Objectives |
Targets set for 2000–2001 |
Performance and Progress |
Key Issue: Integrating the Economy and the Environment |
Strategic Goal: Making the tax system more responsive to
environmental considerations |
Continue to assess effectiveness of tax measures with a view
to encouraging greater energy efficiency and the use of renewable
energy. |
Analyze tax-related proposals from several of the
"Tables" established as part of the national consultation on
climate change policy options. |
Progress in this period: The Department has continued to study and
evaluate existing tax measures that encourage energy efficiency and
the development of renewable energy resources. In addition the
Department was engaged in consultations with relevant departments
(i.e. Environment Canada, NRCan) to research other methods with the
view of evaluating current practices. |
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Contribute to the study undertaken by the Canadian Energy Research
Institute, which will consider a range of policy options including the
effect of tax depreciation policies for investments in district energy
systems. |
Progress in this period: This study was published in May 2000. |
Develop a catalogue of information on energy taxes and
transportation taxes in Canada. |
Continue work on a catalogue of existing taxes on energy
consumption and the transportation sector. Consult with provinces on
the description of provincial tax structures and rates. |
Performance Indicator: Release of the catalogue.
Progress in this period: The catalogue covering both the corporate income tax system and the existing federal and provincial taxes on energy consumption was published in May 2001. The catalogue can be found at: http://www.fin.gc.ca/toce/2001/sdscat_e.html |
Strategic Goal: Reducing or eliminating subsidies |
Work with other government departments and
international trade and economic organizations to identify subsidies
that distort the economy and reduce or eliminate them. |
Continue to participate in a wide range of
domestic and international forums to find greater scope for
disciplining trade-distorting subsidies. |
Progress in this period: The Department, in partnership with DFAIT,
has actively pursued efforts to improve subsidy disciplines regionally
and multilaterally. These efforts include support for subsidy
negotiations under the World Trade Organization aimed at restricting
trade distorting subsidies which would have positive implications from
both an economic and an environmental perspective. |
Strategic
Goal: Developing practical uses of economic instruments |
Examine the use of economic instruments in
Organization for Economic Co-operation and Development (OECD)
countries. |
Continue to examine the use of
economic instruments by OECD countries. |
Progress in this period: The Department is a regular participant in
international meetings on environmental policies and taxation and
continues to monitor international policies and experience. Of
particular interest are instruments that are intended to foster
conservation and renewable energy.
The Department evaluates all country–specific experiences when
considering the appropriateness of tax-based economic instruments for
use in Canada. |
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Contribute to the international work under way in 2000 through
continued membership in the OECD Working Party on Economic and
Environmental Policy Integration and the sub-group on Taxation and the
Environment. |
Progress in this period: The Department provided input to
Environment Canada as part of the preparatory process for the newly
formed Working Party on National Environmental Policy at the OECD (the
successor to the Working Party on Environmental and Economic Policy
Integration). The Department also attended the inaugural meeting of
the new group with Environment Canada. Finance has commented on
matters surrounding tax policy and has ensured that Canada’s
interests and concerns on the issue of economic and environmental
policy integration have been appropriately communicated to the other
member countries. |
Consider options for domestic and
international tradeable permit schemes, credits and related approaches
for reducing greenhouse gas emissions. |
Chair the multi-stakeholder Tradeable
Permits Working Group (TPWG). The TPWG will release an options paper
to the Climate Change Secretariat in early 2000. |
Performance Indicator: Release of the TPWG Report
Progress in this period: The options paper has been released and published electronically at the National Climate Change Process website http://www.nccp.ca/NCCP/national_process/issues/tradable_e.html |
| Continue to participate with other government departments in the
further refinement of the Kyoto flexibility mechanisms. |
Progress in this period: The department continued to participate in the development of the federal government’s approach to international negotiations on the Kyoto Protocol, including for the sixth Conference to the Parties of the United Nations Framework Convention on Climate Change.
In addition, a report was prepared and presented on the impact of various GHG reduction scenarios on Canada, as part of the National Climate Change Process. |
Encourage the sustainability of private
woodlots and habitat protection for endangered species. |
Monitor the forest industry’s response to the Canada Customs and Revenue Agency’s revised interpretation bulletin on woodlots. | Progress in this period: The Department has continued to review the
issue of sustainability of private woodlots and has maintained ongoing
dialogue with the forest industry. |
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Work with Environment Canada to balance regulation, enforcement
and stewardship in order to protect species at risk. Provide
advice on which instrument(s) could be used to encourage voluntary
stewardship and to address issues surrounding possible compensation. |
Progress in this period: The department participated in the
interdepartmental working group on stewardship. |
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Work with Environment Canada on valuation mechanisms for the
purposes of eco-land and the Species at Risk Act. |
Progress in this period: A valuation mechanism was established and
is now in operation. |
Strategic Goal: Reforming legislative and regulatory frameworks |
Continue to
provide a policy framework conducive to environmental protection and a
positive investment climate through regulatory reform and harmonization.
