N.B. premier rejects federal Liberals' emissions-cutting plan

New Brunswick's Liberal premier has distanced himself from the federal Liberals' plan to cut greenhouse gases by capping and trading emissions, saying he thinks it could hurt his province.

Shawn Graham said Wednesday that he opposes the aggressive "cap and trade" policy favoured by the federal Liberals and some Liberal provincial governments.

He also said it was too late to continue to insist that Canada meet its obligations under the international Kyoto Protocol on cutting greenhouse-gas emissions, which the federal government then under the Liberals signed in 1998 and ratified in 2002.

"It's clear that we have to move beyond the Kyoto debate now," Graham said.

Graham's take on the treaty puts him at odds with federal Liberals, who say Canada can still get back on track and reduce greenhouse gases under Kyoto guidelines.

The federal Liberals, as well as some provinces, have been pushing the "cap and trade" strategy, which involves capping industrial emissions. Companies that go over the cap would have to buy emission credits from companies that stay below it.

Graham said the model could hurt New Brunswick.

"It may have a negative impact on our province's economic base and economic activity," he said.

Graham has instead been warming up to the federal Conservative plan, which features a much less strict emissions credit system.

The Conservatives made it clear after coming to power in early 2006 that they did not intend to meet Canada's Kyoto commitments, saying that the previous Liberal government had not done enough to make it still feasible to reduce emissions by the Kyoto deadlines.

Graham said he doesn't mind disagreeing with his federal allies.

"I will always do what's in the best interests of New Brunswickers first and foremost."

But environmentalist David Coon said the federal Tories' plan has no teeth.

"They're going to allow companies to pay $15 a tonne into a government fund and not cut any emissions anywhere," Coon said

Graham's skepticism about Kyoto and emissions caps comes at the same time as his government is supporting the construction of a new Irving Oil refinery in Saint John.