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Federal Regulatory Reform

A Framework for Sustainability

Through federal legislative and regulatory regimes, the federal government has a central role in establishing a competitive business environment to attract and retain investment in Canada's cement industry.

View doc CAC's Submission to the Competition Policy Review Panel 80.00 Kb (January 11, 2008).

Greenhouse Gas Framework

The federal government is moving rapidly to develop and introduce regulations under the Federal Regulatory Framework for Industrial Air Emissions for greenhouse gas emissions.  As regulated by the Federal Regulatory Framework for Industrial Air Emissions, Canada's cement manufacturing sector will be required to:

  • reduce its greenhouse gas emissions intensity to 18% below 2006 levels by 2010, and
  • further reduce its greenhouse gas emissions intensity an additional 2% per annum thereafter.

“With high carbon prices,
the cement sector
is the one sector
that will respond
with large output reductions.”
National Roundtable on
the Environment and Economy
-January 2008

Canada is the first jurisdiction globally to require drastic reductions in greenhouse gas emissions from the cement industry, including amongst EU nations under the first compliance period of the Kyoto Protocol.

According to an initial economic analysis commissioned by CAC and undertaken by Mark Jaccard and Associates and Enviro-Economics, "with current constraints on the use of alternate fuels and Supplementary Cementing Materials, the industry will experience significant operational impacts under the Federal Framework" with compliance costs reaching 10% of sales by 2015.  This same analysis found that even modest increases in access to alternative and renewable energies and supplementary cementing materials would significantly reduce the compliance costs under the Federal Regulatory Framework.

Air Pollutants Framework

Alongside the development of greenhouse gas emissions regulations under the Federal Regulatory Framework for Industrial Air Emissions, the federal government is also moving rapidly with the development of an air pollutant emissions regulatory framework. 

The Cement Association of Canada took a leadership role during the summer of 2007 in the establishment of the Multi-Stakeholder Advisory Group to the Minister of Environment on the development of a federal role for regulating air emissions.  This group is made up of environmental non-government organizations, industry associations, and health non-government organizations.  These organizations are cooperating to develop recommendations to the federal government on the shared goal of improving Canada's air quality.

doc View Letter to the Prime Minister 836.50 Kb

Corporate Tax Regime

As a net exporting manufacturing sector, Canada's cement industry is facing increasing challenges to competitiveness, as highlighted by the Canadian House of Commons Standing Committee on Industry in its Report to Parliament (February 2007).  These challenges include:

  • the rapid and continued appreciation of the Canadian dollar
  • continually and rapidly increasing energy costs
  • new and increasing competition from emerging Asian economies and
  • an onerous regulatory environment.

Canada's corporate tax regime must be developed in a manner that keeps pace with the business realities of operating in a highly globalized economy. A competitive business environment in Canada is central to the ability of Canadian industrial sectors to compete both in international markets and in with international imports in our domestic market. A globally competitive tax framework is a central component of a competitive business environment.

pdf View CAC's 2008 Pre-Budget Submission 97.68 Kb

pdf View CAC's 2007 Submission to the Joint Finance Canada - Canada Revenue Agency Consultation “Improving the Scientific Research and Experimental Development Tax Incentives” 161.66 Kb