The Canadian federal government was right to pull out of the Kyoto Protocol after many years of being a signatory but ignoring our international treaty commitments.
Kyoto was burdened with the Clean Development Mechanism — an aid conduit from developed economies to governments in developing countries. Financial aid to governments in developing countries, particularly those that do not promote property and human rights, allows governments to operate without the consent of their people and is in my opinion one of the reasons why big parts of the developing world are falling behind.
Canada should replace Kyoto with it with a made-in-Canada CO2 reduction plan. Instead of ignored Kyoto targets, Canada should instead pursue a revenue neutral carbon tax with matching cuts to other growth deterring taxes, particularly those on payrolls and corporate earnings. We should also negotiate with the U.S. seek harmonized carbon taxes. Some carbon fuels, particularly road fuels, are already heavily taxed and don’t need more tax. Some carbon fuels for industrial and home heating are not taxed or taxed lightly.
With a modest carbon tax in place, there would be no justification for all the silly green energy subsidies fouling up energy markets across the country. A modest carbon tax should replace subsidies and tax holidays for energy technologies like ethanol fuels, wind power, cogeneration, solar energy, and biomass. Instead, all energy sources should compete to serve the needs of consumers while recognizing that more carbon intensive options should bear an extra cost burden.
I debated these issues December 13th on BNN with Tom Rand representing the MARS Discovery District. You can watch the clip here: http://watch.bnn.ca/headline/