Impacts of Implementing Bill C-288 by 2008

In 1997, Canada and 160 other members of the United Nations Framework Convention on Climate Change (UNFCCC) met in Kyoto, Japan to conclude a protocol to limit emissions of greenhouse gases (GHGs). Under the terms of the Kyoto Protocol, Canada committed to cut its GHG emissions to 6% below 1990 level starting in 2008 until 2012.

As a result of the inaction of previous governments, Canada's GHG emissions have increased steadily over the last 10 years, bringing them to 35% over our Kyoto targets. In order to reach our targets, starting in 2008, Canada would be required to reduce its GHG emissions by an average of 33% each year of the Kyoto commitment period.

To achieve this drastic reduction within the next eight months, Canada would have to implement strong and forceful measures that would have an important economic impact for Canadian families, jobs and the economy. A combination of a carbon tax and international credits would be the two measures that could be implemented quickly so that Canada could meet its Kyoto targets starting in 2008.

These actions would significantly increase production costs for businesses that would result in more than 275,000 jobs lost and a reduction in personal disposal income of about $4,000 for a Canadian family of four in 2009.  Energy prices would go up considerably: more than double for natural gas, 50% for electricity and gasoline, which is today about one dollar a litre would, on average, cost $1.60 a litre over the 2008-2009 period. 

This would plunge the country into a deep recession in 2008. Canada's GDP would decline by over 6.5 percent from expected levels in 2008. GDP in 2008 would fall to 4.2 percent below that of 2007. By comparison, the deepest recession since World War II was in 1981-82, when the GDP fell by 4.9 percent.  In actual dollars, the predicted recession would result in a decline in national economic activity in 2008 in the range of $51 billion below 2007 levels. 

The implications are important for all Canadians in evaluating the necessary measures to protect the environment.

Each country is facing different challenges based on its geography, economy and infrastructure. Canada is one of the countries trying to reduce its GHG emissions. Under the Kyoto Protocol, 38 countries committed to reach their targets between 2008 and 2012. This international agreement was the first of its kind calling for global action on climate change.

Canada represents only 2% of global GHG emissions. In order to protect our planet against the effects of global warming and climate change, we must engage other countries to develop an agreement in which all countries participate. This is crucial for the future of the earth.

The economic and social impacts must be considered when taking action on the environment. Canada has the opportunity to become a leading country on this global challenge, but can only do so if its economy remains strong. Canada's New Government is guided by a balanced commitment to environmental protection and economic stewardship.