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Finding the Energy to Act: Reducing Canada's HOUSE OF COMMONS CANADA FINDING THE ENERGY TO ACT: REDUCING CANADA’S GREENHOUSE GAS EMISSIONS Report of the Standing Committee on Environment and Sustainable Development Alan Tonks, M.P. Chair July 2005 The Speaker of the House hereby grants permission to reproduce this document, in whole or in part for use in schools and for other purposes such as private study, research, criticism, review or newspaper summary. Any commercial or other use or reproduction of this publication requires the express prior written authorization of the Speaker of the House of Commons. If this document contains excerpts or the full text of briefs presented to the Committee, permission to reproduce these briefs, in whole or in part, must be obtained from their authors. Also available on the Parliamentary Internet Parlementaire: http://www.parl.gc.ca Available from Communication Canada — Publishing, Ottawa, Canada K1A 0S9 FINDING THE ENERGY TO ACT: REDUCING CANADA’S GREENHOUSE GAS EMISSIONS Report of the Standing Committee on Environment and Sustainable Development Alan Tonks, M.P. Chair July 2005 STANDING COMMITTEE ON ENVIRONMENT AND SUSTAINABLE DEVELOPMENT CHAIR Alan Tonks VICE-CHAIRS Bernard Bigras Lee Richardson MEMBERS Nathan Cullen Yasmin Ratansi Brian Jean Christian Simard David McGuinty Jeff Watson Bob Mills Hon. Bryon Wilfert Hon. Denis Paradis OTHER MEMBERS OF PARLIAMENT PARTICIPATING IN THIS STUDY Dean Allison Marc Godbout Russ Powers David L. Anderson Peter Goldring Anthony Rota Hon. Larry Bagnell Susan Kadis Francis Scarpaleggia Gord Brown Wajid Khan Andrew Sheer Serge Cardin Ed Komarnicki Mario Silva Colin Carrie Mario Laframboise David Smith Roy Cullen Hon. Jack Layton Hon. Paddy Torsney Rodger Cuzner Hon. Judi Longfield Bradley R. Trost John Duncan Beth Phinney Mark Warawa Marcel Gagnon Pierre Poilievre CLERK OF THE COMMITTEE Eugene Morawski PARLIAMENTARY INFORMATION AND RESEARCH SERVICE LIBRARY OF PARLIAMENT Tim Williams iii THE STANDING COMMITTEE ON ENVIRONMENT AND SUSTAINABLE DEVELOPMENT has the honour to present its SEVENTH REPORT In accordance with its permanent mandate under Standing Order 108(2) and the motion adopted by the Committee on November 23, 2004, your committee undertook, beginning in December 2004, a study on the subject matter of Canada’s Implementation of the Kyoto Protocol. v TABLE OF CONTENTS INTRODUCTION............................................................................................................. 1 CANADA’S KYOTO CHALLENGE .................................................................................. 4 Canada’s Target ........................................................................................................ 4 Canada’s Emissions Trends ...................................................................................... 6 The Cost of Delay (Part I) .......................................................................................... 6 REDUCING GHG EMISSIONS: THE FUNDAMENTALS................................................ 8 The Kaya Identity....................................................................................................... 8 The Costs of Delay (Part II) ..................................................................................... 10 MANAGING THE FEDERAL CLIMATE CHANGE PORTFOLIO................................... 11 Assessing Performance ........................................................................................... 12 General Departmental Coordination and Accountability .......................................... 14 Strategic Environmental Assessment and Sustainable Development Strategies: Key Requirements Being Ignored ............................................................................ 15 Signals from the Centre ........................................................................................... 17 The Role of Bureaucrats .......................................................................................... 18 TOWARDS A FAIR AND EFFECTIVE PLAN TO REDUCE GREENHOUSE GAS EMISSIONS............................................................................................................. 19 Links with Energy Security....................................................................................... 19 Hydroelectricity ........................................................................................................ 22 Nuclear .................................................................................................................... 22 Biomass ................................................................................................................... 23 Wind......................................................................................................................... 23 Solar ........................................................................................................................ 24 Geothermal .............................................................................................................. 25 Energy Security in Canada ...................................................................................... 25 Ecological Fiscal Reform ......................................................................................... 28 The Current Fiscal Situation Regarding Energy....................................................... 29 Calls for Ecological Fiscal Reform ........................................................................... 31 Biofuels and Sinks ................................................................................................... 32 Carbon Sequestration .............................................................................................. 33 Policy Options: Mandatory and Voluntary ................................................................ 35 vii Cap and Trade Systems .......................................................................................... 36 Moving Toward Greater Efficiency........................................................................... 38 International Activities .............................................................................................. 40 Continental Discussions........................................................................................... 43 COMMENTARY ON PROJECT GREEN....................................................................... 43 The Climate Fund .................................................................................................... 43 The Large Final Emitters Target .............................................................................. 44 The LFE Cap and Trade Regulations ...................................................................... 45 Ecological Fiscal Reform ......................................................................................... 45 The Automobile Sector ............................................................................................ 46 Government Accountability ...................................................................................... 46 Engaging the Public ................................................................................................. 46 Adaptation................................................................................................................ 47 CONCLUSION .............................................................................................................. 47 LIST OF RECOMMENDATIONS................................................................................... 53 APPENDIX A — LIST OF WITNESSES........................................................................ 57 APPENDIX B — LIST OF BRIEFS................................................................................ 63 REQUEST FOR GOVERNMENT RESPONSE............................................................. 67 DISSENTING OPINION — Conservative Party of Canada ........................................... 69 SUPPLEMENTARY OPINION — Bloc Québécois........................................................ 73 MINUTES OF PROCEEDINGS..................................................................................... 75 viii FINDING THE ENERGY TO ACT: REDUCING CANADA’S GREENHOUSE GAS EMISSIONS INTRODUCTION In 1992 the world recognized that changes in the atmosphere caused by human activity will alter the climate in a manner which could adversely affect natural ecosystems and humankind. The United Nations Framework Convention on Climate Change (UNFCCC) was the response to this problem and has now been ratified by 189 countries. The main goal of the UNFCCC is the: stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The Convention did not quantify what such a level should be though it did state that: Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner. Evidence is already coming to light that suggests ecosystems may not be able to adapt quickly enough to anthropogenic climate change.1 To stabilize greenhouse gas (GHG) concentrations requires that emissions of GHGs be reduced. In the UNFCCC the developed countries of the world committed to adopting national policies that had the aim of returning emissions to 1990 levels and informally it was agreed upon to achieve this by the year 2000.
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