December 1, 2003

DuPont signs MOU on climate change with DOE, NRCan

The federal government has signed its third agreement on climate change with industry. Under a Memorandum of Understanding (MOU) with Environment Canada and Natural Resources Canada (NRCan), DuPont Canada has committed to reduce its greenhouse gas (GHG) emissions by an average of 15% by 2008-2012.

The MOU sets out key elements of a climate change agreement between the two parties and highlights their mutual efforts to develop a functioning emissions trading system that will allow for the buying and selling of GHG emissions permits.

"DuPont stands out as a corporate leader in efforts to reduce greenhouse gas emissions," said NRCan Minister Herb Dhaliwal. "DuPont's past achievements in reducing emissions, combined with its commitment for continuous improvement, put the company in a strong position to play a significant role in the proposed emissions trading system in Canada."

"The support and partnership of large final emitters such as DuPont Canada is essential to the successful implementation of the Climate Change Plan for Canada, and to achieving our goal of sustainable development," Environment Minister David Anderson.

DuPont president and CEO Doug Muzyka said, "This agreement reflects a unique spirit of co-operation between industry and government that is critical for Canada to meet its commitments to address climate change. It recognizes the significant improvements already made by DuPont Canada and supports our continuing efforts by setting out emission reduction targets that are aggressive yet realistic." (The company recently released its 2002 Sustainable Growth report-ELW Nov 17)

The principles in the MOU are consistent with government commitments to industry made in the Climate Change Plan for Canada, released in November 2002. The MOU sets out a 15% emissions intensity target for the production of nylon intermediates during the first Kyoto commitment period (2008-2012). This target reflects recognition for early action taken by DuPont since 1997 and is consistent with government commitments not to disadvantage firms who have taken steps to reduce GHG emissions. The MOU signed with the government will also give the company clarity on the treatment of these reductions as they proceed with corporate restructuring this year.

Canada's climate change plan calls for large final emitters to reduce their GHG emissions by 55 megatonnes (Mt). This works out to a 15% reduction in emissions intensities from the government's business-as-usual forecast for 2010. Large final emitters include companies that produce goods in emissions-intensive sectors, including energy, electricity and selected mining and manufacturing.

DuPont has significantly reduced the emissions intensity of its production of nylon as a result of investment in new technology and equipment to abate nitrous oxide (N2O) emissions, a type of greenhouse gas identified in the Kyoto Protocol.

Two other agreements, with the Canadian Working Group on Carbon Markets and the Forest Products Association of Canada, were signed over the past two months. Discussions will continue with other industry sectors.

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