Canada does it their way

The Draft Regulatory Framework for Air Emissions

On April 27 Canada released a first draft version of its Regulatory Framework on Air Emissions. The framework confirms Canada’s departure from the Kyoto protocol. It establishes a Greenhouse Gas (GHG) emission reduction target of only 150 MT by 2020 (-19% compared to 2006), while Kyoto requires that Canada saves 220 MT by 2020 (-28% compared to 2006).

This does not mean that there are only reasons to be critical. One of the principal positive points about this plan is that it is directed not just at GHG emissions but also other harmful emissions going into the air as well. Amid all the climate change hype, some of these have been somewhat ignored.

Also targeting non-GHG emission

The Framework aims at reducing NOx emissions by 40%, SOx emissions by 55 per cent, Volatile Organic Compounds (VOCs) emission by 45%, and Particulate Matter (PM) emissions by 20%, all by 2015. It also contemplates setting fixed emission caps for benzene and mercury emissions, although these targets have yet to be specified.

Based on conservative projections

Another good practice of the Framework is that the target (150 MT GHG reductions) is based on a conservative projection. If the system works out well, greater reductions are likely to be reached. The Framework also leaves room for individual provinces to establish their own regulation system with stricter targets. This means that the tougher current regulations already in effect in Ontario and Alberta can be maintained.

Including Emission Trading and a Technology Fund

Some of the aspects of the draft Framework include:

• Establishment of an Emission Trading Scheme that will include NOx and SO2 as well as GHG emissions
• Enabling industries to reach part of their caps by monetary contributions to a Technology Fund
• Credits are granted for early actions, specifically for verified emission reductions between 1992 and 2006. While this measure will not yield direct new results, it does have a significant positive effect on the credibility of the federal government and stimulates industry to stay ahead of regulations
• Targeting the transportation sector by including mandatory car and light truck fuel efficiency standards to apply in 2011

This draft Framework will form the basis for consultations over the next few months. The final version is to be released in the spring of 2008.

Reference

Article 'Canada’s Regulatory Framework for Air Emissions' on the Web site of Macleod Dixon LLP