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YOU ARE HERE:
1. Canada.ca
2. Environment and natural resources
3. Climate change
4. Canada's climate plan
5. What's in Canada's climate plan
A HEALTHY ENVIRONMENT AND A HEALTHY ECONOMY
Canada’s strengthened climate plan to create jobs and support people,
communities and the planet
[PDF - 5.4 MB]
* Prime Minister announces Canada’s strengthened climate plan to protect the
environment, create jobs, and support communities
* A Healthy Environment and a Healthy Economy
ON THIS PAGE
* Foreword
* Introduction
* Making the places Canadians live and gather more affordable by cutting energy
waste
* Making clean, affordable transportation and power available in every
community
* Continuing to ensure pollution isn’t free and households get more money back
* Building Canada’s clean industrial advantage
* Embracing the power of nature to support healthier families and more
resilient communities
* Working together to green Government operations
* Exceeding Canada’s 2030 target
* Working together to make Canada more resilient to a changing climate
* Canada’s partnership with Indigenous peoples
* Working together across the federation
* Working together globally
* Next steps
* List of annexes
FOREWORD
As we live with the immediate threat of COVID-19, it can be a challenge to see
the opportunity for the future of our planet and economy.
It is within our reach to build back from the pandemic in a way that meets the
need to address climate change and to deliver a stronger economy that thrives in
a low-carbon world to the benefit of all Canadians.
The clean economy is an immense opportunity. Global momentum is already
accelerating towards this end and Canadian workers and businesses are
well-positioned to be leaders.
“A Healthy Environment and a Healthy Economy” is a plan that achieves both our
environmental goals and our economic hopes: clean air, clean water and long-term
secure jobs.
It is a plan that builds on the strengths and achievements of our existing
progress while ramping up our ambition with a series of new or strengthened
federal measures.
It is a plan that seeks to mobilize the full breadth of Canada’s ingenuity and
resources to reimagine a future that is secure, just and clean.
It is my hope this plan will engage, inspire and provide Canadians with a sense
of confidence that, as a nation, we can do this.
Every order of Government, every sector of the economy, every region, every
community, every Canadian has a role to play in this moment of our shared
history.
This plan is not an end point. Reaching the goal will require a sustained effort
for years and decades to come.
Let us be driven by the opportunity to create a healthier planet and economy
that we can pass along to our children and grandchildren with confidence and
pride.
“A Healthy Environment and Healthy Economy” is your invitation to be a part of
the continuing conversation and hard work ahead and - the better, more
prosperous future it will deliver for all Canadians.
The Honourable Jonathan Wilkinson
Minister of Environment and Climate Change
INTRODUCTION
The COVID-19 pandemic has caused significant loss and uncertainty, here in
Canada and around the world. The priority of the Government remains supporting
people and businesses through the crisis, as long as it lasts, with whatever it
takes. This includes providing vital programs to protect the health and safety
of Canadians, and to ensure families can continue to pay rent and put food on
the table. It also includes supporting Canadian businesses so they can stay
afloat until the economy fully recovers. Continuing to help Canadians now will
help keep us safe and make Canada more resilient.
More so than past financial crises, this pandemic has brought about a scale of
disruption that has made Canadians question their basic assumptions on job
security and the types of homes and communities in which they want to live in.
While COVID-19 is the biggest immediate threat to Canadians’ health and
prosperity, Canada must manage its impacts without losing ground on the growing
threat that climate change presents to Canadians’ health and to the economy.
Costs of inaction
According to the Canadian Institute of Climate Choices, the number and cost of
catastrophic weather events this past decade alone - from flooding across the
prairies and southern Ontario (2013-2018), to wildfires in Alberta and British
Columbia (2011-2018), to severe weather damaging Canadian farms (2018) – were
twice as high as those recorded in the previous decades together. Insured losses
alone totaled over $18 billion between 2010-2019.
As with pandemic preparedness, the earlier Canada takes action to address
climate change, the more effectively the country can reduce its risk and protect
the health and safety of Canadians.
As investors, consumers and Governments increasingly base their decisions on
environmental sustainability, taking climate action now is a critical economic
opportunity that will maintain and create Canadian jobs, and make the economy
more resilient and more competitive. This is what Canada’s trading partners and
economic competitors are already doing. They know that a cleaner economy will
grow stronger and faster in an increasingly low-carbon global economy.
Canada is well-positioned to be among the leaders in this area. Canadian clean
technology companies receive international recognition for their innovations
every year. Canadian ingenuity is creating electric transit buses and
carbon-free aluminum. With Canadian expertise in low-carbon and sustainable
solutions, Canada can take part in growing global markets and build strong
international partnerships as the global economy transforms. As one example,
there is an opportunity to collaborate with the incoming United States
Administration on strong cross-border climate action that can better position
the North American economy, as well as Canadian workers and companies so that
they can continue to be globally competitive.
Canadians are already thinking of the world they want to live in once the
pandemic is over, and now more than ever, Canadians must work together to build
a better future. Canadians want secure jobs and careers that will last not just
tomorrow but in 2030, 2040 and beyond. They want to see a growing middle-class
where no one is left behind. They also want a future where their kids and
grandkids have avoided the worst outcomes associated with unchecked climate
change, and can enjoy greater access to clean air and water.
This cleaner, more competitive Canada is within reach: Canadians have the
know-how, the skills, the technologies and the will— but Canada needs to
accelerate climate action now.
A Healthy Environment and a Healthy Economy is the federal plan to build a
better future with a healthier economy and environment. This is a plan that
builds on the work done to date and efforts that are already underway, and
continues down the path that Canadians, Governments and businesses have been
setting. It is a key pillar in the Government’s commitment to create over one
million jobs, restoring employment to pre-pandemic levels – of which climate
action and clean growth is a cornerstone.
It will make life more affordable for households, it will make Canadian
communities more livable, and it will, at every turn, focus on workers and their
careers in a stronger and cleaner economy.
It will do this through five pillars:
* Making the Places Canadians Live and Gather More Affordable by Cutting Energy
Waste: Energy efficient homes and buildings are more comfortable and cost
less to power. This plan will make it easier for Canadians to improve the
places in which they live and gather – which will cut pollution, make life
more affordable and create thousands of good jobs and new careers in
construction, technology, manufacturing and sales.
* Making Clean, Affordable Transportation and Power Available in Every
Community: Canada will expand the supply of clean electricity through
investments in renewable and next generation clean energy and technology, and
encourage cleaner modes of transportation, such as zero-emission vehicles and
transit. This will make our communities healthier, less congested and more
vibrant.
* Continuing to Ensure Pollution isn’t Free and Households Get More Money Back:
Canada’s approach to carbon pollution pricing has proven that it is realistic
to meet the country’s economic needs and environmental goals at the same
time. The Government will continue to put a price on carbon pollution, rising
through to 2030, while ensuring that the majority of households receive more
money back than they pay in the jurisdictions where the federal backstop
applies. These payments will move from annual to quarterly payments starting
as early as 2022.
