The Regulatory Framework for Air Emissions

In October 2006, Canada’s New Government made clear its intention to regulate greenhouse gases that cause climate change, as well as air pollutants that cause smog and acid rain.

The Regulatory Framework for Air Emissions is one of the main features of our ambitious agenda to tackle climate change and clean up the air we breathe.  Consistent with the polluter-pays principle, our Regulatory Framework includes strong short-term regulatory targets to reduce air emissions from major industries, including the following sectors:

• electricity produced by combustion
• oil and gas
• forest products
• smelting and refining
• iron and steel
• cement, lime, and chemicals production
• some mining sectors 

Action on Greenhouse Gases

Industry accounts for about half of Canada’s greenhouse gas emissions that cause climate change.  The Government is mandating the reduction of industrial greenhouse gas emissions through the introduction of a robust regulatory regime that includes access to domestic emissions trading, the Kyoto Protocol’s Clean Development Mechanism and a technology fund.

This regulatory system will place Canada on the path to achieving sustained absolute reductions in industrial greenhouse gas emissions. More specifically, it will ensure that as early as 2010 total greenhouse gases stop rising, and that by 2020 we achieve absolute reductions of 150 megatonnes compared to this year’s levels.

Action on Air Pollutants

About half of Canada’s air pollution is produced by industry.  The Regulatory Framework for Air Emissions sets overall national fixed emissions caps for air pollutants.  This will lead to reductions in air pollutant emissions that cause smog and acid rain by up to 55% as early as 2012 compared to 2006 levels. These targets will specify the maximum level of pollutant that can be emitted from a given sector in a given year.

Regulations will place caps on total emissions of four acid rain and smog -causing air pollutants:

• Nitrogen oxides (NOx),
• Sulphur oxides (SOx),
• Volatile organic compounds (VOCs), and
• Particulate matter (PM)

Sector specific caps on these and other pollutants, such as mercury, will also be included. 

Other Emission Reduction Initiatives

In addition to measures to reduce air emissions from industry, the Government is committed to addressing emissions from transportation, strengthening energy efficiency standards for a number of energy-using products, and for the first time, the Governmenthas recognized the urgent need to take action to improve indoor air quality and committed to implement measures to do so. 

Cooperation with Provinces and Territories

We will continue to work in partnership with provinces and territories to promote approaches that avoid unnecessary duplication of effort so that we get the maximum amount of environmental benefits with the least amount of administrative and cost burden for industry.

Benefits & Costs

These actions will reduce the impact of greenhouse gases and air pollution on the2007-09-05ulations will have real, tangible health and environmental benefits for everyone, as well as positive economic effects.  The estimated benefits as of 2015 from the reduced risk of death and illness associated with our air quality improvements are over $6 billion annually.

The Government’s regulatory approach will promote investment in technology and innovation in Canada, yielding long-term economic benefits from enhanced productivity, improved energy efficiency, greater competitiveness, more opportunity to sell Canadian environmental products and know-how abroad and more jobs for Canadians.

A reduction in air emissions will also raise the productivity of some sectors. For example, reduced pollution is expected to lead to an increase in production of up to $150 million for key agricultural crops. Other industries will also benefit, including tourism, forestry and in-land fishing.

The health benefits will include reductions in the number of premature deaths related to air pollution, strokes, heart attacks, hospital admissions and emergency room visits, cases of child acute bronchitis, and the number of days where asthma symptoms occur. There will be many environmental benefits as well, including improved conditions for nature and wildlife.

Strong actions inevitably come at a cost, and those costs will be borne, at least in part, by individual Canadians and their families.  The costs associated with this initiative are real but manageable. This can include increased prices for consumer products such as vehicles, natural gas, electricity, and household appliances.