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WORKING TOGETHER ON SENSIBLE SOLUTIONS CLIMATE CHANGE CENTRAL 20 02 PROGRESS REPORT


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C L I M AT E C H A N G E C E N T R A L

PROFILE

Climate Change Central (CCC) is a unique public-private partnership that promotes the development of innovative responses to global climate change and its impacts. Climate Change Central builds links and relationships between businesses, governments and other Alberta stakeholders interested in reducing greenhouse gases.

CONTENTS

1

Chief Executive Officer’s Message

2-3

Message from the Co-Chairs

4

Introduction

5

2002 Project Profiles

13

Project summaries

17

Organization and Board of Directors

18

Auditors’ Report

19

Financial statements

24

Notes to Financial Statements


Climate Change Central 2002 Progress Report

CHIEF EXECUTIVE OFFICER’S MESSAGE

Climate Change Central turned two in 2002 - a year which saw us navigate through a stormy national and provincial debate on the ratification of the Kyoto Protocol. This was a year that saw the Alberta and federal governments each table action plans on climate change. With the debate frequently dominating the headlines, CCC was increasingly called on to offer comment and analysis on climate change issues. We were interviewed by the media many times. We spoke at over 65 venues - from international conferences, to technology workshops, to university lecture series. Our message throughout the debate was that Alberta needs to take action on climate change, while maintaining a strong and competitive economy. We stuck to our three "p's": policy, pilot projects and public education. We participated in some 25 pilot projects in 2002, with over 95 partners. CCC provided strategic advice to governments and industry on the development of an emissions trading system and off-set piloting. We launched Energy Solutions Alberta, a major initiative with Alberta Environment, to motivate Albertans to be more energy efficient. Watch us continue to grow in 2003 - especially, as we develop flagship programs that will begin to involve more and more Albertans. The future looks bright for action on climate change. Join us as we work to pioneer new and unique approaches to greenhouse gas reduction.

Allan Amey President & CEO

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Climate Change Central 2002 Progress Report

MESSAGE FROM THE CO-CHAIR OF C L I M A T E C H A N G E C E N T R A L’ S B O A R D O F D I R E C T O R S

Climate Change Central plays a vital role in Alberta’s commitment to an effective climate change response. As a unique partnership, it involves and connects industry, researchers and educators, environmental organizations and all Albertans in achieving that goal. I would like to commend the organization for its efforts over the past year, and in particular for its leadership and technical expertise on matters related to the future of emissions trading and for a wide range of innovative pilot projects. This past year also marked the establishment of Energy Solutions Alberta, which will soon become Alberta’s one-stop shop for information about energy efficiency and conservation opportunities for homes, businesses and municipalities. I believe this program will be an excellent source of information for Albertans, and will help inspire and show them how their actions can make a difference. Overall, Climate Change Central is an invaluable partner in the Government of Alberta’s efforts to reduce greenhouse gas emissions, and to train Alberta’s economy to contribute to our environment and our future. I look forward to continuing to work with all of the individuals and organizations that contribute to its success in the months and years ahead.

Lorne Taylor, Ph.D. Co-Chair Minister of Environment


Message from the Co-Chairs

MESSAGE FROM THE CO-CHAIR OF C L I M A T E C H A N G E C E N T R A L’ S B O A R D O F D I R E C T O R S

A strong economy is essential to ensure Alberta has the capacity to take strong action on climate change. Climate Change Central is working with industry, NGO's and all levels of government on the many policy issues associated with emissions reductions, emission trading, and carbon offsets. This broad-based approach will help facilitate increased policy certainty, while helping Alberta reach its greenhouse gas reduction targets. I am pleased with Climate Change Central’s efforts in 2002 to meet greenhouse gas reduction objectives while maintaining a strong and competitive economy. This balance of comprehensive policy advice, pilot projects and consumer action in energy efficiency will only increase Alberta’s capacity to address this important issue.

Charles Fischer, Co-Chair

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Climate Change Central 2002 Progress Report

C L I M AT E C H A N G E C E N T R A L I N T RO D U C T I O N

WHY IS CLIMATE CHANGE

In Alberta and around the world, there is growing awareness of global climate change.

AN IMPORTANT ISSUE?

This issue represents a significant challenge to Alberta’s resource-based economy and our future quality of life. At the same time, it offers an important opportunity for Albertans to turn a major environmental challenge to their advantage. Why was Climate Change Central established? In 1999, a Round Table meeting sponsored by the Alberta Government brought together leaders from Alberta’s private and public sectors to discuss the challenges of climate change.

