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Section I – Overview

Minister's Message

I am pleased to present the Departmental Performance Report for Natural Resources Canada (NRCan) for the period ending March 31, 2007.

Canada's vast natural resources continue to play a vital role in shaping our economy, our society and our place in the world. In 2006, our energy, forests, minerals and metals sectors directly supported almost one million employees and produced a trade surplus of $92 billion.

To maintain Canada's position as a leader in rapidly changing global markets, NRCan has looked at a variety of ways to help our natural resources sectors improve their productivity and competitiveness. In the last year, the Department focused on more efficient exploration and development of natural resources, worked to reduce regulatory restrictions and other technical barriers to market access and investment, and supported the expansion of markets for Canada's products.

In the area of energy, Canada stands out as an emerging superpower. With our oil sands, we possess the world's second-largest oil reserves, and we continue to be the largest exporter of energy to the United States. In 2006, our energy exports reached $86 billion and accounted for nearly 20 percent of our merchandise trade exports.

In the field of minerals, metals and mining, Canada is viewed as a global mining giant in terms of reserves, level of production, exploration, investment and innovation. Moreover, Canada continues to be a leader in the Kimberley Process to control the legitimate trade in diamonds by ensuring that all of the country's diamond exports and imports are properly certified.

On the important questions of the sustainable development of our resources and the protection of the environment, the Department plays a key leadership role in many areas, including the control of natural hazards - such as insect infestations and wild fires - to ensure the continued supply of our forest resources, improving technologies for extraction and processing, developing biofuels, wind power and other clean energy sources, and controlling and reducing pollution.

NRCan also helps individual Canadians make a real contribution to the reduction of greenhouse gas emissions and the fight against climate change. My department supported the development and implementation of the Government of Canada's Clean Air Agenda and its $2 billion investment in ecoENERGY initiatives to encourage energy efficiency, increase the production of renewable energy and reduce the environmental impact of conventional energy resources.

In addition to its role in these activities, NRCan conducts innovative science and research with practical applications for resource development, such as the models of seafloor hazards that were incorporated in the hydrocarbon development proposals for offshore Newfoundland and the Beaufort Sea. In this way and others, NRCan carries on its long tradition of using science, technology and research to put Canada in a more competitive position internationally and improve the quality of life for Canadians.

These results are only a few highlights of the department's many achievements. I look forward to another productive year in which the sustainable development of our natural resources will help ensure a clean, healthy environment and build a prosperous Canada.

Management Representation Statement

Summary Information

NRCan's mandate is to develop, implement and deliver policies, programs, science and technology (S&T) for the sustainable development and responsible use of Canada's mineral, energy and forestry resources. The department is also responsible for developing an understanding of Canada's landmass and collecting and disseminating information on sustainable resource development. NRCan also maintains key roles related to the safety and security of people and natural resources, including security of natural resource infrastructure and supply.

NRCan's Minister is responsible for, or has responsibilities under, more than 30 Acts of Parliament. The core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act, and the Forestry Act. The remaining Acts set out the terms for the management of Crown lands and of Canada's natural resource policies, including energy and nuclear policy.

The Department's work is concentrated in areas of core federal jurisdiction, which includes:

• international and interprovincial trade;
• natural resource-based science and technology in support of federal objectives related to economic development, environmental protection, supply security and resource-related health and safety;
• natural resource management on Crown lands, the North and offshore areas; and
• uranium and nuclear power.

In carrying out these responsibilities, NRCan works closely with other federal departments with resource-related responsibilities, and supports the federal role in regional development and Aboriginal affairs in matters related to the resource sectors. NRCan also works in areas of shared responsibility with the provinces, such as the environment.

Financial Resources

Main Estimates ($M)	Total Authorities ($M)	Actual Spending($M)
1,426.1	1,738.1	1,685.7

Human Resources

Planned	Actual	Difference
4,456	4,379	77

Context, Departmental Priorities and Performance Highlights

Canada's vast resources have shaped our history, generating wealth and a distinctive way of life for generations of Canadians. Natural resources are a cornerstone of our success as a modern industrial society from before Confederation, and will continue to be into the 21st century. We have used our resource assets to our advantage, turning Canada into a world-leading commodity producer with related strengths in financial services, engineering, environmental consultancy, manufacturing and specialized science, technologies and services.

Yet, in a world characterized by a rapidly changing global economy and growing environmental awareness, we must work to ensure that Canada uses the right approach to sustainable resource growth, for now, and for the future. We need to recognize that, in the 21st century, vast natural resource endowments are not a sufficient condition of economic success, a better quality of life or a healthy environment. Sustainable, responsible, and modernized use of these endowments is what will create these positive benefits for Canadians.

NRCan works to build a more sustainable resource future by focussing its efforts in priority areas where we can build competitive advantage in today's global knowledge economy and society. The Department's strategic priorities guide NRCan's activities, support our strategic outcome, and advance the priorities of the Government of Canada. These priorities stem from inter-related issues of importance to Canadians, and shape our policies, programs and S&T.

