441-02035 (Environment)

The Government of Canada is investing to build a prosperous low-carbon economy in line with Canada’s ambitious emissions reduction targets. This includes taking a whole-of-government approach to seize the generational economic opportunities that a net zero emissions future represents – by making investments in renewable energy and clean technology as well as decarbonization technology in the conventional energy sector. 

Budget 2023 makes transformative investments to build Canada’s clean economy, fight climate change, and create new opportunities for Canadian businesses and Canadian workers. This includes significant measures that will deliver cleaner and more affordable energy, support investment in our communities and the creation of good-paying, high-quality jobs, and ensure Canadian workers are able to produce and provide the goods and resources that Canadians and our global partners need. These investments are underpinned by a set of clear and predictable investment tax credits, low-cost strategic financing, and targeted investments and programming, where necessary, to respond to the unique needs of sectors or projects of national economic significance. Since 2016, the federal government has committed over $120 billion to clean growth and emissions reduction measures, including over $80 billion in investment tax credits.

At COP26, Canada and other countries committed to phasing out international fossil fuel subsidies. Following this, the Government of Canada released direction for federal departments and agencies. Through ending new direct public support for the international unabated fossil fuel energy sector, Canada is ensuring federal investments abroad are aligned with domestic and international climate commitments, while refocusing investment towards low-carbon innovation, including in Canada’s growing clean industries.

Domestically, the Government of Canada has committed to phasing out inefficient fossil fuel subsidies by 2025. The Government of Canada took swift action, and in July 2023, Canada became one of the first countries in the world to meet this commitment well ahead of the 2025 deadline. The guidance document and assessment framework is being used by government departments to ensure all future programs and spending decisions are aligned with this commitment. 

Canada’s 2030 Emissions Reduction Plan commits to reducing emissions from the oil and gas sector. As announced at COP28, the Government of Canada released a draft Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap in December 2023 to cap the oil and gas sector’s 2030 emissions at 35 to 38 percent below 2019 levels. This measure is a cap on pollution and will incentivize innovation as the sector invests in maximum technically achievable decarbonization in order to achieve significant emission reductions by 2030 and get on a credible pathway to net-zero emissions by 2050. 

Canada’s highly skilled and educated workforce, and comparative advantages in energy, critical minerals, and clean technology are helping Canadian industries and workers to seize the enormous economic opportunities in a net-zero future.  The Government of Canada is committed to moving forward with comprehensive action required to support Canadian workers and communities as they meet the challenges and realize the opportunities of a net-zero emissions future.  The interim Sustainable Jobs Plan, released in February 2023, lays out a comprehensive approach as part of Canada’s broader economic plan for clean growth. 

This plan, drafted in consultation with provinces, territories, union and labour organizations, Indigenous partners, industry, and civil society, outlines the Government’s current and planned action to support the creation of good, well-paying jobs for Canadians. These opportunities exist in every region of the country and every sector of the economy. From critical minerals to hydrogen, electric cars and buses, batteries, clean energy, low-carbon building products, carbon management technologies and small modular reactors, Canada is building a prosperous net-zero future that works for Canadians in every region. This includes significant opportunities in existing energy industries that are taking action to respond to global demand by lowering their emissions and enhancing their long-term competitiveness.

Skills training is a critical factor in ensuring that Canadian workers can seize the economic opportunities ahead, which is why the federal government has also made historic investments in skills programming, including as it relates to sustainable jobs. This includes $1.5 billion in new investments that will deliver almost 500,000 new training and work opportunities for Canadians, which will help workers seize new opportunities, including in clean energy. Furthermore, the 2022 Fall Economic Statement announced funding to establish a new sustainable jobs stream under the Union Training and Innovation Program and fund additional sustainable jobs training, among other things.

As committed to in the interim Sustainable Jobs Plan, the Government introduced Bill C-50, the Canadian Sustainable Jobs Act, in June 2023. The legislation proposes establishing a federal governance, engagement, and accountability framework to advance economic prosperity and ensure workers benefit from the opportunities presented by a low-carbon economy. The bill would also require the Government to:

• establish a Sustainable Jobs Partnership Council to provide independent advice to Government on sustainable jobs measures; 
• create a Secretariat to lead the Government’s sustainable jobs approach; and 
• release a Sustainable Jobs Action Plan every five years beginning in 2025. 

