Government of Canada Publishes Path Forward on Reducing Greenhouse Gas Emissions from Large Industrial Sources

OTTAWA, July 15, 2005 - The commitment in the Government of Canada's Climate Change Plan to reduce greenhouse gas emissions from industrial sources was honoured today with the publication of the road ahead to meet the 45 megatonne reduction goal for Large Final Emitters during the Kyoto Protocol period between 2008 and 2012.

The Notice of Intent to Regulate Greenhouse Gas Emissions by Large Final Emitters (LFEs) was published today in the Canada Gazette, Part I, outlining how emission-reduction targets would be set, the mechanisms through which LFEs could meet their targets and the preferred regulatory option for implementing the system, under the Canadian Environmental Protection Act, 1999 (CEPA 1999).

"To achieve significant reductions in GHGs over the long-term, the Canadian economy needs to accelerate the transformation to low-carbon technologies, while maintaining strong economic growth," said the Honourable Stéphane Dion, Minister of the Environment. "The implementation of the LFE system as described in this Government's updated climate change plan - Moving Forward on Climate Change: A Plan for Honouring our Kyoto Commitment - is a major step in this important transformation of our economy and a key component of Project Green, the government's approach for a sustainable environment and a competitive economy."

The Government of Canada's climate change plan, released on April 13, identified a 45-megatonne reduction in greenhouse gas emissions for LFEs, which is part of our overall 270 megatonne target. Canada's LFEs number about 700 companies in the energy-intensive mining and manufacturing, oil and gas, and thermal electricity sectors and represent just under 50 percent of total Canadian GHG emissions.

The LFE system will establish clear emission-reduction targets and give industry multiple avenues for meeting their target, including through contributions to a new Technology Investment Fund established in Budget 2005. The monies contributed to the Fund will help promote technological innovation and reductions beyond the Kyoto period. Companies that have surplus emission reductions may sell them to other companies or to the Climate Fund. This approach provides a financial incentive for companies to exceed their targets.

The first step towards the development of the LFE regulations will be for the Government of Canada to add greenhouse gases to Schedule 1 of the Canadian Environmental Protection Act, 1999. Consultations around this addition will continue through August 2005, at the time of the publication of the proposed Order in Council in Part I of the Canada Gazette, and into the Fall.

Action at home combined with international measures is the surest way for Canada and other countries to address climate change over the long term. G-8 leaders endorsed a Plan of Action to combat climate change at the G-8 summit in Gleneagles, Scotland, July 8. Canada is also looking to continue this momentum, as it prepares to host the United Nations Climate Change Conference in Montreal, November 28-December 9, 2005.

Project Green is a national project to create a healthier environment and a stronger economy by combining the efforts of all Canadians to build a more sustainable future. The first phase of Project Green was launched in April of this year with the release of the updated climate change plan for Canada.
http://www.climatechange.gc.ca/english/newsroom/2005/plan05.asp?pid=179

For more information, please visit Environment Canada's Greenlane www.ec.gc.ca/ceparegistry or call 1 800 668 6767. For a copy of the Notice of Intent to Regulate Greenhouse Gas Emissions by Large Final Emitters or the Proposed Order to add greenhouse gases to Schedule 1 of the Canadian Environmental Protection Act, 1999, please visit http://canadagazette.gc.ca/partI/2005/20050716/pdf/g1-13929.pdf or www.ec.gc.ca/ceparegistry.

Related Document:

• FAQ - Notice of Intent to Regulate Greenhouse Gas Emissions by Large Final Emitters [Backgrounder]
• Fact Sheet - Greenhouse Gases, Climate Change and the Canadian Environmental Protection Act, 1999 [Backgrounder]

For more information, please contact:

André Lamarre
Director of Communications
Office of the Minister of Environment
(819) 997 1441

Sébastien Bois
Senior Media Relations Officer
Environment Canada
(819) 953-4016