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Canada to set up carbon market to help reduce air pollution
AFP
MONTREAL
Petroleumworld.com 11 07 06
Canada's government will soon set up a carbon market, likely based in Montreal, to help reduce greenhouse gas emissions, Environment Minister Rona Ambrose said in an interview published Monday.
Ambrose, who is expected to travel to Nairobi, Kenya this week for a UN conference on climate change, told the Francophone newspaper Le Devoir she would also not try to scuttle negotiations on phase two of the Kyoto Protocol, as alleged by environmentalists.
"We need to put in place regulations for a carbon market and that's what we'll do. We're moving in that direction quickly," Ambrose told Le Devoir, noting that government funds would not be used to support it.
"It must be a market set up for companies because the government has no intention of buying or selling greenhouse gas emissions credits with taxpayer money," she said.
The new market, expected to launch in early 2007, "has a good chance" of being located in Montreal, she added.
A similar market for carbon dioxide (CO2) emissions was introduced by the European Union to control carbon gases emitted mainly by burning oil, gas and coal that are driving perilous climate change.
It forces 11,500 firms that are big users of fossil fuels to meet a CO2 emissions target or pay a penalty.
Those that are below their quota can sell their surplus on the market to companies that are over, thus providing a financial carrot to everyone to clean up his act.
Canada had agreed under the Kyoto Protocol to reduce greenhouse gas emissions to six percent below 1990 levels by 2012, but a recent environmental audit found emissions had instead increased by 26.6 percent.
Ottawa has since refused to buy credits on the international CO2 market.
Instead, Ambrose introduced a bill in mid-October to reduce Canada's greenhouse gas emissions by 45-65 percent by 2050, based on 2003 emissions.
The draft legislation would also apply intensity-based targets until 2020, allowing emissions to continue to rise until then.
Environmentalists reacted by accusing Ottawa of stalling on climate change and of plotting to gut the Kyoto Protocol.
Officials said last week Canada would seek a "comprehensive review" of the 1997 Kyoto Protocol when representatives of 165 countries meet in Nairobi to discuss the next phase of the pact.
A senior official also said Canada hopes to focus on "the longer term."
Ambrose has said large polluters such as India and China must accept emissions reduction targets in the next phase of the accord.
AFP 06 1709 GMT 11 06
Copyright© 2006 AFP. All Rights Reserved.
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