Memorandum of Understanding

As part of its overall efforts to ensure national environmental protection, Environment Canada has, over the years, entered into a number of partnerships through Memorandum of Understanding (MOU) that lead to environmental improvements. One example is the 1994 MOU between the Government of Canada and the Canadian Chemical Producers' Association (CCPA) which led to significant progress in reducing emissions of toxic substances from chemical manufacturers. Toxic substances under the Canadian Environmental Protection Act (CEPA), such as Benzene and Butadiene, were reduced by more than 50%, from approximately 1900 tonnes to 900 tonnes between 1994 and 1998.

Signing partners for the renewed MOU are the CCPA, Environment Canada, Industry Canada, Health Canada and the governments of Ontario and Alberta. These provinces are important partners in this MOU since over 80% of the chemical production in Canada takes place in Alberta and Ontario.

The objective of the new MOU, like the previous one, is the prevention and reduction of the release of toxic and other chemical substances through voluntary, non-regulatory action by encouraging and publicly recognizing progress on the part of the CCPA and its member companies.

This MOU will contribute to achieving of Canadian environmental and population health objectives through voluntary actions by CCPA member companies under Responsible Care®. It will also help in building mutual trust in dealing with environmental protection issues between CCPA and its member companies and the participating governments.

The new MOU includes:

• The re-establishment of a process and framework for the achievement of environmental objectives through voluntary actions;
• A commitment to continuously improve the management of CEPA toxic substances;
• An endorsement of the New Directions Group "Criteria and Principles for the Use of Voluntary Non-Regulatory Initiatives to Achieve Environmental Policy Objectives";
• The active participation of non-governmental organizations and representatives from CCPA's Public Advisory Panel, both in the negotiation process and through their membership on the Steering Committee to provide overall direction and guidance throughout the lifetime of the MOU;
• An Annex for the reduction of volatile organic compounds (VOC's), a major smog precursor pollutant, with specific reduction targets and timelines.

VOC's were prioritized in the new MOU because they are both a significant proportion of the air emissions from this sector and because of their role in the formation of smog. In addition, a substantial component of CEPA toxics, such as Benzene, and substances that may become CEPA toxic, are captured in the VOC category.

CCPA members have already made significant progress in addressing VOC emissions: from 1992 to 1997, National Emissions Reduction Master Plan (NERM) reporting shows a 44% reduction, from over 28,000 tonnes to less than 16,000 tonnes. This new MOU will contribute to further reduce VOC emissions contributing to smog: 25% reduction between 1997 and 2002 - from 15,800 to 11,800 tonnes.

The MOU will be in force until December 31, 2005.