Identifier
Created
Classification
Origin
05OTTAWA1203
2005-04-20 19:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ottawa
Cable title:  

DETAILS EMERGE ON CANADA'S CLIMATE CHANGE STRATEGY

Tags:  SENV ENRG CA 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 OTTAWA 001203 

SIPDIS

SENSITIVE

STATE FOR G, OES/ETC, OES/EGC, EB/ESC/ISC, AND WHA/CAN
USDOC FOR 4320/ITA/MAX/WH/ONIA -- WORD
DOE FOR INTERNATIONAL AFFAIRS (DEUTSCH) AND BPA (ATKINS)
EPA OF OFFICE OF THE ADMINISTRATOR, INTERNATIONAL AFFAIRS
AND BRIAN MCLEAN

E.O. 12958: N/A
TAGS: SENV ENRG CA
SUBJECT: DETAILS EMERGE ON CANADA'S CLIMATE CHANGE STRATEGY
AND PLANS FOR COP-11

REF: A. OTTAWA 1125

B. OTTAWA 886

UNCLAS SECTION 01 OF 02 OTTAWA 001203

SIPDIS

SENSITIVE

STATE FOR G, OES/ETC, OES/EGC, EB/ESC/ISC, AND WHA/CAN
USDOC FOR 4320/ITA/MAX/WH/ONIA -- WORD
DOE FOR INTERNATIONAL AFFAIRS (DEUTSCH) AND BPA (ATKINS)
EPA OF OFFICE OF THE ADMINISTRATOR, INTERNATIONAL AFFAIRS
AND BRIAN MCLEAN

E.O. 12958: N/A
TAGS: SENV ENRG CA
SUBJECT: DETAILS EMERGE ON CANADA'S CLIMATE CHANGE STRATEGY
AND PLANS FOR COP-11

REF: A. OTTAWA 1125

B. OTTAWA 886


1. (U) Sensitive but Unclassified.


2. (U) This is an action message. Please see paragraph 12.


3. (SBU) Summary: According to a senior official at
Environment Canada, the GOC's recently unveiled climate
change strategy (reftel) reflects an attempt to meet Canada's
Kyoto targets while growing the Canadian economy and
preparing for a post-Kyoto emissions regime. Issues such as
competitiveness with the United States, as well as differing
regional priorities within Canada, will be difficult to
resolve, and the GOC sees continued engagement with the
United States as critical to its climate change strategy.
Domestically, the purchase of foreign emissions credits will
be especially controversial. The debate over the plan takes
place as the GOC begins to organize itself for the UN
Framework Convention on Climate Change 11th Conference of
Parties meeting in Montreal in November. End summary.

LIMITING EMISSIONS, GROWING THE ECONOMY
--------------


4. (SBU) According to Jean Boutet, Senior Departmental
Policy Advisor to Minister of Environment Stephane Dion, the
GOC believes that continued engagement with the United States
will be fundamental as Canada struggles to reduce emissions
and grow its economy. Clean coal is one area that offers
opportunities for increased bilateral cooperation, he said,
and suggested that the U.S. FutureGen project should be on
the agenda of future U.S.-Canada energy bilats. Boutet told
Emboffs that Canada's climate plan envisions a deep
transformation of the economy in the coming decades, as a
steady shift takes place towards renewable and clean energy.
He added that interagency differences have largely been
resolved, and that while Environment Minister Dion and
Natural Resources Minister John Efford agree on the need to
honor Canada's obligations under Kyoto, Environment Canada
now has the lead on this issue within the GOC. An early
visit to Canada by Undersecretary of State for Global Affairs
Paula Dobriansky, Boutet said, would be welcomed by Dion and
other senior GOC officials involved in the climate change

portfolio. The visit, he suggested, would optimally take
place before this summer's G-8 summit.


