Transitioning to a Lower Carbon Future

This chapter discusses the legal and policy issues associated with adopting an aggressive transition to renewable and lower carbon fuels in Alberta’s electricity market. The chapter describes the evolution of Alberta’s electricity sector and restructuring that will involve the addition of a capacity market to supplement the existing energy only market. The chapter examines Canada’s international commitments with respect to the reduction of greenhouse gas emissions, coal phase-out, and developments in climate change and energy efficiency policy at both the federal level and for Alberta, which currently has a carbon-intensive energy mix. The chapter then presents Alberta’s current climate change policy and the Climate Leadership Plan, focussing on the implications of this policy for the electricity sector and for market design within that sector.