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Continue to participate in the interdepartmental consultation process on the review of the Canadian Environmental Protection Act to ensure that the Act will enhance the protection of the environment while maintaining the competitiveness of the Canadian economy. | Progress in this period: The department participated in the CEPA
review process, including the consultant’s report on Risk
Management. |
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Participate with other departments in the Five-Year Review of the Canadian
Environmental Assessment Act. |
Progress in this period: The department contributed to the
development of an amended Canadian Environmental Assessment Act
and funding package to support its implementation by federal
departments. |
Key Issue: Building the Future |
Strategic Goal: Prospering in
a knowledge-based economy |
With other government departments, examine
the role of environmental industries in a knowledge-based economy. |
Conduct an analysis of environmental industries and assistance
provided by government. |
Progress in this period: Regular contacts with environment
industries representatives. Announced funding of $100 million to the
Sustainable Development Technology Fund to support the development and
demonstration of climate change and clean air technologies. |
With provinces, adopt initiatives to
improve benefits for children. |
Make a third investment in the National Child Benefit and seek
increased provincial and territorial investments in families. |
Performance Indicator: Increase in the
National Child Benefit.
Progress in this period: The Economic Statement and Budget Update increased the NCB supplement by $100 in addition to the increase of $200 in the NCB supplement announced in the 2000 Budget.
Also, provinces and territories have reinvested savings in programs and services for all low-income families with children, for example: Saskatchewan’s Building Independence programs; Ontario’s Child Care Supplement for Working Families; and the Northwest Territories’ and Nunavut’s Healthy Children Initiative. |
| Reduce income taxes for families. |
Progress in this period: Introduced significant tax reductions for all Canadians reducing taxes by 27 per cent on average – about 35 percent for families with children. |
Strategic Goal: Building a strong society |
Ensure
predictable and growing federal funding for health and social programs. |
Maintain long-term funding arrangements for all major
federal-provincial/ territorial transfer programs. |
Performance Indicator: Increased funding for health care.
Progress in this period: Bill C-45 was passed, legislating $23.4 billion in funding for health care and early childhood development through 2005-06.
Commitment was made to announce CHST funding levels for 2006-07 and 2007-08 by the end of 2003-04.
Ongoing work and research reviewed periodically with provinces and territories to consider options leading to the next Equalization renewal in 2004. A work plan has been developed with provincial officials which outlines research requirements and timelines.
Meetings were also held with territorial officials to consider changes and new approaches to Territorial Formula Financing leading to the next agreement in 2004. The research objectives set out in the established work plan were met in 2001. |
Ensure the financial security and stability
of the public pension system. |
Work towards amending the Canada Pension Plan Investment Board (CPPIB) regulations. | Progress in this period: In August 2000, the regulations were
amended to allow the Canada Pension Plan Investment Board to actively
manage up to 50 per cent of the assets it allocates to domestic
equities. |
|
Federal-provincial work will continue the
review of other important issues to keep the CPP in step with changing
times. |
Progress in this period: Completed an assessment, in conjunction
with provincial officials, of a number of issues identified by
provincial Finance Ministers at the December 1999 federal-provincial
Finance Ministers meeting.
Ongoing development, in conjunction with provincial officials, of the work plan for the 2001-2003 financial review of the CPP. |
| Continue to monitor the Old Age Security
and Guaranteed Income Supplement programs to ensure that they are
financially sustainable. |
Progress in this period: Sustainability of OAS/GIS programs not at risk.
Full indexation of OAS high-income recovery threshold part of Budget 2000 tax package. |
Strategic Goal: Ensuring that the tax system contributes to a
strong economy and society |
Examine the report of the Technical
Committee on Business Taxation, including any proposals relating to
the environment. |
Examine the recommendations of the report in conjunction with the
department’s ongoing analysis of options for improving the
efficiency of the Canadian tax system. Conduct this examination in
parallel with the work to develop a National Implementation Strategy
for addressing Canada’s Kyoto target. |
Progress in this period: The department has examined the Technical
Committee report in conjunction with its ongoing analysis to improve
the corporate tax structure, and as part of the review of measures
that might address certain issues related to the National
Implementation Strategy.
Budget 2000 announced a five year plan to lower the federal tax rate for the service sector that faced relatively higher tax levels compared to other sectors in the Canadian economy. No changes in tax levels were proposed for either the manufacturing or the non-renewable resource sectors. This approach is consistent with the Technical Committee’s overall perspective of moving towards a more internationally competitive tax structure with less variation across industrial sectors. |
Ongoing monitoring of current developments in the taxation of
businesses in Canada and in other relevant foreign jurisdictions.
