TORONTO, March 14 /PRNewswire/ -- Inability to participate in
international emissions trading, higher costs to comply with mismatched
provincial climate change regulation, and increased exposure to climate
change-related litigation are among the top risks Canadian companies will face
if Canada's new Conservative government withdraws from the Kyoto Protocol,
according to a policy analysis released today by Caiteur Group Climate Change
Institute. The analysis, titled "Canada's Climate Change Policy: Measuring the
New Political Risk - Will Canada Sink the Kyoto Protocol?" assesses the
business impact of new climate change policies in Canada.
U.S. companies operating in Canada are being hit by a double whammy of
uncertainty, the analysis also reveals. At home U.S. companies lack the
clarity of a mandatory federal-level policy on greenhouse gas emissions with
the Bush Administration's decision to stay out of the Kyoto Protocol. And in
Canada, where many U.S. companies have significant oil and gas and
manufacturing operations that fall under Canada's Large Final Emitter Kyoto
regulations, they are now faced with more regulatory uncertainty.
"Capital markets abhor regulatory uncertainty so companies will pay a
price for their inability to proactively plan their emissions reduction
strategy and investments," said Patricia A. Hoyte, CEO of Caiteur Group Inc.
and co-chair of the Caiteur Group Climate Change Institute. "We've already
seen top U.S. and Canadian companies calling on their respective governments
for more regulatory certainty with regard to GHG emissions and climate
change."
The United Nations Framework Convention on Climate Change (UNFCCC)
national inventories data shows Canada's GHG emissions have increased 24.2
percent from 1990 levels, compared to a 13.3 percent increase for the U.S. The
dramatic rise in emissions presents a challenge for Canada's new Conservative
government. "Canada has an uphill battle to meet its Kyoto Protocol emissions
targets and companies need to map out their GHG reduction and carbon market
trading plans well before the 2008 Kyoto start date," added Hoyte.
Other key risks are:
-- Delays in corporate emissions reduction infrastructure and investment
planning due to regulatory uncertainty
-- Higher average compliance costs for companies that must meet Kyoto
obligations in other jurisdictions such as the E.U.
-- Failure of the Kyoto Protocol ratification, since the treaty may not
remain "in force" if Canada withdraws
A copy of the policy analysis is available at
http://www.climatechangeinstitute.com/briefs_and_analyses.html.
About Caiteur Group
Caiteur Group Climate Change Institute
(http://www.climatechangeinstitute.com), a division of Caiteur Group Inc.,
conducts policy research and business assessment in climate change,
environmental, and energy policy in the U.S., Canada, and around the world.
With expertise in climate change data management and data modeling and climate
change risk management and insurance, Caiteur Group provides climate change
and Kyoto Protocol advisory services to the Information Technology and
Insurance industries. Caiteur Group (http://www.caiteurgroup.com) is based in
Toronto, Canada.
MEDIA CONTACT:
Patricia Hoyte
416 266 3535
press@climatechangeinstitute.com
http://www.climatechangeinstitute.com
This release was issued through eReleases(TM). For more information,
visit http://www.ereleases.com.
SOURCE Caiteur Group Inc.
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Related links:
http://www.climatechangeinstitute.com
http://www.caiteurgroup.com
CONTACT:
Patricia Hoyte, Caiteur Group Inc.,
+1-416-266-3535, or press@climatechangeinstitute.com
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