Amey to head new Climate Fund Agency
Allan Amey was named the first president designate of Canada's new Climate Fund Agency as of November 14. For the next six weeks, he will manage the day-to-day operations of the agency until he assumes the role of president effective January 1, 2006. With an extensive background in the energy sector, Amey brings valuable experience to the new post. He most recently served as president and CEO of Alberta's Climate Change Central (C3).
C3 was established in 1999 to promote the development of innovative responses to global climate change and its impacts. As a public-private partnership, it builds links and relationships among Alberta businesses, governments and other stakeholders interested in pursuing greenhouse gas reduction initiatives.
The Climate Fund Agency, established under legislation given Royal Assent in October, is a cornerstone of Canada's updated Climate Change Plan 2005. Starting March 31, 2006, it will purchase credits created by Canada's domestic offsets system as well as internationally recognized Kyoto units. All purchases of Kyoto units will be required to generate benefits to Canada and be associated with emissions reductions; there will be no purchases of so-called "hot air."
Priority will be assigned to purchases of domestic offset credits, with all purchases made through a competitive process. Examples of projects that can generate domestic offset credits include municipalities that capture landfill gas, new non-emitting electricity generation projects and farmers who adopt low-till or zero-till practices. Projects that reduce emissions in developing countries are among the sources of Kyoto units.
The federal government's 2005 budget made a $1 billion initial allocation for purchases by the Fund. It is estimated that purchases by the Climate Fund could yield reductions of between 75 and 115 megatonnes annually between 2008 and 2012 with funding in the order of $4 to 5 billion.