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Viewing cable 06OTTAWA1685, THE HARPER GOVERNMENT'S "MADE IN CANADA" CLIMATE

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Reference ID Created Released Classification Origin
06OTTAWA1685 2006-06-01 21:03 2011-04-28 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ottawa
VZCZCXRO5166
RR RUEHGA RUEHHA RUEHHM RUEHLN RUEHMA RUEHPB RUEHQU RUEHVC
DE RUEHOT #1685/01 1522103
ZNR UUUUU ZZH
R 012103Z JUN 06
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC 2716
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 1210
UNCLAS SECTION 01 OF 02 OTTAWA 001685 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR WHA/CAN, OES/EGC, AND EB/ESC/IEC/EPC 
 
E.O. 12958: N/A 
TAGS: SENV ECON ENRG PGOV CA
SUBJECT: THE HARPER GOVERNMENT'S "MADE IN CANADA" CLIMATE 
CHANGE PLAN TAKES SHAPE 
 
REF: A. OTTAWA 1323 (NOTAL) 
     B. OTTAWA 302 (NOTAL) 
 
1.  (U)  Sensitive but unclassified. 
 
2.  (SBU)  As the domestic debate intensifies on Canada's 
climate change policies, details are slowly emerging on the 
Harper government's "Made in Canada" climate programs, which 
will include enhanced public transportation, increased 
ethanol production, clean air legislation, and a "large final 
emitters" program.  Government officials have said the full 
plan will be unveiled in the fall, but various components may 
be announced this summer.  A recent visit by Australian Prime 
Minister Howard garnered heightened interest in Canadian 
participation in the Asia Pacific Partnership for Clean 
Development and Climate.  In the meantime, opposition 
politicians, environmental NGOs, and other observers have 
roundly criticized what they see as the government's 
"backtracking" on the Kyoto Protocol.  End summary. 
 
3.  (SBU)  The public discussion of Canada's climate change 
policies began to gain momentum several weeks ago when 
Environment Minister Rona Ambrose told the House of Commons 
that it would be "impossible" for Canada to meet its Kyoto 
emissions reductions target.  Canada's emissions of 
greenhouse gases, Ambrose noted, are currently 35 percent 
higher than 1990 levels, and a reduction to six percent below 
1990 levels by 2012 would therefore be completely 
unattainable.  Further, during the April visit to Ottawa by 
Under Secretary for Global Affairs Paula Dobriansky and 
Chairman James Connaughton of the Council on Environmental 
Quality, Ambrose indicated that Canada would not agree to a 
second round of Kyoto emissions commitments (ref A) which did 
not include all major developed and developing countries. 
Alluding to the Protocol's Clean Development Mechanism, 
Ambrose told the press that the government would be pursuing 
"Made in Canada" solutions and had no plans to purchase 
emissions credits from other countries. 
 
The Harper Government's Plan... 
------------------------------- 
 
4.  (U)  Although the government has not formally unveiled 
all of the features of its new programs, some components will 
be tax credits for regular users of public transportation, as 
well as increased ethanol production.  Details have yet to 
emerge on how the transportation program will be managed, but 
the Harper government expects to spend as much as C$370 
million (C$1.00 equals $0.92 U.S.) over the next two years on 
public transportation tax incentives.  In addition, 
Environment Minister Ambrose described as "historic" a recent 
federal-provincial deal on ethanol, which is intended to 
boost the ethanol content of Canadian gasoline to five 
percent by 2010. 
 
5.  (SBU)  Minister Ambrose told U/S Dobriansky and CEQ 
Chairman Connaughton during their visit to Ottawa that the 
government would also seek to achieve greenhouse gas (GHG) 
emissions reductions through clean air programs, while at the 
same time reducing emissions of nitrous oxides, sulfur 
dioxide, and particulate matter.  The Harper government also 
expects, before the end of the year, to release details on 
the oft-delayed "large final emitters" (LFE) program.  The 
emissions reduction program, once considered to be the 
centerpiece of Canada's Kyoto compliance plan, became mired 
in endless negotiations between industry and the previous 
Martin government, and in 2004 the government postponed its 
implementation.  Ultimately, the LFE program is expected to 
Qimplementation.  Ultimately, the LFE program is expected to 
cover the 700 largest industrial facilities in Canada, 
responsible for about half the country's GHG emissions. 
Finally, carbon sequestration is likely to play a prominent 
role in the government's program.  These technologies have 
received significant coverage in the Canadian media recently. 
 
 
6.  (U)  The recent three-day visit of Australian Prime 
Minister John Howard showed continued Canadian interest in 
the Asia Pacific Partnership for Clean Development and 
Climate (APP).  The APP appears to match the Harper 
government's "Made in Canada" pledge with the desire to 
cooperate with like-minded countries such as the United 
States and Australia (ref B).  Prime Minister Harper publicly 
expressed interest in the APP, commenting that the 
partnership's approach to climate change "is very much the 
path our government's looking at."  For his part, Prime 
Minister Howard said that Australia would "warmly welcome" 
Canada's participation.  (Comment: Our follow-up with 
 
OTTAWA 00001685  002 OF 002 
 
 
Australian diplomats in Ottawa indicates that Howard did 
remind Harper that adding new participants to the APP would 
require the approval of all six governments.  End Comment.) 
 
...and its Critics 
------------------ 
 
7.  (U)  As Minister Ambrose prepared to chair a United 
Nations Framework Convention on Climate Change (UNFCCC) 
meeting in late May in Bonn, Canadian newspapers quoted a 
leaked GOC policy memo opposing mandatory GHG emissions 
reductions in a post-2012 regime.  Liberal Party environment 
critic Scott Brison called the memo "outrageous" and 
"dangerously duplicitous," and called on Ambrose to resign as 
chair of the Conference of Parties (COP) of the UNFCCC 
(Canada will serve as chair of the COP until the next general 
meeting in late 2006).  The Toronto Star, the largest 
circulation newspaper in Canada, editorialized that the 
Harper government was "sandbagging" negotiations over more 
stringent GHG reductions. 
 
8.  (U)  The shift in Canada's climate change policy also 
drew criticism from environmental NGOs, as well as provincial 
leaders in Quebec and Manitoba.  NGO representatives have 
decried the cancellation of climate change programs that the 
Harper government believed were ineffective, including the 
consumer-oriented "EnerGuide" and "One Tonne Challenge" 
initiatives.  The Quebec assembly passed a unanimous motion 
urging Ottawa to honor its Kyoto commitments, and asked for 
C$328 million in federal funds promised by the previous 
Liberal government to finance new provincial climate change 
programs.  In Manitoba, Premier Gary Doer of the New 
Democratic Party (NDP) pledged that the province would meet 
its emissions reductions targets with or without federal 
support.  Quebec and Manitoba are well endowed with hydro 
power, so pledging to meet Kyoto targets comes at little or 
no cost to the provincial governments. 
 
Comment 
------- 
 
9.  (SBU)  Despite the strong criticism, Prime Minister 
Harper and his ministers appear determined to implement their 
strategy of pursuing technological solutions to climate 
change, but without formally withdrawing from Kyoto.  This 
approach risks continued censure from those who believe that 
Kyoto is sacrosanct, but the government can credibly respond 
that the previous Liberal government had not developed 
realistic plans for honoring Canada's Kyoto commitments. 
While the Harper government does not expect to have its full 
climate change program ready until the fall, we expect that 
various elements of the domestic package will continue to be 
rolled out over the next few months.  Internationally, the 
government seems to be focused on joining the APP, so its 
credibility will be tied to some extent to the progress made 
in that forum. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS