Notes for an address by
Ambassador Jacques Bilodeau
On Behalf of the Honourable Stéphane
Dion
Minister of the Environnement of Canada
Check against delivery
Thank you.
09/05/2005 - Due to circumstances beyond
his control, Canada’s Environment Minister,
Stephane Dion has had to stay in Ottawa and
he has asked me to deliver this speech on
his behalf.
I am pleased to have the opportunity to discuss
Minister Dion’s approach and objectives for
the 11th Conference of the Parties to the
UN Framework Convention on Climate Change
and the 1st Meeting of the Parties to the
Kyoto Protocol. These meetings will take place
in Montreal in late Fall.
Climate change is both a challenge and an
opportunity.
It is a challenge because the science clearly
demonstrates that global climate change is
one of the greatest sustainability challenges
of our time. The impacts of climate change
will affect all countries and deep reductions
in global emissions are essential if we are
going to address it.
Climate change is an opportunity because
responding to it is the opportunity to transform
our economies, contribute to cleaner air,
enhance biodiversity, help to preserve wild
spaces, and generally improve the quality
of life of all inhabitants of planet Earth.
That is why Canada is committed to the Kyoto
Protocol and to honouring its Kyoto target.
On April 13, 2005 the Canadian government
made a significant step towards meeting our
Kyoto emissions target, unveiling our domestic
climate change plan.
This plan, entitled Moving Forward on Climate
Change – a Plan for Honouring our Kyoto Commitment,
is structured to assist Canadians and Canadian
businesses capitalize on the opportunities
presented by climate change.
COP11 / MOP1
CoP11 / MoP1 is an important event. It is
the first meeting after entry-into-force of
the Kyoto Protocol. As such, there are a number
of key decisions that must be made to operationalize
implementation of the Kyoto Protocol. These
include ratifying the Marrakech Accords –
the detailed international rules that are
at the heart of the Protocol – and , setting
up the implementation machinery, such as the
Supervisory Board for Joint Implementation.
If we are successful with this alone, CoP
11/MoP 1 will be a celebratory event.
But given the seriousness of global climate
change, it is essential to set the goals for
CoP11/MoP1 much higher. CoP11 / MoP1 must
also lay the foundation on which the countries
of the world will be able to begin to move
forward towards building effective and inclusive
long term international cooperation on climate
change.
This cooperation will have to:
achieve the deep reductions in global emissions
necessary to avoid the dangerous environmental,
economic and social impacts of climate change
adapt to the climate changes that are inevitable
fairly and equitably reflect the diverse circumstances
of the many countries of the world
promote sustainable economic growth in both
industrialized and developing countries
unlock the potential that clean technologies
represent and
harness market forces and bring private sector
action to bear on the issue.
If we are going to be successful in developing
a regime to facilitate this cooperation, it
is essential that we frame the issues fully
so there is a common understanding of what
needs to be addressed.
Minister Dion is very interested in hearing
the views of others in this regard and the
views of industry practitioners and stakeholders
are an important part of the picture.
Minister Dion is thinking about four lines
of inquiry to inform our collective thinking
about a future long term regime.
First, what types of climate change goals
would best ensure the necessary deep reductions
of emissions while securing sustained economic
growth for both industrialized and developing
countries?
Second, how could a global climate regime
more strongly promote the development and
deployment of needed technologies?
Third, how could a global climate regime
make the most effective use of market forces,
including promoting a robust and efficient
international carbon market?
Fourth, how could adaptation to a changing
climate be more fully integrated into development
policies and funding instruments?
Let me deal with each in turn, but I want
to put particular emphasis on the two aspects
that are the focus of your meeting – technology
and the carbon market.
Sustaining Economic Growth
It is essential a new long term climate change
regime support sustained economic growth in
industrialized countries and the economic
development and poverty alleviation goals
of developing countries. If it does not it
will fail, so it is not a question of whether
we need an agreement that will do this but
how to design one that will.
Sustainable economies of the future will
have to produce goods and services that meet
the demands of domestic and global markets
while generating low levels of waste and pollution,
including emissions of greenhouse gases.
Some of the questions that come to mind in
terms of how to best ensure the necessary
deep reductions of emissions while securing
sustained economic growth for both industrialized
and developing countries might include:
How can decision makers be provided with
the knowledge and tools they need to better
integrate the climate change imperative into
overall public policies?
How can climate objectives contribute to poverty
alleviation and economic growth in developing
countries?
How can climate change and international development
agendas be better aligned and mutually supportive?
