Climate Change Strategy

Policy

TransCanada is committed to developing innovative and economically effective solutions to manage climate change and air quality issues. These solutions will evolve from excellence in environmental performance and technology development.

Principles

1. TransCanada supports a unified North American response to climate change and air quality issues where it is appropriate.
	Co-operation on a North American basis is clearly needed, given the geographical proximity and strong environmental and economic ties that exist between Canada and the United States. North American competitiveness must be maintained or enhanced while working toward solutions to manage greenhouse gas and air emissions.
2. TransCanada believes emissions reduction targets and timeframes must balance environmental and socio-economic considerations.
	TransCanada will meet or exceed legislative requirements for emissions. Governments and stakeholders should continue their dialogue to establish the appropriate level and timing of emissions targets. Targets and schedules must be based on the availability of commercially viable technology.
3. TransCanada believes prudent action is required on climate change and air quality issues.
	TransCanada will manage GHG emissions from our operations on an intensity basis. (GHG intensity is defined as tonnes of emissions per unit of production.) GHG and air policy considerations will be incorporated into the company’s business evaluations.
4. TransCanada believes the low-emissions natural gas we transport and energy-efficient electricity we generate are part of the solution to global climate change and regional air quality issues.
	TransCanada will facilitate the use of natural gas as a fuel source because it is less carbon intensive than other fossil fuels.
5. TransCanada is committed to technological solutions to climate change and air quality issues.
	TransCanada will continue to support research and technology initiatives that mitigate the GHG and air impacts of our business. TransCanada will support collaborative research initiatives that promote efficient energy use and lower emissions. TransCanada will work to implement technologies that reduce GHG and air emissions.
6. TransCanada believes every individual, industry and government must be involved in managing/reducing emissions that contribute to climate change and air quality issues.
	TransCanada will engage our employees, customers, vendors and shareholders in climate change and air quality issues. TransCanada will continue to exchange information with governments, industries and consumers about our actions to manage emissions related to climate change and air quality concerns.

Strategy

Our strategy is designed to limit the growth of the greenhouse gas emissions intensity of our North American pipeline and power facilities while meeting our business objectives. Since natural gas is less carbon intensive and produces fewer GHG emissions per unit of output than other fossil fuels, we will increase our ability to deliver this clean-burning fuel to North American markets. At the same time, we will increase our power generating capacity, using some of the most innovative and energy-efficient methods available today.

Our strategy includes:

1. Conserving energy through improvements to overall facility efficiency.
TransCanada continues to reduce energy use where possible by improving the energy efficiency of our pipeline and power facilities. This includes the use of low- or zero-emissions fuels such as natural gas and waste heat. We also employ highly efficient processes such as the cogeneration technology used extensively in our power business. In our cogeneration power facilities, we use one fuel source – natural gas – to generate electricity and produce steam for industrial heat and energy. These cogeneration facilities have high energy efficiencies.

2. Conducting research and development work designed to reduce GHG and air emissions.
Technological innovation is critical to managing the complex and interrelated issues surrounding GHG and air emissions. With demand for low-emissions natural gas and electricity steadily climbing, the industry needs new technologies that improve combustion and process efficiencies and limit the formation of emissions.

3. Gaining experience with flexible market mechanisms and their role in achieving cost-effective and verifiable GHG reductions.
TransCanada has developed experience with trading GHG emissions credits through our participation in various projects. The flexibility provided by these mechanisms is critical to TransCanada because our ability to reduce GHG emissions is constrained by the limitations of existing energy-efficient combustion technologies, the nature of our pipeline system, and rising demand for natural gas and electricity.

4. Participating in public policy forums related to emissions issues.
TransCanada shares information about the emissions challenges and opportunities facing the natural gas transmission and power generation sectors through our involvement in policy forums established by government, industry and other stakeholder groups. This helps participants to identify and develop pragmatic solutions that meet the needs of all stakeholders.

5. Taking part in public awareness initiatives and education programs focused on climate change and air quality issues.
We believe it is important to engage the public in these issues because they have wide-ranging implications for every individual, business sector and nation. TransCanada takes advantage of opportunities to educate our employees and the general public about emissions and how individual actions can contribute to solutions.

Related Information

2011 Corporate Responsibility Report

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HSE Commitment Statement

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