Setting the stage: Outcome from Kyoto

The commitment of the upstream oil and gas industry to implement actions to help Canadians become more efficient in their use of energy was discussed. The goals of the Rio Framework convention revolved around achieving greenhouse gas emissions reductions in the least costly manner. The industrial sector responded to that challenge through voluntary efforts to reduce greenhouse gases. However, from an industry perspective, the VCR (voluntary challenge registry) performance was inconsistent. While the upstream oil and gas industry participated aggressively, other industrial sectors, particularly the transportation sector, failed to participate. Progress was too slow and too late. The Third Conference of the Parties in Kyoto, resulted in a binding commitment of between 20 and 25 per cent per annum reduction for Canada. Emissions trading among developed countries is also included in the Kyoto Protocols. The speaker considered the reduction commitment of 20 to 25 per cent for Canada unrealistic, and suggested that the Kyoto protocol may be flawed, if only because so many of the details have not been spelled out. The importance of the roles of the federal and provincial governments in enforcing their consultative processes was emphasized. In the view of this speaker and that of the Canadian Association of Petroleum Producers, the biggest disappointments coming out of Kyoto, was the failure to gain meaningful involvement from the developing world. A global effort to reduce emissions cannot be achieved without the participation of the developing countries