Canadian industry will suffer a major blow if the nation moves to ratify the Kyoto protocol on global climate change, says a national manufacturing lobby group.
The Canadian Manufacturers and Exporters, whose members account for members account for 75 per cent of Canada’s industrial output and 95 per cent of its exports, says while climate change is a serious problem that needs to be addressed, it shouldn’t be on the backs of Canadian firms.
“Canada’s manufacturers are already dealing with a sector-wide recession, and working hard to overcome a number of challenges specific to doing business in Canada,” Perrin Beatty, CME’s president and CEO, said Saturday.
“Forcing them to assume new costs or cut production to meet arbitrary emission caps would hurt their international competitiveness. There’s nothing to stop Canadian companies from moving to the United States or Mexico, where there is no formal commitment on making reductions. Foreign companies will also be reluctant to invest here.”
Following two weeks of bargaining among representatives from nearly 180 countries, the agreement was concluded on the protocol’s operation.
The protocol calls for reduction of greenhouse gas emissions by industrialized countries of 5.2 per cent below 1990 levels. It will go into force after it has been ratified by a minimum of 55 countries, representing at least 55 per cent of industrial countries’ emissions.
“We got a good, solid agreement here; good for Canada and good for the environment,” federal Environment Minister David Anderson said in a statement from Marrakech, Morocco.
“This agreement will allow for the efficient and economical functioning of the Kyoto protocol, and in the process help advance our common goal of reducing greenhouse gas emissions and their damaging impacts on society,” he said.
The U.S. withdrew its support for the agreement last March.
Alberta produces about 25 per cent of Canada’s industrial greenhouse gases such as carbon dioxide. Canada produces about two per cent of the world’s greenhouse gases, compared with approximately 25 per cent for the U.S.
The Alberta government and most industries in the province favour reducing emissions through technological innovations and market-based solutions, rather than through mandatory limits on actual emissions.
The Alberta government has supported Canada’s position that countries should receive credits for reducing greenhouse gas emissions for the carbon stored in farmland and forests.
A landmark political agreement on the general rules for the protocol was agreed to last July in Bonn. The meeting in Marrakech translated that into about 250 pages of legal text.
Prime Minister Jean Chretien has stated that the Bonn deal opens the door for Canada to make a ratification decision in 2002, following consultations with provinces and territories, the public and other stakeholders.
