Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of City Plans and Director of Environmental Health

SUBJECT:

Kyoto Protocol

 

INFORMATION

COUNCIL POLICY

Council has approved a number of policies to address concerns about the environment and global warming. Two key initiatives are:

· Recommendations from the 1990, "Clouds of Change" report support air quality and climate protection initiatives including traffic reduction and energy efficient land use policies.

· In 1996, Council adopted The Vancouver Environment Policy Plan. Included in the Plan is a policy to advocate for appropriate environmental protection actions by other levels of government and the private sector.

PURPOSE

This report provides information about the Kyoto Protocol in response to a motion proposed by the Federation of Canadian Municipalities which encourages cities to support ratification by the Canadian Government of targets for the reduction of greenhouse gases that contribute to global warming and climate change.

BACKGROUND

The City of Vancouver, along with other members of the Federation of Canadian Municipalities (FCM), has received a request, dated March 18, 2002, which encourages cities to support ratification of the Kyoto Protocol. A draft motion is attached as Appendix "A". On April 9, 2002, Councillor Price presented the FCM request as a Notice of Motion.

Staff were asked to provide some background information on the Kyoto Protocol. Staff have not done an analysis of the consequences of adoption of the Kyoto Protocol. Information is drawn from the FCM web site (www.fcm.ca), the Environment Canada web site, and information collected over the years by the Vancouver-Coastal Health Region Department of Environmental Health.

INFORMATION

Everyday activities such as driving cars, heating homes, and operating businesses affect the earth's climate and the quality of the air we breathe. The burning of fossil fuels releases greenhouse gases such as carbon dioxide, methane, and nitrous oxide into the atmosphere. Almost eight billion tonnes (Gt) of greenhouse gases go into the atmosphere each year. In Canada, emissions in 1999 were 699 million tonnes (Mt), a 16.5 per cent increase since 1990. If no action is taken, greenhouse gases are predicted to increase global mean temperature between 1.4 and 5.8°C by the end of the century.
  
In 1992, world governments agreed to a Framework Convention on Climate Change. In December 1997, more than 160 countries, including Canada, met in Kyoto, Japan, and agreed to targets to reduce Greenhouse Gas Emissions (GHG). The agreement that sets out targets and ways for countries to achieve them is known as the Kyoto Protocol.

Countries agreed to different individual reductions. The average reduction for the OECD (Organization for Economic Co-operation and Development) and economies in transition (Russia, Ukraine, Hungary, Rumania, etc) was 5.2 per cent below 1990 levels, to be achieved sometime between 2008 and 2012. Canada's target is to reduce its GHG emissions to six percent below 1990 levels. The US target is for a seven per cent reduction and the European Union is for eight per cent.

The countries have been meeting every year since the signing of the Kyoto Protocol to define the international administrative framework within which countries will take steps to meet their Kyoto target.

"Kyoto Mechanisms" have been developed to help countries achieve their Kyoto targets by allowing them to participate in international cooperative activities that benefit the global environment. The three Kyoto Mechanisms are:

· The Clean Development Mechanism (CDM), a way to earn credits by investing in emission reduction projects in developing countries;

· Joint Implementation (JI), a way to earn credits by investing in emission reduction projects in developed countries that have adopted a Kyoto target; and

· International Emissions Trading (IET), which will permit developed countries that have adopted a Kyoto target to buy and sell emission credits among themselves.

The Protocol will become legally binding when it is ratified by at least 55 countries, covering at least 55 per cent of global greenhouse gas emissions addressed by the Protocol. Most countries are currently reviewing the consequences of ratifying the Protocol. To date, the US has since decided not to meet its commitments under the Protocol.

With the international rules in place, Canada is now finalizing its domestic analysis taking into account the decision by the United States not to participate in the Kyoto Protocol. There is considerable debate about how the reduction of greenhouse gas emissions will affect the Canadian economy. The economic risks and benefits of actions taken to reduce greenhouse gas emissions have been analysed over the past 10 years by the National Air Issues Co-ordinating Committee (NAICC), a federal/provincial/territorial process comprising energy and environment departments. The group reports to provincial/territorial and federal environment and energy ministers twice a year.

The emerging proposal is for Canada to achieve the majority of its GHG reductions through domestic actions. Over the past five years, the Canadian government has allocated $850 million for air quality improvements. The Canadian government is investing $500 million in Action Plan 2000. This investment, along with the $625 million over five years announced in Budget 2000, results in a total commitment of $1.1 billion to address climate change over
the next five years, Municipal governments are voluntarily pursuing GHG reductions through FCM's Partners for Climate Protection Program and by applying to the Green Municipal Funds Program.

