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Calling All Party Leaders: What is the Kyoto Plan

Author: John Williamson 2005/12/01
A United Nations conference on climate change in underway in Montreal. The purpose is to develop a roadmap to reduce carbon dioxide emissions (CO2) - more commonly known as greenhouse gases - when the Kyoto Protocol expires in 2012. Unfortunately, Canada's election campaign is diverting media and public attention away from this global meeting, which concludes on Dec. 9.

Before a second international agreement is signed, it is probably worth reviewing Ottawa's progress under the first. Kyoto requires Canada to cut emissions of carbon dioxide to 6% below 1990 levels by 2008-12. Six per cent might not seem like a big cut, but factor in Canada's greenhouse gas growth since 1990, which the UN says had increased by 24% at the end of 2003, and suddenly the scope of reduction becomes clear. With today's technology the only way for Ottawa to achieve Kyoto targets is to reduce energy output and slow economic growth.

Since 1990, the Canadian economy has grown an impressive 45%. Liberal Environment Minister Stéphane Dion has acknowledged a strong economy and job growth has worked against Kyoto. Unless Ottawa is willing to trigger a made-in-Canada recession it will fail to meet its emissions goal. If this sounds alarmist consider that greenhouse gases increase with economic growth. To roll them back means shrinking the economy or achieving negative growth. The economic term for 2 quarters of negative growth is a recession.

It is good news that no government hoping to be re-elected - today or down the road - can advocate inflicting the economic pain on Canadian workers that Kyoto requires. So how might Ottawa fulfill its obligations One scenario is for the federal government to purchase so-called greenhouse gas credits from developing nations, like Russia and the Ukraine. Because of the collapse of Communism in 1989 - and the economies of Eastern Europe and Russia soon after - Moscow and others have a surplus of "unused" emissions to sell today.

Many economists and environmentalists regard this as purchasing "hot air" since nations that sell surplus gases need not reduce their current CO2 output levels. The result is Canada will continue to pump out emissions and claim victory while it pays foreign governments for credits. This is absurd public policy: tax dollars spent overseas with no tangible benefits to our environment, the economy or Canadian taxpayers.

With Canadians voting in January, now is an ideal time to ask whether or not our political leaders support using tax money to buy emission credits from other nations.

Since political parties prefer not to develop policy during election campaigns this should be an easy one for them. Canada ratified the Kyoto agreement in 2002, giving all leaders ample time to develop a position. Taxpayers are seeking an answer to the following question: will a (insert party leader's name here) government spend tax dollars to purchase carbon dioxide credits from other nations to meet Canada's Kyoto targets

A weasel response that "Canada will meet its Kyoto commitments" holds no water. Not when Canada's emissions are up 24%. And certainly not when the UN reports emissions in the United States rose by 13% over the same time. (Washington rightly rejected Kyoto on grounds it is too costly. The U.S. is nonetheless achieving reductions through the use of new technology, not with subsidies and hot air gimmicks.)

Purchasing credits is no academic point. Ottawa has allocated $12-billion to its climate plan. In February, it was revealed the government is considering spending $1.4-billion to buy credits abroad.

If Canada is going to fulfill its Kyoto commitment, the heavy lifting should be done at home - not off the backs of eastern Europeans and Russians. What do party leaders Paul Martin, Stephen Harper, Jack Layton, Gilles Duceppe and the Green's Jim Harris say about this important issue

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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