Mr. Speaker, the response is as follows:
With regard to a) Budget 2007 confirmed the arrangements for the trust fund for clean air and climate change by establishing a third-party trust, a $1.5 billion initiative, to provide resources to provinces and territories that identify major projects that target real reductions in greenhouse gas emissions and air pollutants. These projects range from infrastructure to community energy efficiency campaigns.
The ecotrust for clean air and climate change is a transfer payment to the provinces and territories. Provinces and territories have the flexibility to draw the funds over three years according to their respective schedule and priorities. Provinces and territories report directly to their residents on the commitments and progress made under the trust.
The Government of Canada has made a number of joint announcements with provinces and territories regarding the planned expenditures under this trust, and in many cases provinces have publicly acknowledge the use of ecoTrust funds in their budget and project announcements.
Under this type of funding arrangement, the provinces and territories are not required to report to the government on how they use that money to achieve results. Provinces are encouraged to acknowledge in their public announcements the funding contribution provided by the Government of Canada to reduce emissions of air pollutants and greenhouse gases.
For example: Alberta’s recent budget announced $1.1 billion for carbon capture and storage and projects funded through the climate change and emissions management fund and Canada ecotrust for clean air and climate change. Alberta received close to $160 million of ecotrust funds. Nova Scotia acknowledged the financial assistance of the Government of Canada’s ecotrust in its 2008 report “EcoNova Scotia for Clean Air and Climate Change”. The Ontario government has identified that ecotrust is financially contributing to initiatives, including: the development and implementation of policies to monitor, analyze and address smog and air toxins; expansion of the GO Transit system; and the establishment of a bio-energy research centre associated with the Atikokan generating station.
With regard to b) Under the operating principles of the trust, provincial and territorial governments are encouraged to report directly to their residents on the expenditures financed and outcomes achieved as a result of the funding provided through the trust.
In its climate change action plan in 2006, Quebec estimated that it would be able to achieve a reduction in greenhouse gas emissions of 10 megatonnes below otherwise projected levels for 2012. Subsequently, Quebec indicated that the $349.9 million in federal funds under ecotrust would enable it to achieve 13.8 megatonnes in reductions by 2012. This is an increase of 3.8 megatonnes attributed by Quebec to the $350 million it received under ecoTrust.
To estimate the likely emission reductions from the ecotrust contribution, we used Quebec’s estimate as the basis for estimating the total ecoTrust emission reductions.
1. $350 million/19 megatonnes in incremental reduction (3.8 megatonnes times 5 years) = $18.5 per tonne;
2. $1,500 million total Trust Fund / $18.5 per tonne = 81.1 megatonnes – cumulative reductions over five years;
3. 81.1 megatonnes / 5 years = 16.2 megatonnes per year.
With regard to c) The trust fund provides provinces and territories with the flexibility to draw down the funds over three years according to their respective schedule and priorities. The trust fund is allocated on a per capita basis and provides a minimum of $15 million per province and $5 million per territory to support efforts to develop technology, improve energy efficiency, and undertake other projects that will result in significant environmental benefits.
The intention behind ecotrust was to provide funding to provinces and territories that would allow them to supplement their current activities related to climate change and air emissions, thus allowing greater achievements in emissions reduction.