These leaders urged collaboration among Albertans and recommended

creating a public-private partnership to provide a renewed focus on action. Climate Change Central was established to meet this need. What is Climate Change Central’s vision? Our vision is that Alberta, as an acknowledged world leader, achieves zero net greenhouse gas emissions while enhancing the province’s economic performance, quality of life and ability to adapt to climate change. How does Climate Change Central support climate change action? Climate Change Central provides analysis, engagement and policy advice; promotes innovation through the exchange of knowledge, ideas and best practices; provides outreach services; and focuses attention on Alberta’s successes in addressing the climate change challenge. How is Climate Change Central funded? Climate Change Central is a not-for-profit corporation supported by public and private funding. In 2002, Climate Change Central and its stakeholder partners contributed an estimated $4 million to co-funding projects. approximately five to one.

CCC leveraged its funding by


Sensible Solutions

PROJECT PROFILE

536 polluting vehicles

off Calgary’s streets

ENERGY EFFICIENCY

In just 10 weeks, the Breathe Easy pilot project sold out. Calgarians jumped at the opportunity to exchange their pre-1988 vehicles - a major source of smog and greenhouse gases in urban areas - for a year-long transit pass or $500 credit towards a newer vehicle. Three-hundred-andfifty-one transit passes and 185 vehicle credits were issued. "The response was overwhelming," says Shell Canada Product's Gerry Ertel, co-chair of the Clean Air Strategic Alliance project.

Climate

Change Central provided funding and strategic leadership to the pilot. Over a three-year period, Breathe Easy will have reduced carbon dioxide (C02) emissions by 2,889 tonnes and smog-forming compounds by 803 tonnes. Climate Change Central is working on a longerterm vehicle scrappage program that will cover a wider geographical area in Alberta.

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Climate Change Central 2002 Progress Report

ENERGY EFFICIENCY

e

Missions Banff: the greening of a highway

Jason Hardy’s life blood is the busy 140kilometer stretch of highway between Calgary and Banff. His company, Banff Airporter, shuttles tourists and residents between the national park and Calgary International Airport at least 20 times a day. In 2002, Climate Change Central helped sponsor a pilot project, eMissions Banff, that enabled Hardy to convert five 24-passenger shuttle buses and three 13-passenger vans to natural gas. Hardy estimates the conversions have saved his company over $75,000 in the past 18 months. The program has also become an environmental calling card for Hardy:

His company was

nominated for an Emerald Award and a federal Heritage Tourism Award for best environmental practices. eMissions Banff converted about 20 commercial vehicles to natural gas, reducing C02 emissions by about 320 tonnes annually, and replacing about 32,000 litres of gasoline with natural gas every month.

ATCO Gas constructed a new

natural gas refueling facility in Banff to complement one near the Calgary airport.

A

second phase of the project converted Banff taxis and other commercial vehicles to natural gas.


Sensible Solutions

ENERGY EFFICIENCY

Energy Solutions

A new school in Red Deer is designed to cut

Alberta

On June 11, 2002, six leaders in energy efficiency

$30,000 in energy costs. An Edmonton man cycles 13 kilometers to work in all weather and all seasons. The town of Okotoks is tapping the power of the sun to heat its swimming pool. These are some of the innovative steps being taken by Albertans to save energy, reduce greenhouse gases and benefit the environment.

helped launch Energy Solutions Alberta, Climate Change Central’s major partnership with Alberta Environment and other stakeholders to educate, inspire and motivate Albertans to become more energy efficient. Energy Solutions Alberta will be a key source of information for Albertans through its website, a call centre and informational materials. The ESA website (www.energysolutionsalta.com) showcases energy-saving tips, links and success stories in homes, schools, governments, businesses and communities. ESA will continue to develop programs to reach consumers, commercial builders and developers, municipalities and rural communities, and vehicle owners.

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Climate Change Central 2002 Progress Report

ENERGY EFFICIENCY

powered

Sun legislature

The Alberta Legislature is the first legislative building in Canada to use solar power. Twentyfour solar modules have been installed on the roof of the building's power plant to provide part of the Legislature's electrical needs. Climate Change Central facilitated the installation for the Alberta Environment project.

Alberta

Infrastructure will own and manage the array. "We used the project as a learning experience," says CCC Program Director Simon Knight. "It not only showed us the barriers we need to break in terms of a national electrical code, it demonstrated the value of solar energy as an alternative power source." The solar array is one step in Alberta's action plan on climate change. In 2005, the Alberta government will start to buy 90 per cent of its electricity from green power sources.