5. (SBU) Boutet acknowledged that the Alberta oilsands
represent an especially difficult problem for the GOC, as
production is expected to double in the next 10 years to more
than two million barrels of oil per day. Greenhouse gas
(GHG) emissions from the oilsands are higher than from
conventional petroleum sources, and while technological
improvements are reducing emissions-per-barrel, the problem
remains of how to achieve absolute reductions. Boutet said
components of the GOC's strategy (reftel) such as emissions
trading, green surplus credits, and the "Climate Fund" are
intended to offset the higher emissions from oilsands
expansion.


6. (SBU) Although the GOC "will do its utmost" to reduce
GHG emissions, Boutet said, it makes no apology for plans to
purchase emissions credits from abroad. Despite the negative
optics of paying foreigners for "hot air," Boutet said that
purchasing foreign credits is environmentally sound, is
consistent with GOC foreign policy priorities, can lead to
direct environmental benefits for Canada (e.g., reduced soot
deposits in the Arctic). Further, the GOC's Finance Ministry
appears prepared to fund such purchases. Boutet acknowledged
that among other problems, the GOC's plan to spend up to C$5
billion (approximately $4 billion U.S.) on a "Climate Fund"
to purchase GHG emissions credits does not provide
recognition for early emissions reducers, and also that
emissions prices may rise significantly over time.

REGIONAL CONSIDERATIONS
--------------


7. (SBU) One of the key elements of Canada's plan is an
East-West electrical transmission corridor. The goal, Boutet
said, is to bring clean hydropower into Ontario from
Manitoba, Quebec, and Newfoundland (at present, much of
Quebec's surplus hydropower is sold to the United States,
primarily to New York and New England). Boutet explained
that the GOC envisions a "green" transmission line, one which
would be able to pick up co-generation assets along the way.
The project, which would likely be done in stages, would need
considerable support from both the federal and provincial
governments.


8. (SBU) The East-West transmission corridor takes on added
importance as the provincial Ontario government shows no
inclination to back away from plans to close all of its
coal-fired power plants, about 7,500 megawatts total capacity
(one quarter of Ontario's generation assets) by 2007. Boutet
opined that the Ontario government is simply "not interested"
in clean coal technology. Rather, the provincial government
is focused on promoting wind and other renewables, as well as
the transmission corridor.


9. (SBU) Boutet told Emboffs that reaction in Quebec to the
climate change plan has been dismay over the fact that
emissions credits may be available for new gas-fired
generation, but not for new hydropower. Quebec's power
strategy, Boutet explained, will continue to depend on a
complementary blend of hydropower and renewables. Manitoba,
he added, is seeking to take a leading role among the
provinces in developing sources of renewable energy, and the
provincial government has signed a memorandum of
understanding with the Government of Iceland to advance joint
projects.

PLANS FOR COP-11
--------------


10. (SBU) As Canada prepares to host the 11th Conference of
Parties (COP-11) to the UN Framework Convention on Climate
Change beginning in late November, the GOC is examining how
the meeting can promote a useful dialog regarding climate
change strategies. Boutet said that the hope is for real
discussion, rather than "189 monologues." Among the topics
under consideration for the agenda, he said, are post-2012
commitments, emissions reductions and economic growth,
development and deployment of new technology, carbon markets,
and adaptation strategies. In addition, the GOC may want to
open talks regarding a global agreement on coal.


11. (SBU) The COP-11 meeting will include a technology
fair, Boutet said, and the mayor of Montreal wants to hold an
international mayor's conference on the margins of the
meeting. The GOC, he added, is hoping that heads of
government from around the world will attend the conference.
In September, Montreal will host a meeting of the
Intergovernmental Panel on Climate Change, where the GOC
intends to raise the use of climate change science for
regional modeling. Boutet added that the GOC may also seek
to involve First Nations, the Arctic Council, and traditional
societies in climate change discussions.


12. (SBU) Action request: Per paragraph 4, Embassy
requests that Department consider a visit by Undersecretary
Dobriansky to Ottawa in the near future, primarily to discuss
climate change and plans for COP-11 with senior GOC
officials. Embassy would also be pleased to arrange public
diplomacy events during the visit if so desired.

Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa

DICKSON