Canada says it won't help fund international GHG trading effort

Canada says it won't help fund international GHG trading effort

Washington (Platts)--11Sep2006

Citing public opposition to spending federal funds in the international
carbon market, the Conservative government of Canada has rescinded a 2005
pledge by the former Liberal government to give the United Nations C$1.5
million (C$1=US89 cents) for the Clean Development Mechanism.

"We've said all along that we would not participate in these
international trading schemes," said Ryan Sparrow, spokesman at the
Environment Ministry. "Polls show that taxpayers want money spent at home on
climate change," he added.

Officials at the CDM Executive Board's office in Brussels declined to
comment because it had not received a notification of Canada's decision. The
CDM program encourages greenhouse gas offset projects in developing countries.
Canada's Liberal government of former Prime Minister Paul Martin helped secure
millions in promised multinational government funding for the CDM Executive
Board at the 2005 global climate change talks in Montreal.

Countries made their pledges amid criticism from industry and governments
that the CDM board approved projects too slowly.

The extra government funding has helped the CDM board in its effort to
complete project reviews and issue Certified Emissions Reductions, which can
be used for Kyoto Protocol compliance or sold into the carbon market.
Initial reaction to the decision was varied.

Doug Russell, technical director at the environmental asset management
firm Natsource, said the news government's decision on is not surprising Prime
Minister Stephen Harper wants a "made in Canada" solution to climate change.

But Marc Stuart, director of CDM project developer Ecosecurities, told
Platts he was "shocked" by the decision, which he sees as a further distancing
of the country from the Kyoto Protocol. Canadian Environment Minister Rona
Ambrose has already said the country will not try to comply with the treaty,
which requires Canada to cut its GHG emissions 6% below 1990 levels by 2012.
The country is nearly 25% above that benchmark today.

--Martin Coyne, martin_coyne@platts.com
--Alessandro Vitelli, alessandro_vitelli@platts.com

For more news, see the related Platts feature at
http://www.platts.com/Coal/Resources/News%20Features/kyoto/.

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