A deeply divided Canadian failed today to agree on whether to ratify or pull out of the Kyoto Protocol on reducing greenhouse emissions.
At the end of the weekly cabinet meeting, Environment Minister Mr David Anderson said Canada would make known new proposals at a United Nations environment meeting scheduled to be held next month in Whistler, British Columbia.
Meanwhile a row is growing between Canada and the European Union over whether Canada should be allowed credits towards its targets for selling clean technology to the United States which has pulled out of the Kyoto Protocol process.
The EU is totally opposed to the idea. Mr Anderson, talking to reporters after the cabinet meeting, said: "There is something bizarre about the European position as expressed by the European Union."
He accused the Europeans of not taking Canada's proposals seriously, claiming they were objecting to a plan which had not yet been finalized.
Asked if rejection of the Canadian demand would be the breaking point in the negotiations, Anderson said: "It's not possible yet to say 'Yes' or 'No'." Talking separately to reporters, Prime Minister Mr Jean Chretien said the question of credits was one of the issues still outstanding.
Without going into precise details, Mr Chretien spoke of "the whole package." Asked specifically, "If you don't get clean energy credits, are you going to ratify it -- yes or no," Mr Chretien replied: "You have two 'ifs' in the same line. I don't reply to hypothetical questions."
He denied that he had ever said he wanted to ratify Kyoto in May, pointing out: "I said I want to ratify as soon as possible. But I will not ratify (until) I have completed my work."
Canadian ministers are deeply divided over whether Ottawa should ratify Kyoto following the US withdrawal. Several key ministers responsible for industry, energy and trade fear that Canadian compliance with Kyoto would put Canada at a competitive disadvantage with the United States which will not be constrained to reduce greenhouse gases.