What are the critical design features of a
new regime that would ensure reductions while
supporting economic growth?
How can timelines for setting climate goals
be better synchronized between the competing
demands of rapid emission reduction and the
longer timelines that can underpin economic
and investment planning?
How can greater awareness be built globally
with the public and consumers to ensure their
action to address climate change and ensure
the future of a global climate regime?
In Canada’s Climate Change Plan, one of the
keys to sustaining economic growth while reducing
emissions is our use of greenhouse gas intensity
improvement based targets in our system for
dealing with emissions from large industry.
In designing these targets we are also taking
into account the fundamental distinction between
fixed process emissions and all other types
of emissions owing to the fact that the levels
of fixed process emissions cannot be controlled
other than by lowering production levels.
By contrast, available technologies do permit
industry to reduce other types of emissions
without lowering production levels.
Technology Development and Deployment
Addressing climate change over the long term
means making deep reductions in global emissions.
This means we must fundamentally transform
the global energy economy. An effective long
term regime must provide strong incentives
to invest in technology development and the
to ensure its widespread deployment, transfer
and diffusion. We need to make better use
of the existing technologies that can take
us a good way towards achieving results.
Some questions on how a global climate regime
could more strongly promote the development
and deployment of needed technologies might
include:
What is required to achieve more rapid deployment
and penetration of technologies that are currently
available, as well as those that are being
made newly available?
How can climate goals be structured in order
to provide strong incentives for investments
in transformative technologies that will reduce
emissions in the future?
What can be done to help developing countries
leap-frog to the use of low carbon, best available
technologies and avoid the trap of following
the high emission intensity economic growth
path from which the developed world must now
shift?
I said earlier that Canada is committed to
honouring its Kyoto commitments. To be more
precise we are committed to doing this in
a way that produces long term and enduring
results while maintaining a growing economy.
Encouraging innovation and development of
environmental technologies is a key aspect
of Canada’s approach to climate change in
the longer term.
Over the next five years, the federal government
will be investing $1 billion in a comprehensive
range of initiatives designed to foster the
development and use of energy-efficient and
environment-friendly technologies. Key priorities
include clean coal technology, CO2 capture
and storage, hydrogen and biotechnology.
Canada is actively pursuing research, development
and deployment of CO2 capture and storage
technologies through an international joint
effort conducted under the auspices of the
International Energy Agency’s (IEA) Greenhouse
Gas R&D Program, in which Canada has played
a leadership role since 1995..
Canada is also participating in a number
of multilateral projects that are dealing
with some of the important technology development
and deployment issues that must be addressed.
These include the US led Carbon Sequestration
Leadership Forum, the International Partnership
for the Hydrogen Economy, and Methane to Markets
as well as the UK led Renewable Energy and
Energy Efficiency Partnership.
Such international collaborative efforts
help us share the costs of developing innovative
GHG mitigation technologies, share knowledge
and enable emerging economies to participate
and build their own capacity to adapt or develop
technologies to meet their own specific needs.
Harnessing Market Forces
Market mechanisms can be used to tap the GHG
emission reduction potential across all sectors
of our economies. Market-based approaches
are critical to integrating climate change
considerations into the day-to-day decisions
of businesses and individuals and unleashing
the power of innovation so as to move countries
towards low emissions trajectories.
A robust and efficient global carbon market
is an integral component of harnessing market
forces for the long term.
Some of the questions that come to mind in
how a global climate regime might make the
most effective use of market forces, including
promoting a robust and efficient international
carbon market are:
What policy drivers are necessary to get
the private sector fully engaged?
How can market forces and private sector resources
be more effectively brought to bear in addressing
climate change?
What could be done to help developing countries
more effectively measure GHG emissions, and
track and report emission reductions, in order
to provide the necessary data and information
for integrating climate change into economic
growth policies?
What can be done to make all the Kyoto Mechanisms,
and in particular the Clean Development Mechanism,
more efficient and effective and ensure these
mechanisms are pragmatic enough to be fully
utilized by the market to address climate
change?
In Canada, companies in our Large Final Emitter
system can comply with their requirements
by buying and selling emission reduction credits
with each other, buying domestic offset credits,
and buying credits in the international market.
We are also establishing a $ 1 billion Climate
Fund to encourage cost-effective projects
to be undertaken throughout the economy to
greenhouse gases through the purchase of off-sets
created by these projects. Examples of projects
that might produce domestic reductions or
offsets include: property developers that
include district heating and renewable energy
elements in their plans for new subdivisions
or businesses that develop innovative ways
of reduce emissions through recycling and
efficiency.
