Minister's Speech

Remarks prepared for:

The Honourable John Gerretsen
Minister of the Environment

At the 2nd Climate Change Technology Conference
McMaster University, Hamilton

May 14, 2009

(Check against delivery)

Thank you, John. (Minister to be introduced by Dr. John Plant - Conference Secretary )

I’m pleased to join you this evening.

I want to congratulate the Engineering Institute of Canada, all the organizers and Dr. John Plant for putting together the second Climate Change Technology conference.

I’m glad to be here at McMaster, one of the world’s finest universities.

In fact, both this university and Mohawk College are helping produce a highly skilled and innovative workforce both for Hamilton and our province as a whole. 

This area also boasts a spectacular natural environment, which includes the Niagara Escarpment, waterfront trails, fertile farmland, and one of the largest urban parks in North America.

So, I hope the conference guests who have travelled from out of province and from around the world have an opportunity to see all that this city offers while they are here.

Your conference and its focus on climate change technology is a timely one.  We need all our best and brightest minds on the task of tackling the root causes of climate change as well as helping develop the technologies that will help us mitigate the effects and adapt to the results.

To our government, this is a pivotal time for the province — for our environment, our economy, and the future well being of our people. 

We face two crises: climate change and the global recession.

Together they present an opportunity to lay the foundations for a low-carbon recovery that will address the longer term challenges of climate change, while acting on the financial crisis at the same time.

I think that the public understands this.  In fact, Canadians told a recent Ipsos-Reid poll they want their governments to keep focusing on a healthy environment even during tough economic times. 

We have reached a significant turning point and people recognize there’s no going back to the old ways.

We know climate change is here already.  Now we have to deal with it — as the conference theme recognizes.

To that end, we’ve appointed an Expert Panel on Climate Change Adaptation to help us prepare for and plan for the impacts of climate change. 

One of the panel co-chairs, Dr. David Pearson, is one of the presenters at this conference.

And David Lapp – a member of the panel from the Canada Council of Professional Engineers has played a key role in organizing this event.

The Panel is working on recommendations for adapting to the effects of climate change we can’t avoid.  For example, more violent rainstorms will require we find new ways to protect against flooding; more frequent ice storms will mean we need to design and build different modes of electricity transmission.

We are making climate change and adaptation part of what all ministries across government need to think about and plan for.

At the Ministry of the Environment we are working with our colleagues at the Ministry of Research and Innovation to make sure we encourage and support the ideas that will become the next generation of climate change technology.

But adaptation is only one part of “dealing with climate change”.  We are also actively fighting the root causes of climate change.

In the summer of 2007, our government introduced Ontario’s Climate Change Action Plan.

The Plan’s GHG emission reduction targets — and related actions to support economic growth — are some of the most ambitious in North America. 

One of the most important aspects of our work in the next month or so involves bringing forward proposed enabling legislation for a cap and trade system for Ontario.

We believe that developing and adopting a fair and effective cap-and-trade system is necessary to help us meet our GHG reduction targets and build a stronger, more innovative and competitive economy.

It is clear that North America is moving toward a cap and trade approach.

However, if cap and trade is to be a truly useful and effective strategy to mitigate climate change, it must be designed to be equitable and transparent for all — a model where the same rules and pricing schemes are applied consistently in every jurisdiction.

And equally as important, it must be a system which provides certainty and clarity for all its partners — be it industry and the marketplace, or the jurisdictions involved in its operation.

Of course, many of the markets and services for enabling GHG reductions go beyond Ontario’s borders and require coordinated action.

That does not mean that Ontario intends to wait.

We have been working for the past year with Quebec, B.C., Manitoba, California and other partners to develop a cap-and-trade program that will help us achieve Ontario’s Climate Action Plantargets.

Last June, we signed a Memorandum of Understanding with Quebec to collaborate on a cap-and-trade system consistent with emerging North American cap and trade systems.

Ontario and Quebec have also joined the Western Climate Initiative, or WCI — which is targeting the development of a regional cap-and-trade system by 2012.

The importance of creating a harmonized North American approach has been underscored by recent actions in the U.S.

