Preparing for the regulation of greenhouse gases

The Earth is warming, and this belief is shared by the leading scientists that sit on the Intergovernmental Panel on Climate Change, where it is expected that the average surface temperature of the Earth will rise 2.5 to 10.4 degrees Fahrenheit between 1990 and 2100. It is felt that the main culprit is greenhouse gas emissions such as carbon dioxide. The Kyoto Protocol was adopted in 1992 with the aim of reducing greenhouse gas emissions to specified targets below 1990 levels by 2012. For Canada, this commitment is a reduction to 6 per cent below 1990 levels. To avoid penalizing a country that adopts greenhouse gas regulations where the neighbouring country does not follow, negotiations are being held at the international level in an attempt to keep everyone on a level playing field. The United States recently decided not to pursue a cap on greenhouse gas emissions, which could seriously jeopardize the effectiveness of the Kyoto Protocol. The authors examined what the future looks like, in terms of policy options and market-based instruments. In the next section, they discussed the preparations for the regulation of greenhouse gases. The topics reviewed were carbon taxes, command and control regulation, emissions trading, contracts and baseline protection. Canada's baseline protection initiative (BPI) process was closely examined, and identified what reductions are eligible and touched upon ownership issues. The authors concluded that it might be prudent for emitters in Canada to prepare for a variety of regulatory scenarios, as there are a number of uncertainties remaining. Emissions trading must be carefully documented