moved:
That the House call on the government to set fixed greenhouse gas reduction targets as soon as possible so as to meet the objectives of the Kyoto Protocol, a prerequisite for the establishment, as expeditiously as possible, of a carbon exchange in Montréal.
Mr. Speaker, it gives me great pleasure to rise today on this Bloc Québécois opposition day to discuss the Kyoto protocol and the importance of setting fixed greenhouse gas reduction targets for ourselves in Canada. Hopefully, this motion will also inspire the government to establish a Canadian climate exchange, which we feel should be located in Montreal.
The motion of the Bloc Québécois reads as follows:
That the House call on the government to set fixed greenhouse gas reduction targets as soon as possible so as to meet the objectives of the Kyoto Protocol, a prerequisite for the establishment, as expeditiously as possible, of a carbon exchange in Montréal.
The Bloc Québécois' motion is another of many that have been developed and introduced by the Bloc Québécois in the last 10 years. We have to remember that this protocol, which was signed and agreed to by the international community in 1997, was the first step in an international effort to ensure that the countries in the industrialized world, working in common but each in its own way, would impose a reduction in greenhouse gas emissions within their own borders.
The Bloc Québécois was in Kyoto in 1997. The Bloc Québécois got an accurate picture of the state of the environment on this planet. And then we came back here, to the House of Commons, and sounded the alarm, not only to Canadian parliamentarians, but to the entire population of Quebec and Canada, calling on the federal government to act expeditiously, in 1997, to reduce greenhouse gas emissions within Canada's borders. We did not leave it at that in 1997. In Quebec we initiated a broad coalition, initiated also by the young people of Quebec, calling on the federal government to ratify the Kyoto protocol as quickly as possible. It was as a result of that initiative in Quebec, which the Bloc Québécois supported, that several years later the Canadian government got on board with what the Bloc Québécois was calling for.
Between 1997 and 2000 we had a federal government whose only goal was to advance the interests of the west and of the economic base of Alberta, the oil industry, a heavy producer of greenhouse gas emissions. We are well aware that while the oil industry is the cornerstone of Alberta's energy policy, Quebec's manufacturing industry was in danger of being the first victim of the federal approach in the years that followed, the goal of which was quite simply to penalize Quebec in the overall effort to reduce greenhouse gases in Canada.
We must recall the facts. While Quebec, with Manitoba, was preparing and presenting one of the first plans to combat climate change in Canada, the federal government was sitting on its hands. Remember Quebec was one of the first provinces to take action in the fight against climate change. What we are essentially calling for today is more fairness in the approach that will be presented by the federal government in the days or weeks to come.
As a result of its actions, Quebec will be able to present to the international community, and to Canadians, some of the best greenhouse gas reduction figures in Canada, since we have succeeded in limiting the increase in our emissions to approximately 6% as compared to more than 26% or 27% for Canada.
It has been shown that when we act and decide to implement a policy, a plan and effective programs to fight climate change, we can achieve the greenhouse gas emission objectives.
Today, the government is proposing that we set intensity targets. The reason we put forward an opposition day motion today is to send the government a clear message: we want absolute targets for greenhouse gas reduction, which result in real reductions in greenhouse gas emissions. We do not want to support this federal approach which would take into account the growth in oil production and in the oil sands sector when setting greenhouse gas reduction targets.
We believe that the only acceptable reference is the one in the Kyoto protocol. It requires an absolute reduction of 6% of greenhouse gas emissions in Canada. This is what we are asking for in this motion. Let us not forget that over the next few days, the federal government will try to persuade us, with its intensity targets, that it has rigorous and strict greenhouse gas reduction regulations for the major polluters and industrial emitters, which are primarily concentrated in western Canada.
It is important to understand the situation: a 15% reduction in greenhouse gas emissions based on an intensity approach represents a 179% increase in greenhouse gas emissions in the case of the oil sands sector alone.
This government has a legal and a moral obligation to respect the principles set out in the Kyoto protocol and not to let the public think that the targets in place will enable Canada to meet its international commitments. The reality is that these intensity-based reductions will have the effect of increasing greenhouse gas emissions in the oil and gas sector by approximately 46%. The public has not been taken in . This past Sunday in Montreal they sent a clear message: they want a real reduction in greenhouse gas emissions, a real reduction achieved through clearly established absolute greenhouse gas emission reduction targets. This is the only solid means of bringing us in line with Kyoto protocol requirements in order to preserve our environment and develop our economy.
