Newswise — WINNIPEG—May 2, 2013—The International Institute for Sustainable Development has issued a report analyzing three policy proposals currently in play to mitigate greenhouse gas (GHG) emissions in Canada, and recommends alternatives to what is being contemplated by governments and the oil and gas industry.
The provinces, Canada and the oil and gas industry are under pressure to ramp up policy to achieve Canada’s 2020 GHG emissions target of 17 per cent below 2005 levels, as controversy over the Keystone XL Pipeline threatens to limit Canada’s access to the United States market.
IISD’s analysis aims to bring coherence to the three proposals, as the outcome of the negotiations between the three parties is likely to become the basis for federal regulations and be rolled out across Canada.
“While all proposals on the table will deliver emission reductions at costs that seem reasonable, a 40 per cent intensity standard with pricing in the range of $40 per tonne of CO2 could strike a good balance,” said David Sawyer, report author and IISD vice president for climate and energy.
“Such a policy could deliver 42 megatonnes (Mt) of compliance in 2020, at an average cost of $28 per tonne or $0.42 per barrel of oil produced,” he said, adding that it would bring Canada considerably closer to meeting the target agreed to under the Copenhagen Accord.In conclusion, Sawyer said the various proposals aren’t far apart in terms of their ambition, and a compromise is possible.
“While setting a national GHG policy aligned with Alberta’s 40/40 proposal won’t please everyone, it strikes a good balance,” he said. “Industry, the federal government and Alberta need to shake hands and finally get on with it, or we let our trading partners put a price on carbon for us.”
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