Natural Resources Canada and Canadian Steel Producers Association
2005/02
January 10, 2005

Climate Change: Government and Canadian Steel Industry Reach Agreement

HAMILTON - The Government of Canada, the Government of Ontario and the Canadian Steel Producers Association today signed a Memorandum of Understanding to work together to address climate change.

The agreement sets out short-term and longer-term plans for government and industry action to reduce greenhouse gas (GHG) emissions. The steel industry commits to doing its share to help Canada meet its climate change commitments, provided this does not undermine the competitiveness of the industry or result in an unfair burden. The Government of Canada will design emissions-reduction targets that reflect this commitment. It will also join forces with the industry to develop new low-emissions technologies by committing $300,000 to an international research effort.

The Honourable R. John Efford, Minister of Natural Resources Canada (NRCan), and the Honourable Tony Valeri, Leader of the Government in the House of Commons, represented the Government of Canada at the signing. The Honourable Marie Bountrogianni, MPP for Hamilton Mountain and Minister of Children and Youth Services, and Citizenship and Immigration, attended the event on behalf of the Honourable Leona Dombrowsky, Minister of the Environment. Don Pether, Chair of the Canadian Steel Producers Association, and Chief Executive Officer, Dofasco, attended on behalf of the Canadian steel industry. The members of the Canadian Steel Producers Association - Algoma Steel Inc., Dofasco Inc., Gerdau Ameristeel, IPSCO Saskatchewan Inc., Ispat Sidbec Inc., Ivaco Inc. and Stelco Inc. - have facilities across Canada involved in all aspects of making iron and steel. The Honourable Stéphane Dion, Minister of the Environment, is also a signatory to the MOU.

"This represents important progress by multiple levels of government on climate change with a key sector of the Canadian economy," said Minister Efford. "My colleague, the Honourable Stéphane Dion, Minister of the Environment, and I agree that in signing this MOU, the steel industry is showing leadership by committing to do its part to address climate change. The Government of Canada, for its part, will make sure that any reduction obligations do not impair the competitive position of this vital industry. We make real progress on climate change when our policies support industries, such as the steel industry, which have been succesfully reducing emissions since the 90s."

"This is a proud day for the Canadian steel industry. It is stepping forward to do its share," said Minister Valeri. "The government will respond by setting realistic targets supported by a plan for developing innovative technologies, so that we can make progress over the longer term."

The MOU highlights the need for a longer-term plan. It sets out the Government of Canada's role as an active player in an international effort organized by the International Iron and Steel Institute to develop revolutionary new processes that minimize, eliminate or capture carbon emissions through its CO₂ Breakthrough Programme. The Government of Canada is committing $300,000 toward the first phase of this international effort that focuses on identifying promising new technologies.

"Canadian steel producers are committed to taking action to address climate change," said Mr. Pether. "Industry has demonstrated this commitment by reducing the GHG emissions from a tonne of shipped steel by 30 percent since 1990 and by committing to do more, both in the short and long run."

The Government of Ontario has also signed the MOU and was represented today at the signing ceremony. "The McGuinty government fully supports the agreement and welcomes the opportunity to work with the Government of Canada and the steel industry on climate change," said Minister Bountrogianni. "I believe this work will help improve air quality across Ontario. With the majority of steel producers located in Ontario, our combined efforts will contribute to a healthier environment and a strong economy."

The MOU also sets out a work program that includes the examination of near-term opportunities to improve energy efficiency and reduce GHG emissions. The parties will follow up on an energy benchmarking study under NRCan's Canadian Industry Program for Energy Conservation. This will also complement ongoing energy-efficiency improvement efforts with NRCan's CANMET Energy Technology Centre. 

The Government of Canada has signed agreements on climate change with DuPont Canada Inc., the Forest Products Association of Canada and the International Emissions Trading Association.

Memorandum of Understanding (PDF: 45 Kb)

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FOR BROADCAST USE:

The Government of Canada has reached an agreement with Canada's steel industry on addressing climate change. The Memorandum of Understanding, which was signed in Hamilton today, commits the Government to setting targets for reducing greenhouse gas emissions, while allowing the industry to remain competitive and take advantage of new technologies.

For more information, media may contact:

The following four media backgrounders are also available:

1. Canadian Industry Program for Energy Conservation (CIPEC) and the Technology and Innovation Research and Development Initiative
2. Canadian Steel Industry Energy-efficiency Benchmarking Study
3. Canadian Participation in the International CO₂ Breakthrough Programme
4. Canadian Steel Producers Association Energy and CO₂ Reductions