FOKUS KANADA Pia Bungarten 1023 15 th Street NW,# 801 Washington, DC 20005 USA Tel.:+1 202 408 5444 Fax:+1 202 408 5537 fesdc@fesdc.org www.fesdc.org Nr. 3/ 2009 Two Steps Forward, One Step Back: Climate Change Politics in the U.S. and Canada Matthew Paterson 1 • The election of Barack Obama opened up new hope regarding the potential for ambitious international responses to climate change. He has indeed acted quicker than many expected, to put in place a well-respected team, and to support efforts in Congress to develop legislation to reduce US greenhouse gas(GHG) emissions. He has also shown the capacity to integrate climate change into other areas of policy, notably in the features of some of the US economic stimulus packages. • But progress of the legislation in Congress has proved slower than some hoped. A Bill passed in the House of Representatives in June 2009, and a version has been presented to the Senate. But its progress has proved slow, and optimism is declining that a Bill will be passed in time for the US to be able to commit itself to a new international treaty in Copenhagen in December 2009. • When a Bill does pass, it could be substantially compatible with the design of policy elsewhere. It could possibly contain a cap-and-trade system that will be compatible with the EU Emissions Trading System and the Kyoto mechanisms. The short-term targets for the overall economy will be relatively weak compared to those envisaged by the EU and other countries. And there will probably be some contentious issues, notably border tax adjustments. • In Canada, successive federal governments have failed to develop comprehensive policies to limit the country’s emissions. The current government shows little sign of developing more ambitious policies. Canada is strongly linked to U.S. Policy development in Canada at the federal level will be driven largely by a desire to harmonize with the US. • In both countries, there are widespread and deepening forms of action at sub-federal levels. A large number of states(US) and provinces(Canada) have developed greenhouse gas emissions reductions strategies. Some have introduced carbon taxes, and a number are collaborating on cap­and-trade schemes. This sub-federal and cross-national development can be expected to continue and play a large role in the political debate in both countries.