e-3058 (Natural resources and energy)

The Government of Canada takes very seriously both the challenges and opportunities that are emerging as Canadians confront the climate crisis and transition to cleaner energy resources.

Provinces and territories have primary legislative jurisdiction over natural resource development within their boundaries. This includes the responsibility for regulating hydraulic fracturing. The Government of Canada’s role is to provide provinces and territories with scientific and policy advice to support safe and environmentally responsible resource development.

The government supports the use of evidence to inform those directly and indirectly engaged in responsible natural resource development. Support for sustainable resource development includes direct research, or funding of research, that improves on-site safety and mitigates the environmental impacts of shale oil and gas development. The government is working with industry experts to ensure wellbore integrity. It is also collaborating with regulators, industry, as well as provinces and territories, to work towards the highest possible safety and environmental standards.

By sharing the latest scientific knowledge and understanding of resource management and environmental protection, the Government of Canada supports the continuous improvement of provincial regulatory oversight of hydraulic fracturing. As part of the effort to better understand the impacts of hydraulic fracturing, the federal government has established several research projects. One example is the Environmental Geoscience Program’s Induced Seismicity Research Project. It addresses address critical knowledge gaps on issues related to public safety and the environment.

Additionally, Natural Resources Canada is currently engaged in relevant scientific work through the Environmental Geoscience Program and the Public Safety Geoscience Program. The Geological Survey of Canada and CanmetENERGY Laboratories are doing similar work. Taken together, this research reduces exploration and development risks and informs best practices, standards and regulations that support safe and sustainable resource development. Canadians can find scientific relevant research on the GEOSCAN online database.

The traditional energy sector will continue to play a strong role in Canada’s climate plan and clean energy transformation. The Government of Canada is supporting that transformation with bold policy steps, like a tax on carbon pollution and has made generational investments since 2015 to support climate action and clean growth. Budget 2021 provides an additional $17.6 billion towards a green recovery. Shortly after the April budget was tabled, the government announced a new climate target, aiming to achieve at least a 40% reduction in greenhouse gas emissions below 2005 levels by 2030.

The transformation of energy production and use will be key to reaching emissions reduction targets. Significant investments will help Canada meet this challenge by advancing clean energy domestically while positioning the country to meet growing global demands. Initiatives include:

• Investing in home and building retrofits to help Canadians reduce heating costs while also contributing to Canada’s climate action plan. These investments will also create thousands of good jobs and new careers. Specifically, the government is investing $2.6 billion for a grants program to support Canadians making their homes more energy efficient. This initiative is complemented by a $4.4 billion loans program.
• Taking action to encourage Canadians to use cleaner modes of transportation. From low- and zero-emission vehicles and public transit to more active and non-emitting options, like bicycles and active transportation. The government is also investing $1.5 billion in the Clean Fuels Fund to increase the production and use of low-carbon fuels, including hydrogen.
• Making clean, affordable power available in everycommunity by expanding the supply of clean electricity through investments in renewable and next-generation clean energy and technology. The government is also investing $964 million to advance renewable energy and grid modernization projects;
• Making strategic investments to help Canadian companies meet the demands of domestic and global consumers for low-carbon goods and services. Focus is on enabling the adoption of low-carbon technologies to support economic growth and decarbonization across all sectors. The government is investing $319 million to support research, development, and demonstrations that would improve the commercial viability of carbon capture, utilization, and storage technologies, and $36.8 million to advance research on critical battery minerals.

Climate action through programs and tax measures also play a key part in supporting the transformation to clean energy production and use, such as:

• A proposal to increase the carbon price by $15 per year, starting in 2023, rising to $170 per tonne of carbon pollution in 2030. The carbon pricing framework would be revenue neutral, and therefore affordable for Canadians, since the majority of households would receive dividends.

• Investing $8 billion for a Net-Zero Accelerator to support decarbonisation projects, scale-up clean technology, and accelerate Canada’s industrial transformation;
• Introducing tax reductions for businesses that manufacture zero emission technologies; and
• Adjusting existing tax incentives to further support clean energy technologies.

On November 19, 2020, the government introduced the Net-Zero Emissions Accountability Act in Parliament which, if passed, will formalize Canada’s target to achieve net-zero emissions by 2050. It will do so by establishing interim emissions reduction targets at five-year milestones towards that goal, as well as requiring a series of science-based emissions-reduction plans and progress reports to support accountability and transparency.

To sum up, the Government of Canada continues to engage and collaborate with provincial and territorial governments, Indigenous Peoples, municipalities, industry, academia and civil society organizations as well as international partners to protect the environment, accelerate energy transformation and achieve Canada’s climate targets.