Priority 1: Improve resource-sector productivity and competitiveness

In the global economy, the demand for Canada's natural resources is increasing as China and India increasingly become engines of growth. As these economies develop, their needs for energy, vital minerals and metals, and forest products will only grow (e.g., in base metals, copper, aluminum, nickel and zinc, China accounts for 20 percent of global demand). This strong Asian demand, coupled with the continuing demands from the U.S., continues to support historically high commodity prices. As a net exporter of resources, this implies a wealth gain for Canada. At the same time we are facing increasing competition from resource-rich emerging markets such as Russia, Brazil and China. This places a strong emphasis on the need for Canadians to continuously innovate, expand into new markets and move up the global value chain in order to remain competitive.

Commodity booms are cyclical, with some lasting longer than others depending on the extent of demand, pace of new project investments and the health of the global economy. The risk factors to growth - U.S. economic slowdown, the potential overheating of the Chinese economy - should not be underestimated. As well, while Canada is in the enviable position of attracting hundreds of billions of dollars in potential new resource investments, this is creating real economic strains - from skilled labour shortages, pressing needs for new infrastructure, to regulatory bottlenecks and insufficient capacity to deal with a range of issues including the engagement of Aboriginal peoples.

Productive and efficient exploration, development of value-added products and use of Canada's natural resources is critical to our future prosperity. Productivity improvement enhances the viability of communities, environmental quality, and the competitiveness of the Canadian economy. Upgrading and applying NRCan's S&T expertise in a strategic manner to promote innovation for greater economic efficiency, and improved environmental performance has been, and will continue to be, a vital part of this effort, as will creating greater regulatory efficiency.

Improvements to resource sector productivity and competitiveness include the delivery of the Government of Canada's Advantage Canada commitments to improve the efficiency and effectiveness of the regulatory system for major natural resource projects, promotion of the development of new value-added wood products from previously under-utilized tree species, and improvements to economic and environmental performance through S&T efforts on technology development and processing for minerals and metals.

Priority 2: Advance resource efficiency and conservation

The linkages between natural resources, the environment and sustainability are well-known. As rising demand puts increasing pressure on our natural resources, including water, this, in turn, places the spotlight on important environmental issues both within Canada and internationally - from rising greenhouse gas emissions (GHGs), air pollution, the future of the boreal forest (e.g., pests, forest fires), rising water quantity and quality issues, to the changing North. In this context, sound management of our natural resource endowments, which is shared with the provinces and territories, is important for the quality of life and well being of all Canadians.

Both Canada and the global community need to find effective ways of reconciling the increasing demand for vital resources, especially fossil fuels, with the adverse environmental impacts this increased usage generates. Among other things, this means placing a high priority on using regulation wisely to reduce the environmental footprint of industrial production and our modern way of life. It means setting long-term goals for GHG reductions, reducing air pollution and creating new energy efficiency standards. It also means investing strategically in a clean energy agenda focussed on promoting smarter energy use, increasing the supply of clean energy and addressing the emissions from conventional sources of energy.

In these areas, NRCan has made significant progress. Our efforts have contributed to a decline of 16 percent in Canada's emissions intensity between 1990 and 2005 (expressed as carbon dioxide emissions from fuel combustion per unit of GDP) and, Canada's energy efficiency has improved by an estimated 14 percent between 1990 and 2004. Resource efficiency and conservation improvements include the advancement of energy technologies along the innovation curve through research projects, pilot plant activities and demonstration projects, and the construction of new ethanol plants that have increased Canadian annual ethanol production capacity under the Ethanol Expansion Program.

Priority 3: Ensure the safety and security of people and resources

Terrorist attacks and the increasing frequency and intensity of natural disasters have raised safety and security imperatives at the international level. NRCan provided expertise and analysis of nuclear testing carried out around the world. In addition, the Department's 24/7 monitoring of earthquake activity and magnetic disturbances, and analysis of tsunami risk off Canada's coasts contributed to the state of readiness and response by people, industry and emergency preparedness organizations. Close to home, forests are challenged by incidences of forest pests such as Mountain Pine Beetle outbreaks, while foresters are increasingly preoccupied by wildfires across Canada. These bring issues of natural resource security and supply-of-mind. It is anticipated that issues related to the security of natural resource supply and infrastructure, particularly with respect to energy, will continue to be a major concern for government, the private sector and consumers.

Safety and security is therefore an important public policy driver that NRCan must address strategically. This entails not only the department's specific regulatory mandate, but also keen attention paid to the safety and security of individual livelihoods, community stability, emergency management, and national natural resource supply strategies. Aware of these concerns, NRCan provides expertise, accurate and timely information to decision-makers which, in turn, provides organizations with the tools to safeguard people and the resource base. Critical information has been provided on the rate and severity of the Mountain Pine Beetle infestation by mapping 3,750,000 hectares of beetle-affected forests and our understanding of water supply has deepened by mapping aquifers across Canada through the Groundwater Mapping Program. Shipments of Canadian diamonds, both imported and exported, were completed in compliance with the Kimberley Process Certification Scheme, and civil emergency plans were established to ensure that in the event of a crisis, citizens are protected.

Priority 4: Provide science, information and tools for decision making and support responsible development of Canada's North

Sustainable development is about having and using the right knowledge and technology tools which permit effective, integrated decision making that considers economic, environmental and social factors - a prerequisite for strong cities and communities. Building community capacity is about fostering the conditions for advancing development by improving communities' ability to make better decisions.

