GATINEAU, Quebec (11/03/05) -- Canada's Environment Minister Stéphane Dion has called on hydroelectric power producers to seize the environmental and economic opportunity offered by Canada’s potential to produce renewable energy in its push for a sustainable, healthier and more prosperous country.

In a recent speech to the Canadian Hydropower Association annual general meeting in Gatineau, Quebec, Minister Dion pointed out that new government initiatives provided through Budget 2005 and Moving Forward on Climate Change – 2005, are available to encourage renewable energy power producers, individuals and industry to reduce greenhouse gas emissions and increase business opportunities. Those opportunities exist through the Climate Fund, the Partnership Fund, the Greenhouse Gas Technology Advancement Fund, an expanded Wind Power Production Incentive (WPPI) and the new Renewable Power Production Incentive (RPPI).

"A key part of our approach to reducing greenhouse gas emissions and air pollutants is based on the increased use of low emission sources for the generation of electricity," said Minister Dion. "Through Project Green, our set of policies and programs aimed at supporting a sustainable environment, healthy population and competitive economy, we are making programs and initiatives available to all sectors of the Canadian economy so they can play a greater role in achieving our sustainability goals." 

Minister Dion said the federal government is considering how best to design rules allowing renewable energy producers, such as hydro electricity companies and wind power entrepreneurs, to receive emission reduction credits for new projects and to sell those credits to the Climate Fund Agency or to industries that need to meet regulated reduction targets. This creates a double benefit of reduced greenhouse gas emissions and an opportunity to sell credits in domestic and existing international emissions trading systems.

The rules for the credit system are expected to be finalized before the end of 2005. "I am confident that this initiative will strengthen the economic signal to increase the supply of non-emitting power that will have a significant market potential and benefits for renewables across the country," said the Minister.

Canada is the world’s biggest producer of hydropower, using it to generate two-thirds of its electricity production, making this renewal resource the most importance source of electricity production in the country. As well, wind power projects are being proposed, approved and built providing new sources of fossil-free power generation. 

Canada’s goal for reducing greenhouse gases and to meet its Kyoto target between 2008-2012 is a 270 megatonne reduction in emissions.