And, in a carefully stage-managed launch, Chretien -- who retires as prime minister next February -- said more money would be coming to ensure Canada meets its commitment to reduce greenhouse gas emissions to six percent below 1990 levels by 2010.

Chretien, who has faced intense opposition to complying with the Kyoto Protocol from the oil industry and several provincial governments, insisted Tuesday that the new programme would benefit both consumers and industry alike.

The new programme, he said, was a "made-in-Canada approach to climate change that is fair to everyone."

It was "one that rewards innovation, that invests in new technologies, that gives industry, businesses, municipalities and citizens the tools they need to act."

The money will finance investments in new technologies, grants to businesses and provincial governments for reducing "greenhouse gas" emissions and to promote alternative forms of transportation that are more energy-efficient.

"We have no choice, no choice but to act. It is our moral responsibility, it is in our enduring interest," Chretien said.

The new money brings to 3.7 billion dollars (2.7 billion US) the amount of money announced by the federal government so far this year to ensure its compliance with its Kyoto commitment.

Environment Minister David Anderson, answering charges the Kyoto goal was too lofty for Canada to meet, said the plan is to reduce greenhouse emissions by 20 megatonnes per year or "less than one tonne per person."

SPACE.WIRE