in our service delivery to the community. If we were to extrapolate based on historical data alone, and try to predict the future, one might conclude that we are on track to reach the short-term target of an 8% reduction by 2026 from the 2016 baseline year. Historical trends however are not predictive. Several external factors outside of our control (see section 6) threaten our ability to reach our 8% GHG reduction target, including variation in energy consumption and heating degree days. When looking ahead to our 2025 reporting, it is probable that there will be an increase in overall corporate GHGs. The first months of 2025 were marked by significant cold weather and heavy snowfall. Energy use for both space heating in our facilities and snow clearing is anticipated to be higher than previous years. Despite modest, incremental emissions reductions to date, we cannot confidently state that these reductions will be sustained into the future. 8. Calls to Action Focussing energies where we can, to make an impact on corporate GHGs is the best way to protect our organization from external threats and disruptions while building resiliency towards meeting our long-term net -zero goal. Our capital and operating decision-making today needs to prioritize deep GHG reductions. We need to prioritize the 3 pathways of energy conservation, fuel switching, and generating renewable energy. Lastly, continued advocacy to other levels of government and industry to support these pathways is important. 16 Page 153 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) 9. Appendices 9.1. Appendix A— Corporate GHG Inventory - Methodology & Adjustments 9.1.1. Methodology GHG emissions have been calculated using consumption data collected from utility bills for electricity and natural gas, and from FLINT for fleet fuels. Table Al below outlines the emission factors used to convert consumption data into GHG emissions for 2024. The most up to date emission factors published by the Governments of Canada and Ontario have been used. For staff travel, an average emission factor based on a variety of makes and models was used. Table A 1 - Emission Factors Energy Source Unit Emission Factor K CO2e /unit Electricity kWh 0.03 Natural Gas m3 1.93 Biodiesel 5 L 2.70 Diesel L 2.71 Ethanol Blend 10% L 2.24 Gasoline L 2.32 Propane L 1.54 Electricity L 0.03 Staff Travel km 0.19 Waste mt 481.70 9.1.2. Assets in GHG Inventory To track and report on our Corporate GHG emissions consistently from year to year, it is important to have a well-defined inventory of assets and sources that are included and updated in corporate GHG reporting. Table A2 below outlines the assets and sources reported on in each focus area. Table A 2 - Assets and Sources included in GHG Inventory 17 Page 154 of 177 Sources Focus Area Facilities 85 facilities All on -road heavy, medium, and light duty vehicles and off-road Corporate equipment (loaders, backhoes etc.) that use 6 different types of fuel. Fleet & Given the process by which small handheld equipment is re -fueled, it is Equipment difficult to accurately track their fuel consumption and therefore handheld equipment is not included in the GHG inventory for fleet. Streetlights Outdoor Streetlights Waste Waste collected from city facilities and street level / park waste receptacles including large Moloks. Staff Travel Staff mileage claims for work-related, personal -vehicle use. 17 Page 154 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) 9.1.3. Adjustments Fleet Data This report includes adjustments to the 2023 data as it was presented in the DSD -2024- 074 Report. In this report 2023 Fleet & equipment data attributes have been updated. At the time of reporting 2023 data, the FLINT database was undergoing an update which resulted in fleet attribute changes. These changes resulted in vehicles not being included in the 2023 corporate GHG calculations. As a result, the adjustments in this report include adding previous vehicles omitted in the original 2023 calculations reported. Table A3 indicates the changes to the 2023 fleet data as reported in this 2024 report. Table A 3 - Fleet & Equipment Data Adjustments Category Previous 2023 Updated 2023 Difference Data Data GHG emissions 3,692 tCO2e 3,848 tCO2e 4% (tCO2e) Vehicle Count (on & 580 648 10% off road) Small Equipment 549 570 4% Count These adjustments result in approximately 4% more emissions in this fleet category and 157 tCO2e total corporate emissions. The major finding in the 2023 report, however, remains true that growth was experienced in the focus area and this expansion has not resulted in commensurate growth in corporate GHGs. The decoupling of growth and GHGs in this focus area remains true for 2023 and 2024 data. Global Warming Potentials In March 2024, the Climate Change and Environment Committee passed a motion "that the CCEC supports the recommendation that for future GHG reduction project analysis [global warming potential] GWP 20 emission factors (as it's amended) be used to calculate GHG emissions, in place of GWP 100." GWP 20 emission factors are useful when looking at the impact of GHG's that have a shorter lifetime in the atmosphere, such as methane (CH4), while GWP 100 emission factors focus on gases with a longer lifetime, specifically carbon dioxide (CO2). Following this recommendation, staff investigated making this switch and have decided to not move forward with the use of GWP 20 emission factors. The rationale behind this decision is in part due to the prominence of CO2 in the City of Kitchener's corporate GHG emissions, as well, to stay consistent with larger organizations for reporting purposes. While natural gas usage plays a large role in the City of Kitchener's GHG emissions, when burned, it mainly releases CO2. The main CH4 emissions from natural gas are a result of leaks during Page 155 of 177 CorCAP 2.0 — Pivot: Net -Zero Annual Update (2024) transportation and storage, which is considered an upstream emission, and is not within the scope of the City of Kitchener's Corporate GHG inventory. In addition, continuing forward with the GWP 100 emission factors will allow the City of Kitchener to stay aligned with the reporting frameworks we have committed to report to annually, including the Sustainable Waterloo Region Impact Network and Partner's for Climate Protection. 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