Sensible Solutions

TECHNOLOGY

Wood Waste as

fuel a district heating model

Open burners used to incinerate wood waste in Grande Prairie, spewing ash into the air. Soon these polluting eyesores will be a thing of the past, as the wood waste – a renewable green power source - is used to produce heat and electricity. Waste wood from two Canfor Corporation sawmills will fuel a co-generation plant being built this year by Canadian Gas & Electric at the Grande Prairie mill.

Climate Change Central,

the City of Grande Prairie, ATCO Gas, Canfor and the Federation of Canadian Municipalities funded a study to evaluate the potential of using the excess steam energy to heat nearby buildings. Recovering waste heat will cut fuel consumption for heating adjacent buildings and reduce greenhouse gas emissions by an estimated 10,000 tonnes a year. As well, ash particulates will drop from 1,500 to 300 kilograms a day. The City has applied for further funding to implement the project, which when completed will create a model for district heating in Alberta.

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Climate Change Central 2002 Progress Report

TECHNOLOGY

Green House Effect

Plants in a Medicine Hat greenhouse are getting the benefits of carbon dioxide (C02). Four gasfired microturbines - each the size of a vending machine - are producing electricity and heat at the two-acre Suntec Greenhouses. Climate Change Central helped fund Mariah Energy Corporation’s installation of Combined Heat

and

Power

(CHP)

systems

in

the

greenhouses. Surplus energy can be sold to the electrical grid. The project is expected to reduce C02 emissions by 55 per cent and nitrous oxide emissions by 97 per cent, and reduce Suntec's fuel and power costs. The plants get the added benefit of C02 produced from combusting natural gas. Results from the pilot will determine if CHP systems can be applied to other greenhouses and light industries to increase energy efficiency and reduce GHG emissions.


Sensible Solutions

TECHNOLOGY

CO2: the commodity

As Canada moves towards a carbon-constrained future, attaching a price to carbon sends a signal that emitting greenhouse gases into the atmosphere has a cost.

Allowing firms the

option of reducing their own emissions or paying others to do so provides a market-based way to reduce greenhouse gas emissions. Climate Change Central has provided strategic and technical advice on the development of an emissions trading system in Alberta and Canada. That means working with policymakers and industry to identify rules and regulations for trading C02.

CCC is also developing offsets

policy - for example, pulling carbon out of the atmosphere and storing it in land and vegetation (sinks), or capturing methane from landfill gas. CCC is developing strategies to help companies put carbon into their bottom line, assist governments in developing the rules for trading greenhouse gases, and facilitating pilot projects to demonstrate the potential of real emission offsets.

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Climate Change Central 2002 Progress Report

OFFSETS AND EMISSIONS TRADING

Emissions

Emissions trading is an important policy tool

Trading

Climate Change Central sponsored a mock

for managing greenhouse gas emissions. Following on the success of the 2001 Alberta Greenhouse Gas Emissions Trading Simulation, negotiation workshop in February, 2002. Lawyers, brokers and potential buyers and sellers came together to negotiate carbon reduction trades. The exercise highlighted many of the challenges and issues that need to be

mock negotiation

addressed in defining a legally-robust trading agreement. CCC will host another emissions trading simulation - this time focusing on multiple types of emissions - in the fall of 2003.


Project Summaries

PROJECT SUMMARIES

ENERGY EFFICIENCY CH

A NGE

Environmental Services Association of Alberta Greenhouse Gas Solutions Showcase

CLI

NT RAL

M AT

E

CE

P

RO

JECT

S

The GHG Solutions Showcase is an online catalogue of suppliers whose products and services help reduce greenhouse gas emissions. The Showcase focuses on the Western Canadian petrochemical industry, oil and gas, utilities, agriculture, mining, forestry and residential and commercial building sectors. Over time the catalogue will be expanded to take in a greater number of sectors and regions. CCC provides funding for the ongoing development of the site and participates on the projects review committee. (www.ghgshowcase.com) Hinton Solar Pool Project

CCC evaluated the potential of installing a solar heating

system in the Hinton Municipal Swimming Pool. A project case study aims to reduce the barriers to solar energy and encourage its use by other municipalities. Alberta Municipal Energy Efficiency and GHG Conference

CCC will partner with the

Alberta Urban Municipalities Association (AUMA) to host the Alberta Municipal Energy Efficiency and GHG Conference, March 5 and 6, 2003. The conference will showcase actions taken by Alberta municipalities to reduce energy and in the process, save public funds. Breathe Easy Vehicle Scrappage Project eMissions Banff

See page 5 in the feature section.

See page 6 in the feature section.

Energy Solutions Alberta

See page 7 in the feature section.

Alberta Legislature Solar Panels

See page 8 in the feature section.

