441-01674 (Environment)

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

Canada also joined other countries at COP26 in committing to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022. On December 8, 2022, the Government released policy guidelines that lay the foundation for federal departments and agencies to put in place the measures that deliver on Canada’s commitment at COP26. By ending new direct public support for the international unabated fossil fuel energy sector, Canada will ensure its investments abroad are aligned with its domestic and international climate goals, which means investing in clean energy and renewables.

In addition, Canada committed to phase out inefficient fossil fuel subsidies, and recently accelerated the timeline to do so this year. To date, Canada has phased out or rationalized nine tax preferences supporting the fossil fuel sector and has committed to take part in a peer review of inefficient fossil fuel subsidies under the G20 process.

The Government also announced that it will cap and cut emissions from the oil and gas sector in line with Canada’s climate targets. This commitment was reiterated in Canada’s 2030 Emissions Reduction Plan and reaffirmed at COP27. As a result, companies are actively investing in the development and deployment of emissions-reduction technologies, such as Carbon Capture, Utilisation and Storage (CCUS), hydrogen and electrification. These efforts will help lead to a cleaner energy future.

With a highly skilled and educated workforce, and with the abundant natural resources and energy sources critical for a net-zero future, Canada is uniquely positioned to benefit from a low-carbon economy. The Government 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, renewable energy, low-carbon building products, carbon capture, utilization and storage, and small modular reactors, Canada has a major opportunity to build a net-zero future that works for everyone. There are also significant opportunities for sustainable jobs in conventional energy industries that are working to lower their emissions in line with Canada’s climate policy, enabling producers to be low-emissions suppliers of products to a world in transition.

Recognizing the importance of helping Canadians access job training for the net-zero future, the Government has also made historic investments in skills programming, including for 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 transition to and take advantage of 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 launch a new Sustainable Jobs Training Centre, 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 a key 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, and through engagement with Indigenous partners, as well as 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 advantages in a net-zero emissions economy.

To date, the federal government has jointly launched nine Regional Tables across the country, with British Columbia, Manitoba, Ontario and the four Atlantic provinces (New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador) as well as the Northwest Territories and Yukon. Most recently, the Government of Canada and British Columbia, in collaboration with First Nation partners, released the foundational British Columbia Regional Energy and Resource Table Collaboration Framework, which sets the stage for a shared longer-term vision. On the other side of the country, plans for a similar framework with Newfoundland and Labrador and Ontario are not far behind. Other participating provinces and territories are collaborating to finalize proposed priorities, while discussion to establish a Regional Table or other collaboration mechanism continues in the remaining jurisdictions.

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.

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 released its Interim Sustainable Jobs Plan. This document is an interim plan for 2023-25 that precedes and sets an initial frame for the Sustainable Jobs Action Plans that will be released every five years starting in 2025 to guide and organize efforts to support workers in the economy of the future. This interim Sustainable Jobs Plan outlines federal measures across 10 key action areas:

1. Establishing the Sustainable Jobs Secretariat
2. Creating a Sustainable Jobs Partnership Council
3. Developing economic strategies through the Regional Energy and Resource Tables
4. Introducing a sustainable jobs stream under the Union Training and Innovation Program
5. Advancing funding for skills development towards sustainable jobs
6. Promoting Indigenous-led solutions and a National Benefits-Sharing Framework
7. Improving labour market data collection, tracking and analysis
8. Motivating investors and draw in industry leadership to support workers
9. Collaborating and leading on the global stage
10. 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. The bill puts workers and communities at the centre of federal policy and decision-making by establishing a framework for accountability, a governance structure and engagement mechanisms to guide effective federal action.

This legislation and interim Plan are the product of a comprehensive consultation process that took place over 2021-22, engaging other orders of government alongside Indigenous organizations, key labour and industry partners, stakeholders and the Canadian public.

The Government will continue to support the creation of sustainable jobs by leveraging current programming and by working closely with stakeholders to help identify the skill sets needed for a low carbon economy and ensure that Canada’s entire workforce is equipped to succeed. This continues to be important in the current context also characterized by labour shortages, population aging and technological change.

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 bring together workers, unions, employers, and training institutions across the country to examine the skills of the labour force today, forecast future skills requirements, and develop curriculum, micro-credentials, and on-site learning to help 15,000 workers upgrade or gain new skills for jobs in a low-carbon economy. The Fund would focus on specific areas in high demand, starting with the sustainable battery industry and low-carbon building and retrofits.

In addition, the 2022 FES 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, a program that helps key sectors of the economy implement solutions to address their current and emerging workforce needs, including priority areas such as ‘Building Talent for the Clean Economy’.

•     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’s continues to build an EI program that is responsive to all labour market conditions, whether in high or low unemployment situations, 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.

Over the past six years, the Government of Canada has demonstrated its leadership on climate change and clean growth, at home and abroad. It is clear 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. Canada has invested more than $100 billion to address climate change since 2015 and has recently announced $9.1 billion in new investments that build on the foundation set by Canada’s existing climate actions.

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 (ERP)in Parliament and released the plan. The 2030 Plan is the Government’s next major step in taking action to achieve 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 Carbon Neutrality Advisory Group.

The 2030 ERP builds on significant progress Canada has already made to address climate change, including the actions outlined in the Pan-Canadian Framework on Clean Growth and Climate Change, and Canada’s strengthened climate plan, A Healthy Environment and a Healthy Economy, released in 2020. 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.

On July 24, 2023, the Government of Canada released the Inefficient Fossil Fuel Subsidies Government of Canada Self-Review Assessment Framework and the Inefficient Fossil Fuel Subsidies Government of Canada Guidelines, which were jointly developed by Environment and Climate Change Canada and the Department of Finance Canada. The Guidelines apply to all federal departments and agencies.

The Framework and Guidelines fulfill Canada’s domestic, G7, and G20 commitments to phase out and rationalize inefficient fossil fuel subsidies by 2023. Canada is the first country to release a rigorous analytical guide that both fulfills this commitment and transparently supports action. The Guidelines will be used to prevent the creation of inefficient fossil fuel subsidies in the future.