The Free Ride Is Over

Canada needs an environmental policy that requires short-term sacrifices from businesses and individuals.

When it comes to climate change, Canada is on the sidelines with little credibility in the international community. We consume a lot of energy and we produce a lot of energy. The numbers tell a sad story and get at the core of the problem. Canada's emissions in 2007 were 26 per cent above 1990 levels, meaning 33.8 per cent above Canada's commitment to the United Nations. Canada’s emissions since 1990 have grown by more than any other G-8 nation.

This track record means that Canada is out of step with where the world is going on energy and climate change. At some point the government will have to reconcile the contradiction between Canada’s real actions and desired role in the world. As well, you and I have to come to terms with living within our means and paying more for the energy we use and the greenhouse gas emissions we cause.

Some think that climate change is a farce and that the idea of paying for carbon pollution died with the vote on the carbon tax in the last federal election. Think again.

While we are distracted with the short-term pain of the recession, there are some focused on the long-term game of managing climate change and moving to a low-carbon economy. A Canadian government think-tank called the National Roundtable for the Environment and Economy (NRTEE) published a report ("Achieving 2050") on where Canada should go on climate change and how we can move to a low carbon economy. This is complicated and costly stuff, but the NRTEE puts forward some coherent recommendations in Achieving 2050. The report says in simple language and practical terms that Canadian governments, businesses, and citizens should get ready for a new way of life. The bottom-line is polluters will pay.

The NRTEE recommends a cap and trade system and other measures to put a price on carbon pollution across all aspects of the Canadian economy. It also states that we need to pursue a road map to make deep and fast emissions reductions by 2020. Doing nothing is a risky option that could result in trade tariffs that damage our economy. Moving slowly will be costly to the economy. Continuing with the current fragmented approach – with some provinces progressing with cap and trade or carbon tax initiatives and others regressing as they push oil and gas exploration – is economically inefficient and environmentally ineffective. Taking action sooner than later is essential and we should not underestimate that this will be one of the most significant tests for the Canadian federation and Canadian citizens.

In 2017, Canada will be 150 years old. If Canada is to be competitive economically and environmentally as a player in a new low-carbon economy, it’s critical to get in the game now. How do we start a new national project right now? The federal government could announce a formal intent to move to ambitious yet achievable absolute climate change targets for 2020. To build bridges to other leading governments, the federal government could seek observer status with the Western Climate Initiative to learn more about cap and trade systems. To take a stronghold on this issue, the prime minister could make climate change and energy security a centerpiece of a fall Throne Speech or Economic Update. New federal funding to stimulate the economy could focus on technology innovation and commercialization or renewed incentives for renewable energy sources. All leaders in all walks of life could be honest enough to say that that the old policies, ways of doing business, and ways of living won’t cut it anymore. These kinds of tactics will be important if Canada wants to play the climate change game. If we don’t take action, we risk being sent to the penalty box when the international negotiations happen in December 2009.

What does all this mean for you and me? Well, the rules of the game are about to change. The days of cheap water, electricity, oil, and gas are coming to an end. We should anticipate that we will live in a country where it costs a lot to wastefully consume or produce energy as we have done to date. And we will live in a world where we can only compete for jobs and produce viable businesses if we are a player in the low-carbon economy.

As we pull ourselves out of this recession, we must strive to make incomes go up and greenhouse gas emissions go down.