In accordance with the January 31 deadline under the Copenhagen
Accord, Canada has filed a target with the United Nations to reduce
greenhouse gas emissions by 17 percent from 2005 levels over the
next 10 years. This is identical to the target filed by the United
States and is less stringent than Canada's prior commitments
under the Kyoto Protocol (6 percent below 1990 levels by 2012) or
the federal government's "Turning The Corner"
legislative framework (20 percent from 2006 levels by 2020). Such
targets are likely a further step toward a binding international
treaty and could form the basis for climate change legislation in
Canada and the United States.
As international and domestic obligations to reduce greenhouse gas
emissions become a reality, securities regulators have responded to
pressure from investors to improve securities disclosure regarding
climate change risk. Last week, the United States' Securities
and Exchange Commission announced upcoming guidance as to how
issuers should interpret current disclosure obligations with
respect to climate change impacts, including material:
- impact of legislation and regulation;
- impact of international accords and treaties;
- actual or potential indirect consequences of regulation or business trends (such as technological, political and scientific developments); and
- physical impacts of changes in climate.
In December, the Ontario Securities Commission also announced upcoming guidance with respect to existing environmental securities disclosure obligations.
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