Provincial muddle on emissions

There will be considerable pressure by business to have a uniform North American Standard. Higher standards for a particular province or even Canada may soon become a thing of the past. There will be pressure for a low uniform standard throughout the NAFTA trading area. Some areas such as Quebec may be able to resist to some extent.



Provincial muddle on emissions TheStar.com - Canada - Provincial muddle on emissions
As leaders focus on climate change, they are warned `policy chaos' could scare off investors
January 28, 2008 Petti Fongin VancouverRob Fergusonin TorontoRobert Benzie
Alberta will be the odd province out as premiers meet in Vancouver today to attempt to build a consensus on climate change and emission reductions.
Last week, Alberta Premier Ed Stelmach presented Alberta's strategy to curb greenhouse gas emissions, calling for reductions in carbon dioxide emissions of 14 per cent below 2005 levels by 2050. That target is well short of those of other provinces and even short of Ottawa's much-criticized targets.
British Columbia plans to cut its total emissions by one-third within 12 years, making its targets the most aggressive in the country.
Ontario, meanwhile, falls between Alberta and British Columbia, aiming at a 6 per cent reduction in its emissions in six years based on 1990 levels.
As the premiers begin their two-day meeting focusing on climate change, the head of Canada's top business group issued a warning that some businesses are becoming hesitant about investing in the country because of the "policy chaos" on climate change.
In a letter to provincial leaders, The Canadian Press reports that Tom d'Aquino of the Canadian Council of Chief Executives chides the premiers for going it alone on climate change with "different objectives and often inconsistent policies."
While climate change is the big topic at the two-day premiers' conference starting today, Premier Dalton McGuinty has made clear he plans to use the forum to promote Ontario's auto industry.
Aside from pushing for a tougher, uniform North American standard for automobile tailpipe emissions and other ways to combat global warming, McGuinty hopes to get other premiers on side to ensure the federal government's proposed free-trade pact with South Korea protects Canada's auto makers.
He's concerned that the deal won't improve access for Canadian auto makers to South Korea, which exported 114,000 cars to this country in 2006 but admitted fewer than 100 Canadian-made autos – a situation McGuinty calls "unfair."
The premiers are trying to engage the federal government on "what role provinces and territories should appropriately play" in negotiating new agreements, McGuinty said before heading to the Council of the Federation meeting.
"We have some concerns in that regard," he added, noting premiers want "more input to ensure that as we enter into these new economic relationships we're giving due regard to the impact it'll have on provincial economies."
Ontario has become North America's largest auto-producing jurisdiction but the high dollar and cuts by the traditional Big 3 auto makers are creating challenges.
On tailpipe emissions, McGuinty said Ontario favours a tougher standard but it must be the same across North America. "The Environmental Protection Agency for the United States has put forward a proposal now that would put in place standards that are stricter than those being proposed by California," McGuinty told reporters.
"The issue for us is not whether we go with California or we go with the EPA standards, or those just proposed by our own federal government. We want one stricter standard for North America," he added.
Tomorrow, the premiers will turn their attention to ways the provinces can adapt to climate change.
"I think all the premiers sense that, in the face of a global challenge it's time for us to assume our responsibility as privileged global citizens to do our part in showing some leadership," McGuinty said.
"Even if we pursued the most aggressive plan at this point in time there are still things that are going to happen that are going to create some serious challenges for us," he said. For example, McGuinty said, water levels will continue to drop in the Great Lakes and droughts will continue in other parts of Canada because of environmental damage already done.
Atlantic premiers have said they are keen to discuss climate change, but the state of the Canadian economy is also on their agenda.
B.C. Premier Gordon Campbell said the provinces will try to find areas of agreement, but he's prepared to move ahead without consensus on emissions. There have been hints that B.C. may be the first province to initiate a carbon tax in its budget next month.