441-00693 (Environment)

The Government of Canada recognizes that a secure and prosperous future depends on a sustainable energy sector, one that provides affordable, reliable, and clean energy to Canadian families, businesses, and industries, and exports products and technologies around the world.  The Government of Canada also recognizes that a real and effective transition to a more sustainable energy future must be one that ensures a cleaner environment and significant opportunities to Canadian workers.

At COP26, the Government announced that Canada will cap and cut emissions from the sector in line with Canada’s climate targets and is consulting now on the path forward. Canada’s oil and gas sector, including the top oil sands producers, has made its own net-zero commitments. Companies are actively investing in developing and deploying emissions reducing technologies, services, and products. These efforts will help lead to a cleaner energy future and a stronger economy, poised to seize low-carbon opportunities. The Government will continue to work with carbon-intensive industries to achieve Canada’s net-zero targets and will remain a strong advocate for a clean energy transition built on Canada’s non-emitting power advantage.

The Government of Canada is also in the process of developing guidance for all future oil and gas production projects subject to a federal impact assessment, ensuring that they will have “best-in-class” low-emissions performance. Successful proponents are building energy transition considerations into project design, such as plans to transition to hydrogen production and export. Increasingly, consumers are looking to source energy products produced with the lowest possible carbon intensity.

The science is clear that accelerated efforts to reduce greenhouse gas emissions rapidly by 2030, and to achieve net-zero emissions by 2050, are necessary in order to avoid the worst impacts of climate change. The economics are clear too – to build a strong, resilient economy for generations to come, we must harness the power of a cleaner future.

The Government of Canada recognizes this reality, and since 2015 has taken significant, ambitious steps to reduce emissions, protect the environment, spur clean technologies and innovation, and help Canadians and communities adapt to the impacts of climate change.

In 2016, the Government of Canada developed the Pan-Canadian Framework on Clean Growth and Climate Change, in collaboration with provinces and territories, and with input from Indigenous peoples. Building on this national effort, the Government of Canada released its strengthened climate plan, A Healthy Environment and a Healthy Economy, in December 2020, to deepen emissions reductions across the economy, create new, well-paying jobs, make life more affordable for households, and build a better future.

In 2021, the Government of Canada committed to achieving an enhanced 2030 greenhouse gas emissions reduction target of 40-45% below 2005 levels under the Paris Agreement and adopted legislation to enshrine this Nationally Determined Contribution (NDC), as well as the commitment to achieve net-zero emissions by 2050, in law. The Canadian Net-Zero Emissions Accountability Act (the Act) provides a durable framework of accountability and transparency to deliver on these commitments. The Act requires the Minister of Environment and Climate Change to set subsequent targets for 2035, 2040, and 2045, at least 10 years in advance. The Actalso holds the federal government accountable as it charts Canada’s path to achieve net-zero emissions by establishing a transparent process to plan, assess, and adjust the federal government’s efforts to achieve our national targets based on the best scientific information available.

As an early deliverable under the Act,Canada published the 2030 Emissions Reduction Plan in 2022. The plan lays out the next steps to reaching Canada’s 2030 emissions reduction target, including a suite of new mitigation measures and strategies, and builds on the foundation set by Canada’s existing climate actions. The plan also reflects input from thousands of Canadians, businesses, and communities, as well as submissions from Indigenous partners, provinces, territories and the Net-Zero Advisory Body.

Measures introduced by the Government of Canada since 2015 include:

• Bringing into force the Greenhouse Gas Pollution Pricing Act ensuring that every Canadian jurisdiction has a price on carbon. The price on carbon pollution started at $20 per tonne of emissions in 2019 – and has been rising at a predictable rate of $10 per year to reach $50 in 2022. Starting in 2023, the price will start rising by $15 per year until it reaches $170 per tonne in 2030;
• Committing to accelerate our G20 commitment to eliminate inefficient fossil fuel subsidies from 2023 to 2025, and develop a plan to phase out public financing of the fossil fuel sector including by federal Crown corporations;
• Accelerating the phase-out of coal-fired electricity generation, and positioning the oil and gas sector to cut pollution by working with stakeholders to implement a cap on oil and gas sector emissions;
• Working with industry, stakeholders, provinces and territories, Indigenous peoples and others to develop the cap on emissions from the oil and gas sector. Following consultations, the cap will be designed to lower emissions at a pace and scale needed to achieve net-zero by 2050, reduce oil and gas methane by at least 75% below 2012 levels by 2030, support clean technologies to further decarbonize the sector, and work to create sustainable jobs;
• Building Canada’s renewable electricity future by continuing to advance the Clean Electricity Standard to enable Canada to achieve at net-zero electricity grid by 2035, and making significant investments to support renewable electricity and grid modernization projects;
• Helping to reduce energy costs for homes and buildings, and boosting climate resiliency;
• Driving progress on clean cars and trucks through investments in zero-emission vehicles charging and refueling infrastructure, and the Incentives for Zero-Emission Vehicles (iZEV) program;
• Establishing of the Canadian Centre for Climate Services which provides climate information and support to help Canadians consider climate change in their decisions, including health-related adaptation decisions via the collaborative climate information portal, ClimateData.ca; and,
• Developing a climate lens to integrate climate considerations throughout Government of Canada decision-making.

The Government of Canada has demonstrated its leadership on climate change and clean growth, at home and abroad. We understand that accelerated efforts are crucial to reduce emissions rapidly by 2030, and to achieve net-zero emissions by 2050 to avoid the worst impacts of climate change.