By Les Leyne, Times Colonist, December 11, 2010
A big new test for Liberal leadership hopefuls -- and likely the New Democratic Party contestants soon to come -- arrived at the legislature earlier this week.
It came in a letter from the B.C. Business Council to Environment Minister Murray Coell and Minister of State for Climate Action John Yap.
The influential business group wants the government to put the brakes on plans to bring in a cap-and-trade system as part of its ambitious effort to cut greenhouse gas emissions and fight climate change.
The goals are unachievable. The timelines are too tight. The uncertainties are too great.
Now that Premier Gordon Campbell, the main advocate for the climate change initiatives, is leaving the stage, it looks like business critics see a chance to slow the ambitious plan down.
Although climate change slid off the public agenda as the harmonized sales tax consumed all the attention, staff work has continued on the government's plan to cut greenhouse gas emissions.
Consultation papers were issued and the business council, which has always been uneasy about the initiative, responded this week.
Vice-president Jock Finlayson not only sent a critique to the ministry, he sent a letter to both ministers.
"The business council believes the time has come for the government to 'pause and reset' on climate policy, including the establishment of a cap and trade program," Finlayson wrote.
B.C. decided to move quickly in 2007 on climate change with good intentions, he said.
But other jurisdictions have been slow to follow B.C.'s lead, Finlayson said. "Put simply, the world has not unfolded as B.C. policy makers envisaged it would two or three years ago."
Even some partners in the Western Climate Initiative have dropped out of the cap-and-trade program or scaled back their involvement in creating a regional carbon market, he said. "In our mind, all of this supports our suggestion that the government needs to take some time to rethink its approach to climate policy in 2011."
Under a cap-and-trade system, the government would set emission limits for industries and companies. If a company can't make its limit, it will have to buy credits on the market to offset its excess emissions.
Finlayson said the work to date "raises questions as to whether policy makers have a sufficient understanding of the economic implications of B.C.'s commitment to aggressive climate policy goals."
The target of cutting emissions 33 per cent by 2020 can't be achieved unless the government accepts "a dramatic scaling back of production and employment" in several big export industries, he warned.
And the slow pace at which other jurisdictions are responding means B.C. companies operating under the emission-limiting cap-and-trade program will be at a competitive disadvantage when it takes effect in 2012.
Finlayson also warned of the damaging uncertainties created by the cap-and-trade system. Businesses don't know what the specific emission targets will be for their sectors, how allowances will be distributed or whether they will allow for growth.
The uncertainty is having a negative effect on investment, he said.
In an interview, Finlayson said the council, which represents about 200 major businesses, doesn't necessarily want the government to reverse course. It wants a time out to reflect on the implications of the targets and the means chosen to reach them.
It's clear the time of leadership change is seen as a good opportunity to press the point. Particularly because Campbell was directly responsible for embracing the challenge and setting the emission reduction target.
Finlayson said the government never did an analysis of the impacts before making the decision and the analyses since then have been unsatisfactory.
Business has made its case directly to Campbell in the past. They didn't make any headway.
"A new premier with a new government creates an opportune time to reflect," Finlayson said.
Yap said Friday he respects Finlayson's views but the ambitious targets and the programs designed to achieve them are set out in legislation.
Any new leader would naturally review the government's agenda and the climate change initiative would be part of that review, Yap said.
Leadership candidates are already backing away from Campbell's style of governing. Most are in retreat from the HST and the long freeze on the minimum wage.
It makes you wonder if some will start creating a bit of room between themselves and the far-reaching emission reduction plan as well.
© Copyright (c) The Victoria Times Colonist
