Kyoto requires scrutiny

Our industry takes the issue of climate change seriously, and we are actively engaged in developing and implementing measures to limit greenhouse gas (GHG) emissions. We are committed to continuing these efforts in concert with governments and stakeholders.

However, immediately after the international agreement in Bonn, Germany, this past summer, Canadian Prime Minister Jean Chretien indicated that the way is clear for this country to ratify the Kyoto Protocol agreement on greenhouse gas emissions, subject to full consultations among governments and with stakeholders.

We believe governments need to clearly understand what measures are needed prior to ratification. We need to know how those measures would work, as well as what would be the consequences for the Canadian economy and consumers.

Notwithstanding our progress in reducing GHG levels, Canada’s emissions continue to grow at the rate of more than 1.6% per year, which will leave us more than 25% over the Kyoto target by 2010. To meet the Kyoto target would require emission reductions of more than 3% per year. No other country signing the agreement faces such a huge economic challenge.

In addition, the U.S., Canada’s largest economic partner, will continue to reduce GHG emissions but will not sign the Kyoto agreement.

This prospect is especially daunting at a time when the trade policies and economic relationships between our two countries are becoming more aligned than ever before. Despite the outcome in Bonn, Kyoto remains a difficult challenge for Canada, and the full risk of economic disruption must be addressed.

The mining industry makes a vital contribution to the nation’s wealth base, and to job creation in rural, remote, northern, Aboriginal and urban regions. Mining employs 401,000 people in Canada, or one out of every 37 workers. That kind of impact should not be overlooked.

— The preceding is an excerpt from a paper submitted to the House of Commons Standing Committee on Industry, Science and Technology. The Mining Association of Canada is based in Ottawa.