These legislated mechanisms would guide and organize efforts to support workers and communities as Canada shifts to a low-carbon economy, ensuring equitable, inclusive, and sustainable economic growth across the country. 

The Regional Energy and Resource Tables (Regional Tables) are an important initiative to drive this work. The Regional Tables are helping to accelerate Canada’s economic growth opportunities by taking into account each region’s unique advantages and ability to meet the demands of new and emerging markets. These regional processes are being undertaken in partnership with individual provincial and territorial governments, in collaboration with Indigenous partners, and with the input of experts, labour organizations, industry, and other stakeholders. The Regional Tables will form the basis for implementing joint strategies to leverage energy and resource opportunities to realize each region of Canada’s comparative advantage in a net-zero future.

To date, the federal government has jointly launched Regional Tables across the country, including with British Columbia, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, as well as the Northwest Territories and Yukon. 

Canada has what it takes to be a clean energy and technology supplier of choice in a low-carbon world; the Government remains committed to realizing that potential.

Since 2015, 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 greenhouse gas (GHG) emissions rapidly by 2030, achieve net-zero emissions by 2050, and avoid the worst impacts of climate change.

In 2021, Canada adopted an enhanced 2030 emissions reduction target of 40-45% below 2005 levels, and passed legislation to enshrine its commitment to achieve net-zero emissions by 2050 in law. The Canadian Net-Zero Emissions Accountability Act provides a durable framework of accountability and transparency to deliver on this commitment. On March 29, 2022, Canada tabled the 2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy (2030 ERP) in Parliament. The 2030 ERP is the Government’s most recent, major step to take action to meet Canada’s climate objectives, and create good, sustainable jobs in Canada.

Achieving Canada's climate goals requires all sectors of the economy to pursue decarbonization in ways that make cleaner initiatives more affordable and create new, sustainable job opportunities for workers. In addition, the 2030 ERP reflects input received from thousands of Canadians, businesses and communities, as well as submissions from Indigenous partners, provinces and territories and the Net Zero Advisory Body.

Investments in Indigenous-led climate action are critical to enabling Indigenous peoples to advance their self-determined priorities. Since the release of Canada’s strengthened climate plan, A Healthy Environment and a Healthy Economy in December 2020, the federal government has committed more than $2 billion in targeted investments to support Indigenous communities, including initiatives to facilitate the transition to clean energy, advance nature-based solutions, build new or retrofit green community buildings, promote resilience and adaptation, and undertake major disaster mitigation projects, among others. These investments supplement more than $425 million over 12 years committed under the 2016 Pan-Canadian Framework on Clean Growth and Climate Change (PCF), as well as funding provided to Indigenous proponents through general climate programs for which they are eligible recipients. 

In the 2030 ERP and Budget 2022, the Government of Canada committed $29.6 million to co-develop and implement a model of climate partnership that empowers self-determined climate action; leverages the transition to a net-zero economy to support efforts toward self-determination and the alleviation of socio-economic inequalities; and supports the expression of Indigenous science and knowledge systems in national climate policy. 

The 2030 ERP builds on significant progress Canada has already made to address climate change, including the actions outlined in the PCF and Canada’s strengthened climate plan. With the 2030 ERP, the Government of Canada is taking action by:

• 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;
• developing a national net-zero by 2050 buildings strategy, the Canada Green Buildings Strategy;
• investing in nature and natural climate solutions through the Nature Smart Climate Solutions Fund to deliver additional emission reductions from nature-based climate solutions;
• working with provinces, territories, industry, and other stakeholders on the design of a clean electricity standard to achieve a net-zero electricity grid by 2035;
• helping industries decarbonize by adopting clean technology in their journey to net-zero emissions by committing to develop a carbon capture, utilization and storage strategy; and
• ensuring that workers and communities are able to benefit from the opportunities that the transition to a low-carbon economy presents, including by making significant investments in skills training and continuing consultations on the development of sustainable jobs and skills legislation.