* Building Canada’s Clean Industrial Advantage: To make sure that Canadians
have good-paying, long-lasting jobs, there is a need to make certain that
Canadian businesses are making and providing the low-carbon products,
services and technologies that the world increasingly wants to buy. Clean,
“Made-in-Canada” products, services and technologies can and should be the
most sought after in the world. Through performance standards, investments
and incentives, Canada will accelerate the work that its companies and
innovators are doing to cut pollution and move to a cleaner economy. This
will protect and create jobs now and into the future.
* Embracing the Power of Nature to Support Healthier Families and More
Resilient Communities: Just as nature is under threat by climate change, it
is also an ally in the fight against it. By planting two billion trees and
better managing, conserving and restoring natural spaces, Canada will protect
and enhance the natural areas that surround us and that contribute to
fighting climate change. This will help cut pollution, clean the air
Canadians breathe, make communities more resilient to extreme weather and
create thousands of jobs for tree planters, technicians, nursery growers,
field biologists, urban planners, and many others. Canada will also continue
to move forward on its plan to protect 25% of its lands and oceans, including
through a ban on harmful single-use plastics by 2021.
The plan also commits to developing Canada’s first-ever National Adaptation
Strategy. It also contains new measures to support Indigenous climate
leadership, cut emissions from waste and from federal operations, and support a
strong Canadian contribution towards efforts to support stronger climate action
around the world.
A Healthy Environment and a Healthy Economy builds on the Pan-Canadian Framework
on Clean Growth and Climate Change, announced in December 2016. The Pan-Canadian
Framework was Canada’s first-ever national climate plan and is already doing
more to cut pollution than any other climate plan in Canada’s history. The plan
also builds on the Generation Energy report, which outlined four pathways that
could lead Canada to an affordable, sustainable energy future within the next
generation, aligned with its climate change goals.
The foundation of Canada’s plan: the 2016 Pan-Canadian Framework
The Pan-Canadian Framework was developed in 2016 with provinces and territories,
in consultation with Indigenous peoples, and informed by input from Canadians
across the country. It outlines over 50 concrete measures to reduce carbon
pollutionFootnote 1 that are projected to reduce emissions by 227 million tonnes
in 2030, the greatest drop in Canadian history. The Pan-Canadian Framework has
stimulated new jobs across the country in energy efficiency, electric vehicle
charging infrastructure, public transit, and development of new technologies.
Like the Pan-Canadian Framework, this plan is not an endpoint. The transition to
a cleaner, prosperous economy needs to be both an immediate priority and a
sustained effort over the years and decades ahead. The only way to meet this
long-term goal is for Canada to keep innovating, strengthening, and building on
existing measures. So while this plan exceeds Canada’s 2030 goal, we can’t stop
there.
The proposed Canadian Net-Zero Emissions Accountability Act, introduced in
Parliament on November 19, 2020, will formalize Canada’s target to achieve
net-zero emissions by the year 2050, and establish a series of interim emissions
reduction targets at 5-year milestones toward that goal. It will also require a
series of plans and reports to support accountability and transparency and help
ensure Canada hits all of its milestones on the way its goal to achieve a
prosperous net-zero economy by the year the 2050.
A Healthy Environment and a Healthy Economy contains 64 strengthened and new
federal policies, programs and investments to cut pollution and build a
stronger, cleaner, more resilient and inclusive economy. Some of the investments
in this plan will begin immediately, to ensure Canada continues to make rapid
progress. Other measures require engagement with provinces and territories, with
stakeholders and Indigenous partners, and with Canadians.
Over the next few months, the Government of Canada will work with partners to
ensure a strong, workable plan that can be delivered together. For example, the
Government will:
* engage with provinces, territories and municipalities to build on the strong
foundation of climate action already in place, and focus on advancing mutual
bilateral and regional priorities;
* partner with First Nations, Inuit and the Métis Nation to advance Indigenous
climate leadership and ensure federal policies and programs are designed to
address Indigenous peoples’ climate priorities;
* engage with provinces, territories and Indigenous peoples on the proposed
carbon pollution pricing trajectory out to 2030, as well as the proposed
strengthening of the federal benchmark; and,
* engage with a diversity of stakeholder groups – including businesses, civil
society, and labour – and with Canadians on key proposed measures to ensure
they have the right environmental ambitions and economic underpinning to
succeed.
The Government of Canada will seek out opportunities to align new and
strengthened federal measures with the actions and priorities of provinces and
territories. The Government will also continue to encourage all levels of
Government to step up and enhance their ambition on climate action. Canada is a
decentralized federation — one where success is shared, and this requires all
orders of Governments to work together to achieve economic and environmental
success.
Canada has consistently ranked at or near the top of the best countries in the
world to live in. That didn’t happen by accident and it won’t continue without
effort. For the good of the economy and the health of Canadian society – for the
jobs today and the growth to come – let’s keep working together to build a
better future.
MAKING THE PLACES CANADIANS LIVE AND GATHER MORE AFFORDABLE BY CUTTING ENERGY
WASTE
Together, homes and buildings account for 13% of Canada’s greenhouse gas
emissions. Electricity use for cooling, lighting and appliances brings the total
to 18%. Constructing and renovating better homes and buildings puts people to
work and helps Canadians across the country do more in their daily lives to
fight climate change. It also makes life more affordable, by helping building
owners and occupants save money in the long run through lower utility bills.
Canadians also benefit from efforts to develop and deploy cutting-edge
technologies that result in cleaner indoor air, higher resale values for homes
and buildings, and less of an impact on their shared environment.
Investments in home and building retrofits will spark a wave of new jobs and
careers. This means more local jobs in small and medium-sized businesses
installing more energy efficient heating and cooling equipment and insulation,
work for architects and engineers designing new net-zero buildings, and
increased demand for energy auditors in communities across Canada. These
investments will create thousands of jobs in construction, manufacturing, sales,
clean technology, and financial services. Every community — no matter the size
or location — will benefit from these jobs and economic stimulus.
Here’s what the Government of Canada will do to bring those benefits to more
families and communities across Canada.
HOME RETROFITS
Because of Canada’s northern climate, homes use a lot of energy. Things like
better insulation and more efficient heating and cooling systems cut pollution
and utility bills, especially those of low-income families who proportionally
spend more on energy. Energy efficient homes support long-term climate
objectives and make homes more comfortable, while lowering monthly energy costs
for homeowners and renters. Accelerating action on home retrofits will create
new demand for jobs — for energy auditors, retrofit contractors, and the next
generation of skilled workers — and the associated increased demand for energy
efficient equipment and low-carbon materials will grow the green building
product supply chain in Canada.
To bring these benefits to households and communities this plan will:
* Provide $2.6 billion over seven years, starting in 2020-21, to help
homeowners improve their home energy efficiency by providing up to 700,000
grants of up to $5,000 to help homeowners make energy efficient improvements
to their homes, up to one million free EnerGuide energy assessments, and
support to recruit and train EnerGuide energy auditors to meet increased
demand.