TECHNOLOGY

New Energy Resource Alliance Workshop

CCC, in partnership with the Alberta

Research Council, supported the creation of New Energy Resources Alliance (NewERA), an alliance of individuals, companies and organizations interested in promoting and demonstrating distributed generation (small-scale power and heat generation that is close to users).

NewERA will facilitate demonstration projects focused on new

distributed generation applications.

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Climate Change Central 2002 Progress Report

PROJECT SUMMARIES

SAIT Microturbine Combined Heat and Power Project

CCC provided marketing support

to Mariah Energy Corporation and the Southern Alberta Institute of Technology (SAIT) to promote the installation of two CHP microturbines in a campus recreational centre. The system is an on-site source of heat and power for the complex and heats an Olympic-size swimming pool. SAIT students pursuing careers in the electrical power industry will get hands-on experience with the alternative energy system as part of their studies. PTAC-CCC Greenhouse Gas Technology Conference

CCC partnered with Petroleum

Technology Alliance Canada (PTAC) to host the first Western Canada Climate Change and Greenhouse GasTechnology Conference in Calgary, May 22nd - 24th, 2002. The conference showcased climate change technology solutions for mitigating greenhouse gases for the oil and gas, oil sands, coal, petrochemical and pipeline industries in Western Canada. Integrated Manure Utilization System

This multi-year project, spearheaded by the

Alberta Research Council, will develop technologies and practices involving the anaerobic digestion of manure to produce methane and pathogen-free liquid and solid manure residues. The methane will be used to produce electricity and heat while manure residues will be applied to croplands as fertilizer. CCC acts as an advisor to the project. Acid Gas Re-injection

The project will estimate Alberta’s potential greenhouse gas

reductions by permanently storing acid gas in geological formations. Partners include Keyspan Energy Canada, Alberta Energy and Utilities Board, Alberta Geological Survey, Alberta Environment, Alberta Research Council, University of Alberta, Alberta Energy Research Institute, B.C. Minister of Energy and Mines, Alberta Department of Energy, Environment Canada and Saskatchewan Energy and Mines. Grande Prairie Combined Heat and Power

See page 9 in the feature section.

Mariah Energy CHP Project - Suntec Greenhouses

See page 10 in the feature section.


Project Summaries

OFFSETS AND EMISSIONS TRADING

Joint Implementation and Clean Development Mechanism Support CCC, in partnership with Alberta Environment and the Canadian Petroleum Institute, spearheaded two projects to promote international cooperation on the reduction of greenhouse gas emissions. The partners worked to establish networks that could facilitate Clean Development Mechanism projects by Alberta companies in Latin America and China. The working group hosted missions to China and Latin America where government and industry worked to establish relationships with local businesses in the development of projects that would reduce greenhouse gas emissions in JI/CDM eligible nations. Removal and Reduction of Agricultural Greenhouse Gases

CCC led a project that brought

together key agricultural and emission reduction trading players in Alberta to develop a work plan for measuring and verifying net emissions that result from changes in land management by Alberta farmers. The project also looked at developing a method of greenhouse gas trading between Alberta farmers and potential buyers of carbon reductions. Forest Carbon Sequestration Workshops in Canada

Climate Change Central helped

fund Pollution Probe’s series of five workshops (including one in Alberta) on forest carbon management in Canada. The workshops looked at such things as potential sites for carbon sequestration in Canada’s forests, research priorities, and barriers and incentives to sequestration. Domestic Emissions Trading Workshops

CCC hosted a series of workshops explaining

domestic greenhouse gas emissions trading to the agriculture/forestry sectors, municipalities, and environmental organizations. Forestry Sinks and Offset Development Workshop

CCC led a workshop to promote

Forest Carbon Management (FCM) in Alberta. About 45 participants from a variety of forestry and emission-offset sectors learned about FCM in Canada and the potential for a pilot project in Alberta.

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Climate Change Central 2002 Progress Report

PROJECT SUMMARIES

Alberta Emissions Trading Simulation II

Alberta Environment and CCC are working to

develop an emissions trading policy for Alberta. As part of this effort, CCC will host the second Western Canadian emissions trading simulation in the fall, 2003, this time focusing on multiple pollutants. The goal will be to test proposed government policies using Alberta industry-specific data. Offset Working Group

In 2002, CCC performed preparatory work for the launch of the

Western Provincial Offset Working Group, whose members include CCC, Alberta Environment, Alberta Energy and Utilities Board, and representatives from British Columbia and Saskatchewan. The group will work to develop greenhouse gas offset protocols. CCC will facilitate the meetings of the working group and commission, and write background papers as required. GHG Registry Development

CCC commissioned a consultant to investigate greenhouse

gas registries in other jurisdictions and their potential applicability in Alberta. Emissions Trading Mock Negotiation

See page 12 in the feature section.