The 2030 ERP is designed to be evergreen—a comprehensive roadmap that reflects levels of ambition to guide emissions reduction efforts in each sector. As governments, businesses, non-profits, and communities across the country work together to reach these targets, Canada will identify and respond to new opportunities.

The Government of Canada has delivered on its G20 commitment to phase out inefficient fossil fuel subsidies, including through the application, in 2023, of an Assessment Framework to existing tax measures and 129 non-tax measures. Addressing inefficient fossil fuel subsidies supports Canada’s efforts to take action on climate change and transition to a low-carbon economy.

Canada also contributes to emissions reduction in developing countries through its climate finance. Initiatives under Canada’s previous $2.65 billion climate finance commitment led to significant emissions reduced or avoided. In addition, our current $5.3 billion commitment (2021-2026) features Clean Energy Transition and Coal Phase-Out as a focus area.

Under this focus area, Canada supports efforts to reduce GHG emissions in developing countries by investing in initiatives that phase out coal-powered emissions, foster equitable access to clean energy solutions, promote energy efficient technologies, and support the clean energy sector enabling environment in key coal-dependent regions. In line with this, Canada has recently dedicated $43 million to energy transition programming, including a $5 million contribution to the South East Asia Energy Transition Partnership, and an $8 million contribution to the International Energy Agency’s Clean Energy Transitions Programme. With G7 partners, Canada is also providing support to new Just Energy Transition Partnerships (JETP) with countries such as South Africa, Indonesia, and Vietnam, including through its $1 billion commitment to the Climate Investment Funds Accelerating Coal Transitions Program among other sources of support. JETPs are a new model of international energy, climate, and economic assistance for emerging and developing countries to accelerate their transitions to cleaner, more climate resilient economies, while also including the perspectives and needs of workers and communities.

This priority complements Canada’s leadership through the Powering Past Coal Alliance. This initiative, which Canada co-leads with the United Kingdom, works to increase global ambition on coal phase-out and supports developing countries by sharing expertise and best practices. Canada’s public climate finance also helps mobilize private capital, which is a key component of climate action, including for clean energy transition.

The Government of Canada is taking action to reduce greenhouse gas emissions to fight climate change, while strengthening our economy by fostering the creation of sustainable jobs. This shift towards a low-carbon economy presents significant opportunities across existing and emerging sectors and will require the transformation of Canadian industries and the Canadian labour market. Ensuring Canada has a plan to advance a low-carbon economy and a workforce that can thrive in the low-carbon economy is fundamental to achieving our climate targets.

On February 17, 2023, the Government of Canada released its interim Sustainable Jobs Plan 2023-2025, which included 10 concrete actions being taken to support the creation of sustainable jobs and help workers in every part of Canada. This interim plan is informed by over two years of consultations and conversations with provinces and territories, Indigenous peoples, workers and unions, industry, environmental and civil society organizations and interested Canadians. This interim plan defines the federal government’s commitment to make progress on implementing the 10 key action areas, including establishing legislation that ensures ongoing engagement and accountability.

As part of this Plan, on June 15, 2023, the Government of Canada introduced Bill C-50, the Canadian Sustainable Jobs Act, which aims to facilitate and promote the creation of sustainable jobs and support workers and communities in Canada as the world advances toward a net-zero future. It will lay out a framework for federal governance, accountability, and engagement that will help ensure a coherent and coordinated federal approach for implementing measures that support sustainable job creation. The bill is expected to continue through the legislative process in 2024.

The Government of Canada has also been working to move forward on a path to a net-zero emissions economy for several years. For example, the Sectoral Workforce Solutions Program (SWSP), which was announced in Budget 2021, is a contribution program that helps key sectors of the economy, including sectors contributing to the low-carbon economy, implement solutions to address their current and emerging workforce needs. The SWSP funds projects that can leverage a wide-range of activities, from developing labour market information, to developing training curriculum and tools, and implementing initiatives that support employers and workers, including members of equity-deserving groups.