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Participate in international forums as necessary to ensure that the Canadian tax system remains competitive and up-to-date.
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Progress in this period: The department continually monitors developments in business taxation in Canada and relevant foreign jurisdictions. All recommendations from any interested party for changes to the corporate income tax system, whether to address social or economic objectives, are thoroughly reviewed.
The department is an active participant in international fora such as the OECD in order to remain up-to-date on developments in other countries.
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Assess proposals to use the income tax system to achieve social and
economic objectives. |
Review recommendations from industry associations, other government
departments, corporate taxpayers and provincial governments for
changes to the income tax system.
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In 2000, the Department announced a number of tax measures to
achieve social and economic objectives. These measures include:
- The restoration of full indexation;
- The reduction of all personal income tax rates;
- Significant tax relief for low- and modest-income families with
children, people with disabilities, and caregivers;
- Doubling the education amount to $400 a month for full-time
students, and $120 for part-time students;
- Reducing the capital gains inclusion rate to one-half;
- Enhancing the tax treatment of employee stock options; and
- Legislating a schedule for reducing corporate income tax rates.
|
Key Issue: Participating in the Global Economy |
Strategic Goal: Negotiating international environmental agreements |
Analyse approaches for domestic action on
climate change. |
Work with other government departments to review the output of the
issues tables for consideration in a National Implementation
Strategy to address climate change. |
Performance Indicator: Development of a national strategy on
climate change with the provinces.
Progress in this period: Budget 2000 announced $700 million for climate change and other environmental initiatives, including a $100 million Sustainable Development Technology Fund to support climate change and clean air technologies. In the 2000 Economic Statement and Budget Update, the federal government announced a $500 million, 5-year Government of Canada Action Plan 2000 on Climate Change. Measures in Budget 2000 and the Action Plan form the federal contribution to the First Business Plan of the National Implementation Strategy on Climate Change for reducing greenhouse gas emissions in Canada. |
Strategic Goal: Negotiating international
trade and investment agreements |
Work with the Department of Foreign Affairs and International Trade
(DFAIT) on the relationship between trade and environment in the
context of the OECD and the WTO. |
Participate in the integration of trade-related environmental
issues in international trade negotiations. |
Performance Indicators: Participated in the development of Canada’s
position regarding trade and environment. Participated in the policy
development on methodologies for undertaking environmental reviews of
trade agreements.
Progress in this period: Provided input into the instructions for the OECD, WTO and UNEP meetings on trade and the environment.
In addition, Canada’s Environmental Assessment Framework for trade negotiations was made public in February 2001. This new Environmental Assessment Framework will be applied initially to the World Trade Organization agriculture and services negotiations, to the FTAA negotiations, and later to those related to any future or regional trade agreements. |
Review requests to remove tariffs that may
be disincentives to the acquisition of environmental technology
products. |
Continue to undertake reviews of such requests as they are received. | Progress in this period: No such request was received during the
period. |
Strategic Goal: Developing an environmental assessment framework
for export credit agencies |
Co-operate with DFAIT and the Export
Development Corporation (EDC) to establish, through the OECD’s
Export Credit Group, a multilateral framework for the environmental
assessment of projects financed with official export credits. |
Help prepare DFAIT and EDC for meetings of the OECD’s Export
Credit Group for the purpose of developing a multilateral approach to
the environmental assessments of export credit agencies’ financed
projects. |
Performance Indicator: Signature of the OECD Council Recommendation
on Common Approaches on Environment and Officially Supported Export
Credits, which defines the minimum environmental review process to be
applied to projects benefiting from government-supported export
credits.
Progress in this period: Canada played a key role throughout the negotiations. The delegation successfully introduced a transparency clause that will oblige Members to make information on environmentally sensitive projects available to the public on an annual basis. It also contributed to the strengthening of the proposed review process.
Negotiations were concluded in June 2001 and a proposed text was presented to OECD members. However, it was rejected by the US.