* Continue working with and building on successful provincial and territorial
low-income retrofit programs, to increase the number of low-income households
that benefit from energy retrofits. For example, the National Housing
Co-Investment Fund provides low-cost repayable loans ($3.46 billion over 10
years, starting in 2017-18) and non-repayable contributions ($2.26 billion
over 10 years, starting in 2017-18) to support energy efficient construction
or renovation of affordable homes.
* The Government of Canada also recognizes that homeowners and landlords need
to be able to access simple and affordable financing to make deeper home
energy retrofits. Over the coming months, the Government will outline details
of a low-cost loan program that integrates and builds on available energy
audits and grants, and which can be easily accessed by Canadians.
* Building on the Market Transformation Roadmap, work with provincial and
territorial partners and with industry to advance technology and uptake of
the next generation of low-emission, high-efficiency space and water heating
equipment and windows.
MUNICIPAL AND COMMUNITY BUILDINGS
The opportunity to reduce energy use and save taxpayer dollars in municipal and
community buildings is substantial. According to the Federation of Canadian
Municipalities, community centres, sports facilities and cultural spaces
represent 28% of greenhouse gas emissions in municipally owned facilities, and
there are thousands of these aging facilities across Canada. Indigenous
communities face a particularly severe infrastructure deficit, and recent
immigrants, racialized groups, seniors, parents and low-income Canadians rely on
having access to safe and affordable community spaces.
In Budget 2019, the Government allocated $950 million to the Federation of
Canadian Municipalities’ Green Municipal Fund (GMF) to support energy efficiency
in affordable, social, and market housing units as well as large community
buildings. Two of the three funding streams were launched in 2020, with the
third expected to be launched in Spring 2021. Over the last two decades, GMF has
provided $15.1 million in grants and $55.7 million in loans for projects related
to energy efficiency and renewable energy in existing buildings.
Municipal and community buildings play an important role in strengthening the
fabric of Canadian communities, and this plan will:
* Invest $1.5 billion over three years for green and inclusive community
buildings through retrofits, repairs, upgrades and new builds, which would
support good jobs and local economic growth, contribute to climate objectives
and serve disadvantaged populations. For example, projects could include: the
installation of energy efficient windows in public libraries; the
construction of an Indigenous cultural centre built to green specifications;
and, other such projects that would reduce energy waste, improve ventilation
and contribute to inclusive community spaces.
* Require that at least 10% of this $1.5 billion in funding be allocated to
projects serving First Nations, Inuit and Métis communities, including
Indigenous populations in urban centres. These investments will address
critical infrastructure needs, while also reducing greenhouse gas emissions
and cutting the costs associated with their ongoing operations and
maintenance.
* Support local communities in maximizing the benefits of these projects during
their construction, including by supporting local work opportunities, skills
training and fair wages to qualified local residents and groups who are
traditionally underrepresented in the skilled trades sector, such as
apprentices, Indigenous workers and women.
Reducing energy use in community buildings
The Saanich Gordon Head Recreational Centre in Saanich, British Columbia
received $125,490 in federal grants and $836,630 in federal loans to upgrade an
inefficient and outdated boiler system, which reduced the building’s greenhouse
gas emissions by approximately 400 tonnes and has resulted in operational
savings of $31,000 per year.
GOVERNMENT OF CANADA BUILDINGS
The Government of Canada also recognizes the need to move forward with reducing
energy use and greenhouse gas emissions from its own buildings. It will:
* Establish stringent targets for Government of Canada buildings as part of the
updated greening Government strategy. This includes ensuring new federal
buildings are net-zero and that all major building retrofits will be
low-carbon, reducing embodied carbon in construction projects by 30% starting
in 2025, and ensuring 75% of domestic office floor space (new leases and
lease renewals) will be in net-zero carbon climate resilient buildings
starting in 2030.
Supporting the construction of the new Library and Archives/Ottawa Public
Library joint facility project
The 2020 Fall Economic Statement announced funding to Library and Archives
Canada to address updated construction cost estimates and to support
sustainability enhancements for a net-zero carbon facility.
COMMERCIAL AND LARGE-SCALE BUILDING RETROFITS
Improving energy efficiency in large-scale buildings can significantly reduce
greenhouse gas emissions and owner operating expenses, while creating jobs and
promoting economic growth.
The Canada Infrastructure Bank is also working with large private and public
sector real estate owners to modernize and improve the energy efficiency of
existing buildings as part of its commitment to invest $2 billion to finance the
upfront capital costs of commercial and large-scale building retrofits, using
the long-term savings from efficiencies and operating cost savings as a
repayment source. This commitment is part of the Canada Infrastructure Bank’s
recently announced Growth Plan, which commits to invest $10 billion over the
next three years and is expected to create approximately 60,000 jobs across the
country.
INVESTING IN THE TOOLS TO BUILD A RETROFIT ECONOMY
With the need to retrofit the vast majority of Canada’s buildings and homes to
be more energy efficient and more resilient to climate change, there will be a
huge demand for building materials and technologies. Instead of importing these
products, this plan invests in Canada’s own capacity to manufacture them here at
home. Investing in Canada’s own capacity also means investing in training
opportunities to upskill workers and promote the skilled trades.
To grow Canada’s green building manufacturing sector and supply chains, the
Government of Canada will:
* Work with the building materials sector and other stakeholders to develop a
robust, low-emissions building materials supply chain to ensure Canadian,
locally-sourced products are available, including low-carbon cement, energy
efficient windows and insulation.
* Continue to work with provincial and territorial Governments to develop a new
model “retrofit” code for existing buildings by 2022, with the goal of
collaborating with provinces and territories to have this code in place by
2025.
* Accelerate work with provincial and territorial Governments to develop and
adopt increasingly stringent model building codes, with the ultimate goal of
a net-zero energy ready model building code by 2030. Codes are critical to
ensuring that buildings are constructed or renovated to be as energy
efficient as technically and economically possible.
Energy efficiency creates jobs
According to Efficiency Canada, the energy efficiency sector accounted for more
than 436,000 direct jobs in 2018, with an annual projected growth of 8%. Between
2017 and 2030, energy efficiency measures will increase the average annual GDP
by $3.8 billion in British Columbia and create an average of 18,300 jobs a year.
