Speeches

Conference Board of Canada - GHG Reduction Initiatives Forum

Delivered on Monday, February 23, 2009
Ottawa, Ontario

Introduction

• Thank you Gilles. Good afternoon ladies and gentlemen.

• It's a pleasure to be here once again in our Nation's capital.

• One of the fringe benefits of being Alberta's Minister of International and Intergovernmental Relations is I get to spend a good deal of time here.

• I'm always treated very well when I come here…

• However… unlike your special visitor last week… I think people would be much less interested if I were to buy a Beavertail at the Byward Market.

• There are not many other places in North America that can satisfy my appreciation of culture and history… my interest in the law… and of course the political junkie in me.

• Indeed this is a special place to be.

• As a lawyer and Alberta's former attorney general, it's still a thrill to stroll past the Supreme Court of Canada building.

• And as a politician…if the House of Commons is going through a period of ill decorum and lack of civility - that is if it's in session -… there is always the Museum of Civilization.

• You know, someone once described Parliament Hill to me as "one million square feet surrounded by reality."

• Ladies and gentlemen, I can tell you that the issues facing our country and our elected representatives are as serious and as real as we have seen in a number of generations.

• In my political life, I have never seen a greater need for leadership to tackle an onslaught of challenges that touch Canadians in such a tangible way.

• And that's what I would like to discuss with you today:

• First, the importance of the potential North American climate change discussions…

• ….and second, why provinces must be partners in Canada's national, North American and global efforts to address climate change.

• With the colour of money on everyone's mind, one might wonder whether going green has been put on the backburner of the Canadian consciousness…

• In fact, pollsters confirm that Canadians' sense of urgency about the environment has fallen as rapidly as our concern about the economy has risen.

• But if there were ever a time to not read too much into the polls… now would be it.

• I believe that concerns about greenhouse gases… pollution… water shortages… human health…the industrial footprint… are now solidly entrenched in the hearts and minds of Canadians…

• …regardless of the state of the economy.

• Canadians want to know we are doing our best to leave a planet for the next generation as good or better than the one we found.

• And they want to see action… especially when it comes to addressing climate change.

• I can tell you that Albertans are as fiercely passionate as any Canadians about environmental preservation.

• Albertans take great pride in our province's rich natural beauty. We enjoy some of the continent's most beautiful national parks, unique badlands, soil-rich prairies and expansive forests.

• We are also very proud that the natural resources we own provide jobs for fellow Canadians.

• We take comfort in knowing the tax dollars generated by this sector go into services that benefit the entire Canadian family.

• Alberta's oil sands - the second largest proven reserve of oil in the world - are a critical strategic resource for the ailing economy... domestically and beyond our borders.

• How we develop them will play a big role in helping meet the world's future energy demands.

• Albertans have seen industry make technological advances on the production side to reduce emissions and lessen the environmental footprint…

• …But we know much more can be done to make extraction of our natural resources more environmentally sound.

• And we believe this can be achieved without sacrificing jobs or the economy.

• As leaders we need to put the conditions in place that empower Canadians to work together on innovations to ensure both economic growth and greater environmental protection.

• So as we begin the process of developing a workable Canadian and North American greenhouse gas reduction strategy, we must carefully consider the ramifications of what we are contemplating…

• …especially with respect to energy producing provinces.

• According to the International Energy Agency, world-wide energy demand is expected to grow by 45 percent between 2006 and 2030.

• The agency also projects that fossil fuels will account for 80 per cent of the world's primary energy mix in 2030.

• And that oil will remain the dominant fuel.

• Needless to say, there is a lot at stake. So we need to do this right.

• In fact, with due respect to NAFTA, a continental climate change pact may be the most important North American initiative we have ever pursued.

• It will directly touch every facet of our lives:

• …from the jobs we work today…and the new jobs of the future…

• how we heat our homes…and the price we pay for that energy…

• … the cars we drive…and the prices we pay to drive them…

• The global downturn has forced us all to be more innovative in our approach to policy making.

• There is a greater understanding that strategies on energy security, environmental protection and economic recovery cannot be developed independently.

• They must work in unison to ensure that Canada emerges from our current challenges more prosperous, more competitive, and more sustainable.

• This is a coalition of ideas that Canadians strongly support… and want to see succeed.

• Conferences like this are where the necessary innovation can be fostered.

• Speakers and those in attendance include government leaders, environmentalists, economists and industry leaders.

• In this room we have a diverse array of opinions on the subjects at hand.

• But collectively each one plays an important role in focusing policy development.

• This brings me to the role of provinces in our collective effort to address this momentous challenge.

• There are two main reasons why provinces must be partners in this global endeavour that I wish to discuss with you today.

• First, the constitution requires the consent of provinces to implement international treaties in areas of provincial jurisdiction.

• Second, the experience and policy tools provinces have gained in the areas of energy and the environment can be important sources of strength for Canada in international discussions.

• Fundamentally, the issue of climate change is about energy and how we use our natural resources.

• Both of these issues fall squarely within provincial jurisdiction.