It is a legislated requirement that environmental considerations of natural resource development continue to be a departmental priority. NRCan science ensures that this decision making is informed and effective. There is, therefore, an imperative for NRCan to continue to build the national knowledge base of Canada's land-based and offshore resources, and to develop and improve the tools and technologies that will enable communities to use this knowledge effectively.

With respect to the North, Canada has many reasons for adopting a more strategic approach to its support for the development of the northern natural resource base. Declining base metal and conventional energy reserves, coupled with growing global demand for these natural resources, has led to an increased awareness of the potential opportunities for natural resource development in Canada's North. Access to sound NRCan science will be key to making the most of these opportunities. NRCan's Targeted Geoscience Initiative 3, focussed on base metal resources, has led to increased private sector investment and targeted exploration. However, the exploration and extraction of tremendous, but non-renewable resources, must proceed hand-in-hand with community advancement, and must not compromise environmental integrity.

NRCan initiatives have contributed to effective decision-making and support for responsible resource development across Canada, including the North. These include the production of several key seafloor maps for the use in fisheries management plans and conservation strategies through the Geoscience for Oceans Management Program; the Model Forest Program supported over 250 research, demonstration and outreach partnership projects across Canada, engaging approximately 500 partners; and the Northern Resource Development Program has made significant progress toward an expanded and improved public geoscience knowledge base for the territories and the northern parts of the provinces.

Priority 5: Enhance NRCan's capacity to deliver policies, programs, science and technology

Canadians want good governance. They want to know that government programs are managed with honesty and integrity and in a manner that is open and transparent. This priority requires strong corporate management which ensures that the department has the right people, tools and structures to deliver on its mandate, mission and departmental priorities.

To ensure that NRCan is prepared and properly positioned to deliver on the priorities of Canadians and their Government, NRCan made a further investment in its systematic strategic planning process and launched the "North Star" initiative that emphasizes the development of a strategic natural resources framework and departmental integration; advanced its human resources renewal agenda; moved towards an enterprise-wide approach to information technologies and information management planning and investing; generated savings of $3.3 million through shared services; and strengthened its evaluation and audit functions.

A summary of these and other departmental accomplishments can be found in this section, whereas Section II of this report provides more details on all accomplishments by program activity.

Program Activity Crosswalk to Departmental Priorities

The following table provides a crosswalk of program activities to departmental priorities and to Government of Canada outcome areas.

Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards
Government of Canada Outcomes	Strong Economic Growth		A Clean and Healthy Environment		Strong Economic Growth		Strong Economic Growth
Program Activities (Spending in M$)	Earth Sciences		Energy*		Sustainable Forest*		Minerals and Metals
Departmental Priorities	Planned Spending	Actual Spending	Planned Spending	Actual Spending	Planned Spending	Actual Spending	Planned Spending	Actual Spending
1. Improve resource sector productivity and competitiveness	33.5	29.5	20.1	22.1	58.9	72.4	20.6	20.9
2. Advance resource efficiency and conservation	8.7	9.6	408.9	415.8	35.1	38.9	10.9	15.0
3. Ensure the safety and security of people and resources	25.1	26.3	7.7	3.5	0.0	0.0	4.9	6.4
4. Provide science, information and tools for decision-making and support responsible development of Canada's North	60.1	56.9	0.0	0.0	8.3	10.1	0.7	0.5
Other supporting and enabling initiatives/services**	103.0	116.3	34.6	50.4	50.1	56.7	20.9	31.5
Statutory programs - Atlantic offshore	0.0	0.0	558.7	702.9	0.0	0.0	0.0	0.0
Total NRCan	230.4	238.6	1030.1	1194.7	152.4	178.1	58.0	74.3

* Planned spending excludes: $110M for the Newfoundland Fiscal Equalization Offset Payments; $65M received via the Supplementary Estimates for activities related to the safe decommissioning of shutdown buildings and contaminated lands in order to meet federal regulatory requirements, and for the long-term strategy needed for the disposal of nuclear wastes (Nuclear Legacy Liabilities Program); and $30M received via Supplementary Estimates in support of the federal response to the Mountain Pine Beetle infestation in B.C.

** Includes program management and support, and corporate management for all program activities. The apparent increase in corporate management costs reflects a change in reporting of some corporate activities (i.e., shared services, communications and information technology) which were previously included in sector/program planned spending. This change was made to improve accountability and transparency associated with reporting of these areas.

¹Section II of the 2006-07 Report on Plans and Priorities presented information by departmental priority rather than by program activity. Section II of this corresponding Departmental Performance Report presents information by program activity to better reflect the contribution of our programs.

Departmental Results Structure

NRCan manages its program delivery through four major program activities: Earth Sciences, Energy, Sustainable Forest, and Minerals and Metals. Each of NRCan's program activities is divided into smaller groups of activities that are designed to achieve intermediate outcomes that collectively contribute to the realization of the overall departmental strategic outcome. The Corporate Management program activity provides internal support and enables the delivery of other departmental programs.

Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impact and respond effectively to natural and man-made hazards.
Program Activities: Expected Results	Earth Sciences	Energy	Sustainable Forest	Minerals & Metals
	Earth sciences knowledge and tools enable Canadians to achieve economic opportunities, a clean environment, and adapt to a changing climate, in safety and security.	Canadians benefit economically, environmentally, and socially from the sustainable production, development and use of Canada's abundant energy resources.	Healthy forests continue to provide balanced social, environmental and economic benefits to Canadians.	Canadians derive sustainable social and economic net benefits from the assessment, development and use of mineral expertise, mineral resources, and related industries.
Sub-Activities: Expected Results	Economic opportunities: New economic opportunities created for Canadians A clean environment: reduced stress on the environmental ecosystems and human health Enhancing resilience to a changing climate: Canadians and their insitutions understand and prepare for the effects of a changing climate Public safety & security: Increased safety and security of Canadians	Energy policy: Domestic and international energy policy analysis, development and advice that supports the sustainable development of Canada's energy sector Electricy & renewable energy: Sustainable development and safe and reliable delivery of electricity with a reduced environmental impact Petroleum resources: A fair, efficient and competitive oil, natural gas and petroleum products marketplace that is consistent with Canada's social and environmental goals Energy efficiency and alternative transportation fuels: Improved energy efficiency of all sectors and increased production and use of alternative transportation fuels in Canada Energy S & T: Canadians derive new economic, environmental and social benefits through federal energy S & T	Leading change in Canada's forest sector: An integrated national forest sector innovation system that addresses current and emerging issues Climate change: Canada's climate change reporting obligations are met, and forest-based options for adaptation to, and mitigation of, climate change are developed International: Canada is a globally-recognized leader of forest sector sustainability Sustainability of Canada's forests: Forest losses are addressed through the provision of balanced social, economic and environmental information and advice Strong communities: Forest-dependent communities have choices and options for economic opportunities Competitiveness of Canada's forest products industry: Canada's forest industry competes successfully in the global forest products market	Fiscal and social policy: Investment in Canada's exploration and mining industries is strengthened Industry analysis and business development: Market access for mineral and metal commodities (including recyclables) and related industries is promoted and, where necessary, protected; Canada's international prominence and investment in mining are secured Minerals and metals S & T: Canadians benefit from R & D with respect to minerals, metals and value-added products Explosives safety and security: Safety and security of workers and the public throughout Canada are improved with respect to explosives Minerals and metals programs: Canadians are provided with information to improve deicisons regarding minerals and metals
Corporate Management – NRCan is enabled by supportive corporate management functions

Departmental Performance Summary by Program Activity

The performance information presented in this report is based on NRCan's results structure presented on the previous page. By focusing on this results structure, NRCan has improved its ability to manage for results. It has also ensured that individual programs, projects and initiatives are relevant to the Government of Canada and departmental priorities, and continue to provide value for money to Canadians.

The table below presents the core suite of performance indicators and a summary of the key achievements, by program activity and sub-activity.