The fund could also be used to purchase international
emission reduction credits through the Clean
Development Mechanism and Joint Implementation,
as well as through procedures for “greening”
other international credits.
Perhaps there is an analogy on the evolution
of the use of market forces and the international
carbon market to be drawn here with the evolution
of the World Trade Organization – we’re currently
at the Bretton-Woods stage – but we’re moving
in the right direction. We need to ensure
we stay on the right path.
Adaptation
Despite our best efforts to reduce global
GHG emission over the next five decades, our
climate is going to change significantly and
all countries will have to adapt to this.
Effective long term cooperation on climate
change must address this important issue as
well as mitigation.
Some of the questions that come to mind in
how adaptation to a changing climate could
be more fully integrated into economic planning,
development policies and funding instruments
include:
What have we learned from our current experience
with the effects of a changing climate and
increasing climate variability, and from adaptation
actions countries have already taken to address
current and future forecasted impacts of climate
change?
What is needed to gain better and better understanding
of the potential impacts of a changing climate
so that effective adaptation strategies can
be developed?
What is necessary in order to build the capacity
to forecast, analyze and incorporate anticipated
climate change impacts into economic, sectoral,
and infrastructure policies at the international,
national and regional levels?
What is the best approach to “climate proof”
our economies and integrate climate adaptation
into development policies, plans and programs?
How can countries build the capacity to forecast,
prevent and respond to sudden climate change
disasters, and to deal with the potentially
rapid shifts in ecosystems affecting, for
example, water availability, agriculture and
food supplies, and biodiversity?
What should be done to help the most vulnerable
countries adapt, especially those who already
face the considerable challenges of poverty
and development?
Consultations and Engagement
Minister Dion has already started extensive
engagement and consultations in preparation
for CoP 11/MoP 1. Roundtables have been held
with experts from Asia, Europe and the Americas
to discuss the questions I have laid out for
you. Informal consultations with Ministers
and officials from key countries have started.
Much more will be done over the coming months
as we work to inform our collective thinking
about a future long term regime and build
towards forward-looking Ministerial dialogue
in Montreal.
Other CoP 11/MoP 1 Deliverables
CoP11/MoP1 should also have deliverables that
would build confidence and a sense of progress.
As I noted earlier, while we hope COP 11/MOP1
will lay the foundation for a discussion on
effective future cooperation on climate change,
as the first meeting after entry into force,
it will need to accomplish many other tasks.
First, we will adopt all of the draft decisions
needed to put into motion the hard work that
has been done over the years, and bring the
Marrakech Accords to life.
We will also be completing other tasks to
operationalize the Kyoto Protocol, such as
electing the members of the Compliance Committees
and the Joint Implementation Supervisory Committee,
the latter will set up the machinery bring
the Joint Implementation mechanism officially
into being.
We also see potential for finalizing some
long-standing and outstanding funding issues
under the Convention
Something many countries and companies have
raised is how the Clean Development Mechanism
administrative capacity and procedures can
meet the expectations everybody holds for
them. It is a system that is evolving and
we need to carefully assess how far it has
come and what it needs to help it flourish.
To be absolutely clear, we must only consider
administrative changes that are within the
existing Marrakech framework.
As with the “lines of enquiry”, Minister
Dion welcomes your views on other outcomes
that could help to make COP11 and COP/MOP1
the successful meeting we all want it to be.
Conclusion
The experience gained at Carbon Expo this
year has been useful and Canada plans to expand
our presence next year with more space and
more Canadian companies. I am confident that
that the contacts made and the discussion
that took place here will contribute to the
ongoing rich discussion on the carbon market,
and lead to GHG reductions projects that will
generate benefits both for Canada and host
countries alike.
Canada is firmly engaged in the global effort
to address climate change and is determined
to play a leadership role in the search for
long-term solutions. We have begun in earnest
our preparations for the Montreal Conference
on Climate. I welcome your input into this
exercise and extend to you a warm invitation
to join us in Montreal in the Fall of 2006
not only as participants but in terms of having
the next Carbon Expo as part of the conference
in Montreal .
CoP11/MoP 1 will be an important meeting
and we need to set the bar high. How we choose
to respond to the long term challenges and
opportunities of climate change will significantly
influence our long term prosperity, the health
and safety of citizens from all corners of
the globe as well as the integrity of our
environment on which life depends.
Thank you.
