A Company Perspective on Energy and Climate Change Suncor Energy Inc' Gordon R' Lambert Vice Preside

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A Company Perspective on Energy and Climate
Change Suncor Energy Inc.Gordon R.
LambertVice President Sustainable Development
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The Nature of the Issue

• The science of the issue is complex
• Greenhouse effect well understood
• Possible framing for students
• Atmospheric concentration of greenhouse gases in
  the atmosphere is increasing at an increasing
  rate
• We are conducting an experiment but we are
  living in the test tube
• Energy and climate change are inextricably linked
• Our use of energy is a key driver and energy use
  increases with population growth and economic
  development
• People in India and China want mobility,
  electricity and heat like we do
• To stabilize and reduce ghg in the atmosphere
  requires that we transform how we produce and use
  energy
• We will need to develop and deploy new
  technologies at an accelerated rate and
  especially in the developing world
• Can do this with a positive/optimistic outlook

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Framing Matters

• The need to reframe the dialogue of climate
  change
• From
• Equitable allocation of pain
• Avoidance of catastrophic consequences
• To
• A focus on positive vision and opportunity
• the development of renewable energy, bio fuels,
  CO2 capture and sequestration and higher energy
  efficiency standards
• Regulated mid and long-term emission targets
• Technology advancement and development as the key
  enabler toward energy and environmental
  sustainability

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Negative vs Positive Vision

• Imagine a business whose Core Purpose statement
  centers on avoidance of bankruptcy
• . does not generate enthusiasm!!!!
• or Martin Luther King I have a dream.. vs I
  have a nightmare
• To achieve solutions requires that our young
  people have a sense of optimism, courage and
  engagement--- anxiety without optimism creates
  gridlock

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Sustainable Development is the Right Context
A Strong Economy
A Healthy Environment
Social Well Being
These aspirations are interdependent and compel
us to think more broadly and creatively about
solutions
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Foundational Assumptions for Sustainable Solutions

• We have had a legacy of abundant and cheap energy
  that has shaped Canada in a fundamental way.
• This is the reason Canada is not like Europe in
  terms of our vehicle fleet, our urban density,
  size of homes and mass transit.
• We accept that as Canadians and as a global
  community, we cannot continue to produce and use
  energy in the same way as we have done in the
  past.
• This is at the heart of our urban air quality
  issues, climate change and even quality of life
  concerns as we continue to expand our urban
  footprint.
• We are all part of the problem and we all need to
  be part of the solution.
• Clean air and climate change are not going to be
  truly solved by the traditional use of command
  and control, end of stack solutions of the past.
• You cant separate the supply of energy from
  demands for energy by each of us as consumers.
• Industry, including the oil and gas industry,
  should be viewed as an essential part of the
  solution.
• Where else in society do you find the depth of
  technical, business and commercial expertise and
  most importantly the access to investors, than in
  industry.
• Positively engaging capital markets and private
  sector investment is the only way in which
  substantive positive change can happen.
• - There is no amount of public sector funding
  that will ever result in the magnitude of change
  needed for real sustainable solutions.

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Positive Examples of Engaging Capital Markets

• Wind power
• Governments declare public interest and intent
• In depth analysis of why capital was not flowing
  to wind development vs. other countries
• WPPI and now eco-Energy Renewables incentive
  program established
• Substantial growth occurring
• Provinces competing for investment
• Suncor (with its partners) has now invested 306
  million in 147 MW of new capacity
• It was not done to comply with an obligation

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Positive Examples of Engaging Capital Markets
(continued)

• Biofuels
• Ethanol growth declared as a common objective of
  provinces and federal governments
• Investors consulted on required policy
  requirements
• Combination of carrots (financing incentives and
  excise tax treatment) and sticks (renewable fuel
  standard)
• Suncor has now invested 120m in 200M litre plant
  in Sarnia ON
• Looking to double capacity
• Testing biodiesel with Toronto Transit Commission
• More capital expenditures and projects planned
  across Canada

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Where do we go from here?

• Lets create enthusiasm and engagement of our
  youth in creating
• A Sustainable Energy Future that ensures future
  generations have a healthy environment, a strong
  economy and quality of life.
• And That addresses the risk of global climate
  change