Rising to the Kyoto challenge: Is the response of Canadian industry adequate?

A major weapon in Canada’s CO2-emissions reduction arsenal is reliance on moral suasion and voluntary action. In this regard, the Voluntary Challenge and Registry (VCR) program constitutes a major effort to encourage industrial firms to reduce their greenhouse gas emissions. In this paper, we begin by providing a critical review of Canadian climate change policy and Canada’s international commitments. We then investigate the effectiveness of Canadian policies by analyzing a survey of industrial firms, examining factors that determine firms’ familiarity with, participation in and commitment to the VCR program, and their stated potential to reduce emissions by 2008–2012 (Kyoto’s commitment period). Results indicate that voluntary programs are unlikely to make a significant contribution to emissions reduction, with industrial firms indicating that, on average, they plan to reduce emissions by some 1–2% below their 1990 level under the current policy approach, much lower than Canada’s 6% reduction target.