July 26, 2001

With hard work and perseverance, 180 countries came together last weekend in Bonn, Germany, and reached a broad political agreement on a framework that would give life to the 1997 Kyoto Protocol and open the way for its ratification by Canada in 2002.

We are proud of the role Canada played in ensuring a successful conclusion to the talks. We in Canada understand the seriousness of global warming. We feel its effects every day, both in the North and South of the country. That is why we went to Bonn with the firm intention of reaching an agreement. And we succeeded.

Of course, the implementation of the Kyoto Protocol raises some challenges for our economy. But the Prime Minister and First Ministers agreed that no region of the country should bear an unreasonable burden in addressing climate change.

At the same time, we believe that the goal of reducing greenhouse gases offers extraordinary opportunities for our country. Canada has considerable expertise in clean energy and energy efficiency, and there will be vast new markets for our know-how.

This agreement, unprecedented in scope, proves the effectiveness of the United Nations in reaching agreements on issues of global concern. It also shows that it is possible to mobilize the resources and creativity of the private sector to reach common objectives.

We have consulted with provincial and territorial governments, stakeholders and Canadians at large in the past, and we will continue to do so as we move forward.

Meanwhile, we will continue to advocate the recognition of the global environmental benefits of clean energy.

But we want to meet the majority of our target through domestic action. We have already invested more than $1 billion in innovative technologies, renewable energies, energy efficiency, sustainable forest and agricultural management and other means to reduce our emissions.

We have committed to action that will reduce emissions by 65 megatonnes – one-third of the way to our Kyoto target – through our $500 million Action Plan 2000. With the agreement concluded in Bonn, we will be able to look, over the next couple of years, at how best to achieve the other two-thirds of our target.

Main Points of the Bonn Agreement

Canada asked and obtained emission credits for "carbon sinks" – the carbon soaked up through good forest and agricultural practices. Not only does this reinforce current environmentally-sound practices, it provides a powerful incentive for Canada’s farmers and forest managers to participate in the global battle to reduce greenhouse gases.

We expect that "carbon sinks" will account for approximately 15% of our efforts. The Protocol allows for greater credits, but these will not be automatic. They will have to be earned.

Economists and environmentalists have been recommending for decades that the key to truly solving environmental issues is to bring them into the marketplace. That is why, at the heart of the agreement, there is the intention to create an international market for carbon – where carbon credits can be bought and sold – making it easier to achieve global results.

Canada was instrumental in bringing together many other developed countries in committing financial assistance to developing countries to fight climate change. This will amount to $410 million US per year by 2005. So far, Canada has committed $35 million to this initiative, plus a special amount of $10 million to address the needs of Least Developed Countries

The agreement also contains mechanisms to encourage developed countries to provide clean energy and clean energy technology to developing countries. This will encourage the cleaner use of fossil fuels and help developing countries take a path less environmentally costly than the one we have taken.