Budget 2022 announced the creation of a new Union-Led Advisory Table. It brings together labour leaders to provide advice on Government and Ministerial priorities on ways to help workers navigate the changing labour market. The Advisory table was launched on December 5, 2023 and will share its findings once its work is completed later in 2024.

The 2022 Fall Economic Statement announced funding for the creation of a Sustainable Jobs Training Fund, also an action area under the interim Sustainable Jobs Plan. The Fund will support a series of training projects to help 15,000 workers across the country upgrade or gain new skills for jobs in the low-carbon economy. Addressing pressing skills needs and training gaps in areas of high demand will help ensure that Canada’s workforce is prepared to support 2050 climate targets, and that employers have the labour they need to meet demand and seize growth opportunities in the new low-carbon economy.

In addition, the 2022 Fall Economic Statement announced funding for a new Union Training and Innovation Program (UTIP) sustainable jobs stream under the Canadian Apprenticeship Strategy. This stream will aim to fund projects that support unions in leading the development of green skills training for workers in the trades. It is expected that 20,000 apprentices and journeypersons would benefit from this investment.

Finally, the Government also offers a broad suite of programming to support jobseekers and workers of all ages and from a variety of socio-economic backgrounds, as well as employers, unions and training providers. Many of these programs, created in consultation with stakeholders, are already helping to advance sustainable jobs. They include:

• The Sectoral Workforce Solutions Program (SWSP), a program that helps key sectors of the economy implement solutions to address their current and emerging workforce needs, recent investments of $145.9 million in nine projects that will help build talent for the green economy. Overall, the nine projects are expected to support over 24,000 Canadians and benefit approximately 2,100 employers across Canada.
• The Canadian Apprenticeship Strategy, which provides funding to help pre-apprentices, apprentices, employers, unions, and other organizations and tradespeople participate in apprenticeships and succeed in skilled trades careers. This includes recent investments to develop green skills training for workers in the trades under the sustainable jobs initiative.
• The Skills and Partnership Fund, a project-based fund that supports partnerships between Indigenous organizations and industry employers to provide skills training for Indigenous peoples in priority sectors, which include industries that support more efficient use and alternative sources of energy and resources. Through this Fund, Indigenous people are being trained for current and emerging job opportunities in the green economy.
• The Youth Employment and Skills Strategy (YESS), a horizontal initiative led by Employment and Social Development Canada (ESDC) and delivered in collaboration with 11 other federal departments, agencies and Crown Corporations. The YESS provides funding to organizations to deliver a range of activities that help youth overcome barriers to employment and develop a broad range of skills and knowledge to participate in the current and future labour market. Some YESS programs such as Environment and Climate Change Canada’s Science Horizons Youth Internship Program, Natural Resources Canada’s Science and Technology Internship Program - Green Jobs, and Parks Canada’s Young Canada Works Program focus on connecting young Canadians with careers in the sustainable jobs sector.
• The Foreign Credential Recognition Program, to support the labour market integration of skilled newcomers by funding projects that will make credential recognition processes faster and more efficient, and providing loans (up to $30,000), support services, and employment supports to help skilled newcomers acquire Canadian work experience, including within the low-carbon sector.

Canada has a strong social safety net of which the Employment Insurance (EI) program is an important part. Millions of Canadians rely on it each year when they lose their jobs or need to step away from work for illness, childbirth, or taking care of a loved one. The Government continues to build an EI program that is responsive to all labour market conditions, and is accessible, adequate and financially sustainable.

Canada also has a comprehensive pension system, the Old Age Security Program and the Canada Pension Plan for all Canadian workers, no matter what type of work they choose. The Old Age Security Program is quasi-universal, with benefits being paid to seniors 65 and over based on years of residence in Canada after age 18. Furthermore, recent studies and modelling suggest that one of the most significant challenges facing the low-carbon economy will not be a shortage of jobs, but instead an abundance of jobs with a shortage of skilled workers required to fill them. Assisting workers to acquire new skills to support continued employment in the low-carbon economy will be key to filling future needs.