In Saskatchewan, an annual average of 3,400 jobs will be created and the GDP
will increase by $0.8 billion on average per year. Ontario will see an average
increase of $12.5 billion in GDP and 52,900 jobs per year, and in PEI,
$0.2 billion in GDP and 1,500 jobs.Footnote 2
LONG-TERM INFRASTRUCTURE PLANNING
The final reports of two federal advisory bodies, the Expert Panel on
Sustainable Finance and the Advisory Council on Economic Growth, emphasized the
importance of evidence-based, long-term infrastructure planning that will chart
Canada’s path towards exceeding its 2030 target and achieving a net-zero
emissions future. Whether Canadians are upgrading trade corridors, broadband
networks, energy systems, public buildings or transportation options, building
for a green recovery requires thoughtful approaches to infrastructure planning,
coordination, construction and delivery. The Government of Canada will:
* Conduct Canada’s first-ever national infrastructure assessment, starting in
2021, to help identify needs and priorities in the built environment, and
undertake long-term planning towards a net-zero emissions future. Linking
investments with policy outcomes, as well as seeking expert advice from
provinces, territories, municipalities, Indigenous groups, and the private
sector, will help guide public infrastructure spending in a way that promotes
jobs and growth, fosters inclusivity and social equality, and reduces
greenhouse gas emissions.
MAKING CLEAN, AFFORDABLE TRANSPORTATION AND POWER AVAILABLE IN EVERY COMMUNITY
Canada’s transportation systems are critical to Canadians’ livelihoods and
quality of life, whether it is commuting to work, getting their kids to school,
or shipping resources and goods. Today, the transportation sector accounts for
25% of Canada’s greenhouse gas emissions. Building a stronger, cleaner
transportation system as Canada recovers from the pandemic is an investment that
will pay off — delivering economic and environmental benefits for decades to
come.
Increasingly, societies around the world are using more electricity to power
vehicles, homes and businesses. For Canada, this economic and societal shift
builds on an existing strength. Canada is a world leader in zero-carbon power,
generating approximately 82% of its electricity from non-emitting sources, such
as water, wind, solar and nuclear. That’s a competitive advantage in a world
moving to clean energy, and the Government of Canada intends to build on that
foundation. To that end, this plan invests in reducing emissions from the power
Canada still generates from fossil fuels and connecting more places to
non-emitting sources of power.
MAKING ZERO-EMISSION CARS AND TRUCKS MORE ACCESSIBLE AND AFFORDABLE
Many Canadians drive cars and trucks for work, for play, and to run errands.
Personal vehicles provide a lot of freedom, but traditional internal combustion
engine vehicles, in spite of technical strides in becoming cleaner, still
pollute the air and contribute to climate change. Fortunately, innovative
technologies are making low and zero-emission cars and trucks more affordable,
and a growing charging network means these clean vehicles are an option for more
and more Canadians. Additionally, air quality improvements associated with
adoption of low and zero-emission vehicles (ZEVs) are expected to benefit urban
and other traffic heavy areas in the short term, while lower greenhouse gas
emissions will benefit everyone in the medium to long-term.
The global shift towards ZEVs has started. To date, automakers have announced
investments of approximately $300 billion globally into electrification, and
this trend will continue. To support this shift domestically, the Government of
Canada previously established sales targets of 10% by 2025, 30% by 2030 and 100%
by 2040. In addition, many automotive manufacturers have already brought a wide
array of ZEVs to market, and over 120 models are expected by 2023. As ZEV
offerings increase, the goal is to ensure that all Canadians have access to
affordable ZEVs should they wish to purchase one, and to encourage ZEV
investment in Canada’s automotive sector. To help make this happen, the
Government of Canada will continue to make it more affordable to purchase these
clean vehicles, which can save Canadians money. To that end, this plan will:
* Invest an additional $287 million over two years, starting in 2020-21, to
continue the Incentives for Zero-Emission Vehicles (iZEV) program until March
2022. The program provides a rebate of up to $5,000 on a light-duty
zero-emission vehicle.
Canada’s incentives for Zero-Emission Vehicles (iZEV) program
Between May 2019 and October 2020, over 65,000 Canadians and Canadian businesses
have benefited from the Canada’s Incentives for Zero-Emission Vehicles (iZEV)
program, reducing an expected 2.7 million tonnes in greenhouse gas emission over
the lifetime of these vehicles. According to Clean Energy Canada, a Canadian EV
driver will save $800 to $2,000 dollars a year in “fuel” costs compared to a gas
car driver, with the range depending on which provincial grid they plug into.
* Invest an additional $150 million over three years in charging and refueling
stations across Canada, as announced in the 2020 Fall Economic Statement. The
goal is to ensure every Canadian – urban and rural – can easily charge their
zero-emission vehicle. These investments complement the Government’s existing
programs, which to date have resulted in over 4,300 charging stations being
funded - with many more to come - including the establishment of a coast to
coast network of fast chargers. Recent examples include a $5 million
investment in Quebec and New Brunswick for the installation of 100 EV fast
chargers.
The Government also proposes to:
* Engage the incoming United States Administration on approaches to increase
the consumer availability of zero-emission vehicles in both countries, given
the integrated nature of the North American auto sector.
* Work to align Canada’s Light-Duty Vehicle regulations with the most stringent
performance standards in North America post-2025, whether at the United
States federal or state level.
* Work with partners in the year ahead on supply-side policy options to achieve
additional reductions from Canada’s light-duty vehicle fleet, including
regulations and investments to accelerate and expand the consumer
availability of ZEVs in Canada as demand grows.
ELECTRIFYING PUBLIC TRANSIT NETWORKS AND PROMOTING ACTIVE TRANSPORTATION
Canadian cities have been growing at a rapid rate, and significant investment in
public transit is required to keep pace. Traffic congestion and lack of transit
options is costing the Canadian economy $15 billion in lost productivity
annually.Footnote 3 Public transit is critical for people from all walks of life
to get around in faster, cheaper and cleaner ways. For example, some essential
workers use public transit to get to their jobs at hospitals, long-term care
homes and grocery stores. Seniors and persons with disabilities often use public
transit to get to appointments and access public resources. Women, youth and
visible minorities also rely heavily on public transit. Investments in public
transit contribute to the Canadian economy by creating good highly-skilled
manufacturing jobs and supporting supply chains, while also reducing Canada’s
carbon footprint.
Public transit can help set Canada on a path to net-zero by 2050 by enabling the
development of compact, liveable, communities around transit stations and
corridors. Taking a progressive approach to public transit funding based on
data, evidence and regional planning will be critical to not only achieving
Canada’s climate goals, but also promoting social inclusion and economic
outcomes.
In addition to the critical service that public transit provides, its use
results in fewer greenhouse gas and air pollutant emissions, making the air in
Canada’s cities cleaner. This plan will:
* Build on historic investments in public transit in the Investing in Canada
Infrastructure Program to develop next steps on public transit, including the
plan to help electrify public transit systems across Canada, and provide
permanent public transit funding, in partnership with the provinces and
territories. This investment will accelerate Canada’s transition to a
low-carbon economy, accelerate growth in local economies, and accelerate
improvement to Canadians’ quality of life.
* Advance the Government’s commitment to help procure 5,000 zero-emission
public transit buses and school buses, including by leveraging the Canada
Infrastructure Bank. To support this goal, the Canada Infrastructure Bank’s
Growth Plan has earmarked $1.5 billion to expand and accelerate the adoption
of zero-emission buses.
Develop a national active transportation strategy and explore options to help
deliver more active transportation options, such as walking trails, cycling
paths and other forms of active mobility, which are a complementary tool that
can reduce reliance on cars and provide healthy transportation alternatives.