Not only will these intensity-based targets not improve the state of our environment, but there is also a risk of their compromising one of the most powerful tools of the Kyoto protocol, namely the creation of a carbon exchange. The creation of an emission credit exchange system and a climate exchange is among the most powerful tools available to us. It will enable us to meet our international commitments, while providing worthwhile prospects to Quebec businesses, which will be able to sell and buy greenhouse gas emission credits on the Canadian, European and international markets. Quebec will be able to sell credits because many businesses have successfully reduced their greenhouse gas emissions. Those, in my opinion, are important tools for developing our economy.
Moreover, an analysis by Richard Kelertas, forestry product sector analyst for Dundee Securities, in the April 7 issue of Journal Les Affaires has indicated that the creation of a well organized carbon credit negotiation system—perhaps as early as 2008—might result in a marked rise in the worth of a number of Canadian forestry companies.
Contrary to what the government would have us believe, protecting the environment and establishing real greenhouse gas reduction targets will not hurt our economy. Rather, this will enable many businesses and industrial sectors in Canada and Quebec to reposition themselves and create major economic opportunities.
That being said, we must read what Mr. Kelertas wrote. What is a well-organized system? It is one in which the targets we set and the system we create are compatible with existing foreign markets.
The European example is probably the best one available. Europe is working toward the Kyoto protocol targets and will probably achieve them. We believe that by complying with the targets, Europe will limit the protocol's economic impact to less than 1% of the gross domestic product. Reports of the European Commission have made this clear. That means it is possible, here in Canada, as in Europe, to both comply with the Kyoto protocol and limit its economic impact.
Clearly, this proves that this week's analysis by the Minister of the Environment does not hold water. This proves that the premises on which he based his economic analysis of the Kyoto protocol are biased. We must establish carbon credit trading mechanisms.
Where should the exchange be located? It should be located in Montreal. Why Montreal? Simply because this specialized area is already part of Montreal's derivatives sector. In 1999, in Canada, an agreement was signed with the Toronto Stock Exchange that left spot trading to Toronto and derivatives to the Montreal Exchange. Emission credits and environmental markets are derivatives.
Of course, in recent weeks, we have heard that the Toronto Stock Exchange would like to be the site of this derivatives market. Toronto would like to have the climate exchange. However, under this 1999 agreement, Montreal is entitled to the climate exchange because it specializes in derivatives. Montreal did not simply let itself be guided by an administrative agreement or courted by certain markets. It went further and, in December 2005, decided to sign an agreement with the Chicago Stock Exchange to form important north-south economic ties in connection with the climate exchange. I believe that the Montreal Exchange is better suited, simply because it has this expertise and experience, and could play an important role.
Luc Bertrand, president and CEO of the Montreal Exchange, has said that combining the Montreal Exchange's unique position in Canada's financial markets and CCX's global leadership in environmental markets will result in innovation for the benefit of all Canadians and the environment.
There is definite interest in creating this emission credit trading system in Canada, because it will create numerous job opportunities. But the federal government's inaction in recent weeks is hurting Canadian companies like Biothermica, which does business abroad and is just waiting for absolute greenhouse gas reduction targets and a national registry that will enable this credit exchange system to be set up, in order to deal on the international market. But instead of announcing absolute targets, the minister came to Montreal yesterday to present catastrophic greenhouse gas reduction scenarios. He announced that hydro would cost 60% to 65% more in Quebec.
The federal government does not know much about the reality of energy in Quebec, where 95% of electricity is hydroelectricity. To extend its fear campaign into Quebec, on principles that are not prevalent in Quebec, is to mislead the public. This fearmongering is unacceptable. That is why we are presenting this motion today, because it is important. Before the government announces its reduction targets a few days from now, we are sending a clear message to the federal government: we are demanding that the Kyoto protocol be respected. We want absolute targets to reduce greenhouse gas emissions. We want an emissions trading system. We want to create opportunities for Quebec and for Canada and to protect our environment at the same time.
On this side of the House, we have made constructive, concrete proposals that can work well with the international proposals that have been made so far. The only thing the government has presented is a fear campaign.
By trying to kill the Kyoto protocol, by rejecting its greenhouse gas reduction targets, by telling us it has no intention of using the mechanisms in the protocol, the government is simply telling us that it does not want to protect the planet. We have to make that clear and we will continue to be vigilant. Furthermore, Canada may want to refuse to honour its international commitments, but I can assure the Canadian public that Quebec does not intend, as the federal government has done so far, to reject the Kyoto protocol.
We have implemented a plan that allows us to respect our greenhouse gas reduction targets. The minister said to me last week that Quebec received $350 million and that we should be happy about that. Let us not forget that the federal government's approach in the coming weeks and days will not get Quebec $350 million ahead because if we weaken the foundation of Quebec's economy and its manufacturing sector, Quebec will suffer even heavier losses.
Finally, with today's motion, we are simply asking that the polluter-pay principle apply instead of polluter-paid.