Environment Minister John Baird denies the Conservative government has any plans to quit the Kyoto Protocol despite repeatedly insisting Canada cannot meet its targets.

"Let me put that absolutely to rest. I've never heard a single word about Canada withdrawing from Kyoto. It's never even been discussed. That's absolute fear-mongering," Baird said Saturday in Potsdam, Germany, where he's attending a conference of G-8 environment ministers.

The ministers are trying to develop a consensus on a successor to the Kyoto treaty, which expires in 2012. Baird was reacting to the suggestions of some Canadian environmental activists.

At a campaign-style speech Saturday evening, Prime Minister Stephen Harper seemed to signal the Conservatives would honour the Kyoto responsibilities Canada first signed onto in 1998.

"Rebuilding our international stature means restoring the reputation among the world's nations, both friend and foe, that Canada honours its word, that a Canadian commitment is a promise fulfilled," he told about 5,000 party members.

"Whether the issue is Kyoto or Kandahar, or relations with the state of Israel or with the members of NATO, no longer can Canada afford to sign international commitments it will not keep."

Baird said the most important developments from the Potsdam meetings were a new consensus that climate change exists and must be dealt with, and an agreement that technology will be a vital tool in helping developing nations reduce emissions.

The Conservatives have promised new regulations by month's end.

"We're going to bring in industrial regulations that are some of the most significant in the world. We're going to bring in a significant amount of issues working with the provinces," Baird said.

However, environmentalists who saw an early draft of the proposed regulations say they would allow GHG emissions to continue rising, particularly from Alberta's oilsands.

While the Kyoto target for Canada is a six per cent cut below 1990 levels, Canada is about 27 per cent above that baseline as of 2004.

Harper has talked about "achievable" targets. His government has painted Kyoto as unachievable.

After being elected in early 2006, the Tories first downplayed the climate change issue, preferring to talk about air quality.

"As of 2005, we were seen as a world leader on Kyoto," said University of Ottawa environmental law professor Stewart Elgie.

"Over the past year or so, our international reputation has been damaged mainly because of the perception that we've given up on even trying to meet our Kyoto commitment."

The Conservatives opposed signing on to Kyoto in the first place. But as polls showed Canadians placing greater importance on the environment/climate issue, the Conservatives have re-announced -- with some changes -- Liberal programs they had previously cancelled.

The Liberal plan

Liberal Leader Stephane Dion's strategy to tackle climate change is nothing more than a cash grab with little substance, Baird said.

The strategy, which Dion announced on Friday, is no better than four other Liberal environmental strategies announced in recent years, he said.

"I think it falls short," Baird said, suggesting it only targets top emitters of greenhouse gases, while the Conservative plan will establish emissions targets for all industry.

"I am concerned Mr. Dion's plan looks just like a money grab with very little pressure or focus on actual emissions reduction," he told reporters on a conference call.

"I think our plan as it will come forward in the coming weeks will look rather favourable compared to the weak effort by Mr. Dion."

Dion's plan sets out fines for every ton of carbon emissions released above a set threshold. Companies that meet their targets earn credits which they could then sell.

The approach is called cap-and-trade. The European Union has such a carbon-trading system. The EU has set a goal of a 20 per cent reduction in GHG emissions from the 1990 baseline by 2020.

With a report from CTV's David Akin