News | Copenhagen must be an opportunity to demonstrate credibility, leadership

As originally published in the Hill Times.

In the lead up to Copenhagen, mitigating climate change has to be looked at as more than an environmental issue. Canada faces economic challenges and opportunities that should be driving us to lead the world in climate change initiative.

There is abundant evidence that climate change will dramatically impact our contemporary trade and economic systems, international and domestic, and that we must find ways to transition to future economies where carbon emissions are far more limited. Credible international studies continually predict that the cost of inaction will far exceed the cost of timely reductions now.

This is as much about the economy as it is about the environment; maybe more. In light of US climate change initiative, there is an enormous economic imperative for us to set up a meaningful framework to manage our GHGs, now. While the Waxman-Markey bill may have been diluted, there is little doubt that the Obama administration is going to get cap and trade legislation and its going to get it soon.

If Canada does not have a serious cap and trade system that will integrate with the US system our industries and businesses will be at a serious disadvantage. When Canadian businesses will be forced to buy credits to meet US standards, that money will go into a US carbon credit market and into US businesses and jobs.  Worse yet, there is the prospect that the US will use the climate change issue as a “smoke-screen” for protectionism through what could become “green tariffs” on our products’ carbon content.

In addition to these challenges, our businesses are hindered simply by uncertainty in the Canadian market about what the government is going to do with GHG regulations and when. Most businesses acknowledge the necessity of dealing with GHGs but want regulatory certainty so that they can adapt their business models effectively. Government does a disservice to business by delaying the inevitable.

But that’s all defensive. There are new, economic opportunities that arising from the climate change crisis. New technology will be driven by regulatory regimes requiring reductions. US governors are already scrambling to attract the manufacture of alternative energy-related infrastructure, like wind turbines, to their states. Construction materials will be changed to meet energy efficiency standards. Demand for carbon capture and storage will create additional and large construction projects around the globe. Fuel efficiency for our transportation will open many possibilities for innovation. Technologies to ensure the effective functioning of carbon credit markets will attract that business to the places that discover and manage them effectively first. New economies will appear and money will be made by those who get there first.

The government has announced GHG emission reduction targets of a 20% decrease from 2006 levels by 2020. While these are not supported by science, they at least would be a start. What Canada doesn’t have, however, is a clear and comprehensive way to meet these targets. Regulations setting out emission caps for large emitters have been delayed, and, once finally in force, will be slow to take effect across all sectors. This will be contentious when Canada sits at the negotiating table in Copenhagen.

There are so many who argue that moving on climate change will damage our economy. On the other hand, the irrefutable argument is that if we keep doing what we are doing, we are going to damage economies. Unless we act decisively soon, we may get the worst of both worlds: Climate change can wreak havoc on the one hand and we will not be in a position to take advantage of its economic opportunities.

Our international credibility on this issue matters. Our major partners are putting an unparalleled focus on climate change. Even China, formerly evasive on this issue, is significantly investing in new energy technologies. Canada, however, seems way too relaxed about it.

Copenhagen is an opportunity to demonstrate credibility and leadership on the international stage on this issue. Some of Canada’s greatest moments have been on the international stage in times of crisis.  The world needs Canada to lead on this issue and so do Canadians.