Strategic Outcome - Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards
PROGRAM ACTIVITY - EARTH SCIENCES - Earth sciences knowledge and tools enable Canadians to achieve economic opportunities, a clean environment, and adapt to a changing climate, in safety and security
Key Performance Indicators	Key Achievements
Sub-Activity/Expected Result - Economic opportunities: New economic opportunities created for Canadians
Increased mineral and energy exploration investment made by the private sector as a result of public geoscience investments	Public geoscience led to the discovery and development of new or unconventional mineral and energy resources; for example, the increase in private sector exploration expenditures in the Targeted Geoscience Initiative 3 (TGI3) target areas is estimated at $50 million to date and the identification of new drilling targets in all four areas is being attributed to TGI3 activities.
Meet the legal requirements to provide a survey system on Canada Lands to enable economic development	NRCan carried out surveys in support of treaty entitlement claims and implementation plans for comprehensive land claims agreements in several provinces including Ontario, Quebec, Alberta and British Columbia (B.C.).
Geospatial data availability and user satisfaction with access, data quality and service	NRCan's GeoBase initiative, a national partnership that is providing fundamental geographical information for Canada, contributed data for the six base layers including roads, elevations, remotely-sensed imagery, waterways and geographical names.
Under Canada's Ocean Strategy, new ocean management plans, policies and protected areas incorporate earth sciences information	The Geoscience for Oceans Management Program produced several key seafloor maps that were used in fisheries management plans and conservation strategies, as well as input to five oceans management plans. In addition, models of seafloor hazards were incorporated directly into offshore hydrocarbon development proposals, including the Beaufort Sea and offshore Newfoundland.
Sub-Activity/Expected Result - A clean environment: Reduced stress on the environmental ecosystems and human health
The use of NRCan assessments of environmental hazards that result in corrective actions	NRCan provided environmental and resource assessments for several mining projects including the Victor diamond mine. In addition, the Department worked with a mine operator in B.C. to develop environmental models that reduced the risk of exposure from mine tailings to the surrounding landscape.
Percentage of key Canadian aquifers with complete assessments	NRCan's Groundwater Mapping Program identifies, maps and assesses aquifers in Canada to estimate groundwater availability, vulnerability and sustainability. Nine of the thirty key aquifers across Canada were mapped by the end of 2006-07.
Sub-Activity/Expected Result - Enhancing resilience to a changing climate: Canadians and their institutions understand and prepare for the effects of a changing climate
The availability of NRCan information to Canadians in developing strategies to adapt to climate change	NRCan worked in collaboration with Hydro-Quebec and Manitoba Hydro to assess climate-related trends and variability in water supply. The Department aims to extend the knowledge gained from these case studies to assist other utilities to plan future capacity.
Sub-Activity/Expected Result - Public safety and security: Increased safety and security of Canadians
NRCan meets its emergency response obligations in the event of real or simulated civil emergencies	NRCan provided expertise in support of the Comprehensive Test Ban Treaty Implementation Act and the Federal Nuclear Emergency Plan. In December 2006, the Department provided confirmation and detailed follow-up assessments of the Democratic Peoples Republic of Korea's nuclear test; these were critical in determining the nature of the nuclear test.
Increased use of NRCan hazard assessments in planning and hazard mitigation decisions	The Department carried out a number of risk assessments, including probable height of tsunami waves for the B.C. Emergency Preparedness Organization. It also developed, in conjunction with the University of Calgary, equipment for measuring the disruption of radio communications and Global Positioning Systems resulting from space-based weather hazards.
Meet international treaty obligations to maintain a well defined Canada/U.S. boundary for border security purposes	Delivered, on schedule, five-year and fifteen-year maintenance plans for the Canadian section of the International Boundary Commission.
Program Activity: Energy - Canadians benefit economically, environmentally, and socially from the sustainable production, development and use of Canada's abundant energy resources
Key Performance Indicators	Key Achievements
Sub-Activity/Expected Result - Energy policy: Domestic and international energy policy analysis, development and advice that supports the sustainable development of Canada's energy sector
Canada's energy contribution to Gross Domestic Product (GDP)	Canada's energy contribution to GDP represented 5.8 percent in 2006.
Canada's energy exports	Canada's energy exports were $86 billion in 2006, representing approximately 19 percent of its merchandise trade exports.
Canada's emissions intensity	Canada's emissions intensity, expressed as carbon dioxide emissions from fuel combustion per unit of GDP, declined by 16 percent between 1990 and 2005.
Sub-Activity/Expected Result - Electricity and renewable energy: Sustainable development and safe and reliable delivery of electricity with a reduced environmental footprint
Number of petajoules (PJ) of zero or low emission electrical and thermal energy in Canada	In 2005, over 1600 PJ of electrical energy was produced from zero or low emission sources, up from about 1550 PJ in 2004. Moreover, in 2005, hydro accounted for 1290.4 PJ of the electrical energy produced (wind 5.6 PJ; nuclear 312.6 PJ; and biomass 26.2 PJ).
Index of electricity reliability (IOR)	In 2003 (the latest year for which data are available), the IOR was 0.99878; excluding the impacts of the August 14th blackout and Hurricane Juan of 2003, the IOR increases to 0.99941.
Emissions intensity of electricity generation in Canada	A relative increase in the production of electricity from natural gas and petroleum coke, and a relative decrease in nuclear and hydro, resulted in a 5 percent increase in greenhouse gas intensity of energy used to produce electricity from 1990 to 2004, from 31.5 tonnes/terajoules (TJ) to 33.0 tonnes/TJ. However, with a decrease from 36.1 tonnes/TJ in 2003 to 33.0 tonnes/TJ in 2004, the intensity effect is at its lowest level since 1997 because three nuclear reactors in Ontario returned to service in 2003.
Public confidence in nuclear fuel cycle activities	Polling in the Port Hope area indicated that years of discussion and education have yielded steady growth in community awareness and understanding of waste cleanup efforts. Today, 73 percent of local residents are confident in the Government's proposal.
