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For Immediate Release 330-30:ELP97/98-135 November 12, 1997

Ministry of Employment and Investment Ministry of Environment, Lands and Parks

B.C. Launches Innovative Emission Trading Pilot Project To Lower Greenhouse Gas Emissions

   The greenhouse gas emission reduction trading pilot project allows firms, governments or other organizations to create, buy or sell emission reductions. A greenhouse gas emission reduction trade occurs when one party takes action to reduce greenhouse gas emissions and then enters into a contract to transfer ownership of the emission reduction to another party.

   "Climate change is one of the most challenging environmental, economic and social issues we face," said Miller. "However, reducing emissions without sacrificing growth will not be easy. We need to explore new and flexible approaches such as emission trading."

   Canada and more than 150 other countries are currently negotiating limits on greenhouse gas emissions for post 2000. Emission trading has emerged as one of the least-cost options for reducing emissions.

   "Emission reductions registered under this pilot project will be considered by the
B.C. government as early progress toward greenhouse gas emissions targets that may be introduced," said McGregor. "We also invite the federal government and other provinces to become full partners in the pilot."

   The B.C. government, in co-operation with representatives from other levels of government, industry and key stakeholder groups, has developed the framework for the pilot.

   "The Canadian industry, government and environmental non-government organizations have an opportunity to work together on the development of a strategy for reducing greenhouse gas emissions at least cost," said Aldyen Donnelly, president of the industry-owned Greenhouse Emissions Management Consortium. "We encourage the federal government and all other provincs to take up the B.C. government's invitation to participate."

   "This pilot is a step in the right direction to developing cost-effective, market-based solutions for managing greenhouse gas emissions," said David Manning, president of the Canadian Association of Petroleum Producers. "Exploring these options now will help shape practical solutions in the future which offer the best balance between environmental and economic benefits."

   "Emission trading has been used successfully in the U.S. to minimize the cost of reducing pollutants like lead and sulphur dioxide," said Chris Rolfe of West Coast Environmental Law Association. "The B.C. pilot will provide the provincial and Canadian governments as well as Canadian companies the opportunity to gain practical experience with trading greenhouse gas emissions."

   The pilot project will be guided by a steering committee with representation from governments, industry, labor and environmental and public interest groups. By providing an incentive to create and sell low-cost reductions of greenhouse gas emissions, emission trading offers the potential to lower the overall costs of reducing emissions.

   "Because this initiative relies on market forces for its success, industry participation is critical," said Miller. "I challenge industry to help us demonstrate the effectiveness of this market mechanism in reducing greenhouse gas emissions."

   McGregor announced the pilot while attending the joint ministers meeting today in Regina to prepare Canada for the international meeting scheduled for Kyoto, Japan, in December.

   A call for proposals is expected to be issued in early 1998.

   For more information, visit the Greenhouse Gas Emission Reduction Trading Pilot web site at: http://www.env.gov.bc.ca/epd/epdpa/embi/ghgerp/

Contact: Carron Berkes Ministry of Employment and Investment (250)952-0615	Liz Bicknell Ministry of Environment, Lands and Parks (250)356-7045
Aldyen Donnelly Greenhouse Emissions Management Consortium (604)731-4666