THE CANADIAN PRESS

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HALIFAX - A regional think tank says climate change has quickly become a key policy issue for governments in the Atlantic provinces.

Elizabeth Beale, President of the Atlantic Provinces Economic Council, says the region's biggest challenge will be to reduce greenhouse gas emissions from electrical generation and contain emissions from new sources of industrial activity.

APEC's September 2008 Report Card notes that emissions from fossil fuels consumed during electricity generation are the largest single source of emissions in Atlantic Canada.

Total greenhouse emissions in the region have fallen since 2004, largely due to production cuts and lower demand for electricity from pulp and paper mills.

The council says provincial governments in Atlantic Canada are embracing many aspects of a climate change agenda.

However, despite numerous initiatives it says they have yet to address the fundamental challenge of balancing environmental goals with economic development.