P U B L I C E D U C AT I O N A N D OUT R E AC H

Public Education and Outreach Hub

The Public Education and Outreach Hub was an

18-month pilot project that brought together partners from government, business, environmental organizations and communities in Alberta to increase climate change awareness and encourage action to reduce greenhouse gas emissions. The Hub, managed by CCC, acted as an information clearinghouse to organizations that offer climate change education and outreach in Alberta. It also served as a catalyst for new programs and co-ordinated professional development for climate change educators. Alberta Science Foundation The Alberta Science Foundation developed and ran a public awareness campaign, from January 15 to March 22, 2002, to help people understand the science behind climate change. The campaign culminated in a public forum held in March at the Calgary Science Centre.


Climate Change Central 2002 Progress Report

O RGA N I Z AT I O N A N D B OA R D O F D I R E C TO RS

The organization’s Board of Directors are experienced leaders including representatives from major industry sectors, non-government organizations, institutions, municipalities and the Government of Alberta. The Board provides direction to Climate Change Central’s strategic plans and objectives, and includes the following members:

Premier Ralph Klein (Executive Chair)

Lorne Taylor, Ph.D.

Charles Fischer

Minister of Environment

President and CEO, Nexen Inc.

(Co-Chair)

(Co-Chair)

Elaine McCoy, Q.C.

Bob Hawkesworth

Patricia McCunn-Miller

President, Macleod Institute for

Alderman, City of Calgary

V.P. Environment & Regulatory Affairs,

Environmental Analysis (Vice Co-Chair)

Luke Ouellette

EnCana Corporation

Bill Hunter President and COO

Lewis Nakatsui

Alberta Pacific Forest Industries Inc.

President, Lincolnberg Homes Ltd.

Darshan Kailly

David Pollock

President and CEO,

Executive Director, Pembina Institute

Canadian Freightways Limited

for Appropriate Development

Don Lowry

Jim Popowich

President and CEO,

Executive Vice President, Fording Inc.

MLA, Innisfail-Sylvan Lake (Vice Co-Chair)

Bruce Beattie Chair, Alberta Environmentally Sustainable Agriculture Council

Len Bolger

Epcor Utilities Inc.

Ross Risvold

Chairman, Advatech Homes Canada Inc.

Paul Griss

David Lynch, Ph.D.

President,

Dean, Faculty of Engineering,

Northalta Information Systems Ltd.

University of Alberta

Vince Smith

Coordinator, New Directions Group

President and CEO, Dow Chemical Canada Inc.

Allan Amey (President & CEO)

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Climate Change Central 2002 Progress Report

AUDITORS’ REPORT

TO THE BOARD OF

We have audited the statement of financial position of Climate Change Central as at December 31,

DIRECTORS OF CLIMATE

2002 and the statements of operations, cash flows and changes in fund balances for the year then

CHANGE CENTRAL

ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Organization as at December 31, 2002, the results of its operations, cash flows and the changes in its fund balances for the year then ended in accordance with Canadian generally accepted accounting principles.

Signed “ BDO Dunwoody LLP “ Chartered Accountants Calgary, Alberta February 19, 2003


Financial Statements

STAT E M E N T O F F I N A N C I A L P O S IT I O N

December 31

Restricted Funds General Fund 2002

ASSETS

Total

Total

2002

2001

241,330

$ 1,617,041

Marketable securities (Note 3)

$

1,250 –

3,294,849

1,586,510

4,881,359

3,122,015

Accounts receivable

70,791

19,906

90,697

73,974

Prepaid expenses

25,562

25,562

24,870

1,250

3,386,426

1,851,272

5,238,948

4,837,900

204,197

204,197

201,772

$

1,250

$ 3,590,623

$ 1,851,272

$ 5,443,145

$ 5,039,672

$

$

$

$

CAPITAL ASSETS (Note 4)

LIABILITIES AND

Project Fund 2002

CURRENT

Cash

FUND BALANCES

Operating Fund 2002

$

(4,776)

$

244,856

$

LIABILITIES CURRENT

Accounts payable and accrued liabilities

$

253,307

75,224

328,531

206,518

FUND BALANCES

Invested in capital assets Unrestricted fund balances

204,197

204,197

1,250

1,250

16,239

3,133,119

1,776,048

4,909,167

4,615,143

1,250

3,337,316

1,776,048

5,114,614

4,833,154

1,250

$ 3,590,623

$ 1,851,272

$ 5,443,145

$ 5,039,672

Restricted fund balances (Note 11)

$

APPROVED ON BEHALF OF THE BOARD:

“C.W. Fischer” Director

“Robert Hawkesworth” Director

The accompanying notes are an integral part of these financial statements.

