General Approach
The government will be enacting a regime that proposes to reduce Greenhouse Gas Emissions and air pollution. The government intends to amend the Canadian Environmental Protection Act 1999 and implement regulations that aim to decrease human made sources of air pollutants and greenhouse gases, such as those derived from industrial sectors, transportation, and consumer and commercial products.
The Government also intends to implement regulations to improve indoor air.
Industry Measures
Consultation Process To Develop The Proposed Regulations
The first step in the government plan is to begin a Consultation Process with provinces, territories, aboriginal peoples, and other stakeholders. This will be a multi-phased approach. Detailed consultations, beginning in Fall 2006, will address the development of proposed regulations to reduce industrial air emissions. The first phase will culminate by Spring 2007 and will address the overall regulatory framework. This first phase of consultation will propose shortterm goals for air pollutants and greenhouse gases that will be implemented between 2010- 2025. The second phase of consultation will take place during 2007-2008 and will examine the specific regulatory approach that will apply to individual sectors, including commitments to establishing sectoral obligations and timelines. The third consultation phase will result in proposed regulations being finalized and published in the Canada Gazette by Fall 2008. These final regulations will begin to come into force by 2010, or as soon as possible, thereafter.
Principles Of Regulations
The government intends to enact regulations that are consistent with leading environmental standards and are at least as rigorous as those in the United States. Taxpayer dollars will not be used to support compliance mechanisms, rather self-supporting mechanisms will be incorporated. The government will engage with provinces, territories, aboriginal governments, affected industry sectors, and other stakeholders in order to determine:
- the form of targets (including emission caps), emissions intensity, and performance/ technology based targets;
- the historical baseline;
- the approach to target-setting, such as how to establish sector-specific reduction targets and the benchmarks to international standards;
- how targets will apply to new facilities characterized by rapidly evolving technology; and
- if and how different targets will apply to new and existing facilities.
Elements Of The Regulatory Approach
1. Emission Targets and Timelines
Emissions targets and timelines will be implemented in a three-phase approach.
- Short Term (2010 - 2015):
The government intends to implement a target setting approach based on fixed caps for air pollutants. It intends to reduce Greenhouse Gas Emissions by adopting a target setting approach based on emissions intensity.
- Medium Term (2020 -2025):
The government will continue to employ a fixed cap approach for air pollutants. The intensity based approach to Greenhouse Gases will establish targets that are ambitious enough to accomplish an absolute reduction in emissions during this time. The government also intends to establish a fixed cap on emissions during this period.
- Long Term (2050)
The fixed cap for air pollutants will remain in place. The government intends to achieve an absolute reduction in Greenhouse Gas Emissions of between 45% and 65%, from 2003 levels by 2050.
2. Compliance Options
The government intends to minimize the cost of complying with proposed regulations. A variety of compliance measures can be considered, including:
- market mechanisms;
- opt-in mechanisms;
- incentives that would result in credits for investments in technology (i.e. CO2 sequestration);
- credit for early action; and l domestic off-sets in which verified emissions reductions outside the regulated system are recognized as eligible for compliance in the regulated system.
The government intends to establish a technology investment fund into which industry, and potentially government, could contribute resources to support the development of transformative technologies for emissions technologies for further emissions reductions.
3. Compliance Assessment, Monitoring and Reporting
A one-window regulatory compliance tool will be established. Emissions monitoring technology will be utilized and the government will work with provinces and territories toward a single, harmonized system for mandatory reporting. This system will provide the structure for the proposed regulations and a possible emissions trading regime.
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