The Montreal Climate Exchange aims to offer access to the many sectors of the Canadian economy involved in air quality and climate change concerns. We are a global group of business leaders. We represent a considerable crosssection
of the world economy. We set out specific and practical recommendations
to G8 leaders on how an environmentally effective and economically efficient longterm
policy framework to address climate change should be designed: the
principles it should be based upon and the elements it needs to contain.
Climate change is a serious social and economic challenge. We accept the
scientific rationale for urgent action presented in the IPCC Fourth Assessment
Report. The Stern Review tells us that delaying action will only make future action
more costly. While some uncertainties remain – applying a risk management
perspective to the available information – we conclude that a reasonable approach
is for all leaders of business and government to take action now.
Technology-enabling. The framework should promote an international level
playing field to support the rapid RD&D of all clean energy and fuel technologies
that can lower GHG emissions and technologies that can help adapt to climate
change. In the near term it should encourage the wide-scale deployment of all
best available technologies that improve energy efficiency to achieve emission
reductions. It must enable research, development, demonstration and
deployment (RDD&D) of the next generation clean energy technologies, in
particular those needed to de-carbonize coal powered energy emissions. It
must also contain mechanisms to protect the rights of technology owners. Predictable. The long-term business strategies and investments necessary to
achieve such a paradigm shift are feasible only in the context of a stable,
predictabe international policy framework, based on the principles set out
above. As this framework evolves, business must be confident that the
UNFCCC will remain the principal venue for it; that nations will honour their
commitments regardless of changes in government, and that successive
agreements will be negotiated, accepted and implemented in a timely manner.
Carbon trading or a cap-and-trade emissions market for greenhouse gas reductions is therefore a fundamental aspect of their recommendations–showing a clear preference by industry and business for a cap-and-trade system in any treaty that will be negotiated to follow Kyoto.