Manitoba Hydro Joins Chicago Climate Exchange

CCX participants have agreed to a commitment to reduce their emissions of greenhouse gases by four per cent below their 1998-2001 average baseline by 2006, the last year of the pilot program.

This announcement will result in Manitoba Hydro joining a group of North American companies that have formed a voluntary marketplace that is designed to facilitate the reduction and trading of greenhouse gas emissions.

Manitoba Hydro has previously committed, voluntarily, to net emission reductions which will meet or exceed the Kyoto protocol targets.

Our participation in the CCX will allow us to gain practical experience in emissions trading, which we anticipate will be a feature of future Canadian efforts to meet the countryÂ’s commitments under the Kyoto protocol, said Manitoba Hydro President and CEO Bob Brennan.

Brennan noted that this initiative marks the first time major companies in multiple sectors have made a voluntary binding commitment to make use of market-based mechanisms for reducing their emissions of greenhouse gases.

Manitoba Hydro will join American Electric Power, Baxter International Inc., the City of Chicago, E.I. du Pont de Nemours and Company, Ford Motor Company, International Paper, MeadWestvaco Corporation, Motorola, Stora Enso North America, Temple Inland Inc. and Waste Management Inc. as founding members of the CCX.

Although Manitoba Hydro projections indicate that its net emissions will be well below the commitments undertaken through CCX, circumstances may arise under which Manitoba Hydro would buy credits from other companies who have reduced greenhouse gas emissions or have undertaken efforts to provide offsets, such as tree planting projects.

Manitoba HydroÂ’s greenhouse gas emissions arise mainly from the operations of its natural gas and coal electricity generating facilities in Selkirk and Brandon, the operation of diesel generating units in remote communities and the operation of its fleet of vehicles. In addition, its natural gas operations produce small greenhouse gas emissions primarily from leaks from pipelines and other equipment.

Typically 98 per cent of ManitobaÂ’s electricity is generated from hydroelectric facilities which produce very small amount of emissions through the creation of reservoirs. In addition, Manitoba HydroÂ’s exports of electricity displace significant amounts of greenhouse gases by other utilities in Canada and the United States. For example, in 2001, Manitoba Hydro exports displaced 11.94 megatonnes of greenhouse gases, while its production of greenhouse gases in Manitoba amounted to 0.91 megatonnes. Nonetheless, the Corporation is continuing its efforts to reduce its own emissions and to meet is long term commitment of keeping average annual net emissions of greenhouse gases at least 6 per cent below 1990 levels between 1990 and 2012.