"No carbon tax" would be introduced as part of Canada's efforts to cut greenhouse-gas emissions linked to global warming, Baird told the hearing.

"We're not interested in participating in carbon markets overseas," he said under questioning, suggesting also that Canada would "face economic collapse" if it tried to meet its Kyoto Protocol targets.

"Let me be clear that there are some fundamental principles that guide this government: We will not spend taxpayers' dollars to buy international hot-air credits just to meet our Kyoto targets."

His predecessor, former environment minister Rona Ambrose, who was replaced in January, had said she would support a Canadian carbon market, expected to launch soon in Montreal.

A similar market for carbon dioxide (CO2) emissions was already introduced by the European Union to control carbon gases, emitted mainly by burning oil, gas and coal, which are driving perilous climate change.

The EU market forces 11,500 firms that are big users of fossil fuels to meet a CO2 emissions target or pay a penalty.

Those that are below their quota can sell their surplus on the market to companies that exceed it, thus providing a financial carrot to reduce pollution.

But Ottawa has refused to buy credits on the international CO2 market.

"Those hot-air credits would be a bad investment for Canada, spending billions of dollars abroad for zero environmental benefit," Baird explained.

Prime Minister Stephen Harper said this week his government would set "enforceable targets" for short-, medium- and long-term cuts to carbon emissions, indicating for the first time that "global warming is a serious threat to the health and well-being of Canadians."

Ambrose had introduced a bill in mid-October to reduce Canada's CO2 emissions by 45-65 percent by 2050, based on 2003 emissions. But it was widely panned for allowing emissions to continue to rise until 2020.

Canada had agreed under the Kyoto Protocol to reduce carbon-dioxide emissions to 6.0 percent below 1990 levels by 2012, but a 2006 government environmental audit found emissions had instead increased by 26.6 percent.

On Tuesday, Harper offered to regulate air pollution from major Canadian industries, fix vehicle fuel efficiency, mandate greater use of ethanol and make energy-efficient vehicles more affordable.

Harper also reiterated that he supports a "concerted global effort to deal with climate change" but said it must include major pollution emitters such as the United States and China.

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