Federal Greenhouse Gas Regulations Not Enough to "Turn the Corner"

May 28, 2007

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The Pembina Institute today released an in-depth analysis of Environment Minister Baird's recent "Turning the Corner" announcement. The analysis reveals that the proposed regulations have little chance of meeting the government's target of stopping the growth in Canada's greenhouse gas pollution by 2010-12.

The analysis also highlights numerous loopholes and gaps that undermine the credibility of the government's target for 2020, which is to limit Canada's emissions to about 2% above the 1990 level.

"We already knew that the government's national targets come up short against the science, leading countries' commitments, and our legal obligations under Kyoto," said Matthew Bramley, Director of Pembina's climate change program. "Now, our analysis shows that the government has failed to explain how it intends to reach the inadequate targets it has set."

Pembina's analysis identifies 20 unresolved issues in the regulatory framework, most of which add to the risk that industrial emissions will be higher than the government has claimed. And there are several ways in which emission reductions could be "double counted," further reducing the likelihood that Canada will meet the government's targets.

Pembina has also uncovered several ways in which the framework treats the oil and gas sector more leniently than other industrial sectors. For example:

  • While "emissions intensity" targets will require some sectors to reduce their emissions, the oilsands sector could meet its targets while its actual emissions triple.
  • Taxpayers could end up paying about half of the cost of carbon capture and storage technology for the oil sector.
  • By using 2006 as a baseline, the framework largely ignores the substantial increase in oil and gas emissions that took place from 1990 to 2006.
  • "Unintentional fugitive emissions", which make up about a quarter of the oil and gas sector's emissions, are exempted from the main regulatory framework.

"Despite the government's acceptance of the seriousness of climate change and the need for regulations to limit industrial greenhouse gas pollution, our analysis shows that the minister's proposals are in desperate need of improvement" said Marlo Raynolds, Executive Director of the Pembina Institute.

Environment Canada is holding consultations on the regulatory framework over the coming months in preparation for publishing draft regulations next year. Pembina will be participating in this process and proposing improvements based on today's analysis.

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For more information:
Matthew Bramley, Director, Climate Change
Cell: 819-210-6115

Analysis of the Government of Canada's April 2007 Greenhouse Gas Policy Announcement can be downloaded here.

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