Government of Canada
98/43
June 3, 1998

CANADA LAUNCHES CLIMATE CHANGE INITIATIVE ON GREENHOUSE GAS EMISSION REDUCTION TRADING PILOT

OTTAWA—Greenhouse gas emissions trading is now available in Canada. Initially spearheaded by British Columbia, the Greenhouse Gas Emission Trading Pilot (GERT) is an experiment in emission trading that may help Canada meet its climate change commitments in an economically sound way. The Pilot project brings together representatives from all levels of government and a number of industrial, environmental and labour organizations. A Memorandum of Understanding was signed by provincial government departments from British Columbia, Alberta, Saskatchewan and Nova Scotia, as well as Environment Canada and Natural Resources Canada.

"This kind of voluntary, enterprising action to reduce emissions is an excellent example of how cooperation amongst governments, industry, environmental groups and ordinary Canadians will lead to creative Canadian responses to the global challenge of climate change," said Ralph Goodale, Minister of Natural Resources. "I congratulate British Columbia for initiating this exciting pilot project."

"This Pilot demonstrates the flexibility we need to reach our Kyoto target of -6 percent," added Christine Stewart, Minister of Environment. "In Kyoto last December, we negotiated hard for flexibility and I am very pleased that this collaborative initiative will help lay the groundwork for an international approach to emissions trading, as part of our efforts to address climate change."

A greenhouse gas emission reduction trade is a contract that transfers ownership of an emission reduction from an organization that has reduced greenhouse gas emissions to another organization. By allowing emission reductions to occur where they are less expensive, emission reduction trading has the potential to significantly reduce the overall cost of reducing greenhouse gas emissions.

The GERT Pilot is the first emission trading project that deals specifically with greenhouse gases in Canada. It is intended to test the environmental and economic benefits of emission reduction trading, and to provide practical experience with emission trading for those who participate.

The Pilot's Technical Committee will review emission reduction trades. Emission reductions meeting specific criteria will be registered under the Pilot. Government partners in the Pilot have indicated that these registered emission reductions will be eligible for recognition as progress towards possible future compliance obligations.

The Pilot project reflects the same spirit of cooperation and partnership as the April meeting in Toronto, where federal, provincial and territorial ministers of energy and environment met to discuss climate change issues.

For more information contact:
John Embury
Press Secretary
Natural Resources Canada
(613) 996-2007

or

Mark Colpitts
Press Secretary
Environment Canada
(819) 953-6996