Canada: Tackling emissions begins at home

In a cash-for-gas offer, the Canadian government is challenging companies, local governments and farmers to do their bit to reduce greenhouse gas emissions.

Environment Minister Stephan Dion issued a discussion paper which proposes a national emissions-trading scheme that will see those who initiate environmentally friendly projects get paid for selling credits to large industrial emitters and the federal government.

Dion said the approach is an “incentive to help Canadians work together.”

Using a “bottom-up” strategy should enable Canada to achieve a “spectacular” lowering of emissions by 2012, he said.

However, he conceded that projects will have to achieve a certain critical mass so that emissions can be measured and verified.

The government estimates that one metric ton of carbon could sell for C$10, generating a domestic market of at least C$1 billion a year, matching the C$1 billion Ottawa has already pledged for a national climate fund.

But the scope of Canada’s challenge dwarfs that potential contribution.

The government is targeting a reduction of 270 million metric tons a year over the 2008-2012 period.

Dion concedes that will probably require buying international credits from other governments, or supporting projects in developing countries.

However, he argues that Canadians have underestimated what they can accomplish at home before going overseas.

Examples outlined by the government that would qualify for government cash include:

• Credits for farmers who practice no-till agriculture, preserving carbon in the soil.

• Planting new forested areas to absorb carbon from the atmosphere.

• Including alternative energy sources in housing projects.

• Credits for municipalities that capture methane from garbage dumps.

• Rewards for companies that encourage employees to use mass transit.

—Gary Park