Ratification of the Kyoto Protocol by the Canadian government has committed the nation to a legally-binding reduction of its domestic greenhouse gas (GHG) emissions to six per cent below 1990 levels. The Climate Change Plan for Canada identifies several instruments and actions for meeting this target. For large industrial emitters throughout Canada, emissions trading holds tremendous potential for reducing emissions without negatively impacting the competitiveness of Canadian industry. This instrument seeks to harness efficiencies in the marketplace to enhance investment in lower-emission technologies and energy sources.
The domestic emissions market will most likely be linked to the international carbon trading emissions system that is being developed under the Kyoto Protocol framework. Exactly how this interaction will be structured has yet to be determined, however the Canadian government will partner with the private sector in order to ensure early entry into the marketplace, lower transaction costs, the creation of export opportunities for participants and protection for the country if it has difficulty meeting GHG reduction targets by other means.
Speakers - Kyoto Mechanisms and the Manitoba Business Sector Seminar (March 2003)
|