• Provincial support is necessary if Canada hopes to implement the terms of any international treaty touching on these areas of jurisdiction.

• But, if we examine the jurisdiction of the provinces more closely, we can see that there is tremendous potential in utilizing the capabilities we have under the Constitution.

• Let me give you a few examples.

• Provincial authority over non-renewable natural resources and electricity means that provinces have the legislative responsibility to set out the pace and conditions for resource development.

• Provincial responsibility for public lands means that provinces manage the vast ecosystems that absorb carbon dioxide from the atmosphere.

• Provincial responsibility for local works means that we manage the development of much of Canada's transportation and public infrastructure.

• Decisions made regarding how and what we build now will impact Canada's emissions footprint for decades to come.

• Provincial responsibility for property means that provinces set building codes that guide the energy efficiency for commercial buildings and personal residences.

• Last, and perhaps most important, provincial responsibility in the area of the environment means that all of Canada's provinces have existing emissions frameworks for industrial air pollutants.

• When you consider the breadth of provincial jurisdiction in this area, I think you will agree that this is an area of provincial responsibility.

• Because this is the case, we have much we can bring to the table to assist in national and international efforts to combat climate change.

• Let me be outline how Alberta has been acting in our areas of responsibility.

• Alberta believes that climate change is one of the most significant challenges facing the global community.

• We never sought a free pass on this issue. Far from it.

• We have implemented an ambitious set of policies that are already reducing emissions and setting the foundations for massive emissions reductions in the future.

• Alberta was the first jurisdiction in North America - and remains the sole jurisdiction, including our federal government, with comprehensive legislated greenhouse gas emission limits for our large emitting industries.

• While there continues to be debate about what the right approach is, we have demonstrated that practical solutions can be implemented.

• These solutions are showing real results in Alberta.

• Alberta has also demonstrated an unprecedented commitment to the technologies of the future with a $2 billion investment in carbon capture and storage.

• Just last week, we introduced a bill that enshrines that commitment into law.

• This is one of the largest investments in the world by a government in a technology that the Intergovernmental Panel on Climate Change… the United Nations… and several environmental groups… have said will be a major part of the solution.

• Last week both Prime Minister Harper and President Obama referred to CCS as an integral component in the Dialogue on Clean Energy the two leaders agreed to.

• As our Premier Ed Stelmach said last week, it was music to our ears to hear the prime minister and the president "speak Alberta's language".

• We heard recognition that we need secure and stable energy to create jobs and prosperity.

• We heard a commitment to the environment that recognizes technology as the key to solving the challenges we face.

• Alberta's accomplishments over the next few years will help add CCS to the global climate change arsenal of solutions.

• These solutions will make real, lasting emission reductions.

• However, cleaner fossil fuel production is only one piece of the puzzle.

• As our recently released energy strategy states… renewable energy sources will be increasingly important in Alberta's energy portfolio.

• Alberta has made significant investment in alternative energy through its 239 million dollar bioenergy initiative.

• Support from this program has leveraged 850 million dollars in additional private investment to date in renewable energy.

• Alberta is among the leaders in Canada in wind power development.

• And the provincial renewable fuel standard will require five per cent ethanol content in gasoline and two per cent renewable content in diesel by 2010.

• Just 10 days ago we released a 20-year-plan for Alberta's oil sands.

• It's a strategic plan that identifies and addresses the economic, social, environmental, research and innovation, and governance needs of Alberta's oil sands regions.

• As you can see, Alberta has worked in our areas of jurisdiction earning substantial expertise and credibility along the way.

• Through all of these processes Alberta continues to build the kind of policy and analytical capacity that will be key to the success of a national or North American approach to climate change.

• We have leading North American expertise in applying specific requirements to a diverse set of facilities and sectors.

• We now have a better sense of the economic implications of carbon prices on industry, and how these costs could flow through to consumers.

• This work has allowed us to build relationships with industry and other stakeholders that help see us through difficult conversations and negotiations.

• This expertise and these relationships are important sources of strength that Canada should draw on as it seeks to develop bold greenhouse gas reduction proposals and programs.

• I think it's fair to say that Alberta has undertaken significant actions in Canada addressing the climate change file.

• This action has come with inherent risk. When we act, it gives others something tangible to react to.

• I will be frank. It's frustrating to listen to critics negatively contrast our real actions with what amounts to only the words and promises of others.

• There is no jurisdiction in North America that has been more comprehensive in reducing emissions through regulation and investments in technology than the Province of Alberta. And we will do more.

• But our work cannot happen in isolation. We believe that national and international actions are needed.

• In fact, a national consensus that will lead us towards properly formed national and North American climate change policies is needed to bring certainty to our industry…and stability to our economy.

• When it comes to national challenges, the quest for expediency is often the enemy of real solutions.

• In fact, real solutions tend to appear when the federal government acknowledges the importance of provincial jurisdiction.

• They don't happen when the federal government seeks to stretch the bounds of what they might achieve alone.

