FREQUENTLY ASKED QUESTIONS

General

Why is the Government of Canada regulating industrial emissions of greenhouse gases and air pollutants?

Major industrial sectors contribute half of Canada's greenhouse gas emissions that cause climate change and half of Canada's air pollution.

These sectors include, among others, electricity produced by combustion, oil and gas, base metal smelters, iron and steel, some mining sectors, cement, pulp and paper, aluminium, and chemicals production.

This Government is serious about tackling climate change, cleaning up the environment and protecting the air we breathe for Canadians today and for generations to come. Taking concrete action and setting mandatory targets to reduce emissions from major industrial sectors is a key part of our work towards delivering real results for all Canadians to clean up our air.

Which industrial sectors are being targeted?

Consistent with the polluter-pays principle, all of Canada's major industrial sectors must make contributions to Canada's efforts to reduce air emissions:

How do these targets compare to those of other countries?

Canada will have one of the most stringent industrial regulatory systems in the world:

What will be the economic, health, and environmental impacts of the Government's plan?

The Government's regulations will reduce the impact of greenhouse gases and air pollution on the environment and the health of Canadians. The estimated benefits as of 2015 from the reduced risk of death and illness associated with our air quality improvements are over $6 billion annually.

The health benefits of our plan include reductions in the number of health concerns such as:

There will be many environmental benefits as well, including improved conditions for nature and wildlife. A reduction in air pollution and greenhouse gas emissions is also estimated to raise the productivity of some sectors, such as key agricultural crops, and benefit other industries including tourism, forestry, and in-land fishing.

How will this plan benefit individual Canadians?

This is good news for the 2.7 million Canadians who suffer from asthma, bronchitis, and chronic obstructive pulmonary disease. Our most vulnerable citizens, young children, elderly Canadians, and others who suffer from chronic heart and respiratory illnesses will benefit through measurable improvements in air quality.

All Canadians will also benefit through reduced costs to our health care system as a result of a reduction in the incidence of strokes, heart attacks, emergency room visits, hospital admissions and other associated costs to the health care system.

Overall, the benefits of this plan are real, but we can't put a price tag on some of them: cleaner communities and natural spaces, healthier children, fewer premature deaths, more sustainable natural resources, and, for the first time since Canada signed the Kyoto Protocol, meaningful contributions by Canada to the global effort to control greenhouse gas emissions that cause climate change.

How will this impact individual Canadians?

Canada's New Government understands that Canadians are concerned about climate change and air pollution on a local, national and global scale. But Canadians cannot expect others to act unless they are prepared to share the responsibility and take significant action at home.

We have developed a plan to implement mandatory reductions in emissions and which targets all of the major sources of greenhouse gases and air pollution: industry, transportation, and consumer and commercial products. It will deliver significant emissions reductions but it can also lead to noticeable price increases for consumer products such as vehicles, natural gas, electricity, and household appliances.

The economic costs associated with this initiative are real but manageable.

Our plan will preserve economic growth, but there will be a period of adjustment for all Canadians.

What else is the Government doing to tackle climate change and reduce air pollution?

In addition to measures to reduce air emissions from industry, the Government will deal with emissions from transportation, ensure a number of energy-using products use that energy more efficiently, and for the first time, the Government will take action to improve indoor air quality.

The Government also unveiled many other programs and initiatives worth over $9 billion since October 2006, which aim to measurably reduce the impact of greenhouse gases and air pollution on the health of Canadians and the environment. These include the ecoENERGY Initiatives, the ecoTransport Strategy, the ecoENERGY for Personal Vehicles program to help you choose more eco-friendly vehicles, the ecoAUTO Program to encourage Canadians to buy fuel-efficient vehicles, support for public transit and action on renewable fuels.

For more information on what the Government is doing to tackle climate change and reduce air pollution, visit www.ecoaction.gc.ca or call 1 800 O-Canada (1 800 622-6232, or TTY 1-800-926-9105).

When will we see real reductions in greenhouse gases in Canada?

Our targets are ambitious enough to lead to absolute reductions in emissions as early as 2010 and no later than 2012, not just reductions per unit of production.

All our action announced to date to tackle climate change, including these industrial targets, will put us on the path to absolute reduction in Canada's greenhouse gases by 20% by 2020 compared to 2006 levels.