Canada’s zero-emission buses
As municipal transit agencies move towards electrified buses, two Canadian
transit bus manufacturers are answering the call – Nova Bus, based in
Saint-Eustache, Québec, and New Flyer Industries (NFI), based in Winnipeg,
Manitoba. These two innovative companies have been moving towards battery
electric transit solutions and are actively working with transit agencies such
as the Toronto Transit Commission (TTC), which operates the largest fleet of
electric buses in North America – including buses made by NFI. Canada is also
home to companies that manufacture electric school buses, such as Micro Bird
based in Drummondville, Québec and Lion Electric based in Saint-Jérôme, Québec.
Given the increasing demand and Government support, the industry is gearing up
rapidly to provide zero-emission buses that reduce pollution as well as connect
communities in Canada and beyond.
HEAVY-DUTY VEHICLES, RAIL, MARINE AND AVIATION
In recent years, remarkable technological changes have occurred in the
heavy-duty vehicle sector, which is the second-largest contributor to greenhouse
gas emissions in the transportation sector. Canada has an opportunity to
transition its fleet of medium and heavy-duty vehicles – vehicles like delivery
trucks and tractor-trailers – to low and zero-emission options. Just as it does
with passenger vehicles, this plan will work to ensure affordability and choice
in the transition to low and zero-emission vehicles.
Canada also has an enormous potential in producing Made-in-Canada technology to
use Canadian hydrogen in the transportation sector, given the abundance of clean
hydropower, as well as other energy resources from which hydrogen can be
produced without carbon pollution. For further information on the proposed plan
to expand low-carbon fuels, including hydrogen, please refer to “Producing and
Using Cleaner Fuels Across the Economy”.
Meeting Canada’s long-term climate objectives will also require a large
transformation of the aviation, marine, and rail sectors out to 2050. This
includes supporting the transition to more sustainable alternatives and
investing in Canadian R&D and infrastructure. There are a number of
groundbreaking initiatives led by Canada’s aerospace companies underway,
including developing low-carbon aircraft engine technologies, such as hybrid
propulsion, and using digitization and advanced lightweight materials in
manufacturing to reduce the environmental footprint. The Impact Canada “The
Sky’s The Limit” Challenge finalists are working to develop a Made-in-Canada
sustainable aviation fuel that is cost-competitive with conventional jet fuel.
These innovations will enhance the competitiveness of Canada’s aerospace
industry as the global industry shifts toward low-carbon technologies.
Innovation in Canadian aerospace
CAE announced in 2020 that it had become the first Canadian aerospace company to
be carbon neutral. As a global leader in simulation and training, this important
achievement demonstrates leadership in the fight against climate change.
While the emissions from rail and marine are proportionally smaller than those
from aviation or on-road transportation, there are still important opportunities
to explore new technologies and fuels that can help decarbonize those operations
– from using hydrogen and other clean fuels in transport, to electrifying the
facilities, hubs, and ports they use.
Canada’s exports of clean transport equipment expanded almost 90% year-over-year
after 2014, climbing to total $3.1 billion in 2019. This represents a growth
rate that is 28 times faster than all product exports. Leading the pack of
products includes hybrid light-duty vehicles, electrified rail, work trucks and
transit vehicles. By continuing to produce the things the world wants to buy now
and into the future, Canada is not only maintaining good jobs for Canadians
today but will create many more into the future. According to Clean Energy
Canada,Footnote 4 the GDP of Canada’s clean transportation industry is projected
to grow by 28% annually over the next decade, creating 14 times the number of
jobs in 2030 than in 2020.
The plan will:
* Include the current 100% tax write off for commercial light-duty, medium and
heavy-duty ZEVs.
* Implement Canada’s off-road Compression-Ignition (Mobile and Stationary) and
Large Spark-Ignition Engine Emission regulations to make new equipment and
machines used by many Canadians less polluting and more fuel-efficient.
Starting in 2021, the Regulations will reduce greenhouse gas and air
pollutant emissions from machines such as forklifts, ice resurfacers, and
stationary diesel generators that are often used to power remote communities.
* Further improve the efficiency of heavy-duty vehicles standards for post-2025
by aligning with the most stringent standards in North America – whether at
the United States federal or state level.
The Government also proposes to:
* Conduct stakeholder consultations on measures to increase the supply of, and
demand for, medium- and heavy-duty ZEVs in Canada, to ensure businesses have
access to the types of zero-emission vehicles that meet their needs.
* Examine options to enhance green freight programs to accelerate
decarbonization of medium and heavy-duty vehicle transportation through
electrification, fuel switching to low-carbon fuels, and energy efficiency
actions. The Government will also work with industry, provincial regulators,
and academics to explore options which can help advance zero-emission
long-haul trucking.
* Work with rail, marine and aviation stakeholders to accelerate technology
development and pilot deployments, as well as the implementation of
commercially-ready solutions. The Government will also examine options to
help deploy low-carbon fuel equipment at marine, rail, and aviation hubs,
which could include electrifying loading equipment at airports or powering
boats with clean onshore electricity when they are at marine ports.
* Make strategic investments to strengthen Canada’s green aviation leadership
position and secure the footprint and supply chains of this export-oriented,
research and development intensive industry – (see section on Building
Canada’s Clean Industrial Advantage for more detail).
MAKING CANADA A WORLD LEADER IN CLEAN POWER
Canada is fortunate to have world-leading clean power resources. One of the most
important ways to fight climate change is to use electricity to power cars and
factories and to heat and cool Canada’s buildings. That’s why the Government of
Canada is phasing-out coal-fired power across Canada by 2030, increasing the
supply of non-emitting power generation from coast to coast to coast, and
working to ensure more parts of the economy are connected to the electricity
system and able to use it as a fuel source.
In order to accelerate the electrification of its economy, Canada will need to
generate even more affordable, clean energy than it does today. By 2050, Canada
will need to produce up to two to three times as much clean power as it does
right now.
Phasing-out coal-fired electricity while ensuring a just transition for workers
and communities
In 2018, Canada finalized regulations that require the phase out of conventional
coal-fired electricity by 2030. Several provinces have also taken action to
phase out coal power. Eliminating conventional coal power reduces greenhouse gas
emissions, improves air quality, and protects Canadians’ health – but making
this change must be done in a way that supports coal workers and their
communities. That’s why the Government of Canada has already committed $185
million to help affected communities diversify their economies, and to help
workers develop new skills so they can lead and succeed in a cleaner economy.
The good news is that cleaner electricity is increasingly the least-cost source
of power generation. According to the International Energy Agency, solar power
is now the cheapest source of electricity in history.Footnote 5 And the job
creation opportunities in pursuing clean electricity are significant.
Electricity generation as a whole already employs over 100,000 workers and the
industry is quickly expanding. The growing electricity sector will provide a
wide range of jobs, from wind turbine and rooftop solar installers to software
engineers developing new ways to improve Canada’s grids.
