First climate budget proposed for 2024-25 Business Plan and Municipal Budget deliberations
As directed by City Council, Saskatoon will consider its first Climate Budget during the 2024-25 Business Plan and Municipal Budget deliberations on November 28-30, 2023.
The Funding Environmental Sustainability Actions and Climate Budget Report responds to a request from the Standing Policy Committee on Environment Utilities and Corporate Services (EUCS) and will be on the November 1 agenda. It includes a preview of the Climate Budget as well as details of the resources needed to progress the Low Emissions Community (LEC) and Green Pathways plans. It outlines both funded and unfunded projects related to these plans.
“What City Council has asked us to do is come up with measures that reduce energy consumption and greenhouse gases that will require investments in the short term”, says Jeanna South, Director of Sustainability. “The ultimate expectation, looking 30 years out, is that these measures will make us more resilient and efficient while meeting our climate commitments.”
A climate budget is a governance system that establishes actions that the City needs to take in the short-term to achieve long-term targets as set out in the climate action plan. By integrating the Climate Budget into financial budget decision-making processes, climate and environmental impacts are understood before they occur. This creates a coordinated approach with other budgeting considerations, such as societal impacts, asset management, safety, and economics.
If significant global climate action is not taken, ClimateWest (Costs of Climate Change Report, March 2023) estimates by 2050, the direct annual economic impacts of climate change in Saskatchewan will be $3.1B or $1,875 per capita. ClimateWest projects damage to electricity transmission and distribution infrastructure due to climate change to cost $65-95M annually by 2050 in Saskatchewan alone. Annual flood damages are expected to cost $70-80M, while costs due to delays arising from increased road and rail damage are expected to be $65-125M in the province by 2050.
The 2024-25 Climate Budget presents a two-year window within the 30-year Low Emissions Community (LEC) Plan. The LEC Plan was created to improve the community’s long-term resiliency and efficiency to achieve the City’s greenhouse gas (GHG) emission reduction target incrementally over time.
Seventy-five per cent of the projects in the Climate Budget support efficient civic operations and services, enhance resiliency, and/or promote sound asset management; these are recommended for funding in the 2024/2025 Business Plan and Budget. These projects also have environmental benefits; most will achieve GHG reductions, some will result in utility cost savings or improve green network resilience and performance. Subject to City Council’s approval, the funded projects include:
- Bus Rapid Transit and electrification - system improvements for Saskatoon Transit and bus purchases;
- Water-saving measures at spray pads/paddling pools and irrigation upgrades in parks which will result in operational savings;
- Civic facility improvements - such as renovations at Archibald Arena;
- Managing the long-term viability of the landfill and reducing waste through the Material Recovery Centre operation, restoration of landfill gas wellfield, and development of a bulky waste program; and
- Green Pathways initiatives that enhance the green network through existing planned projects like park upgrades and storm sewer trunk and collection.
Funding for the initiatives listed comes from capital reserves, external non-City funding, and loans.
The unfunded projects are still required to progress City goals and plans, even if they do not move forward this budget cycle. These projects may be reconsidered in the next budget cycle, or if priorities and/or resource availability changes. Some of these projects could be funded through loans that pay themselves back with savings, such as loans to the community or fleet electrification. Other projects would require new funds, for instance from property taxes; this has not been recommended at this time.
The GHG reductions estimated from projects in the 2024-2025 Climate Budget includes:
- The LEC reduction goal for 2025 = 201,500 tonnes of CO2e (100 per cent)
- Funded projects estimate = 1,200 tonnes of CO2e reduction (0.6 per cent of the LEC reduction goal)
- Unfunded projects = 18,800 tonnes CO2e reduction at full build-out (9.3 per cent of the goal)
- After combining funded and unfunded projects, there is a gap of undefined projects required to achieve 181,500 tonnes of CO2e reduction, or 90.1 per cent.
The 2024-2025 Climate Budget GHG projection is a conservative estimate; it does not include reductions from projects with high uncertainty that could not be quantified (e.g., active transportation, bus rapid transit); or reductions from projects that were implemented in 2022/2023 (like organics, landfill gas expansion, and others) that could amount to more than 40,000 tonnes of CO2e reductions each year.
You can find additional information at Saskatoon.ca/ClimateBudget and Saskatoon.ca/ClimateChange.