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Canada fears recession from Kyoto | Canada fears recession from Kyoto |
(about 2 hours later) | |
Canada could see a deep recession if it were to meet its Kyoto targets for reducing emissions, the country's environment minister has warned. | |
John Baird claimed petrol prices would leap and thousands of jobs would vanish if Canada tried to reduce greenhouse gases by 6% from 1990 levels by 2012. | John Baird claimed petrol prices would leap and thousands of jobs would vanish if Canada tried to reduce greenhouse gases by 6% from 1990 levels by 2012. |
Canada was one of the first countries to adopt the Kyoto Protocol in 1998. | Canada was one of the first countries to adopt the Kyoto Protocol in 1998. |
But the ruling Conservatives have tried to ditch the treaty, which was adopted by a previous Liberal government. | But the ruling Conservatives have tried to ditch the treaty, which was adopted by a previous Liberal government. |
'Unattainable' | 'Unattainable' |
Prime Minister Stephen Harper, who came to power in January last year, has argued the Kyoto timetable is unattainable. | Prime Minister Stephen Harper, who came to power in January last year, has argued the Kyoto timetable is unattainable. |
Yet his minority government could be faced with implementing the measures after an opposition Liberal bill was passed by the Canadian parliament's lower House. | Yet his minority government could be faced with implementing the measures after an opposition Liberal bill was passed by the Canadian parliament's lower House. |
It will now be considered by the Senate, the unelected upper house, which traditionally rubber-stamps legislation passed to it by the House of Commons. | It will now be considered by the Senate, the unelected upper house, which traditionally rubber-stamps legislation passed to it by the House of Commons. |
Mr Baird told a Senate committee the only way the government could meet its Kyoto commitment was to impose costs on the entire economy and, in effect, "manufacture a recession". | Mr Baird told a Senate committee the only way the government could meet its Kyoto commitment was to impose costs on the entire economy and, in effect, "manufacture a recession". |
A steep rise in natural gas prices, electricity and petrol, driven by the additional carbon price of generating fossil fuels, would have a huge impact on the cost of running a business and would lead to a 25% increase in Canada's unemployment rate by 2009, he said. | A steep rise in natural gas prices, electricity and petrol, driven by the additional carbon price of generating fossil fuels, would have a huge impact on the cost of running a business and would lead to a 25% increase in Canada's unemployment rate by 2009, he said. |
Some opposition MPs and environmentalists countered that Mr Baird's findings were based on assumptions chosen for their frightening conclusions. | Some opposition MPs and environmentalists countered that Mr Baird's findings were based on assumptions chosen for their frightening conclusions. |
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