There are also job and economic growth opportunities through the entire value
chain of clean electricity – from mining of key minerals including copper,
nickel and lithium, through designing and manufacturing of wind turbines, solar
panels, and batteries, to installation and export.
In 2014, clean electricity made up the largest share of total clean energy
exports at $7.7 billion. By 2019, the clean electricity and power equipment
total grew to almost $9 billion, which is an annual rate of nearly 5.1%. Of the
clean electricity total, 38% was for electricity exports, with the rest made up
of equipment exports to help with renewable production as well as distribution
and power-handling equipment.Footnote 6
To bring these benefits to households and communities, the plan will:
* Invest an additional $964 million over four years to advance smart renewable
energy and grid modernization projects to enable the clean grid of the
future. This includes support to increase renewable power generation capacity
such as wind and solar, and the deployment of grid modernization technologies
such as power storage. This work will support the electrification of the
broader economy and help jurisdictions minimize the role of fossil fuel-fired
electricity generation in their electricity systems.
* Invest an additional $300 million over five years to advance the Government’s
commitment to ensure that rural, remote and Indigenous communities that
currently rely on diesel have the opportunity to be powered by clean,
reliable energy by 2030. Clean power projects in Canada’s remote communities
have nearly doubled in the past five years.Footnote 7 The Government will
continue working with the over 200 remote communities in Canada that are
reliant on diesel for electricity and heat to transition to renewable energy.
This transition will support local economic development and jobs while
reducing pollution.
Reducing reliance on diesel in rural, remote and indigenous communities
Fort Chipewyan’s Indigenous-owned remote solar farm, the largest of its kind in
Canada, is taking advantage of that immense opportunity and helping the Albertan
community transition off diesel power. It will reduce emissions by about 1,743
tonnes per year. The Government of Canada provided $4.5 million to support this
project.
* Work with provinces and territories to connect parts of Canada that have
abundant clean hydroelectricity with parts of Canada that are currently more
dependent on fossil fuels for electricity generation. The Government of
Canada is committed to working with provinces and territories to help build
key intertie projects with support from the Canada Infrastructure Bank. The
Bank has a long-term investment target of $5 billion for clean power, which
includes renewables, storage, and transmission lines. As part of its Growth
Plan, the Canada Infrastructure Bank has committed to invest $2.5 billion in
clean power projects over the next 3 years. The Government and the Canada
Infrastructure Bank are currently collaborating with provinces and regional
partners to advance the “Atlantic Loop” intertie project, which will greatly
reduce emissions and maintain electricity affordability in the Atlantic
region, as well as other regional initiatives. For example, the Government
will also continue to work closely with the Government of British Columbia on
their Clean BC Plan.
* Further support necessary intertie project predevelopment work, by proposing
to provide $25 million in 2021-22 to help some proponents complete
engineering assessments, community engagement, and environmental and
regulatory studies. This work will help inform and complement the Canada
Infrastructure Bank’s efforts to identify and address financial gaps in the
projects.
* Launch a Small Modular Reactor (SMR) Action Plan by the end of 2020,
following on the SMR Roadmap released in 2018, to lay out the next steps to
develop and deploy this technology. Numerous provincial partners, including
New Brunswick, Ontario, Alberta and Saskatchewan have expressed a clear
interest in utilizing these technologies to reduce emissions, decarbonize
heavy industry and spur economic development. The Government of Canada
intends to work with interested parties to advance this important work,
including Indigenous communities and organizations. The Government will also
work with partners from the United States, the European Union and the United
Kingdom to explore the advancement of safe and secure zero-emission SMR
technology. Canada has a long history of expertise in nuclear energy. SMRs
represent a new field of innovation with designs that are smaller and less
expensive. They are a potential tool to reduce emissions within Canada and
abroad.
The Government also proposes to:
* Consult with investors and other stakeholders in developing tax measures to
ensure Canada has a competitive investment environment for the
commercialization of technologies to help meet and exceed Canada’s Paris
Agreement target.
* Work with provinces, territories, utilities, industry and interested
Canadians to ensure that Canada’s electricity generation achieves net-zero
emissions before 2050. The Government of Canada will explore the role of a
clean electricity performance standard in the context of the full set of
measures in place and proposed by this plan.
Position Canada as a global leader in the production of batteries and other
clean technologies. For example, Canada is one of the only jurisdictions in the
western hemisphere that has reserves of all the minerals required to produce
advanced batteries for electric vehicles, and fourteen of the nineteen metals
and minerals required to produce solar panels are found or produced in Canada.
Through a ‘mines to mobility’ approach, the Government will leverage Canada’s
competitive advantage in mining to build the Canadian battery and critical
mineral supply chains needed to supply the electric vehicle market, aerospace
sectors and support the wider clean energy transition. This work will build on
the Canadian Metals and Minerals Plan and the Canada-U.S. Joint Action Plan on
Critical Minerals, which both set the baseline for prioritizing domestic and
North American production of metals and minerals required for the clean economy.
(See section on Building Canada’s Clean Industrial Advantage for more detail.)
Canada’s mining sector in the clean growth economy
Canada is a key producer of many minerals such as aluminum, cobalt, nickel,
copper, lithium and graphite that will be required for the global deployment of
clean technologies such as batteries, solar panels and windmills. The 2020
Canadian Mineral and Metals Action Plan provides a strategic vision for
Governments, industry and stakeholders to drive responsible mineral development.
The six strategic directions of the Plan are: ensuring economic competitiveness,
participation of Indigenous peoples, protecting the natural environment, science
technology and innovation, engaging with communities, and global leadership. The
responsible development of Canada’s mining sector will help Canada achieve
economic growth and provide the materials for the world’s clean technology.
* Complete the current Strategic Assessment on Thermal Coal to provide guidance
on how future new thermal coal mining projects will be assessed under the
Impact Assessment Act. This includes consideration of their environmental and
health impacts; economic impacts; and their impact on Canada’s international
commitments and initiatives, including the Powering Past Coal Alliance.
Canada’s cutting-edge geothermal opportunity
In 2019, the Government of Canada announced further support for a new geothermal
power facility near Estevan in Southeastern Saskatchewan. The energy project,
led by DEEP Earth Energy Production Corporation, is the first of its kind in
Canada and taps into a new renewable energy resource.
Geothermal energy harnesses heat from the earth’s crust and transforms it into
electricity to power homes and businesses year round. DEEP’s geothermal facility
will build on Saskatchewan’s leadership in the energy sector, using familiar
drilling technologies from the oil, gas, and mining industries to tap into this
reliable energy source.
The project will produce enough energy to power approximately 5,000 homes all
while avoiding the equivalent of the yearly emissions of 7,400 cars from being
produced. The project will create 100 jobs during construction, provide the
provincial power grid with clean, renewable energy, and create new business
opportunities for local communities.
