1) Canada's unique emissions profile and economic structure
mean that matching Canada's greenhouse gas (GHG) emissions
targets with those of the U.S. would lead to higher carbon prices
in Canada. If the Canadian government followed through with its proposal of matching
Canada's GHG targets to those of the U.S., fewer emission
reductions would in fact occur due to the projected higher growth
of emissions in Canada than in the U.S. The result would be that
Canada would not meet its stated 2020 GHG reduction target.
2) Competitive issues are only significant for about 10% of the
Canadian economy (i.e. that portion which is considered
emissions-intensive and trade-exposed), including sectors such as
oil and gas, mining and cement manufacturing.
4) Costs imposed by any climate policies that the Canadian
government implements (and resulting emission reductions) will have
the most impact on Canadian industry. Costs to businesses arising
from U.S. policies or from differences between Canadian and U.S.
policies will not be the only source of economic costs.
The NRTEE argues that Canada would enhance its economic
competitiveness by regulating GHG emissions now and avoiding more
expensive actions later. The NRTEE recommends that the government
implement a "Transitional Policy Option", in which it
calls for a national cap-and-trade system that would, among other
things, involve contingent pricing of GHG emissions at a price no
more than $30/tonne CO2e higher than in the U.S., ii) auction
permits for GHG emissions and iii) allow industry participants to
buy and sell those emissions permits and other international
emissions permits and domestic offsets to keep prices low for
Canadian firms. The NRTEE report said that this kind of
cap-and-trade system would "walk a middle line between
harmonizing with the U.S. on carbon price and on emission-reduction
targets, balancing competitive and environmental concerns",
provide the industry with more flexibility than a strict regulatory
approach, and reduce the overall cost to the country.
Both the U.S.and Canadian governments
have committed to reducing GHG emissions by 17% below 2005 levels
by the year 2020. However, even if all the NRTEE's policy
advice is adopted, the Canadian government would not be on
track to meet its 2020 target. The NRTEE's
recommendations would result in emissions cuts of 3% below 2005
levels by 2020 and without such action, the level would be 10%
higher than 2005 levels
In preparing this report, the NRTEE undertook "the most
comprehensive analysis yet published on the economic risks and
opportunities for Canada of climate policy in the context of the
Canada-United States relationship" by completing over a year
of analysis and original modelling to determine how far and how
fast Canada could go to meet its stated emission reduction targets
while growing the economy.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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