May 23, 2003
Environment Canada Working Paper

I. Introduction

Environment Canada's regulatory objectives reflect its mandate, mission and vision - in essence to promote measures that protect, conserve and enhance the environment; to protect species and preserve ecosystem integrity; and to provide a natural environment that sustains our health, economy and quality of life.¹

This document has been prepared for Environment Canada's input to the federal government's Smart Regulation initiative and for the consideration of the External Advisory Committee. The paper has two related purposes. The first is to take a step back, and look at Environment Canada's regulatory efforts writ large, to identify what we are doing well and where there are opportunities for fundamental improvements, both in the near term and over the long run. The second is to identify more immediate, practical action in three specific areas of opportunity.

Any discussion of environmental Smart Regulation will be improved by preliminary examination on what is meant by "regulation". Some apply a very broad definition, using regulation to refer to any efforts by government to shift, or regulate the behaviour of others (individuals' firms; industries; other jurisdictions; etc.). Others interpret the term in the narrow legal sense, where regulations are detailed rules developed by designated authorities under the terms of an enabling piece of legislation. Consistent with the mandate of the External Advisory Committee, this paper will use the term "regulation" in the broader sense - except in its treatment of specific technical questions, where a narrower use of the term will be used.

Canada has an excellent reputation for having a mature and well functioning regulatory system. The recent Organisation for Economic Cooperation and Development (OECD) regulatory review of Canada emphasises many strengths of our system, noting Canada has been a "consistent leader and innovator", noting that our environmental regulation is "actively testing new approaches". Our environmental regulatory system encompasses a wide spectrum of tools, used alone or in combination, to achieve our policy objectives. The Canadian Environmental Protection Act, 1999 (CEPA 1999) provides an excellent example of a Canadian law that explicitly identifies and encourages the use of a broad range tools. A variety of instruments, such as performance-oriented or economic-based regulations, codes of practices, pollution prevention or environmental emergency plans, and environmental performance agreements, can be used to develop optimal environmental management strategies. Environment Canada, working with stakeholders and other government departments, has lead the way in identifying and developing innovative approaches that spur the development of new technology and practices to improve environmental protection.

However, the OECD report also recommends Canada maintain its momentum. Environment Canada is committed to continuous and sustained improvements to our environmental policies and regulations. This paper provides an overview of our thinking, our successes and ongoing efforts, as well as looking forward, focussing the three specific areas of opportunity - economic instruments; administrative efficiencies; and international convergence.

¹ See www.ec.gc.ca for more information on Environment Canada's mandate and activities.