201,772

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Climate Change Central 2002 Progress Report

STAT E M E N T O F O P E R AT I O N S

For the year ended December 31

Restricted Funds General Fund 2002

Operating Fund 2002

18,454

$ 2,000,000

Total

Total

Project Fund 2002

2002

2001

875,000

$ 2,893,454

$ 1,678,816

REVENUE

Provincial grants and ministry support (note 7) Federal government support Industry contributions (note 8) Conference fees and sponsorships

$

$

13,600

13,600

10,500

31,880

31,880

122,523

67,521

67,521

52,349

Other income

2,143

2,143

Interest income

103,512

2,409

105,921

198,626

50,334

2,105,655

958,530

3,114,519

2,062,814

49,084

982,683

1,031,767

1,005,126

TOTAL REVENUE EXPENDITURES CONTRACTS, WAGES AND BENEFITS

Wages and benefits Contracts

195,454

418,689

614,143

481,141

49,084

1,178,137

418,689

1,645,910

1,486,267

Honoraria (Note 6)

117,348

117,348

106,187

Meeting expenses

7,409

7,409

14,533

124,757

124,757

120,720

BOARD GOVERNANCE

PREMISES OPERATIONS AND MAINTENANCE

Rent

145,262

145,262

107,366

Utilities

3,211

3,211

3,711

Business taxes

4,170

4,170

Repairs and maintenance

4,064

4,064

5,869

156,707

156,707

116,946

The accompanying notes are an integral part of these financial statements.


Financial Statements

STAT E M E N T O F O P E R AT I O N S ( C O N T ’ D )

For the year ended December 31

Restricted Funds General Fund 2002

Total

Total

Operating Fund 2002

Project Fund 2002

2002

2001

GENERAL AND ADMINISTRATION

Sponsorships

54,848

43,500

98,348

249,013

Travel expenses

62,940

14,971

77,911

153,556

Telecommunications

44,254

18

44,272

28,481

Technical support

50,492

3,466

53,958

71,388

Professional fees

235,919

235,919

194,031

Leasing - equipment

69,993

8,236

78,229

79,525

Insurance

16,016

16,016

15,756

Conferences and training

51,771

21,381

73,152

40,943

Licenses and permits

12,265

12,265

20,980

Journals, subscriptions and memberships

24,493

156

24,649

22,837

Office administration

48,202

361

48,563

41,941

Public education

68,707

5,452

74,159

34,424

Amortization

68,244

68,244

56,783

TOTAL DISBURSEMENTS

808,144

97,541

905,685

1,009,658

49,084

2,267,745

516,230

2,833,059

2,733,591

EXCESS (DEFICIENCY) OF RECEIPTS OVER EXPENDITURES

$

1,250

$

(162,090)

The accompanying notes are an integral part of these financial statements.

$

442,300

$

281,460

$

(670,777)

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Climate Change Central 2002 Progress Report

STAT E M E N T O F C AS H F L OW S

For the year ended December 31

Restricted Funds General Fund 2002

Operating Fund 2002

Project Fund 2002

Total

Total

2002

2001

CASH FROM OPERATING ACTIVITIES

Excess (deficiency) of revenue over expenditures

$

1,250

$

(162,090)

Amortization of capital assets

68,244

Decrease (increase) in accounts receivable

(5,677)

Decrease (increase) in short term investments

(172,834)

Increase (decrease) in accounts payable

147,241

Decrease (increase) in prepaids

(692)

1,250

(125,808)

(70,669)

$

442,300

$

281,460

$

(670,777)

68,244

56,783

(11,046)

(16,723)

(54,698)

(1,586,510)

(1,759,344)

(25,228)

122,013

– (1,180,484)

2,071,745 46,476

(692)

5,630

(1,305,042)

1,455,159

INVESTING ACTIVITIES

Purchase of capital assets

(70,669)

(48,313)

1,250

(196,477)

(1,180,484)

(1,375,711)

Cash at beginning of year

16,239

191,701

1,409,101

1,617,041

210,195

Interfund transfer (Note 12)

(16,239)

16,239

241,330

$ 1,617,041

NET INCREASE (DECREASE) IN CASH

CASH AT END OF YEAR

$

1,250

$

(4,776)

The accompanying notes are an integral part of these financial statements.