The City of Vancouver has been a member of Partners for Climate Protection (and its predecessors, ICLEI's Cities for Climate Protection and the FCM's 20% club) since its inception. Although some work has taken place at the staff level to formulate a Climate Protection Strategy and Action Plan, this has yet to be reviewed or endorsed by Council.

The measures in Action Plan 2000 will take us one third of the way to our target. Last October most provincial and territorial governments also indicated the actions they are planning to take in their jurisdictions. FCM believes that municipal governments could make a significant contribution to Canada's national goals by pursuing up to 50 million tonnes of reductions through investment in sustainable community development.

While Canada intends to achieve a majority of its reductions domestically, it also anticipates that some reductions will be obtained through mechanisms included in the Kyoto Protocol. The Kyoto Mechanisms offer advantages to Canada. Emissions will be reduced globally through international partnerships, resulting in less direct costs to Canadians. The Mechanisms also represent opportunities for Canadian businesses. Many of our environmental and energy technology firms have expert knowledge and the tools to make a difference. CDM and JI projects will provide our companies with the markets to sell their products and services abroad while creating jobs at home. By equipping less developed countries with the technology and know-how to reduce emissions, we can better engage them in long-term global efforts to combat climate change.

Canada will decide how it will fully meet its target when agreement has been reached on the rules to implement the Kyoto Protocol and it is clear how our major trading partners plan to proceed.

There is considerable debate about the possible benefits and costs of adopting the Kyoto Protocol. The Federation of Canadian Municipalities (FCM) has been reviewing what municipalities can do to reduce greenhouse gas emissions. A 1998 FCM study found that using energy more efficiently, capturing landfill gas, diverting organic waste from landfills, and investing in public transit, and renewable energy and community energy systems could save money, improve the local environment, and cut greenhouse gas emissions.

The FCM has concluded that approval of the Protocol provides advantages to municipal governments. Communities have significant environment liabilities and ageing infrastructure that needs to be managed. Greenhouse gas reductions bring significant local benefits, including improved air quality and opportunities for investment in new advanced technologies.

While the FCM is supporting ratification of the Kyoto Protocol, there are other Canadian agencies raising concerns about the cost of ratifying the Protocol. The Fraser Institute concludes that it will be very costly to meet the six percent target. It is a cost, they note, which might be worth making if we were certain that other large nations, such as the US, India, and China will agree to participate. Without their participation, the Protocol will not be effective. Also, without US participation there are concerns regarding the potential impact on exporting industries. If US companies are exempt from greenhouse gas reduction requirements, Canada must ensure that we do not become a location for inefficient industries or fossil-fuel intensive investment.

CONCLUSION

A letter from the FCM, dated March 18, 2002, encourages cities to support ratification of the Kyoto Protocol. City staff have not undertaken a detailed review of the consequences of theCity supporting ratification of the Kyoto Protocol. Nevertheless, this is an initiative advancing global sustainability. Should Council wish to support ratification of the Kyoto Protocol, the FCM resolution is attached as Appendix "A".

- - - - -

APPENDIX A
Page 1 of 1

MODEL FCM RESOLUTION

MUNICIPAL GOVERNMENTS URGE RATIFICATION OF THE KYOTO PROTOCOL

WHEREAS climate change causes drought, permafrost melting, sea-level rise and floods that damage municipal infrastructure, displace citizens and create a financial burden for municipal governments;

WHEREAS economic activity in rural and northern communities relying on fisheries, tourism, forestry and agriculture is disrupted by climate change;

WHEREAS investments in building retrofits, community energy systems, water conservation, renewable energy technologies, waste reduction, landfill gas capture, fleet management and public transit reduce municipal operating costs, help maintain community services and protect public health while cutting greenhouse gas emissions contributing to climate change;

WHEREAS forestry and agriculture sectors can expand business opportunities by increasing the capacity of trees and soils to absorb carbon dioxide and by developing renewable fuels like ethanol;

WHEREAS fossil fuel producers are increasing investments in renewable energy and alternative fossil fuel technologies that reduce the amount of carbon dioxide going into the air; and

WHEREAS 72 per cent of Canadians (according to poll results from Decima Research Inc., June 2001) want the Kyoto Protocol ratified;

BE IT RESOLVED THAT _____________________________endorses ratification of the Kyoto Protocol; and

BE IT RESOLVED THAT this resolution be communicated to our Member of Parliament, provincial environment and energy Ministers, federal and provincial opposition leaders, community media and the Federation of Canadian Municipalities.

______________________________ ____________________________
NAME ELECTED OFFICIAL MUNICIPALITY

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