The Province of B.C. takes its economic development and environmental stewardship seriously and leads by example to address climate change, as well as provide opportunities for clean technology companies. It recently became the first province in Canada to legislate broad-based greenhouse gas reduction targets, with the Greenhouse Gas Reduction Targets Act. Although many celebrities and politicians appear to be jumping on the global-warming bandwagon, B.C. has taken the first steps necessary to provide certainty around the timing of greenhouse gas emission (GHG) reductions.

McCarthy Tétrault Notes:

While the consensus has been that GHG reductions would come, the big question was "When?" This uncertainty around timing makes it harder for capital markets to invest and businesses to plan production schedules. These difficulties limit the level of innovation and growth of new clean technology companies. Being too early to market with an electric car has proven to be as costly as being too late into the hybrid auto market.

In addition to providing certainty for businesses and investors, the B.C. government is committed under the Act to being carbon neutral for the 2010 calendar year. Also, the Act requires work-related travel by public officials to be carbon neutral for the 2008 and 2009 calendar years. This approach of 'leading by example' creates opportunities for businesses and clean technology companies to assist the B.C. government with reducing its GHG emissions.

The Act adopts a phased-in approach up to 2020 for the level of GHG reduction. This will allow investment and businesses time to align business models and production schedules. The Act sets two province-wide targets for greenhouse gas reductions:

  • by 2020 and for each subsequent calendar year, B.C. greenhouse gas emissions will be at least 33 per cent less than the level of those emissions in 2007; and
  • by 2050 and for each subsequent calendar year, B.C. greenhouse gas emissions will be at least 80 per cent less than the level of those emissions in 2007.

Interim targets will be set for 2012 and 2016, which will be determined before the end of 2008. The Premier of B.C. has appointed a Climate Action Team, which includes several Nobel Peace Prizes winners and senior executive from business, to advise and report on the interim targets by July 2008. After the team delivers its report, a process for public comment and input will begin.

Cheryl Slusarchuk is the Chair of the B.C. Climate Action Team.

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