Sub-Activity/Expected Result - Petroleum resources: A fair, efficient and competitive oil, natural gas and petroleum products marketplace that is consistent with Canada's social and environmental goals
Increased public awareness and understanding of petroleum markets	Canadians have access to NRCan data on gasoline markets and up-to-date information of petroleum products.
Sub-Activity/Expected Result - Energy efficiency and alternative transportation fuels: Improved energy efficiency of all sectors and increased production and use of alternative transportation fuels in Canada
Percent improvements in energy efficiency	Canada's energy efficiency improved by an estimated 14 percent between 1990 and 2004 (latest year for which data are available).
The number of petajoules energy savings due to energy efficiency	In 2004 alone, improvements reduced energy use by 902.7 petajoules from what it would have been otherwise.
Renewable fuel production as a percentage of total transportation fuel	In 2004, renewable fuel production was 0.23 percent of total on-road transportation fuel use
Alternative fuel use as a percentage of total transportation fuel	In 2004, alternative fuel use was approximately 1.3 percent of total on-road transportation fuel use
Sub-Activity/Expected Result - Energy S&T: Canadians derive new economic, environmental and social benefits through federal energy S&T
Technology focusing (i.e., project distribution along the innovation curve)	Significant progress was made advancing technologies along the innovation curve: 233 basic research projects; 237 applied research projects; 73 pilot plant activities; and 29 demonstrations projects.
Number of codes published, presentation, active Memorandum of Understanding (MOU), patents, licences issued	The development of codes, standards and regulations breaks down barriers to adopting new technologies and advances market penetration, while also leading to a competitive advantage for the Canadian industry. In 2006-07: 36 codes were published; 1005 presentations were made by scientists in the programs; 109 MOU and 36 patents were active; 9 patents and 55 licences were issued.
Number of energy S&T partnerships, both domestic and international	Partnerships help increase Canadians' scientific knowledge, strengthen our standing in the international community, and increase our exports of innovative technologies. In 2006-07, there was 486 and 481 formal collaborations on domestic and international projects, respectively.
PROGRAM ACTIVITY - SUSTAINABLE FOREST - Healthy forests continue to provide balanced social, environmental and economic benefits to Canadians
Key Performance Indicators	Key Achievements
Sub-Activity/Expected Result - Leading change in Canada's forest sector: An integrated national forest sector innovation system that addresses current and emerging issues
A national forest research institute which includes the new NRCan-created Canadian Wood Fibre Centre (CWFC), is established, and defines innovation priorities and goals to improve the competitiveness of the forest sector in Canada	A new national forest research institute, FPInnovations, is created through the merger of Paprican, FERIC, and Forintek, and includes the CWFC.
The CWFC is fully operational and has integrated its priorities with the national forest research institute	CWFC launched in April 2006 and is developing its priorities in collaboration with the newly created FPInnovations.
Academia is actively engaged in the development and launch of a national forest innovation work program	CWFC design team includes active representation from academia.
Sub-Activity/Expected Result - Climate change: Canada's climate change forest reporting obligations are met, and forest-based options for adaptation to, and mitigation of, climate change are developed
Information and options for inclusion of forests in adaptation strategies, including options for managing Canada's forest	NRCan Forest Carbon Monitoring, Accounting and Reporting System is used to understand how forest management can affect forest carbon.
Forest-related information is reported in Canada's National Inventory Report of Greenhouse Gas Sources and Sinks to the U.N. Framework Convention on Climate Change (UNFCCC) by April of each year	NRCan assisted Environment Canada in meeting reporting requirements of the UNFCCC in April 2006. An integrated science/policy risk analysis of the question of whether to count Canada's managed forests towards the Kyoto Protocol targets was completed.
Sub-Activity/Expected Result - International: Canada is a globally-recognized leader of forest sector sustainability
Number of forest countries actively committed to the Canada-led initiative to secure an international agreement on sustainable forest management	NRCan, the Department of Foreign Affairs & International Trade, and the Canadian International Development Agency co-hosted a meeting of 20 like-minded countries in pursuit of a legally binding instrument (LBI) for sustainable forest management during October 2006 in Gatineau, Quebec. A series of bilateral meetings with nine like-minded, LBI-inclined countries were also held on the margins of the U.N. Food and Agriculture Organization Committee on Forestry in Rome, Italy in March of 2007.
Value of leveraged contributions in key bilateral science and technology relationships, including the U.S., Russia and China	In 2005 Canada and Russia signed a Statement of Technical Cooperation for a three-year period, with a view to improving sustainable management of the Russian forest. In 2006-07, significant progress was achieved towards introducing Canadian tools in Russia for fire management and forest carbon monitoring. Enhancing Russia's capacity in these areas will serve to help the country achieve its greenhouse gas reduction objectives.
Sub-Activity/Expected Result - Sustainability of Canada's forests: Forest losses are addressed through provision of balanced social, economic and environmental information and advice
Full implementation of the controlling the spread element of the Federal Response to the Mountain Pine Beetle (MPB) Infestation in B.C., including mitigating the eastern spread of the beetle by applying control strategies to beetle-affected forested areas.	Provided critical information on the rate and severity of MPB infestation. For example, digital mapping was completed on 3,750,000 hectares of beetle-affected forests. Ninety-thousand beetle-infested trees were removed through fall and burn on provincial forest lands along the B.C.-Alberta border.
Number of Canadian jurisdictions and value of their contributions coordinating their operational management of forest pest risks under a national forest pest strategy	The National Forest Pest Strategy prospectus was approved by the Canadian Council of Forest Ministers. A steering group was established with representation from NRCan, the Canadian Food Inspection Agency, and the provinces of Alberta, B.C., and Ontario.
