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### Viewing cable 05QUEBEC183, QUEBEC STEAMING OVER CANADA'S KYOTO STRATEGY

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05QUEBEC183 | 2005-11-10 23:27 | 2011-04-28 00:00 | UNCLASSIFIED | Consulate Quebec

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 02 QUEBEC 000183

    SIPDIS

    E.O. 12958: N/A
    TAGS: SENV ENRG PGOV CA
    SUBJECT: QUEBEC STEAMING OVER CANADA'S KYOTO STRATEGY

    ¶1. (SBU) Summary:  On Nov. 9, Quebec CG Friedman and TDY
    Montreal officer Anne Coleman met with GOQ Environment Ministry
    Director for Air Policy Robert Noel de Tilly, who confirmed
    media reports of deep GOQ frustration with Ottawa's approach to
    Kyoto.  Quebec's main complaint is that Canada's federal climate
    change policy, which calls for reductions in three sectors (oil,
    coal/natural gas, and manufacturing), does not take into account
    past voluntary efforts undertaken by Quebec manufacturing
    companies to reduce their GHG emissions, or Quebec's
    emissions-friendly hydroelectric power source.  Quebec recently
    submitted to Ottawa thirty-two GHG reduction projects for
    funding, all of which were rejected by Ottawa.  End Summary.

    ¶2. (SBU) GOQ Environment Ministry official Robert Noel de Tilly
    confirmed to CG media reports of a rift between Quebec and
    federal officials over Canada's climate change policy.  Quebec
    objects to the way Ottawa has set its base targets for GHG
    emission reductions.  In 1999, he explained, Ottawa began
    encouraging provinces and companies to get ahead of the curve
    and undertake GHG reduction measures.  At the time, the GOC
    indicated that any future climate change policy would take into
    account the progress being made by the provinces on a voluntary
    basis.  But in 2002, Ottawa shifted its strategy and, according
    to Tilly, established 2010 as the base year against which to
    evaluate greenhouse gas reductions.  Ottawa has set emission
    reductions of 15 percent measured against the 2010 level for
    three sectors: oil, coal/natural gas and manufacturing.  As
    Quebec has no oil or coal/natural gas industry, its bone of
    contention with Ottawa is in the manufacturing sector.

    ¶3.  (SBU) Tilly argued that Canada's approach benefits provinces
    or companies that have made no efforts at GHG reduction as they
    will be able to claim major reductions in 2010.  Quebec
    manufacturing companies, by contrast, have been reducing
    emissions and becoming more efficient all along.  By 2010, it
    will be impossible for them to reduce by another 15 percent.
    Quebec must find a way to reduce its manufacturing GHG emissions
    by 15%, or buy permits from companies who are able to outstrip
    these benchmarks.  Tilly is convinced that some Quebec
    manufacturers will go under, especially in the pulp and paper
    sector.

    Alberta and Ontario over Quebec?
    --------------------------------------------- --

    ¶4.  (SBU) Tilly stated that the federal government's decision to
    move the "base year" of emissions calculations to 2010 was taken
    in order to benefit the booming Alberta oil industry and Ontario
    coal producers.  Under the GOC approach, Quebec's absence of oil
    or coal/natural gas energy production is in no way rewarded.
    Oil and coal companies, who according to Tilly have not taken
    voluntary steps to reduce emissions, will be able to fairly
    easily and cheaply reduce their GHG emissions by 30-40%, in
    2010, thereby leaving them with many "emissions permits" to sell
    on the market.  Manufacturing companies in Quebec will be
    penalized, in contrast, as they would be hard-pressed to make
    further reductions and will be forced to purchase emissions
    permits.  Asked by CG why Ottawa would be favoring Alberta and
    Ontario, Tilly replied, "It's pure politics."

    Quebec Project Requests: 0 for 32
    --------------------------------------------- -

    ¶5. (SBU) According to Tilley, press reports of Ottawa's signing
    agreements with all provinces other than Quebec on the
    allocation of Kyoto implementation funds are exaggerated.  The
    federal government, he said, simply requested provinces to
    submit projects proposals and Ottawa would select those it found
    the most attractive.  Quebec submitted thirty-two projects, all
    of which were dismissed by Ottawa for not being ambitious enough
    to meet the Kyoto reduction strategy.  Tilly explained that
    here, too, Quebec is being penalized.  The first changes a
    company makes to reduce emissions usually result in the most
    dramatic GHG emissions savings, at least cost.  But Quebec's
    manufacturing companies have already introduced these
    inexpensive and effective technologies.  (Tilly buttressed his
    argument by noting that Canada-wide manufacturing sector GHG are
    expected to increase 2 percent in the 1990-2010 time frame, but
    in Quebec the estimate is for a decrease in emissions of 9.5%.)
    Further reduction proposals from Quebec are necessarily more
    expensive, with limited returns.  (Comment: While Tilly credited
    Quebec companies' voluntary measures for the decrease in GGE, we
    wonder how much of this reduction is a result of manufacturing
    operations closing or moving overseas. End comment)

    ¶6. (SBU) CG Friedman noted that the U.S., like Quebec, adopted a
    voluntary initiatives strategy to reduce GHG and, like Quebec,
    we were showing better results than some countries who are
    signatories to Kyoto such as Canada.  Tilly said he viewed the
    U.S. as being very active in its approach to climate change and
    noted the high quality of climate change research being
    undertaken in the U.S.  He added, however, that while Quebec is
    opposed to Canada's Kyoto implementation plan, it continues to
    support the Protocol itself.

    Comment
    -------------

    ¶7. (SBU) Tilly said that the GOC program is supposed to be
    implemented in 2008, but he is doubtful that Canada will meet
    this self-imposed deadline.  He pointed out that the deadline is
    only two years away and that Canada's program is vague.  We
    agree that the GOC's climate change plan appears short on
    details.  The fairness debate among provinces, which has really
    just begun in earnest, is likely to further slow Canadian
    implementation.  End comment

    ¶8. (U) Drafted by TDY Montreal officer Anne Coleman.
    FRIEDMAN

`