441-01867 (Environment)

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 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 2025 to 2023, 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.

The Government of Canada recognizes that we cannot lose focus on the growing threat that climate change presents to the planet and to the health and livelihoods of all Canadians. In 2021, the Canadian Net-Zero Emissions Accountability Act enshrined in legislation the Government’s commitment to achieve net zero greenhouse gas emissions by 2050. The Act also establishes the 2030 greenhouse gas emissions target as Canada’s Nationally Determined Contribution (NDC) under the Paris Agreement, which is currently an emissions reduction target of 40 to 45 percent below 2005 levels by 2030.

As an early deliverable under this legislation, Canada released the 2030 Emissions Reduction Plan: Canada’s Next Steps to Clean Air and a Strong Economy (ERP) in March 2022. The plan is a sector-by-sector roadmap that lays out the measures Canada will take to reduce its emissions by at least 40% below 2005 levels by 2030, and puts in place the building blocks to achieve net-zero emissions by 2050. It also reflects input from thousands of Canadians, businesses, and communities, as well as submissions from Indigenous partners, provinces and territories, and the Net-Zero Advisory Body.

The Government of Canada is helping to lead the energy transition by investing $120 billion since 2016 in climate action and clean growth. This includes substantial investments in clean energy, modern electricity grids and greater energy efficiency – all of which will drive economic prosperity and good jobs. Some of the government’s foundational investments include the $15 billion Canada Growth Fund to incentivize private sector projects and companies that will grow Canada’s clean economy; the $8 billion Net Zero Accelerator to secure large-scale investments in clean technologies; and the $4.2 billion Low Carbon Economy Fund to help provinces and territories, businesses, Indigenous communities, and other organizations install emission-reducing technologies.

Budget 2023 laid out the next steps and key investments in Canada’s transition to a clean economy, securing Canada's competitive advantage. More specifically, the Budget proposed a suite of new investment tax credits for strategic industries such as clean electricity, clean technology manufacturing, and clean hydrogen, as well as enhancements to existing tax credits for areas such as clean technology and carbon capture, utilization and storage. In addition to these private sector incentives, Budget 2023 also announced that the Canada Infrastructure Bank will invest at least $20 billion to support the building of major clean electricity and clean growth infrastructure projects.

To enhance long-term certainty, the Government has ensured it is no longer free to pollute anywhere in Canada by establishing a Pan-Canadian approach to pricing carbon pollution since 2019. With this approach we are fighting climate change by reducing emissions while putting more money in the pockets of Canadian families.

The Government of Canada recognizes that reducing emissions from the oil and gas sector is necessary to mitigate the impacts of climate change. To support a sustainable transition to a net-zero economy by 2050 and contribute toward Canada’s 2030 emission reduction target, the Government committed to develop a cap on oil and gas sector emissions that is ambitious, yet achievable, and promotes investment in emissions reducing technologies while supporting the economic developments of regional economies. Canada has also committed to at least a 75% reduction in methane emissions from its oil and gas sector from 2012 levels by 2030. Many producers in Canada’s oil and gas sector, including the top oil sands producers, have also made their 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 of Canada has committed to achieve a net-zero electricity system by 2035 and, on August 10, 2023, introduced draft Clean Electricity Regulations to provide a clear regulatory signal toward that end (final regulations are expected in 2024). Reducing greenhouse gas emissions from electricity generation is essential to decarbonize the economy, and will enable reductions in other sectors, such as transportation and buildings. The Government of Canada is providing $4.5 billion until 2035 to the Smart Renewables and Electrification Pathways Program to support smart renewable energy and electric grid modernization projects, and $250 million to support pre-development activities for clean electricity projects of national significance such as inter-provincial electricity transmission projects and small modular reactors. The Government is also investing over $500 million to support projects that reduce reliance on diesel fuel, support renewables, increase energy efficiency, and build capacity in rural, remote, and Indigenous communities. Canada is operating from a strong starting point, as roughly 82% of our electricity already comes from non-emitting sources such as hydroelectricity, wind, solar, and nuclear power.

In December 2018, Canada implemented regulations to accelerate the phase-out of conventional unabated coal-fired electricity generation by 2030.  Canada is also demonstrating international leadership on phasing out thermal coal. To advance the goals of the Paris Agreement, Canada is co-leading the Powering Past Coal Alliance (PPCA), alongside the United Kingdom. With over 165 members, the PPCA is the world’s leading coalition of stakeholders seeking to accelerate clean growth and climate protection through the rapid phase-out of unabated coal power-generation. In addition, Canada announced at COP26 in November 2021 that it is working to end thermal coal exports from and through Canada by 2030. Canada would be the first country in the world to ban thermal coal exports on the basis of environmental impacts and greenhouse gas emissions.

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.  After two years of public consultations with a range of stakeholders, the Government of Canada released its interim Sustainable Jobs Plan for 2023-2025 in February 2023, outlining 10 key action areas where federal measures could help advance significant economic opportunities that create good jobs for Canadians across the country while driving prosperity and competitiveness on our way to net-zero emissions by 2050. 