What can individual Canadians do to reduce air pollution and greenhouse gas emissions?

All Canadians need to get involved in reducing emissions of greenhouse gases that cause climate change, as well as air pollution.

You can do your part by:

To learn about more energy saving ideas, visit www.ecoaction.gc.ca. By using less energy, less air emissions are produced.


Greenhouse Gas Emissions Regulations

What are the Government's short-, medium- and long-term greenhouse gas reduction commitments?

In the short-term, we will stop the growth in greenhouse gases by 2010 to 2012.

In the medium-term, we will cut them by 20% or 150 megatonnes by 2020.

In the long-term, we will cut them by up to 70% by 2050.

What percentage does industry contribute to Canada's total national greenhouse gas emissions?

Major industrial sectors, including electricity produced by combustion, oil and gas, base metal smelters, iron and steel, some mining sectors, cement, forest products, and chemicals production contribute about half of Canada's greenhouse gas emissions that cause climate change.

What are the Government's short-, medium- and long-term greenhouse gas emissions targets for industry? When will these targets come into effect?

Industry produces about half of Canada's greenhouse gas emissions that cause climate change and our plan sets mandatory targets for them to reduce these emissions.

These targets will be stringent and will be tightened every year. Facilities existing in 2006 will be required to reduce their greenhouse gas emissions per unit of production by 18% in 2010. This means an average reduction of 6% every year starting now. In each subsequent year, further reductions of 2% will be required, for a reduction of 26% by 2015.

Targets will be ambitious enough to lead to absolute reductions in emissions as early as 2010.

Why is Government using this approach to targets?

This way of proceeding allows us to reduce greenhouse gases now and prepare for deeper cuts later without de-railing Canada's economy.

This approach works because it forces industry to get more efficient each year so that greenhouse gases go down, even as the economy grows.

This allows Canada to make genuine progress on overall emission reductions and avoid two sets of damaging effects: industries opting for reduced investments in Canada as a cheap way of meeting their targets, or industries opting for reduced investments in additional capacity as a result of a regulatory ceiling.

These targets will be ambitious enough to lead to absolute reductions as early as 2010, not just reductions per unit of production.

What measures are you putting in place to help industry achieve their goals?

Individual firms will have different options to meet their targets in a cost-effective way. These compliance options include:

This flexible approach will ensure we protect the environment, clean up the air we breathe and make real progress to reduce greenhouse gas emissions while Canada's economy can continue to grow and prosper.

What is the "Credit for early action"?

The Government recognizes that some companies took early action to reduce their greenhouse gases and believes their leadership should be rewarded.

Firms that took such actions between 1992 and 2006 will be eligible to receive a one-time credit for their reductions, providing those actions are verifiable. These credits can be applied towards their targets or traded.

Credits for early action will represent a maximum reduction of 15 mega tonnes of carbon dioxide across industry and exact eligibility criteria will be developed over the coming months.

Why aren't new facilities required to meet greenhouse gas emissions targets for the first three years of operation?

Because it always takes a few years to get a new plant running efficiently, new facilities using cleaner fuels and technologies will have a three-year grace period. This will allow facilities to reach full production and to establish their initial emissions levels.

They will then be subject to 2% annual reductions in subsequent years. This reduction will be applied based on their emission intensity level in their third year of operation and taking also into account the performance of cleaner fuels.


Air Pollution Emissions Regulations

What percentage does industry contribute to Canada's total national air pollutant emissions?

Major industrial sectors, including electricity produced by combustion, upstream oil and gas, downstream petroleum, base metal smelters, iron and steel, some mining sectors, cement, forest products, and chemicals production contribute about half of Canada's air pollutant (52%) emissions.

What are the Government's short-, medium- and long-term air pollutant emissions targets?

Our regulations will lead to reductions in air pollutant emissions that cause smog and acid rain by up to 55% as early as 2012 compared to 2006 levels.

Our plan sets overall national fixed emissions "caps" for industrial pollutants causing smog and acid rain. It also sets out emission reductions "targets" that specify the maximum level of pollutant that can be emitted from a given industrial sector in a given year. These targets will represent national reductions from 2006 emission levels for each pollutant.