$

244,856

$

1,406,846


Financial Statements

23

STAT E M E N T O F C H A N G E S I N F U N D BA L A N C E S

For the year ended December 31 Invested in Capital Assets BALANCE, BEGINNING OF YEAR

$

Excess (deficiency) of revenues over expenses Purchase of capital assets Interfund transfer (Note 12) BALANCE, END OF YEAR

$

(1) Consists of amortization expense (2) Consists of purchases The accompanying notes are an integral part of these financial statements.

201,772

Restricted for Operations

$ 3,297,634

Restricted for Projects

$ 1,317,509

Total 2002

Total 2001

16,239

$ 4,833,154

$ 5,503,931

Unrestricted

$

(68,244)(1)

(93,846)

442,300

1,250

281,460

(670,777)

70,669)(2)

(70,669)

$ 5,114,614

$ 4,833,154

16,239

204,197

$ 3,133,119

$ 1,776,048

(16,239) $

1,250


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Climate Change Central 2002 Progress Report

N OT E S TO F I N A N C I A L STAT E M E N T S

1.

PURPOSE OF

Climate Change Central (the “Organization”) was incorporated on March 31, 2000 under Part 9 of

THE ORGANIZATION

the Companies Act, (Alberta), as a not–for-profit organization. The Organization is to act as a catalyst for, and a coordinator of, activities undertaken by Alberta individuals, business institutions, and governments to reduce greenhouse gas emissions and to increase Alberta’s Environmental Energy Advantage. The Organization is a not-for-profit organization and under section 149(1) of the Income Tax Act is exempt from the payment of income taxes. The Organization’s current operating agreement with the Alberta Provincial Government expires on March 31, 2004. The continued operations of the Organization are dependent on further funding being provided. The financial statements do not include any adjustments relating to the realization of assets and liquidation of liabilities that might be necessary should the Organization not continue to operate.

2.

SIGNIFICANT

The financial statements of the Organization have been prepared by management in accordance

ACCOUNTING

with generally accepted accounting principles in Canada. The preparation of financial statements in

POLICIES

conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements have, in management's opinion, been properly prepared using careful judgment with reasonable limits of materiality and within the framework of the significant accounting policies summarized below. (a)

Fund Accounting The Organization follows the restricted fund method of accounting for contributions. The general fund accounts for funds received from government and industry that are restricted for use in operations, as well as unrestricted income. The project fund accounts for funds received for specific projects and related expenses. The operating fund accounts for the Organization’s operations. This fund is comprised of the ‘Operating Fund’ see Note #5.


Notes to Financial Statements

N OT E S TO F I N A N C I A L STAT E M E N T S

(b) Revenue Recognition Restricted contributions are recognized in the period in which they are received or receivable if the amount to be received can be reasonably estimated and collection reasonably assured. Other sources of revenue include donated services and are recorded on an accrual basis. Amounts pledged as future contributions are not recognized in the accounts. (c)

Amortization of Capital Assets Purchased capital assets are recorded at cost. The Organization charges amortization on capital assets on a straight-line basis over their estimated useful lives using the following rates: Computer hardware

3 years

Computer software

3 years

Furniture and fixtures

5 years

Leasehold improvements

5 years

Office equipment

5 years

(d) Cash and cash equivalents Cash and cash equivalents consist of cash on hand less cheques issued in excess of bank balances. (e)

Marketable Securities Marketable Securities are stated at the lower of cost and market value.

(f)

Contributed Services Volunteers contribute significant hours to Climate Change Central to assist the Organization in carrying out its mandate.

Because of the difficulty in determining their fair value,

contributed services are not recognized in the financial statements. (g) Financial Instruments The Organization carries a number of financial instruments. Unless otherwise indicated, it is management’s opinion that the Organization is not exposed to significant credit risks arising from these financial instruments. The fair value of these financial instruments approximate their carrying values, unless otherwise noted.

25


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Climate Change Central 2002 Progress Report

N OT E S TO F I N A N C I A L STAT E M E N T S

3.

4.

MARKETABLE

Marketable securities consist of premium money market fund investments invested in BMO

SECURITIES

Mutual Funds with the Bank of Montreal.

CAPITAL ASSETS Cost

Furniture and fixtures

$

Office equipment

225,620

2001 Accumulated Amortization

$

94,129

Cost

$

171,924

$

49,038

3,888

1,833

3,888

943

75,886

23,643

76,028

16,056

Computer hardware

30,059

17,802

16,329

7,782

Computer software

15,963

9,812

12,555

5,133

Leasehold improvements

$

351,416

NET BOOK VALUE

5.

