Strategic approach to climate change

World governments have increasingly singled out GHG emissions as a priority. Although the scientific evidence remains controversial, the concern is that GHG emissions, particularly carbon dioxide, are contributors to global warming.

The nature of TransAlta’s business means that climate change will have a significant impact on our business. We burn nearly 21 million tonnes of coal in our operations each year. We burn coal because it’s abundant and, therefore, an economical way to produce electricity. We also contribute about four per cent of the total GHG emissions in Canada. Our challenge is to economically and efficiently meet consumer demand for reliable, low cost energy while continuing to find new and innovative ways to reduce GHG emissions.

TransAlta believes that there is a risk of global climate change, and recognizes, with the Kyoto Protocol coming into force, that society is moving toward a more carbon-constrained world. We have established a strategic approach to managing our company’s GHG risks. This approach includes:

• increasing internal efficiencies
• diversifying TransAlta’s fuel mix to include renewables such as wind and geothermal energy
• promoting sustainable technologies for coal
• acquiring GHG offsets (emission reductions produced by projects outside TransAlta and supported by our company through commercial purchase contracts)
• contributing input to climate change policy