• This is one of the many reasons why signing the Kyoto agreement - without provincial consensus - was doomed to fail.

• Climate change has been on the national agenda for at least 15 years.

• In that time Canada's governments have reached three multi billion dollar health funding agreements…

• …made significant strides in breaking down internal trade barriers…

• … and are currently working together to get infrastructure built at an unprecedented rate.

• Do we believe that climate change is a problem equal to the importance we place on any of these issues?

• I think so.

• There is no denying that this will be challenging for the federal government to manage.

• There are different economic and regional interests, differing regulatory regimes across jurisdictions and uneven policy implementation capacity across governments.

• But the challenges are no less in other global endeavors where the federal government cannot fulfill Canada's obligations unilaterally.

• Provinces make the necessary legislative changes in areas of provincial responsibility to bring Canada into compliance with new international obligations.

• Why would anyone assume anything less will be required in a policy area as complex as climate change?

• It is time that we start to put climate change in the same category as the other leading public policy challenges of our time.

• From health care to international trade, Canada does not act without national consensus in areas that impact provincial jurisdiction.

• It is time to start building a true national consensus on climate change…

• ...the kind of consensus that allows Canada to match its actions to its rhetoric…

• … the kind of consensus that will show the lasting results required if we are to produce results for generations to come.

• … the kind of consensus that involves all Canadians.

• Individuals and companies on the ground will determine the success of Canada's efforts to combat climate change.

• Progressive targets must be matched with the ability to shift the way in which engineers currently design facilities…or the vehicles of the future.

• … or homeowners deciding whether they should incorporate better insulation or higher efficiency furnaces.

• It is provinces that are best positioned to set Canada on a successful path that will yield results from the grassroots up.

• So I would say to the Federal government... "Look to your partners in confederation to help you…

• …and avoid fanciful or harmful prescriptions from those with little experience or competing objectives."

• The Constitution simply does not grant any federal policy lever that could come close to achieving what Canada's governments can achieve together…

• … if all of Canada's governments work, in their respective areas of responsibility, to reduce Canada's greenhouse gas emissions.

• There are a number of emerging dynamics that offer Canada an opportunity to achieve a durable, national approach to climate change.

• We have a fully formed consensus regarding the magnitude of the challenge.

• We have a new U.S. administration prepared to bring forward long-term solutions to the problem.

• And Canada's provinces are rapidly advancing their own proposals and solutions in preparation for a shift to a carbon constrained world.

• The cycle of international negotiations stands at a point where we can learn from the past and prepare to deliver for the future.

• We must bring the full range of policy levers to the international table and prepare to honour our commitments when negotiations conclude.

• To successfully achieve this type of international engagement, provinces must be closely involved with the federal government in the negotiating process.

• We must speak with one voice - the federal government's voice - but provinces must be active and integral players in developing Canada's commitments and delivering results for Canadians.

• Signals Alberta has been getting so far from the federal government… including during discussions at the recent Environment Ministers' meeting in Yukon… is that they understand this.

• Let me outline a starting point that Alberta would like to see.

• To achieve the best outcome, Alberta believes there are a number of ways Canada can prepare for success.

• Chief among them is the development of a formal arrangement setting out the terms of the partnership between the provinces and the federal government.

• In doing this, I think we can draw upon an emerging model from the area of international trade.

• In the area of trade, provinces are active members of Canada's delegations to international meetings.

• As we seek to launch Canada - E.U. trade negotiations, the E.U. has specifically requested the participation of provinces to ensure Canada's willingness and ability to deliver on its commitments.

• In response, the federal government recently provided provinces with a series of concrete commitments regarding how provinces will be involved in the negotiating process.

• These commitments include:

  • Regular and timely meetings prior to and during the negotiations.

  • Sharing all relevant information, in advance, to give all jurisdictions sufficient time to prepare their positions on key issues.

  • Transparent development of jointly-determined negotiating positions based on federal and provincial negotiating mandates.

  • Engaging provinces at the negotiating table, with the consent of the federal government, in detailed discussions where provinces have specific expertise.

• These are important commitments from the federal government and provinces should be prepared to do their part in managing the implementation of any international agreement Canada concludes.

• It is important to note that Alberta is not alone in pursuing this approach.

• The Council of the Federation has endorsed formal mechanisms for provincial participation in international discussions.

• In closing, I'm not here to be prescriptive about the exact climate change law, regulations or programs that Alberta believes are the right ones for the country, or for the continent.

• We recognize the complexity of the challenge and the need for all governments to contribute their best efforts to arrive at a workable consensus…

• …a consensus that will take shape over many hard negotiating sessions.

• And that has been my point today.

• To arrive at the best outcome for Canada we must start to prepare now.

• The federal government must allow all willing provinces to be actively engaged in GHG reduction discussions before Canada enters into meaningful international negotiations.

• Only then will we have the potential to create significant and lasting reductions that cement Canada as a leader in a new, cleaner world economy.

• Only then will we empower Canadians in every corner of our nation to create the solutions that will be the pride of generations to come.

• Thank you.