2002 Accumulated Amortization

$

147,219

$

204,197

$

280,724

$

78,952

$

201,772

PROVINCE OF

Pursuant to the provisions of the “Funding Agreement” dated July 13, 2000 between the

ALBERTA FUNDING

Organization and Her Majesty the Queen in Right of Alberta as represented by the Minister of the

AGREEMENT

Environment (the “Province”), the Province provided to the Organization the sum of $6,000,000 to establish an Operating Fund, (the “Operating Fund”). In March 2002, the Organization received a further $2,000,000 in funding to be spent in accordance with the amended “Funding Agreement” dated March 26, 2002. The Operating Fund may be applied to reasonable start up costs and administrative cost of the Organization for the purposes of its establishment and its operations in furtherance of the objectives set forth in the Funding Agreement which are consistent with the Business Plan and Strategic Plan as may be in effect from time to time. All income earned by the investment of the Operating Fund shall form part of the Operating Fund. Unless terminated sooner, in accordance with the Provincial Funding Agreement or by mutual agreement of the Minister and the Organization, the Funding Agreement shall end on March 31, 2004 at which time the Minister may require the Organization to pay to the Minister all or any portion of the Operating Fund that has not been expended or committed to be expended. The Organization has granted to the Government a security interest in its present and after acquired personal property.


Notes to Financial Statements

N OT E S TO F I N A N C I A L STAT E M E N T S

6.

SALARIES AND

2002

BENEFITS –

Salaries (a)

DIRECTORS AND

Co-chairs

PRESIDENT

Directors

$

$

100,325

President

(a)

13,500

2001

Benefits (b)

423

Total

$

3,100

13,923

Total

$

103,425

16,236 89,951

$

113,825

$

3,523

$

117,348

$

106,187

$

201,627

$

8,948

$

210,575

$

209,660

Salaries include base pay, bonuses, honoraria and other direct cash remuneration.

(b) Benefits include the employer’s share of all employee benefits and contributions or payments made on behalf of employees including CPP contributions; employment insurance and longterm disability plans. 7.

8.

9.

OTHER MINISTRY

The Province has provided seconded staff.

SUPPORT

statements in the amount totaling $18,454.

This has been recognized in these financial

INDUSTRY

Industry has provided seconded staff. This has been recognized in these financial statements

CONTRIBUTIONS

in the amount totaling $31,880.

COMMITMENTS

The Organization has entered into operating lease agreements whose terms extend beyond the current fiscal year. The commitments are as follows: (a)

Premises The Organization's commitments on operating leases for office premises are as follows: 2003

$74,511

2004

77,934

2005

42,299

2006

14,752

(b) Equipment The Organization's commitment on operating leases for computer and office equipment are as follows: 2003

$29,995

2004

7,401

2005

6,867

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Climate Change Central 2002 Progress Report

N OT E S TO F I N A N C I A L STAT E M E N T S

(c)

Automotive The Organization's commitment on an operating lease for a vehicle expiring May 31, 2004 is as follows:

10.

SHARE CAPITAL

2003

$4,296

2004

1,074

Share Capital is not disclosed on the statement of financial position as per disclosure requirements for not-for-profit organizations. Authorized: 100,000 common voting shares with a nominal or par value of $1.00 each Issued: 200 common voting shares

11.

$200.00

RESTRICTED FUND

As disclosed in Note 5, the Operating Fund expenditures must be consistent with the Business

BALANCES

Plan and Strategic Plan of the organization. The Project Fund may only be applied to advance the objectives of the Organization as set out in the Operating Funding Agreement.

12.

INTERFUND TRANSFER

In 2001, interest earned on funds restricted for projects was reported in the general fund. In 2002, this interest income is recognized in the restricted project fund as per requirements of the funder. The 2001 income has been transferred to provide consistent reporting from year to year.

13.

CONTINGENT

As discussed in Note 5, unless an extension to the Operating Agreement is received, the

LIABILITY

Organization may be required to repay to the Minister all or any portion of the Operating Fund that has not been expended or committed to be expended by March 31, 2004.


Suite 100 999 – 8th Street S.W. Calgary, Alberta, Canada T2R 1J5 Tel: (403) 517-2700 Fax: (403) 517-2727

Suite 1560 10303 Jasper Avenue Edmonton, Alberta, Canada T5J 3X6 Tel: (780) 408-4580 Fax: (780) 408-4585

Toll-free phone: 1-866-609-2700 Email: contact@climatechangecentral.com Website: www.climatechangecentral.com

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Climate Change Central

C3 Progress Report 2002  

A snapshot of programs, partnerships and plans from C3, highlighting our success in 2002.

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