Balanced Climate Policy, Made in Canada?

In a September 25 poll on its website, the Globe and Mail asked Canadians: “In terms of global warming, what approach do you favour? Strict adherence to the Kyoto Protocol? The 'more flexible' approach suggested by Prime Minister Harper? A compromise between those two positions? No action is needed because global warming is not happening?” The about 86000 respondents were almost equally divided between the first three options, with only 5 % opting for “no action.”

But are politicians and media providing the information that would allow Canadians to make these judgments?  Kyoto-bashing has become something of a national sport, a sport that Canadian media have fallen for hook, line and sinker.  The same goes for political slogans touting the need for a “made in Canada solution” or a “balanced approach” to climate change.  Why indeed favour a “flawed treaty”? And why resist such reasonableness as home-made balance?

According to now conventional wisdom Canada cannot meet its Kyoto obligations.  Yet, even if domestic measures cannot deliver Canadian Kyoto compliance, there are good reasons for bringing Canada as close as possible to compliance. 

A Common but Differentiated Approach to Global Climate Policy: How not to Re-invent the Wheel

The world appears to have arrived, grudgingly in some cases, at a consensus that climate change is a serious environmental threat.  The global policy-making machine has slowly creaked into gear.  Indeed, various initiatives are now picking up speed on multiple tracks.

On track 1, discussions about new commitments to follow Kyoto post-2012 are taking place under the auspices of the 1992 UN Climate Convention.  On track 2, this year’s G8 Summit saw the leading industrialized states endorse the idea of 50% cuts in greenhouse gas emissions by 2050.  On track 3, the Asia-Pacific Climate Partnership, which Canada has now joined, is chugging along towards technological cooperation and an “aspirational” emissions target.  On track 4, US President Bush’s climate initiative wants to bring the 15 countries, including China and India, that emit 80% of global greenhouse gases on board.  Here too the destination is a “flexible” long-term target.

The Bali Challenge: How to Get a Global Climate Deal, and Fast?

According to UN secretary-general, Ban Ki- Moon, the most recent findings of the Intergovernmental Panel on Climate Change (IPCC) suggest that the impacts of climate change will be “so severe and so sweeping that only urgent, global action will do.”

The challenge at the pending UN meetings in Bali will be to set the tracks for just that: a regime that includes all major greenhouse gas (ghg) emitters and imposes meaningful emission reduction targets on them.

Canada’s Environment Minister, John Baird, has called the IPCC findings “powerful” and “overwhelming.”  Assuming, then, that Canada’s goal is to promote urgent and global action, what of its negotiating strategy for Bali?

That strategy was spelled out at last weekend’s Kampala meeting of the 53 Commonwealth states.  Canada blocked a final communiqué that would have called for a long-term global target, as well as binding commitments to deep, absolute emission reductions by developed countries.  The statement’s focus on developed countries was the rub.  As Prime Minister Harper confirmed, Canada will resist any deal that does not include all major polluters.

Getting on Like a House on Fire – Bali Style

There is something surreal about the current climate talks in Bali. Think about it this way…

Life is good in the penthouse suites.  The open and airy lofts boast the latest in sleek Italian furniture, the ultimate in German kitchen design, and screening rooms with state of the art plasma screens and surround sound systems.

Money is no object. The owners are, well, “financially comfortable” (some would say plain rich).  They enjoy the best wines from around the world, champagne from France, beef from Japan (sometimes Argentina), caviar from Russia and bottled mineral water from the finest springs.

Only one thing is puzzling about the penthouse suites. The blinds are drawn. And the air-conditioning is running in the winter.  Delivery staff rushes in and out, leaving sooty clothes and oxygen tanks at the door.  Because, you see, there is trouble in penthouse paradise. It sits atop a building that is now surrounded by fire and is beginning to smolder.

This is not news to the people in the penthouse, or to anyone else in the building. In fact, the building association has known about the approaching fire for many, many years. Back in 1992, it even adopted a framework agreement with the objective to avert a “dangerous” fire hazard. 

The Green Energy Act: Green Energy Unbounded

On February 23, 2009, the Minister of Energy and Infrastructure introduced the Green Energy and Green Economy Act, 2009 for first reading in the Ontario Legislature.  The Green Energy Act has broad policy implications for energy and environmental policy.  The attached commentary addresses the impact of the Act on public utility regulation in Ontario.  The author looks forward to feedback on this commentary and also encourages comments on other impacts of the Green Energy Act.

Download Green Energy Unbounded

 

Wind Power is a Complete Disaster

This commentary was first published in the Financial Post on April 9, 2009.

There is no evidence that industrial wind power is likely to have a significant impact on carbon emissions. The European experience is instructive. Denmark, the world's most wind-intensive nation, with more than 6,000 turbines generating 19% of its electricity, has yet to close a single fossil-fuel plant. It requires 50% more coal-generated electricity to cover wind power's unpredictability, and pollution and carbon dioxide emissions have risen (by 36% in 2006 alone).

Flemming Nissen, the head of development at West Danish generating company ELSAM (one of Denmark's largest energy utilities) tells us that "wind turbines do not reduce carbon dioxide emissions." The German experience is no different. Der Spiegel reports that "Germany's CO2 emissions haven't been reduced by even a single gram," and additional coal-and gas-fired plants have been constructed to ensure reliable delivery.

Indeed, recent academic research shows that wind power may actually increase greenhouse gas emissions in some cases, depending on the carbon-intensity of back-up generation required because of its intermittent character. On the negative side of the environmental ledger are adverse impacts of industrial wind turbines on birdlife and other forms of wildlife, farm animals, wetlands and viewsheds.

Jim Tory Law & Economics Public Lecture

THE 2011 MEETINGS OF THE CANADIAN LAW AND ECONOMICS ASSOCIATION
Jim Tory Law and Economics Public Lecture

Innovation Policy, Carbon Pricing and the Dynamics of Global Warming

Professor Ralph Winter
Canada Research Chair in Business Economics and Public Policy 
Sauder School of Business, University of British Columbia

1:30 - 2:30
Friday, September 23, 2011

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