Sub-Activity/Expected Result - Strong communities: Forest-dependent communities have choices and options for economic opportunities
Initiation of the protecting communities and forest resources element of the Federal Response to the MPB Infestation in B.C., including developing options for new natural-resource based opportunities for affected communities	Options were completed for three First Nations communities and fuel load management accomplished on 115 hectares. The construction of fireguards was completed on the south and southwest sides of the town of Banff, in Banff National Park.
Number of partnerships and their contributions under Canada's Model Forest Program (MFP)	MFP supported over 250 research, demonstration and outreach partnership projects across Canada, engaging approximately 500 partners drawn from industry, provincial governments, land use planning authorities, Aboriginal organizations, environmental and community groups.
Number of partnerships and their contributions under the First Nations Forestry Program (FNFP)	FNFP was responsible for approximately 150 capacity-building projects, involving 155 First Nations communities. The program expended a total of $3.8 million, leveraging additional cash and in-kind contributions from partners for a total project value of $13.7 million.
Conversion of the South Moresby Forest Replacement Account (SMRFA) into a locally managed vehicle for the support of projects that contribute to the long-term sustainability of forest resources and community stability on the Queen Charlotte Islands	NRCan, Environment Canada and the Province of B.C. transferred $25 million of remaining funds from the SMFRA to the Gwaii Forest Charitable Trust.
Sub-Activity/Expected Result - Competitiveness of Canada's forest products industry: Canada's forest industry competes successfully in the global forest products market
Reduction of technical barriers to wood use in offshore, and North American markets	In China, first drafts of a Shanghai local wood frame construction code and fire code were completed, and are awaiting approval. In Japan, ministerial approval was obtained for post and beam structures in fire-protected zones; Jack pine was accepted as an approved species in the manufacture of structural laminated wood products; and the Canada Tsuga (hemlock) kiln-dried product line was certified with strength equivalency to engineered wood products.
Improved competitiveness and productivity of the Canadian secondary-manufacturing wood sector	New value-added wood products developed from previously under-utilized tree species in Northern Quebec and Ontario have contributed to the growth of the I-Joist industry in Eastern Canada and have indirectly resulted in the establishment of new manufacturing facilities creating significant employment opportunities.
Expansion of wood markets in targeted offshore, and North American markets	Wood exports to China increased by $100 million since 2000 and now total $121 million. After years of decline, exports to Japan have stabilized; the value of wood exports to South Korea increased by 38% in 2006, totalling $100 million; the value of wood exports to Europe increased by 18% in 2006, totalling $632 million.
PROGRAM ACTIVITY - MINERALS AND METALS - Canadians derive sustainable social and economic net benefits from the assessment, development and use of mineral expertise, mineral resources, and related industries
Key Performance Indicators	Key Achievements
Sub-Activity/Expected Result - Fiscal and social policy: Investment in Canada's exploration and mining industries is strengthened
Canada accounts for more than 35 percent of the equity raised for mineral exploration and mining in the world	Through Canadian financial institutions, Canadian-based companies raised just under 40 percent of all equity, worldwide, for mineral exploration and development in 2006.
Canada accounts for more than 15 percent of global expenditures on mineral exploration	Based on 2006 exploration budget data, more than 19 percent of the world's total exploration budget was targeted at Canada.
The rate of decline in base-metal reserves is moderated	Data for 2005 showed increased reserves of copper, nickel, molybdenum and gold, and the rising exploration spending trend continues unabated.
Sub-Activity/Expected Result - Industry analysis and business development: Market access for mineral and metal commodities (including recyclables) and related industries is promoted, and where necessary, protected; Canada's international prominence and investment in mining are secured
Unnecessary restrictions on market access and investment are minimized or eliminated	The Department was instrumental in providing technical and policy advice with the result that the European Union exempted recyclable materials from the scope of new legislation for the Registration, Evaluation and Authorization of Chemicals (REACH) and exempted mineral ores and concentrates from registration.
Canada influences intergovernmental organizations to develop a coordinated program to address the United Nations Commission on Sustainable Development's (UNCSD) 2010 agenda for mining sustainability	Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Mining, the African Mining Partnership and the Mines Ministers of the Americas included the development of an appropriate government response to the 2010 UNCSD meeting as work programs items within their forward planning agendas.
Aboriginals account for five percent of the labour force in Canada's mining industry	From 1996 to 2001 (the latest year for which data are available), Aboriginal participation in the mining sector grew from 3.6 to 5.3 percent of the workforce.
Aboriginal awareness of the benefits and impacts of mining is enhanced	NRCan, in partnership with Indian and Northern Affairs Canada (INAC), provincial governments and exploration and mining associations, provided four pilot information sessions on exploration and mining for Aboriginal communities in northern Ontario, Quebec's North Shore, northern Quebec, and Vancouver, British Columbia. NRCan, along with the Prospectors and Developers Association of Canada, the Mining Association of Canada, the Canadian Aboriginal Minerals Association (CAMA) and INAC, also released a Mining Information Kit for Aboriginal Communities. These activities helped to promote understanding by Aboriginal peoples and communities of all aspects of mining development.
Federal policies are developed in partnership with and supported by provincial and territorial mines ministers	Intergovernmental partnerships were strengthened through the adoption of a Mines Ministers' Framework for Action and the implementation of an action plan to advance shared priorities.
Sub-Activity/Expected Result - Minerals and metals S&T: Canadians benefit from research and development (R&D) with respect to minerals, metals and value-added products