Negotiations therefore began again in September 2001 in order to meet the end-2001 Ministerial deadline. |
Strategic Goal: Involving international financial institutions (IFIs) |
Press the issue of sustainable development
in the institutions for which Minister of Finance has primary
responsibility. |
Work towards progress in the areas of poverty reduction,
environmental protection, improved governance, reduction of
unsustainable debt burdens and partnerships with civil society. |
Progress in this period: Following lengthy consultations with
shareholders and civil society groups, the World Bank amended its
environmental policies in 2001 to improve environmental safeguards for
its projects. The World Bank is also increasing its focus on social
sector issues in its country programming. Within the World Bank and
IMF, as well as the multilateral community more generally, Canada has
spoken strongly in favour of a country-led development and has
stressed the need for better harmonization of development assistance
programmes, including the adoption of more consortium approaches among
donors. |
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Continue to urge all IFIs to undertake more meaningful
consultations with non-governmental organizations (NGOs) and other
representatives of civil society. |
Progress in this period: The World Bank is in the process of
consulting the public on a new disclosure policy that should see an
expansion of Bank material made available to the public. In 2001, the
Bank began to disclose many background policy discussion papers
related to current replenishment exercise for the International
Development Association (IDA), which provides interest-free loans to
the world's poorest countries. |
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Encourage the European Bank for Reconstruction and Development (EBRD)
to pay greater attention to the social aspects of transition in
project selection and to co-ordinate with the World Bank, as
necessary, to mitigate these costs. |
Progress in this period: Finance has supported the EBRD's emphasis
on good governance as a prerequisite to ensure social inclusion.
Finance has stressed the need to develop and strengthen social systems
to address the needs of those left behind in transition economies and
has encouraged the EBRD to work with other IFIs, especially the World
Bank and IMF.
Finance has supported the EBRD's efforts to strengthen small business networks. A key Canadian priority has been supporting EBRD activities related to micro, small and medium enterprises, to facilitate broader participation in the benefits of the market, including employment opportunities. |
| Continue to ensure that EBRD project selection meets the highest
standards of environmental due diligence and that staff at the
domestic financial institutions that lend EBRD funds are adequately
trained to assess the environmental consequences of projects. |
Progress in this period: At the Annual Meetings of the EBRD, Finance has stressed the importance of sustainable development in transition economies. Finance has also stressed the role the EBRD can play to ensure stable growth that is environmentally sound by holding its business partners to the highest standards of business practice. |
Key Issue: Greening Operations |
Strategic Goal: Integrating environmentally sound practices into
everyday departmental operations |
Adopt sustainable procurement practices. |
Develop and implement "green" procurement initiatives
directed at acquiring environmentally friendly products. |
Performance Indicator: Completion and use of a purchasing guide by
2003.
Progress in this period: Research and development of the procurement guide is underway. |
Implement motor vehicle management practices that support a
reduction in greenhouse gas emissions. |
Comply with the Alternative Fuels Act.
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Performance Indicator: Compliance with the Alternative Fuels Act.
Progress in this period: Continued to maintain compliance with the Alternative Fuels Act.
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Promote and monitor the use of ethanol (E 10) blended fuel and
the regular servicing of departmental vehicles. |
Performance Indicator: Value and per cent of E10 fuel purchases.
Progress in this period: Updated list of ethanol fuel providers for use by Departmental drivers and the general employee population. |
Minimize the amount of solid waste produced. |
Evaluate waste reduction programs. |
Performance Indicator: Number of new waste reduction programs
evaluated and implemented.
Progress in this period: Evaluated and expanded multi-material recycling programs to include plastics and Styrofoam.
Evaluated and implemented side-saddle waste bins as a part of a pilot project to reduce waste generated at the desk. Due to the project’s success, the program will be bridged out to the entire department.
Researched battery recycling options. |
Strategic Goal: Increase and encourage the environmental awareness
of employees |
Establish current baseline data on employee
participation and use of "green" programs and
communications, where feasible. |
Conduct a study of employee participation in "green"
programs and communications. |
Performance Indicator: Participation rate in the Department’s
internal environmental programs.
Progress in this period: Collected statistical data regarding daily use of energy (computers and workspace lighting), paper use, waste disposal practices, and ethanol use.
Compiled employee participation rates in existing environmental stewardship programs (i.e., Environment Week, Earth Day, Infosite [Green Operations] and Pantyhose recycling program). |
Modify, revise and/or promote the existing
green programs and communications, in accordance with the results of
the initial baseline study. |
Existing programs and communications will be re-evaluated and updated so that they reflect current departmental practices. | Performance Indicator: Creation and implementation of communication
strategy.
Progress in this period: Worked with a consultant to research the development and implementation of a communication strategy.
Performance Indicator: Modification, revision and promotion of existing programs and communications. Completed extensive revisions to the departmental intranet (Infosite) to ensure the accuracy and timeliness of all information pertaining to the greening of the department’s operations.
Organized, promoted and implemented Environment Week events and Earth Day activities in co-ordination with other departments.
Created and distributed to all employees a promotional Waste-Free brochure to advertise the new multi-material recycling program.
Increased communications on a departmental level through the use of the Enviro e-mail account, leading to growth in employee interaction on subjects pertaining to the greening of operations.
Increased awareness to Senior Managers through presentations on waste reduction initiatives and Environment Week.
Distributed awareness material to pilot study participants. |