CONTINUING TO ENSURE POLLUTION ISN’T FREE AND HOUSEHOLDS GET MORE MONEY BACK
THE COST OF CLIMATE CHANGE
The costs associated with a changing climate are real. Many Canadians have
experienced this first-hand, or have friends, family or neighbours who have.
Canadians feel its impacts when extreme weather threatens their safety, their
health, their homes and communities, and their livelihoods. And Canadians pay
for these impacts when they are forced to repair and rebuild homes and
businesses after a flood or wildfire, when they pay higher insurance premiums,
or through rising costs for food, health care or emergency services.
There’s a clear cost from a changing climate, so it can’t be free to pollute.
That’s why the Government of Canada introduced a price on carbon pollution
across Canada in 2019.
HELPING CANADIANS COME OUT AHEAD
Canada has joined the ranks of those around the world that have proven that
putting a price on pollution reduces emissions and encourages innovation.
Canada’s carbon pollution pricing approach is an example of how Canada can meet
its economic needs and its environmental goals at the same time.
The Government will continue to put a price on pollution, rising every year
until 2030, and will continue to provide support to Canadians by returning the
fuel charge proceeds to families and households such that the majority are
better off.
When the Government of Canada introduced a price on carbon pollution across
Canada in 2019, Quebec, British Columbia and Alberta already had carbon pricing
systems. Since then many of the other provinces and territories have introduced
their own pollution pricing systems. They use the proceeds as they see fit,
including by supporting families to take further action to cut pollution in a
practical and affordable way. Those Governments that opted for the federal
pricing system receive all the proceeds back to decide how to reinvest them.
In the remaining provinces where the federal price on carbon pollution is in
effect, the Government of Canada returns most of the fuel charge proceeds
directly to families through Climate Action Incentive payments, delivered
through annual tax returns. Through these payments, the majority of Canadian
families receive more money back than they pay.
Households that choose to make changes – for example, through energy upgrades to
their home, or by choosing different ways or cleaner vehicles to get around –
can come out even further ahead. By making choices that reduce their emissions,
Canadians can avoid paying the price on pollution while still collecting the
full Climate Action Incentive payment.
The design also considered where people live, acknowledging the reality that
Canadians who live in rural and smaller centres don’t necessarily have the same
options, particularly when it comes to clean transportation. That’s why, for
people in these communities, the Government applied an additional 10% top-up to
their Climate Action Incentive payment.
Canada’s current approach to returning proceeds helps rural families
In recognition of the fact that people who live in small and rural communities
have reduced access to cleaner transportation options, a supplementary amount in
addition to the baseline Climate Action Incentive payment is provided for
eligible individuals and families who live outside a census metropolitan area,
as defined by Statistics Canada. This supplement increases the baseline amount
by 10%.
Bottom line: if you live in a province where the federal carbon price applies,
you’ll most likely find yourself better off, saving money and better able to
invest in affordable solutions that reduce pollution.
The Government is proposing to increase the carbon price by $15 per year,
starting in 2023, rising to $170 per tonne of carbon pollution in 2030. The
increasing price will make cleaner options more affordable and discourage
pollution-intensive investments. A longer price trajectory will allow businesses
and individuals to plan ahead, providing predictability for longer-term
investments and growing the market for clean solutions in Canada.
The Government is committed to making sure that carbon pricing continues to work
for families. Going forward, the federal carbon price will continue to be
revenue neutral, and the Government of Canada remains committed to helping
households make investments to increase energy efficiency and further reduce
emissions. The Government will continue to return all fuel charge proceeds back
to Canadian families and their communities, ensuring that the majority of
households receive more in payments than they face in costs. These payments will
move from annual to quarterly payments starting as early as 2022.
In the context of the continued increase to the carbon price, the scope of the
Clean Fuel Standard has been narrowed to cover only liquid fossil fuels, like
gasoline, diesel and oil, which are mainly used in the transportation sector.
This is a progression in the design of the Clean Fuel Standard from its initial
discussion in 2016, when it was proposed that the new measure will cover liquid,
gaseous and solid fuels. The Clean Fuel Standard, covering only liquid fossil
fuels, will remain an integral policy in Canada’s strengthened climate plan, and
will contribute to the Government’s goal of exceeding its current 2030 target.
ILLUSTRATIVE PAYMENT AMOUNTS UNDER CARBON PRICING SCENARIOS
The payment examples in Table 1 for 2025 and 2030 are illustrative only. They
assume that the Government will continue to return the large majority of the
federal fuel charge proceeds through payments, as is currently the case, and
that there are no changes to the types of fuels or activities to which the
federal fuel charge applies. The illustrative amounts shown would differ if the
structure of the current Climate Action Incentive payment program were changed
(e.g., ratio of different amounts, rate or geographic scope of rural
supplement), or if there were changes to the fuels to which the federal fuel
charge applies. The amounts would also differ to the extent that the actual
levels of economic activity and greenhouse gas emissions in the two years shown
are different from currently projected levels.
Table 1: Illustrative Payment Amounts assuming a $15/tonne annual increase in
the federal fuel charge starting in 2023
2025 ($95/tonne) Amount Ontario
Manitoba Saskatchewan Alberta First adult 630 816 1,254 1,074 Second adult 315
408 627 537 Child 157 204 314 268 Example: Baseline amount for a family of four
1,.259 1,632 2,509 2,147
2030 ($170/tonne) Amount Ontario
Manitoba Saskatchewan Alberta First adult 1,009 1,317 1,914 1,621 Second adult
505 658 957 811 Child 252 329 479 405 Example: Baseline amount for a family of
four 2,018 2,633 3,829 3,242
A GROWING POLLUTION PRICE TO SUPPORT CLEANER SOLUTIONS
Simply put, it would be much harder to cut pollution if it was free to pollute.
The principle is straightforward: a carbon price establishes how much businesses
and households need to pay for their pollution. The higher the price, the
greater the incentive to pollute less, conserve energy, and invest in low-carbon
solutions.
Canadians understand that putting a price on pollution spurs the development of
new technologies and services that can help reduce their emissions
cost-effectively, from how they heat their homes or what kind of energy they use
to do so. It also provides Canadians with an incentive to adopt these changes or
solutions into their lives.
That’s why experts consistently recommend carbon pricing as an efficient,
effective approach to reducing emissions. It’s also why, according to the World
Bank’s tracking, there are now 64 carbon pricing initiatives in place or
scheduled for implementation around the world, covering 22% of global emissions.
Evidence from more than a decade of carbon pricing in British Columbia
In 2008, the Government of British Columbia introduced a revenue neutral carbon
tax. Independent research and analysis has found that the province’s carbon tax
has cut emissions by 5 to 15% from what they would have otherwise been,
encouraging the purchase of more fuel-efficient cars, and decreasing consumption
of natural gas use, all while supporting increased employment.
A steadily rising carbon price sends a signal to those entrepreneurs and
companies to develop innovative solutions and services to help citizens and
small and medium-sized business owners reduce their carbon footprint and put
more money in their pockets. It’s also important for home and business owners
considering renovations, as they can better calculate how their savings will
accrue and pay off over time.