In June 2023, the Government introduced Bill C-50, the Canadian Sustainable Jobs Act, which would establish a federal governance, engagement, and accountability framework to advance economic prosperity and ensure workers benefit from the opportunities presented by a low-carbon economy. If passed, the bill would require the Government to establish a Sustainable Jobs Partnership Council to provide independent advice to Government on sustainable jobs measures; to create a Secretariat to lead the Government’s sustainable jobs approach; and to release a Sustainable Jobs Action Plan every five years beginning in 2025. These mechanisms will guide and organize efforts to support workers and communities as Canada shifts to a net-zero economy, ensuring equitable, inclusive, and sustainable economic growth across the country.

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. Amid this concerted action, the government also launched Regional Energy and Resource Tables 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 provincial and territorial governments, and through engagement with Indigenous partners, experts, labour organizations and other stakeholders. The Regional Tables will form the basis for comprehensive and transformative place-based economic strategies for every region of Canada to realize a comparative advantage in a net-zero economy.

Canada has what it takes to thrive in a low-carbon world. While transforming Canada’s energy systems will take time, the Government remains committed to delivering bold action to decarbonize its energy and natural resources sectors and build a cleaner, more prosperous economy that works for everyone.

The government is committed to helping to ensure that Canada is positioned to both deliver on its ambitious emissions reductions obligations under the Paris Agreement and to seize the opportunities presented by a growing net-zero global economy. These commitments are reflected in a range of federal measures, including over $100 billion in earmarked investments since 2016, aimed at driving down emissions and supporting long-term, inclusive economic growth that benefits all Canadians.

A net-zero emissions world will only be attainable if Canada is able to develop, commercialize and deploy clean technologies on a large-scale. To that end, an array of federal programs are available to support clean technologies across the innovation spectrum.

To incent more business investment in research and development (R&D) that will generate new and improved, globally competitive products, processes, and services, including those needed to reach net-zero, the government has approximately 41 clean technology funding programs spread across 19 government organizations.  These programs provide integrated support, including flexible funding, to help Canadian businesses across all sectors and regions become more innovative and productive.

The Government of Canada is helping innovators manage and create value from their innovations through investments like the Innovation Asset Collective, an independent, membership-based not-for-profit that assist Canadian businesses in the data driven cleantech sector with their intellectual property needs.

Canada’s plan for a clean economy rests on a foundation of market-driven approaches, namely carbon pricing and Clean Fuels Regulations. The carbon pricing system provides a clear economic signal to businesses and allows them the flexibility to find the most cost-effective way to lower their emissions. The system creates large-emitter credit markets, which Budget 2023 proposed to reinforce with other tools, such as contracts for difference. An anchor regime of five investment tax credits will attract investments in electricity, hydrogen, clean technology (including to attract investments in critical minerals, nuclear energy equipment, energy storage, and zero emissions vehicles) and carbon capture and storage and is complemented by strategic financing from the Canada Infrastructure Bank (CIB) and the Canada Growth Fund and more targeted programming like the Strategic Innovation Fund and the Smart Renewables and Electrification Pathways Program.

The Strategic Innovation Fund has contributed over $7.3 billion to 37 projects representing total investments of over $51 billion in the Canadian economy to support the transition to a prosperous decarbonized economy.

The new $15 billion Canada Growth Fund offers a flexible suite of investment tools tailored to project- and company-specific needs and risks, with view to de-risk and attract private investment that will contribute to: (1) reducing emissions; (2) diversifying our economy and bolstering our exports through investments in the growth of low-carbon industries and technologies across both new and traditional sectors of Canada’s industrial base; and (3) supporting the restructuring of critical supply chains in areas important to Canada’s future prosperity.

The Government of Canada is also fostering partnerships that will strengthen clean technology innovation and adoption. Canada’s Global Innovation Clusters is an initiative of Innovation Canada, with industry leadership and co-investment, aimed at building collaborative innovation ecosystems in key sectors. The Clusters aim to attract investment and talent to Canada, help Canadian small and medium-sized enterprises scale up and integrate into global value chains, build resilient supply chains, and fight climate change. SIF also delivers funding that supports national innovation ecosystems that promote business R&D, technology demonstration, and commercialization.

Collectively, federal supports for clean technology and businesses complement one another, ensuring businesses have seamless access to support and financing for innovation, commercialization, scale-up and growth.

Importantly, the Government of Canada also recognizes that workers must be at the heart of the country’s efforts to transition to net zero. Building on our government’s previous investments in jobs and skills training, the 2022 Fall Economic Statement introduced $250 million over five years for new measures to help Canadian workers thrive in a changing global economy, including a new Sustainable Jobs Training Centre. Natural Resources Canada also released an interim Sustainable Jobs Plan to enable the creation of good, middle class jobs across Canada.

Through continued engagement, partnerships, strategic policies, and thoughtful investments in clean technology businesses, large-scale decarbonization and workers across the country, the Government of Canada will continue advance its commitments to decarbonize and grow a resilient and prosperous economy, in which no worker or region has been left behind.