Evolving U.S. climate policy not seen as a threat to Canada

Renata D'Aliesio; With Files From Chris Varcoe, May 23, 2009, Calgary Herald And Reuters--Prime Minister Stephen Harper says he's"comfortable" with the new U.S. position on climate change, while stressing it's important that the massive oilsands resource in northern Alberta be developed.

On Thursday, a key U. S. congressional panel embraced President Barack Obama's plan to create a new, market-driven system for reducing greenhouse gas emissions.

The bill aims to cut American emissions of heat-trapping gases by 17 per cent below 2005 levels by 2020 and 83 per cent by 2050.

Speaking in Calgary on Friday, Harper said he's still reviewing the latest U. S. step, but added: "Our sense is it's moving in a direction we are comfortable with."

"To be quite blunt, the more iterations the American plan goes through, the closer it looks like the Canadian plan because we have grappled with many of the tough decisions that are involved."

The federal Tories plan to cut greenhouse gas emissions by 20 per cent between 2006 and 2020, although oilsands output is expected to rise in the coming years.

Northern Alberta's oilsands, which contain the world's second-largest deposits of oil, have been under attack recently because of the level of greenhouse gas emissions associated with its energy-intensive production.

Due to falling oil prices, an estimated $20 billion worth of oilsands developments have been put on hold this year. However, production of the tar-like molasses could ramp up to more than six million barrels per day by 2035 from 1.3 million currently if the market improves, according to one report released this week.

Harper said it's important to develop an effective climate change strategy in the midterm "that will not further damage the interests of our economy during a global recession-- that is also an important priority for us."

"We are working closely with the Alberta government and our provinces to make sure we do everything to ensure the responsible environmental development of this resource," Harper added, "but that we do develop it-- because it is critical not just to our economy, but to North American energy security."

Harper met with Alberta Premier Ed Stelmach Friday and the two discussed energy issues in preparation for international talks on climate change in Copenhagen later this year.

"I know they have the best interest of Alberta in mind," Stelmach said of the federal position.

"There's a considerable amount of negotiating going on and I suspect that different countries will be bringing different proposals to the table."

Meanwhile, the country's main oil industry lobbying group said there are positive aspects of the U. S. bill, but cautioned that it's "one step in a rather long road." Other legislative committees and the U. S. Senate will also weigh in on the issue before the bill goes to the president for approval.

"We are certainly positive about the idea of compatible or aligned North American approaches" on climate change, said Tom Huffaker, vice-president with the Canadian Association of Petroleum Producers.

"Doing things in a compatible way makes sense to us."