Tuesday, February 16, 2010

Canada's government tries to green up its Olympic climate impact...

Stop the presses! Canada's Conservative federal government is taking moderate steps to do something about climate change. Ok, ok, I'll remove my tongue from my cheek.

According to the Globe and Mail, Canada's Environment Minister, Jim Prentice, announced that the federal government is looking to offset the carbon emissions of federal bureaucrats working on the Olympics. Using the same carbon footprint method utilized by the Vancouver Organizing Committee to measure its own footprint, the feds estimate that the bureaucrats will create a total of 7,600 tonnes, largely from air travel, accommodation and the 45,000 km Torch Relay.

The price? $150,000, which it hopes (through a competitive bidding process) to be put towards some form of renewable energy generation or building envelope conservation in Canada.

I find several things very interesting with this move by the feds. First, I suppose some (but not too much) praise should be given to the federal government. After all, no one is forcing them to do this and it is certainly better than nothing. But let's not go too far. As I have said before and will say again -- to some dismay from a certain unprofessional representative of a company with a vested interest in it -- carbon offsets are stupid. They allow people to continue to engage in climate changing activities and simply buy their way out. Moreover, its voluntary, so you don't actually have to do it. But this is old news and I suggest reading the above hyperlink if you want a more detailed assessment of carbon offsets.

The two other things I notice are a little more political. Considering it is going to be delivered under a "competitive bidding process", expect to hear very little about it actually being completed any time soon. These processes can be exceptionally lengthy, especially with a government that is far from quick to move with its climate policies. What is important for them is that they can say that they have committed to it, which is a particularly valuable political tool.

The second political implication of such a move may not be as useful for the Conservatives. Let's do some quick math. $150,000 will buy 7,600 tonnes of carbon. That suggests a carbon price of $19.74/tonne. Not even the Liberals thought that price was politically acceptable when they introduced their Green Shift carbon tax platform. Now, a one time, $150,000 carbon offset is a little different than a national tax, but if I were any of the opposition parties, I would hold the Conservatives to that price anytime they talk about any carbon pricing policies in the future.

A cap-and-trade system -- likely coming within the next few years -- will limit the government's control over carbon pricing, but setting the cap level and issuing permits gives the government some influence.

The Conservatives will likely not associate this carbon offset manoeuvre with any broader climate policies, but they could be held accountable by opposition parties and political onlookers.

Lastly, 7600 tonnes?!?! As one commentator on the Globe and Mail put it, that's a lot of hot air. That's equivalent to the emissions generated from the total electricity used by 1000 homes in the US for one year, according to the EPA. I wonder how far the government explored reducing its initial carbon footprint, rather than simply buying its way out later (with taxpayers dollars, nonetheless).      

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