Joint Meeting of Energy and Environment Ministers

JOINT MEETING OF FEDERAL, PROVINCIAL AND TERRITORIAL
MINISTERS OF ENERGY AND ENVIRONMENT

I.  A Process to Develop the National Implementation Strategy on Climate Change

Decision: The Ministers approved a process to develop a national implementation strategy and instructed officials to implement the process, which includes stakeholders.
Immediately following the Kyoto meetings in December 1997, Canada's First Ministers agreed to establish a process to examine the consequences of Kyoto and provide for the full participation of the provincial and territorial governments with the federal government in any implementation and management of the Protocol. The First Ministers also agreed that no region should be asked to bear an unreasonable burden as Canada seeks to reduce its greenhouse gas emissions.

The ministers agreed to immediately undertake a number of actions:

   
• engage governments and stakeholders to examine the impact, the cost and the benefits of the Protocol's implementation and of the various implementation options open to Canada;
   
• prepare for the continuing international negotiations on rules to implement the Kyoto Protocol;
   
• develop immediate actions consistent with the guiding principles that can be taken to provide early reductions in emissions; and
   
• begin developing long-term actions that will provide sustained reductions in emissions.

The ministers also agreed to establish eight initial issues tables to begin work in the following key areas:

   
• modeling and analysis
   
• transportation
   
• electricity
   
• international emission trading and related flexibility mechanisms such as the Clean Development Mechanism, Joint Implementation and related domestic trading issues
   
• technology
   
• sinks
   
• credit for early action
   
• public education and outreach

     A further list of additional tables will be developed and released by early June.

Decision: The Ministers approved the creation of a national climate change secretariat, which will include representatives from the provincial, territorial and federal governments.
The National Climate Change Secretariat will support the development of a national implementation strategy. Secretariat staff members will operate from their current locations, and the secretariat will have federal and provincial co-chairs.

II. Credit for Early Action

Early action becomes a more attractive investment when stakeholders are confident that delaying action to reduce emissions is not advantageous. Industry wants a clear signal to that effect. By encouraging early action, Canada's ability to meet its obligations under the Kyoto agreement is facilitated.

Decision: The Ministers agreed to establish by early 1999 a system for crediting verifiable early action to reduce greenhouse gas emissions against any future emission obligations.
The Ministers of Energy and Environment agreed that Canadians must be encouraged to increase their voluntary reductions of greenhouse gas emissions well in advance of the period described in the Kyoto Protocol. The Ministers recognized that many sectors of the Canadian economy will be more likely to undertake voluntary emission reductions today if they are assured that those actions will be credited against any future obligations. The credited reductions must be measurable and verifiable and credited against future obligations. A small group of Canadian experts will develop appropriate rules in consultation with knowledgeable Canadian stakeholders.

Decision: The Ministers agreed that verifiable actions that have already taken place under reductions incentives programs will be considered by the credit system.
The Ministers recognized that credit for early action will consider verifiable measures already taken under such programs as the Voluntary Challenge and Registry Program (VCR Inc.), the British Columbia-led Greenhouse Gas Emissions Reduction Trading (GERT) pilot project and Ontario's Pilot Emissions Reduction Trading (PERT) project.

Decision: The Ministers agreed that a common registry of credit for early action be established and requested that it be done under the Voluntary Challenge and Registry Program (VCR Inc.).
VCR Inc. is already heavily involved in encouraging and registering voluntary efforts to reduce greenhouse gas emissions.

III. Strengthening Voluntary Action

Voluntary action by Canadians is seen as a key means to reduce greenhouse gas emissions, especially during the period when the national implementation strategy is being developed. Voluntary action could include individual Canadians' reducing their own greenhouse gas emissions (e.g., energy efficient transportation and purchasing decisions); early action by industries, businesses and governments; joint implementation projects to reduce emissions involving developed countries (e.g., emissions trading); and investments in the developing world (under the Clean Development Mechanism of the Kyoto Protocol) to reduce emissions.

Decision: The Ministers agreed to publicly recognize "good performers" for their achievements in reducing greenhouse gas emissions.
Increased public profile for those undertaking early action would encourage such action by others.

Decision: The Ministers agreed to investigate further incentives for voluntary action and find ways to overcome barriers to it.
All incentives deserve to be explored, including such mechanisms as awards and publicity, protection through credit for those who engage in voluntary early action; and government assistance, such as support for research and development.

Decision: The Ministers invited the VCR Inc. board of directors to clearly define and standardize methods of reporting the achievements of participants. They also asked that the board of directors report on progress to the fall 1998 Joint Ministers' Meeting.
To facilitate forward movement, more rigorous and standardized reporting should be established to support the granting of credit and incentives.