Canada’s ratification of the Kyoto Protocol in December 2002 was something of a surprise for several reasons. First, in light of even greater emissions growth than anticipated when Canada signed Kyoto in 1997, compliance with Kyoto would require a very deep reduction in Canada’s greenhouse gas emissions to 35% below the “business-as-usual” baseline by 2010. Second, a commitment to Kyoto could be expected to hurt Canada’s economic interests as a major fossil fuel producer and exporter. Third, Canada’s open economy, with exports accounting for 40% of GDP, was threatened by a regime that does not demand comparable emissions reductions from competitors, whether in developing countries or, more importantly, in Canada’s largest trading partner, the United States, which confirmed in 2001 that it would not ratify Kyoto. In light of these factors, it is not surprising that the federal government faced virtually unanimous opposition to ratification from the Canadian business community. Moreover, since the natural resources in question, including oil, gas, and coal, are owned by provincial governments, most provinces were also adamantly opposed to ratification, the exception being two provinces with extensive hydroelectric potential. That Canada ratified Kyoto despite these challenges represented a triumph of commitments both to environmental sustainability and multilateralism over economic interests and political institutions. However, this triumph of ideas was facilitated by an unusual set of circumstances, in particular a Prime Minister willing to pursue bold policy initiatives at the end of a long political career. That said, institutional and political obstacles reasserted themselves with respect to implementation before the ink was dry on Canada’s ratification papers. Political concessions quietly negotiated by the federal government with the business community in the lead-up to ratification have rendered it impossible for Canada to comply with Kyoto through domestic actions alone. Compliance will thus require reliance on Kyoto’s international flexibility mechanisms for a significant fraction, possibly more than half, of Canada’s reductions. Yet the notion of investing in international credits is politically unpopular in Canada. The Conservative government, elected in January 2006, has acknowledged that Canada will not comply with Kyoto, and begun quietly dismantling climate change programs put in place by their predecessors. While Canada’s surprising resolve thus has been undercut by traditional power politics, it remains to be seen whether the ideational commitment to Kyoto will be rendered entirely symbolic, or whether Canada’s continued participation in the Kyoto process will place it on a path for greater action than it might otherwise have taken, if one less aggressive than promised at the time of ratification. ..PAT.-Conference Proceeding [ABSTRACT FROM AUTHOR]