President Obama very quickly signalled his desire to drive the United States towards a more urgent and aggressive approach to meeting real GHG reduction targets and using a national cap and trade system.

It is clear the U.S. President sees immediate actions on climate change as a key driver behind his broader plan to return his country to prosperity.

Because of rapidly moving developments in the U.S., Ontario – and Canada – must also move decisively, quickly – and smartly – to protect our own interests. 

There are real risks of trade measures for those countries that do not have GHG reduction measures that are complementary to U.S. action.

As an export-driven economy, this could hurt both Ontario and Canada as a whole.

Federal leadership is also needed to ensure our industries remain competitive with their U.S. counterparts and are not subject to additional punitive measures at the border.

I have been encouraged to see recent signals from the federal government to reconsider its intensity-based approach to reducing greenhouse gases — an approach which our government is convinced is not in the national interest, and will not see Canada attain the GHG reductions we require.

Environment Minister Prentice publicly acknowledged in a recent media interview that the measures being planned in the U.S. “would have trade-related consequences for Canada if we don’t have equivalent environmental legislation in place” in Canada.

I applaud this shift, and Ottawa’s new realization that Canada needs to adopt regulations and enforcement standards based on a cap and trade model that is likely to be adopted in the U.S.

At the same time, we’re not sitting back. 

Ontario is determined to play a leadership role in developing the cap-and-trade system that emerges in North America, so we can influence the parameters on which the system is based and ensure a level playing field for our industries.

It is almost certain that a new continental carbon market designed to reduce GHGs will emerge. 

Ontario is well positioned to be a significant player in this emerging market.

Toronto is recognized as a North American financial and economic centre with the potential of becoming a key trading centre.

While there are challenges posed by cap and trade, there are also tremendous economic and growth opportunities for those with the special skills and experience who can help implement an effective commercial trading system.

This will also help act as a springboard for technological innovations that can propel us into a lower carbon future.

Last December, our government launched consultations on a cap-and-trade framework for the province that can be integrated with other systems.

Over the past few months, staff in my ministry have held a series of sectoral consultations with affected industries and other stakeholders.

We also released a discussion paper for broad stakeholder feedback. 

In the coming months, the input we have received will be valuable as we continue to work with our partners in Quebec, WCI and other jurisdictions to inform the development of a cap-and-trade system for North America.

The fundamental objectives of Ontario’s approach include:

• establishing a reliable price signal
• enhancing competitiveness of Ontario Industries
• ensuring a level playing field
• encouraging low-cost GHG reductions
• avoiding duplication
• pursuing absolute GHG reductions, and
• creating green jobs.

Throughout our consultations we heard clearly the need for:

• better clarity and certainty on next steps to help stakeholders get ready for what is coming
• minimal duplication between federal and provincial policies.

We are working hard to ensure a consistent approach to cap-and-trade with other jurisdictions.

And we are prepared to work with leading states and other provinces as we move forward on cap and trade.

I am sure many of you are aware the Quebec government yesterday tabled a bill to enforce a cap and trade system to control greenhouse gas emissions.

We know that early actions by Ontario will help us align with Quebec and WCI and help us set the parameters for a North American system.

Together, a cap and trade system for both Ontario and Quebec would represent close to 60 per cent of Canada’s economy.

We know the next year promises to be an exciting time on cap-and-trade and climate change as governments all over the world prepare for the next round of international climate change discussions in

Copenhagen — the next critical milestone in the global fight against climate change.

We intend to be ready.

We intend to “deal with it”.

Our goal is to protect Ontario’s interests, create green jobs and protect our environment.

That is why we want to ensure Canada adopts the best possible leadership role it can at Copenhagen.

We will be exerting all the influence we can to help shape and take forward a national strategy on climate change we can be proud of — one which also protects Ontario’s interests for a greener, healthier future.

Until then, we will continue to work actively with all sectors, the federal government and other forward-thinking jurisdictions.

Together we will help create an approach which will ensure Ontario achieves its GHG targets and builds a greener, more sustainable economy.

Thank you.

-30-

Back to Speeches