MRO Magazine

Innovation is the real solution to climate change, CME says

Ottawa, ON -- Dec. 20, 2002 -- "If Canada is serious about implementing the Kyoto Protocol, we are not going to see...


Industry

December 20, 2002
By MRO Magazine
MRO Magazine

Ottawa, ON — Dec. 20, 2002 — “If Canada is serious about implementing the Kyoto Protocol, we are not going to see real reductions in greenhouse gas emissions but instead a slowdown in economic growth and a major transfer of wealth out of Canada”, according to Jayson Myers, chief economist of Canadian Manufacturers & Exporters.

Speaking n Dec. 5, 2002, to the Standing Committee on Industry, Science and Technology, Myers called on the federal government to forget the issue of Kyoto ratification and focus instead on achieving real greenhouse gas emission reductions through investment and innovation.

“Rather than creating additional costs to industry and society or spending valuable resources buying credits from Russia, Canada should focus on investments in the creation and commercialization of new technology that will lead to real long term changes and improvements to the environment,” said Myers.

Specific initiatives recommended by Myers include :

– Elimination of capital taxes
– Streamlining regulatory approvals
– Investing in commercialization
– Development of a realistic strategy for transportation infrastructure, and
– Incentives for industry and consumers to invest in change.

Myers also stressed the need for cooperation with provinces, consumers and industry in developing a strategy to achieve real reductions in emissions. “The federal government has not been forthcoming on this issue with Canadians or with the provinces. They must take the necessary time to rebuild trust and engage everyone in an open discussion based on full information.”

In addition, Myers provided a critique of the federal government’s most recent plan and raised significant concerns regarding the economic impact assessment provided within the plan. Referring to a number of studies, including CME’s Pain without Gain report released in February of this year, Myers argued that “the federal government’s assessment downplays the economic consequences as it fails to consider competitiveness concerns and the cost of needed investments in technological progress. The plan assumes investment will occur just because of government mandates and it ignores the impact of uncertainty, higher costs and lower rates of return on investment decisions by Canadian industry.”

Members of the Canadian Manufacturers & Exporters business network account for 75% of Canada’s industrial output and 90% of its exports.