Labour and total factor productivity growth in Canada's minerals and metals industries are greater than the national average for all industries	Thirty-two projects undertaken throughout 2006-07 were directed to raising productivity levels in the minerals and metals sector. Five projects were completed during the year including: a project for a major gold producer to train 12 workers in effective experimental design using statistical techniques for use in improving their milling operations; and development of 3D mine ventilation computer modelling software that relates factors such as power requirements and fan-operating efficiency to determine optimum design to minimize ventilation costs.
The emission of greenhouse gases and pollutants by the minerals and metals and associated industries (e.g., transportation) are reduced	Seventy-two projects on the reduction, control or mitigation of effects of pollutants from the minerals industry were conducted. NRCan provided expert input to changes to Base Metal Smelter Regulations and Metal Mining Effluent Regulations, published during the year. Thirty-nine research projects were completed and 47 projects were undertaken to develop new materials and materials processing technologies to reduce greenhouse gas emissions.
The health and safety of workers in the mining industry are improved	Eighty-four projects improving health and safety of mining workers were conducted. NRCan completed the commercial transfer of an anti-vibration handle for rock drills to combat Raynaud's Syndrome (White Hand Disease) as well as the Diesel Emissions Evaluation Program which, among other things, developed a ceramic filter to reduce emission of fine particulates into the mine environment.
Sub-Activity/Expected Result - Explosives safety and security: Safety and security of workers and the public throughout Canada are improved with respect to explosives
The number of explosives-related accidents is below or at least comparable to the average of the previous three years	Canada's excellent explosives safety statistics were maintained. There were no significant explosives-related accidents in Canada in 2006-07.
The quantity of incidents where explosives stolen is below or at least comparable to the average of the previous three years	Five thefts of explosives occurred in 2006, compared to ten in 2005 and six in 2004.
Sub-Activity/Expected Result - Minerals and metals programs: Canadians are provided with information to improve decisions regarding minerals and metals; regulatory processes meet Government of Canada objectives
Canadians receive relevant, accurate, timely, and accessible statistics, as defined in Statistics Canada's Quality Assurance Framework, on the minerals and metals industries	Analyses and dissemination of statistical information were provided to Statistics Canada, provinces and territories, in accordance with the agreed schedule.
The environmental assessments of mining projects  under the Canadian Environmental Assessment Act are completed within agreed-upon time lines	NRCan fulfilled its statutory obligations as a responsible authority under the Canadian Environmental Assessment Act as well as under northern resource management statutes and the Nunavut Land Claims Agreement with respect to the environmental assessment of mining projects.
The regulatory process (e.g., the environmental assessment process, and regulatory permitting, licensing and authorization) are streamlined through a single-window approach	NRCan cooperated with the provinces and territories and federal departments to develop recommendations for an improved regulatory framework for mining that is consistent, timely, predictable, effective in protecting the environment and coordinated across jurisdictions.
The quantity of rough diamonds imported from and exported to non-participants in the Kimberley Process is nil	The Canadian diamond trade is subject to import and export restrictions limited to participants in the Kimberley Process Certification Scheme; all of the 271 shipments exported and 320 shipments imported in calendar 2006 were transactions with participants.
PROGRAM ACTIVITY - NRCan is enabled by supportive corporate management functions
Key Performance Indicators	Key Achievements
Sub-Activity/Expected Result - NRCan is supported by efficient and effective corporate management functions
Actual departmental expenditures within -5 percent of planned spending (votes 1, 5 and 10)	NRCan was well within its expenditure target given that it underspent by 1.5 percent.
Evidence of significant human resources renewal initiatives implemented	NRCan has set a precedent within the Public Service with the development of a framework for standardizing the creation of EX-01 to EX-03 positions.
Degree to which the Department and the TBS have invested in NRCan's Long Term Capital Plan (LTCP)	The LTCP was developed and conditionally approved.
Degree to which NRCan invests in recapitalization of real property versus 4 percent standard benchmark	In the area of real property, NRCan invested $2.5 million in recapitalization; this is below the standard benchmark of 4 percent, which would have required NRCan to invest $41.6 million, a shortfall of $39.1 million.
Evidence of an enterprise approach to information management (IM) and information technology (IT) planning and investing	Completed an IM strategy framework and commenced work on an IM strategy; a strategic roadmap initiative was advanced and an IT infrastructure funding model was implemented; achieved 92 percent of compliance with the Management of IT Security Standard and completed assessments of 8 critical business functions.
Sub-Activity/Expected Result - NRCan is enabled to deliver value to Canadians supported by efficient and effective shared administrative services
Total savings from shared services	NRCan generated savings of $3.3 million through its Shared Services Initiative.
Sub-Activity/Expected Result - Departmental management systems, programs, policies and initiatives are strengthened as a result of independent performance assessments
The internal audit function meets the requirement of the Government of Canada Internal Audit Policy and is rated as satisfactory by the Comptroller General of Canada	Function rated as acceptable by the Comptroller General in the 2006 Management Accountability Framework (MAF) assessment.
The evaluation function meets the requirement of the Evaluation Policy and is rated as satisfactory by the Treasury Board Secretariat	Function meets the requirements of the evaluation policy and is rated as strong in the 2006 MAF assessment
Sub-Activity/Expected Result - NRCan is provided with comprehensive S&T analysis, policy, strategies and knowledge services
Extent of NRCan's S&T influence (e.g. qualitative and quantitative evidence in policies, programs, practices and knowledge services)	Efforts were aimed at achieving a clearer understanding of NRCan's S&T role in the innovation system, to address barriers that inhibit a strong departmental positioning, and to provide the knowledge and insight to guide departmental investments and actions in the next decade.

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