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Report of the National Roundtable Points the Way on Climate Change |
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VANCOUVER, BRITISH COLUMBIA, Jan. 14 -/E-Wire/--
A report by the National Roundtable on the Environment and the Economy (NRTEE), states Canada can achieve greenhouse gas reduction targets of 20 percent by 2020 and 65 percent by 2050 by implementing a clear, consistent and certain emission price signal across the Canadian economy as soon as possible. The report, Getting to 2050: Canada's Transition to a Low-emission Future, argues the immediate introduction of market-based policy in the form of an emission tax or a cap-and-trade system or a combination of the two is economically feasible and quite likely only way of achieving the government's stated emission reduction targets.
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A carbon tax system would require industry to pay a fee for every tonne of harmful emissions released into the atmosphere. A cap and trade system would allow companies to emit up to specific limits, and permits to emit above this cap would have to be purchased from companies that have lowered their emissions below their cap.
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Environment Minister John Baird appears to have rejected the idea of a carbon tax.
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NRTEE proposes further research on possible economic impacts over the next year. However, it notes any delay in action will result in greater economic losses in the long run. "Our research shows that a faster, deeper pathway to achieve the government's long-term GHG reduction targets of 20 percent by 2020 and 65 percent by 2050, has the least overall economic impact in the long-run, and better environmental outcomes resulting in the equivalent of 5 years of no GHG emissions into the atmosphere over this period as we meet our targets."
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It's too early to set the price on carbon emissions or to define the specifics of a carbon tax or a cap and trade system. The federal government currently proposes a cap and trade system based on intensity targets, meaning the emissions per unit of production is capped but not a company's absolute emissions. NTREE suggests that if Canada is to implement a cap and trade system, it should follow the European model, where a company's emissions cap is measured in megatonnes. As the report points out, an intensity approach can allow to emissions to continue to grow as production increases.
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The NRTEE report sets out five critically important "enabling conditions" it believes should be reflected in Canada's long-term climate change policy framework. These are:
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Global Competitiveness - Canada will have to act in concert with the world, to address competitiveness issues
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Policy Certainty - Policy certainty beyond the short term is critical, to ensure predictability for new investments.
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Carbon Pricing - An economy-wide emission price signal with complementary regulatory policies is necessary, to foster investment, technology deployment, and change consumer behavior.
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Technology Deployment - Technology deployment is imperative, and will need to be wide-spread throughout all segments of the economy.
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Integrated Emission Approach - An integrated approach to climate change and air pollution should be pursued, to reduce costs and improve health outcomes.
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The report also stresses the importance of a Canada-wide plan, arguing that coordination of federal, provincial and territorial GHG emission reduction policies is crucial to success. The big question that remains is what is the best price mechanism to use to achieve the desired results in terms of emissions reductions?
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The complete report, Getting to 2050: Canada's Transition to a Low-emission Future is available online. Contact Info: Website : the Globe Foundation of Canada
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