Canada and Ukraine sign Memorandum of Understanding on Clean Development Mechanism Initiatives

Montreal, December 8, 2005 - The Government of Canada and Ukraine today signed a renewed and expanded Memorandum of Understanding regarding International Emissions Trading and Joint Implementation (JI) projects.

The JI is a major component of the Kyoto Protocol. It is a project-based mechanism that assists countries whose economies are in transition. The JI mechanism allows for emission reduction projects between various industrialized countries who have greenhouse gas targets with developing nations. The credits earned from JI projects can be applied against the emission reduction targets of developed countries.

Canada and Ukraine enjoy a close relationship, with Canada having been the first country to recognize Ukraine's independence. The Ukraine government has clearly indicated its commitment to the issue of mitigating climate change. Canada has many technologies that can provide Ukraine with the environmental leadership required to support sustainable development and improve energy efficiency. Economic and environmental cooperation between these two countries is expected to result in a number of new business opportunities.

Today's announcement comes as over 9000 delegates from around the world are gathered in Montreal for the November 28 to December 9 United Nations Conference on Climate Change. Last week, Canada and Ukraine joined 155 other countries in demonstrating their commitment to the Kyoto Protocol by adopting the 19 decisions of the Marrakech Accords.

Negotiations are continuing as delegates try to adopt clear rules for implementation of the protocol, election of members to key oversight committees and proposals to streamline and strengthen certain instruments of the Protocol such as the Clean Development Mechanism.

For more information, please contact: