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  Fact Sheet

Competitiveness


Concerns About Competitiveness

Some Canadians have expressed concern that reducing our GHG emissions to Kyoto levels will hurt the competitiveness of Canadian companies. They say the costs are too high and too many jobs will be lost, damaging our economy.

The federal government is working with provinces, territories and stakeholders to develop a workable plan for achieving the remainder of Canada's Kyoto target. Key considerations in designing the plan include cost-effectiveness, competitiveness and regional and sectoral impacts.

There are many reasons to believe we can design a workable plan.

Major Companies are Leading the Way

In Canada and around the world, many companies have already shown that being competitive means being energy efficient.

One U.S. Toyota plant cut total energy use by one-third from 1991 to 1996, while doubling its output with technology that helped reduce its defect rate from three per hundred to zero.

From 1993 to 1997, one of DuPont's largest plants cut carbon dioxide emissions per pound of product by nearly one half, and shaved $17 million a year from its total energy bill. Continuous improvement to its Maitland N2O abatement facility are expected to increase the quantity of nitrous oxide abated each year, eventually reaching the total abatement efficiency of about 94%, equivalent to 11,880,000 tonnes of CO2e per year.

Shell Renewables is spending over US $500 million between 1998 and 2003 to develop commercial opportunities in renewable energy.

Companies such as Dupont, Toyota, Shell and IBM are looking at their businesses in a new way, expecting to increase their market share and profits by factoring sustainable development into their business models. Here's what they have to say:

"Shell Canada believes that its commitment to sustainable development is not only part of sound business practice, but also helps us to withstand changing circumstances. We believe that incorporating economic, environmental and social considerations into every business decision sets us apart from competitors and helps us to grow profitably."
Tim W. Faithful, President and Chief Executive Officer, Shell Canada Ltd., December 5, 2001

"If a business, and particularly an energy business, does not build realistic, carefully costed and commercially viable strategies for climate change, it will not remain a sound business in the long term."
Mark Moody Stewart, Chairman of the Shell Transport and Trading Company, speaking at the World Economic Forum in Davos, January 28, 2000

IBM's system and initiatives have produced significant results: Over the past ten years, IBM's internal energy conservation efforts have saved an estimated $529 million dollars while avoiding an estimated 5.67 million tons of carbon dioxide emissions – benefiting both the environment and IBM's bottom line.
From IBM's website

"We have 140 factories in 26 countries all held to the same green standards, and now we are requiring our suppliers to meet them, too. Anyone who thinks there is a conflict between preserving the environment and rewarding shareholders should take a look at this program. It's saving us millions of dollars in energy, water, material, and waste-handling costs. It's confirmed my strong belief that — in addition to being the right thing to do — preserving the environment is a competitive advantage and a major business opportunity."
Ford Motor Company Chairman, Bill Ford, in speech to Greenpeace conference, October 5, 2000

"At DuPont we are preparing our company for what we see as a long journey to a more climate-friendly and environmentally sound global economy. While we have already reduced our global greenhouse gases by nearly 60 percent, we have committed to take the next leap forward, setting new goals for 2010: reducing global carbon-equivalent greenhouse gas emissions by 65 percent, using 1990 as a base year; holding total energy use flat, using 1990 as a base year; and using renewable resources for ten percent of our global energy use."
Charles O. Holliday, Chief Executive Officer, DuPont, November, 2000

"By the end of year 2002, we forecast emissions to be approximately 13 percent below 1990 levels. Without implementing the voluntary reduction measures outlined in this and previous reports, it is predicted that ATCO Gas emissions would have been approximately 15 percent above the 1990 baseline by the end of year 2002."
J.R. (Dick) Frey, President, ATCO Gas, Edmonton, Alberta, 2001 ATCO Gas Action Plan

"On the climate change issue, for example, we're having great success in reducing our greenhouse gas emissions per unit of production. We've committed to achieving an average reduction of two percent per barrel, per year... and to the end of last year, our performance in the 1990's was actually better, with an average reduction of 2.4 percent per year."
Eric P. Newell, Chairman and CEO, Syncrude Canada Ltd., "Strong Communities, Strong Companies — Working Together to Create Sustainable Opportunities" Fort McMurray Chamber of Commerce, March 15, 2001

To the end of 2000, we reduced our greenhouse gas emissions by over 99,315 tonnes, or 42% of our Kyoto target. Our emissions have gone down considerably, compared to what they would have been had we not committed our talents to finding solutions to this global issue. Our 2000 Action Plan and Progress Report, in combination with our past action plans and progress reports, restates our commitment to the task of reducing the greenhouse gas emissions of our own business as well as that of our customers.
"Action Plan and Progress Report for the Year 2000", SaskEnergy Incorporated & TransGas Limited

The Other Costs of Climate Change

The real cost issue related to climate change is the cost of not reducing our GHGs — the cost of subsiding infrastructure and eroding coasts; the cost of increasingly violent weather with more storms, more drought, more pestilence and plant disease; the cost of changing habitats on our wildlife and our leisure past-times; the cost of increased air pollution and damage to human health. We can make a difference.

Want to know more about climate change?

Visit the Government of Canada climate change Web site at www.climatechange.gc.ca or call 1 800 O-Canada (1 800 622-6232, or TTY 1 800 465 7735) toll-free and ask for information about climate change.

Related documents:

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