Fixed emission caps will be placed on the following air pollutants. The national caps are established by adding together all the different sectoral targets for these pollutants:

In some industrial sectors, caps will also be introduced for other sources of air pollution. For example, caps on mercury emissions from electricity produced by combustion and base metal smelting will be established, as well as caps on benzene emissions from the refining, natural gas, and iron and steel sectors.

When will these air pollutant emissions targets come into effect?

The targets will come into effect between 2012 and 2015 to give industry time to make the necessary investments in plant and equipment processes.

The Government will validate the fixed emissions caps for air pollutants with provinces, territories and industry over the next several months, as well as their date of coming into force between 2012 and 2015. This will all be finalized by fall 2007.

What measures are you putting in place to help industry achieve their goals?

Industry can comply by making in-house changes to their processes, or by investing in new equipment or technology. A domestic emissions trading system will also be introduced for sulphur oxides (SOx) and nitrogen oxides (NOx).

This flexible approach will ensure we protect the environment, clean up the air we breathe and strengthen our position to address transboundary air pollution while Canada's economy can continue to grow and prosper.


Emissions Trading

What is the Government's position on emissions trading?

We support emissions trading because it can facilitate emission reductions at a lower cost, provides an incentive to reduce emissions in Canada, rewards those who go the extra mile to reduce their emissions, and provides industry with the flexibility needed to meet the targets.

The Government will introduce Canada-wide emissions trading systems for sulphur oxides (SOx), nitrogen oxides (NOx), and greenhouse gases.

How will the emissions trading mechanism for greenhouse gases work?

Firms that have an emission intensity lower than their targets will receive credits that could be sold to those who are unable to meet their obligations. Credits could also be "banked" for future use. Firms that have an emission intensity that is above their target could use credits from previous years, or purchase credits from other firms that have a surplus.

Firms could also acquire offset credits by purchasing emission reductions from activities that are not covered by the regulations (e.g. emissions from agriculture).

Future linkages with emissions trading systems in the U.S., and possibly Mexico, will be explored. Further international linkages will also be explored over time.

How will the emissions trading mechanism for air pollutants work?

A Canada-wide trading system will be introduced for emissions of sulphur oxides (SOx) and nitrogen oxides (NOx).

The rules for this trading system will be determined as the regulations are developed. Trading will be restricted in areas that have poor air quality to help maintain a minimum level of local or regional air quality.

Canada will pursue linking its domestic sulphur oxides (SOx) and nitrogen oxides (NOx) emissions trading system with the existing U.S. system.


Kyoto

How do these targets compare to Canada's targets? Will the Government meet Canada's Kyoto timeline?

Canada is committed to actively participating in the United Nations' processes on climate change. But Canada cannot reach its target within the specified timeframe and we cannot do in 8 months what would have taken 15 years to complete.

Indeed, the greenhouse gas reduction targets agreed to by the previous government called for Canada to reduce its greenhouse gas emissions by six per cent below 1990 levels beginning in 2008. Canada's last report to the United Nations showed that we were 35 per cent above that target.

Unlike the previous government, our plan will - for the first time ever - put Canada on a path towards meeting our international obligations on global efforts to fight climate change.

The Government will take a balanced approach that recognizes the need for urgent action on the environment, while also respecting its responsibility as a government to help keep Canadian families working.

Our actions will ensure we make real progress to reduce overall greenhouse gases while our economy continues to grow and prosper.

What is Canada's position in the Kyoto process?

Climate change is a global issue that requires global solutions.

We support international action to reduce greenhouse gas emissions, and Canada will do its part. We will work with other countries to help advance a more effective long-term approach to tackling climate change. Canada is a major player in the United Nations-led climate change negotiations for longer-term reductions well after the end of the first Kyoto Protocol reporting period in 2012.

Countries with targets under the Kyoto Protocol accounted for less than 30% of global emissions in 2000. For any future international cooperation on climate change to be effective, all major emitting countries need to do their part to reduce emissions.

Our actions at home will be the basis for future international cooperative efforts to address climate change.

How much would it cost to reach Kyoto within the specified timeframe?

Meeting our emission reduction target within the specified timeframe - six per cent below 1990 levels beginning in 2008 - is simply not possible without imposing punitive costs on Canada, or sending Canadian dollars overseas to buy hot air on the international market.

It would lead to deep recession, major job losses, and a significant decline in incomes for Canadians.