Economic impact of climate change on Canada

Posted on October 24, 2011 by

Environment Canada, Department of the Environment is the department of the Government of Canada with responsibility for coordinating environmental policies and programs as well as preserving and enhancing the natural environment and renewable resources.

In July 2011 Environment Canada released a report on Canada’s emissions trends.

The report concludes that existing measures announced by the federal and provincial government will reduce greenhouse gas emissions in 2020 by about 65 Mt. This represents one quarter of the reductions in emissions needed by 2020 to reach Canada’s target of 607 Mt. The report states that the Canada will develop and implement further measures to close the remaining gap.

As per the report,

  • Global greenhouse gas emissions increased by 25% between 1990 and 2005
  • Canada’s share of total global emissions, like that of other developed countries, will decline in relation to the rapid emissions growth from developing countries, particularly China and India
  • China had overtaken the U.S. as the world’s largest overall greenhouse gas emitter by 2005, and by 2020 China’s greenhouse gas emissions alone are expected to account for 27% of global emissions, up from about 20% in 2005.

The Government of Canada is serious about the implications of climate change. Ottawa based organization – The National Roundtable on the Environment and Economy has released its latest report, ‘Paying the Price: The Economic Impacts of Climate Change for Canada’. Report states that the economic impact of climate change on Canada could by $5 billion per year till 2020 and between $21 and $43 billion per year by 2050.  This is considerable value range for the impact of climate change and hence there is requirement of strong mitigation plans.

The National Roundtable on the Environment and Economy have suggested following measures for the climate change mitigation plans;

  • Develop country’s expertise in the economics of climate change impacts and adaptation;
  • Resource efficiency
  • Research and development in the field of climate change science and clean technologies
  • Create new data and analysis sharing partnerships with universities, private sector, governments and other expert bodies to leverage non-governmental resources for climate change adaptation.

Countries are more concerned about the climate change and its implications and hence recently the state of California launched cap and trade based mechanism for carbon market. Canada is not behind in the climate change adaptation and mitigation plans and continuously developing in house action plan for the same.