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Clean technologies provide environmental benefts that support productivity and economic growth.

SDTC-funded projects generate positive impacts related to clean air, clean water, clean soil and climate change, with 90% of portfolio projects generating multiple benefts. As the portfolio matures, SDTC has been exploring ways to quantify and report these impacts in a way that will more clearly illustrate the benefts derived from SDTC funding. Further details on this initiative can be found in the 2012 Annual Report Supplement.

Environmental Benefts

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1. GHG emission reduction projections are inherently forward-looking statements. They involve risks and uncertainties that could cause actual results to difer materially from those contemplated. SDTC believes it has a reasonable basis for making such forward-looking statements by: Requiring every applicant to estimate future GHG emission reductions using a prescribed methodology based on accepted ISO and IPCC practices; Reviewing the reasonableness of projected GHG emissions reductions reported by applicants and, as new information is reported, adjusting projections and excluding projects on hold; and Applying a discount rate of between 80% and 93.5% to account for the technology GHG intensity performance and the likelihood to meet sales projections. 2. Similar to GHG, these results have been discounted by a maximum 93.5% to account for market entry and uptake risk. 3. The expected in-service period for technologies that address clean air, soil and water is between 10-40 years, leading to a reporting period of 2025.

GHG Reduction

Estimated total annual GHG reduction in 2015, attributable to the 245 projects funded by SDTC since inception, is projected to be between 7 and 17 megatonnes. These fgures include adjustments for the uncertainty of projections by applying a discounting factor to individual projects 1 . 74 projects, which were completed prior to 2012, have reported actual emissions reductions of approximately 1.1 megatonnes in 2012.

Clean Air Projects

SDTC-funded projects report their clean air impacts in terms of tonnes of criteria air contaminants (CAC) reduced per year. Determining the environmental and human health benefts of these CAC reductions depends on factors such as population density and specifc air shed concentrations.

In order to show the benefts of these projects at a national level, SDTC has used industry best practices to convert the impacts into avoided health-related impact costs. When this approach is applied to 81 SDTC projects, focused on transportation and power generation, the results indicate an avoided health-related cost of over $1.5 billion 2 by 2025 3 .

Soil and Water Projects

As with clean air, determining the actual environmental and human health benefts and value to society of soil and water projects depends on numerous factors, such as the watershed, type of contaminant, location, and existing use of land.

Applying the same methodology described earlier to 28 SDTC-funded projects, with a primary or co-beneft focus on water, it is estimated that these projects will lead to an estimated avoided cost of more than $60 million 2 by 2025 3 .

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