Appointment of Climate Fund President Designate Marks Launch of New Agency

OTTAWA, November 10, 2005 – The Honourable Stéphane Dion, Minister of the Environment today praised the appointment of Allan F. Amey to be the first President Designate of the Climate Fund Agency as of November 14. Mr. Amey’s appointment was announced earlier by Prime Minister Paul Martin. Mr. Amey will assume the role of President as of January 1^st, 2006.

“Mr. Amey, with his extensive background in the energy sector in Alberta brings a wealth of experience to his duties at the Climate Fund Agency,” said Minister Dion. “I am confident that he and the team that will manage the Climate Fund Agency will assist Canadian industry and individuals to contribute to reducing emissions that cause climate change.”

The Climate Fund Agency, established under legislation given Royal Assent in Parliament on October 3^rd, is a cornerstone of Canada’s updated Climate Change Plan 2005. It will purchase credits created by Canada’s Domestic Offsets System as well as internationally recognized Kyoto units beginning on March 31^st, 2006. All purchases of Kyoto units will be required to generate benefits to Canada and be associated with emissions reductions – there will be no purchases of so-called “hot air”. Priority will be assigned to purchases of domestic offset credits and all purchases will take place through a competitive process.

Examples of projects that can generate domestic offset credits include municipalities that capture landfill gas, new non-emitting electricity generation projects and farmers who adopt low-till or zero-till practices. Projects that reduce emissions in developing countries are among the sources of Kyoto units.

Budget 2005 made an initial allocation of one billion dollars for purchases by the Fund. It is estimated that purchases by the Climate Fund could yield reductions of between 75 and 115 megatonnes annually between 2008 and 2012 with funding in the order of $4 to 5 billion. Canada’s Kyoto Protocol reduction goal is 270 megatonnes.

Through the purchases by the Climate Fund, the Government of Canada is allowing Canadian business, institutions and individuals to use market based mechanisms to:

• stimulate innovation;
• enable Canadians to take action;
• encourage energy efficiency;
• deliver cost-effective reductions and sequestrations;
• drive the adoption of best available technologies; and
• stimulate the development of a domestic emissions trading system.

“The measures we are undertaking to implement Canada’s domestic climate change plan under Project Green, our overall approach to environmental sustainability and economic competitiveness, are important to meet our Kyoto targets and also to demonstrate to the world that the Canadian approach can work,” said Minister Dion.

Canada will host the world from November 28 to December 9 at Montreal 2005: United Nations Climate Change Conference. Minister Dion will be President of the Conference for a one-year period from November 28, 2005, and as such will serve as Chair of Montreal 2005.

Related Documents:

• Harnessing Market Forces & Reducing GHG Emissions
  [2005-11-10] Backgrounder

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