Thank you, Mr. Speaker. Greenhouse gas emissions are additive and any effort to reduce them is indeed necessary. We must first look at what we can do in the communities and, more broadly, in the Northwest Territories.
The Department of Industry, Tourism and Investment has been working toward reducing the reliance on diesel and other forms of gasoline to keep our communities warm, whether it is in heating homes or generating electricity. We are researching ways to replace the use of diesel with environmentally friendly fuels. The Ministerial Energy Coordinating Committee, or MECC, has developed a multi-year Energy Priorities and Investment Plan designed to make a number of investments aimed at displacing the use of imported diesel and reducing the cost of living in Northwest Territories communities.
Many of the initiatives included within the EPI Plan have the goal of reducing the use of imported diesel for energy generation, including development of hydro resources, expand the use of biomass, a commitment to develop wind energy in Beaufort communities, a commitment to support the investigation of geothermal potential, a commitment to pursue the use of Northwest Territories natural gas.
One of the five pillars of the Northwest Territories Energy Plan which was released in March 2007, is to reduce our own dependence on fossil fuels. As stated in the Energy Plan, the Government of the Northwest Territories has a tremendous investment in physical assets amounting to over $1.6 billion utilizing more than 18 million litres of fuel. The Government of the Northwest Territories is leading by example and making additional efforts to reduce the economic and environmental costs associated with Government of the Northwest Territories assets.
Through the normal course of operations, the Government of the Northwest Territories department undertakes a variety of energy efficiencies and conservation measures. One of the specific initiatives in the EPI Plan is to reduce the Government of the Northwest Territories reliance on fossil fuels and includes $2.5 million in 2009 to fund the purchase and installation of biomass wood pellet heating systems in facilities in Hay River, Harry Camsell, Princess Alexandra, Ecole Boreale and Diamond Jenness schools and the highways maintenance garage in Fort Smith and they help to reduce operating costs and GHG emissions. The results of this initiative could include the following: reduction in fuel consumption of more than a million litres per year, annual cost savings of more than $700,000 for the payback of three and a half years, greenhouse gas emission reductions of approximately of 3,000 tonnes per year.
We will continue to work with our colleague in the Department of Environment and Natural Resources to look for ways that business can reduce energy waste in the workplace. We must also look at what we can do on a larger scale or continental level. The demand for energy is rising, but so too is the ever increasing output of greenhouse gas emissions. We must find solutions. The Mackenzie Gas Project, one source of natural gas from the Arctic, will provide a solution. Arctic natural gas can play a key role in addressing the rising demand for electricity. Arctic natural gas includes gas from the Mackenzie Gas Project, liquefied natural gas from both Russia and Norway and Alaskan natural gas.
Two years ago, the Government of the Northwest Territories asked Virginia-based Energy and Environmental Analysis to consider the implications of continental carbon emissions of northern gas could not be developed as currently anticipated. The findings were dramatic. Their analysis showed that in the absence of northern natural gas, carbon emissions associated with the use of coal for electricity generation in United States and Canada would increase by 258 million tonnes from 2014 to 2025. In the absence of Arctic natural gas, the analysis undertaken by the department has shown that carbon emissions associated with the use of coal for electricity generation in the United States and Canada would increase by 258 million tonnes from 2014 to 2025. Simply put, the combustion of coal releases far more greenhouse gas emissions than natural gas. Replace coal with clean burning natural gas and emissions will go down. So what is the outrage against coal? Carbon emissions from the oil sands are dwarfed by the thermal coal plants in the United States and Canada.
Mr. Speaker, the National Geographic story recognizes that oil sands count for less than one-tenth of 1 percent of global carbon emissions. What the oil sands need is a plan to protect the
environment. Without the oil sands, foreign oil would make up the much greater percentage of Canada supply; nearly one-quarter more. Prices for everything from electricity to home heating fuel to gasoline would be undoubtedly much higher and there would be concerns about where the energy would come from.
Every development has some environmental issues. The same is true with alternative energy. Alternative energy needs backup which will be fuelled by fossil fuels.
In conclusion, we are looking at every possible opportunity, both short term and long term to replace burning fossil fuels with energy solutions that will work in our climate. Thank you, Mr. Speaker.