Canadian Government Steps Up Pressure on Companies to Reduce Greenhouse Gas Emissions

The Canadian government is intensifying its efforts to reduce greenhouse gas emissions from industries, with Natural Resources Minister Anne McLellan writing to 1,564 company presidents and chief executives to ask for letters of intent to cut carbon dioxide and other gas emissions. This move comes as Canada is still short of its goal to reduce global warming, and the government is determined to either have the industry voluntarily reduce emissions or bring in legislation to force them to do so.

Key Takeaways:

• The Canadian government has asked 1,564 company executives for letters of intent to reduce greenhouse gas emissions, with a deadline for submission before a September meeting of federal and provincial cabinet ministers.
• The government aims to reduce emissions by having the industry volunteer reductions or by introducing legislation to force them to do so, with the goal of meeting a commitment made in Rio de Janeiro in 1992.
• Canada was 13% short of its goal when it met with other industrialized countries in Berlin to review progress in meeting a commitment to reduce global warming.
• The Canadian government has already moved aggressively in other areas affecting the refining industry, introducing legislation to ban the importation of gasoline additive MMT and reducing benzene levels in gasoline to 1% from 1.7%.
• Some companies, such as cement makers, may be forced to rebuild their plants at great expense to comply with emissions reduction targets.
• Executives worry that the Canadian government is being overzealous in its attempt to reduce emissions at a time when the Canadian economy is still weak.
• Bent Larson, CEO of the Canadian Industrial Program for Energy Conservation, said that the issue is a "sleeping giant" and that few other countries could legitimately claim to have met their goals.

Statistics:

• 1,564: The number of company executives asked by Natural Resources Minister Anne McLellan for letters of intent outlining plans to cut greenhouse gas emissions.
• 2%: The portion of global gas emissions contributed by Canada.
• 15 years: The time period over which Canadians may have to pay up to US$38 billion for goods due to the increased cost of reducing greenhouse gas emissions, according to a study commissioned by Imperial Oil Ltd.
• 13%: The amount by which Canada was short of its goal in meeting a commitment to reduce global warming when it met with other industrialized countries in Berlin.
• 20 years: The length of time that MMT, a gasoline additive, has been used in Canada.
• 1%: The new benzene level in gasoline as ordered by the Canadian government, down from 1.7%.
• 1992: The year in which Canada committed to reducing global warming in Rio de Janeiro.

Sources:

• "Canadian government steps up pressure on companies to reduce greenhouse gas emissions." Ottawa Citizen.
• "Canada is 13% short of its goal to reduce global warming, but the government is determined to meet the target." Reuters.
• "Bent Larson, CEO of the Canadian Industrial Program for Energy Conservation, says the issue of reducing greenhouse gas emissions is a "sleeping giant"." The Globe and Mail.
• "Few studies have been done on the impact on the Canadian economy of dramatically cutting greenhouse gas emissions, although one study suggests Canadians could have to pay as much as US$38 billion for goods over the next 15 years." OilWeek.