Canada: a brief history of failed GHG reduction policies

Attended a talk entitled Getting Climate Policy Right yesterday, presented by Mark Jaccard and co-sponsored by University of Toronto’s School of Public Policy & Governance and the Centre for Environment. Jaccard is a leading expert, not just in Canada but internationally, on climate change policy and economic modelling, and delivered an informative, stimulating and engaging presentation.

Some of the key take-aways:

  • Energy efficiency is expensive – economists who model energy efficiency policies and programs often still fail to take into account a variety of factors that make investment in energy-efficient technologies much more costly.
  • Information programs are not enough – governments have 4 (or five) policy levers to reduce greenhouse gas emissions: information campaigns (e.g. the Rick Mercer one-tonne challenge), subsidies, regulations, financial penalties (taxes), and cap and trade schemes (a combo of numbers 3 and 4). We need to see much more of numbers 3-5.
  • Offsets are not working the way they’re supposed to – in the EU cap and trade scheme (or at least ETS1), companies can achieve 15% of their targets via offsets which go to clean development mechanisms as subsidies to developing countries for advanced, cleaner technologies from developed countries. Jaccard showed the audience a slide demonstrating how China is taking advantage of this as a “free-rider,” using the CDMs for hydroelectic projects that would already have been done anyway, and thus failing to have any mitigating impact on their GHG emissions from coal-fired plants.
  • Targets don’t matter – while I think the language used here is a bit too strong (of course targets matter), what Jaccard is saying is that we’ve been setting great targets for years, but have consistently failed to meet them. According to Jaccard, we need clear plans for meeting our targets, absolute caps and minimal or no offsets. Which brings me to…
  • Canada has been failing at greenhouse gas reduction policies since the late 80s – first introduced by the Mulroney government, Canada has gone through more than five policies to reduce GHGs, all of them failures. By the reckoning of Jaccard’s team, the current plan under the Conservatives will have some effect (good news) but not nearly as much as is claimed or needed.

As Jaccard said, Canada has clearly demonstrated it is a follower and not a leader in this area. We should expect to see more action once the US has got implemented some serious GHG reduction policies, which will hopefully be happening soon.

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