New Canadian prime minister cool on Kyoto climate treaty

Russia’s wavering on treaty opens door for Canada to reassess its commitment

Gary Park

Petroleum News Calgary Correspondent

Canada has installed a new prime minister and the oil patch is holding its breath that the change of power spells the end of the Kyoto Protocol.

While Russia wavers on whether to collapse the climate change treaty altogether, Paul Martin, who was sworn in as Jean Chrétien’s successor Dec. 12, has wobbled on Canada’s commitment to implement the accord fully.

He said Canada hasn’t even developed a plan that would determine whether it can achieve the Kyoto targets for reducing greenhouse gas emissions.

“What we need is a plan,” Martin said. “And we have not yet developed that plan, certainly not to my satisfaction.”

Despite voting with the government a year ago to ratify Kyoto, his comments have given hope to the petroleum industry, the Alberta government and the wider business community that he is ready to rethink Canada’s approach.

Just as muddled is Russia’s stance, with conflicting messages coming from several senior officials as the anti-Kyoto faction argues the protocol would handicap a developing economy, which is heavily dependent on oil and natural gas production.

China and India are not required under Kyoto to lower emissions and the United States and Australia have refused to sign the accord. That leaves the future of the accord in the hands of Russia, Europe, Japan and Canada, all of whom must ratify to achieve the minimum support of 55 countries accounting for at least 55 percent of global emissions as of 1990.

Some, such as Canada’s Environment Minister David Anderson, believe Russia is only trying to bargain for more favorable terms.

Alberta Premier Ralph Klein said Russia’s vacillation gives Martin the window he needs to re-assess Canada’s commitment.

Companies working on carbon dioxide reduction

But he said the concerns raised by Russia are line with those flagged by the association last year.

Even so several companies — especially those immersed in the oil sands, which is seen as the worst emissions culprit — say they intend to press ahead with measures to reduce greenhouse gases, regardless of what route Russia takes.

Spokesmen for Imperial Oil, Petro-Canada, Suncor Energy, Shell Canada and Canadian Natural Resources all say they want to limit their carbon dioxide levels.

Shell’s new Athabasca oil sands project has set a target of cutting greenhouse gases in half by 2010 to 1.75 million tonnes; Suncor pledged to continue its wide-ranging plan to cut emissions, including a substantial investment in renewable energy such as wind power; and Imperial will press ahead with measures to improve energy efficiency in its operations and build co-generation plans that use natural gas to generate electricity.

“Irrespective of Kyoto, we’re going to continue to do what’s right for the economy and what’s right for the environment,” said Imperial Chief Executive Officer Tim Hearn.

Nancy Hughes Anthony, president of the Canadian Chamber of Commerce, said she hopes Martin will not agree to the same onerous targets that Chrétien did.

“We just blindly signed on to some targets without fully understanding how on earth we would do it,” she said.