Carbon pricing in other countries – the Swedish experience
Sweden implemented a carbon tax in 1991 and is now on track to be carbon neutral
by 2045. Between 1990 and 2018, Sweden’s carbon tax cut emissions by 27% while
the country’s GDP grew by 83%, one of the highest rates of economic growth in
Europe.Footnote 9 Sweden’s experience proves Canada can meets its economic needs
and its environmental goals at the same time.
Not all groups are affected by carbon pricing in the same way. The Government of
Canada recognizes that particular groups or sectors may require targeted support
or relief, in particular because of the small number of alternative options they
may have in the face of carbon pricing. Under the federal system, relief is
provided for farmers, fishers, residents of rural and small communities, users
of aviation fuel in the territories, greenhouse operators, and power plants that
generate electricity for remote communities.
In Canada, carbon pricing has and will continue to make a significant
contribution to the plan to reduce emissions. Carbon pricing was a cornerstone
of the Pan-Canadian Framework, and the Government of Canada intends to build on
that successful approach in this strengthened climate plan. As part of this next
phase of carbon pricing, the Government also proposes to review the standards it
uses to assess provincial systems, also known as the federal “benchmark
criteria.”Footnote 10 Strengthening these standards will help Canada meet its
climate goals while allowing provinces and territories to choose the pricing
systems that work best for them.
The Government of Canada will engage with provinces and territories and
Indigenous people on these proposals over the coming months.
SUPPORTING BUSINESSES, COMMUNITIES, SCHOOLS AND HOSPITALS
In addition to households, the Climate Action Incentive Fund is also helping
schools, and small and medium businesses, such as restaurant owners, farmers,
truck drivers, and convenience and grocery store owners. These businesses can
seek funding of up to 25% of eligible costs for energy efficient retrofits and
other projects to improve energy efficiency and productivity, which reduces
their energy use and carbon pollution, and saves money.
The remaining fuel charge proceeds are returned through other federal
programming:
* Crown-Indigenous Relations and Northern Affairs Canada’s Indigenous
Community-Based Climate Monitoring Program;
* Indigenous Services Canada’s Capital Facilities and Maintenance Program
(CFMP)/First Nations Infrastructure Fund (FNIF); and,
* Natural Resources Canada’s Clean Energy for Rural and Remote Communities
(CERRC) Program, and Energy Manager Program.
Cleaner, healthier and more comfortable schools
In Manitoba, the average age of school buildings is over 50 years old. With
funding from the federal Climate Action Incentive Fund, school boards in the
province have been able to upgrade and improve aging infrastructure in schools.
Through investments in better-insulated windows, newer heating and cooling
systems and other energy efficiency projects, these projects are cleaning up
indoor air quality in classrooms, for students and teachers alike, making them
more comfortable while lowering energy costs.
Support for small and medium-sized businesses
The Climate Action Incentive Fund was allocated up to $218 million, from 2019-20
carbon pollution pricing fuel charge proceeds collected in Saskatchewan,
Manitoba, Ontario, and New Brunswick. Over 700 proposals, ranging from solar
energy generation, building retrofits, industrial equipment upgrades, and
lighting upgrades, under the Small and Medium-sized Enterprises Project stream
were approved-in-principle for projects that include:
* Installing a solar power system at a grain farm in Saskatchewan;
* Installing new windows, doors, insulation, and heat pumps at a commercial
building in New Brunswick;
* Replacing an old, inefficient grain dryer at a family operated farm in
Ontario; and,
Installing building retrofits including LED lighting fixtures at a storage
facility in Manitoba.
MAINTAINING COMPETITIVENESS AND MANAGING AGAINST CARBON LEAKAGE
Under the Government of Canada’s current carbon pricing system, competitiveness
and jobs in heavy industry are maintained through an output-based pricing model.
This approach ensures there is a price incentive for industrial emitters to
reduce their greenhouse gas emissions and spur innovation, while also protecting
against the risk of industrial facilities moving from one region to another to
avoid paying a price on carbon pollution. Most provincial pricing systems are
also designed to maintain competitiveness through a similar approach.
Important economies such as the European Union are considering the potential of
border carbon adjustments, and discussions on the issue are taking place in
various fora.
Border carbon adjustments level the playing field across jurisdictions: they put
a carbon fee on imports from countries that either do not have carbon pricing or
price it too low so that those products face the same costs as those supplied by
domestic producers who pay a price on carbon pollution. As such, border carbon
adjustments can help maintain competitiveness while also encouraging other
countries to step up and take effective action to reduce emissions.
The Government of Canada is committed to ensuring that Canada’s transition to a
low-carbon economy is achieved in a way that is fair and predictable for
businesses, and supports Canada’s international competitiveness. To this end,
the Government is exploring the potential of border carbon adjustments, and will
be discussing this issue with its international partners. The Government of
Canada will work with like-minded economies – including the European Union and
Canada’s North American partners – to consider how this approach could fit into
the broader strategy to meet climate targets while ensuring a fair environment
for businesses.
BUILDING CANADA’S CLEAN INDUSTRIAL ADVANTAGE
Canadians and consumers around the world continue to seek more
environmentally-friendly products and services, and businesses are rising to the
occasion. Innovative businesses of all sizes continue to respond to consumer
demand for cleaner products and are investing to shift their production
accordingly.
In the years ahead, Canada’s industrial advantage will depend on the speed and
success of decarbonization efforts. Building from the progress made with the
Innovation and Skills Plan, the Government of Canada is committed to assisting
Canadian companies as they seek to meet the demands of domestic and global
consumers for low-carbon goods and services, and make investments that can drive
Canada’s low-carbon economy. The Government is also committed to supporting
Canadian innovation, and helping new strategic low-carbon technologies scale up
rapidly.
This transformation will require close alignment between climate and industrial
policies. It will also require a comprehensive and integrated approach that
ensures the coordinated deployment of the Government’s full suite of tools
(policies, programs, science, regulations, etc.). This approach must ensure that
new regulatory and tax measures are not only effective and responsible, but
balanced with efforts to attract and strengthen Canada’s low-carbon industries,
smooth the transition of existing sectors, stimulate the development and
de-risking of new technologies, and crowd in private capital.
To create long-term jobs, there is need to secure long-term investments. The
world’s largest investment firms, such as BlackRock, HSBC, JP Morgan, Goldman
Sachs and Desjardins, are moving their investments to businesses and
jurisdictions that take combating climate change seriously. There is fierce
competition for these investments and Canada can quickly move to the front of
the line by taking strong climate action now.
Over the next ten years, bold action on the climate could yield direct economic
gains of US $26 trillion, compared to business as usual. As well, the
International Labour Organization predicts that a shift to a greener economy
could create 24 million new jobs globally by 2030 if the right policies are put
in place.
The Government of Canada is committed to working with Canadian businesses,
communities and workers to secure an outsized share of those investments and
those jobs, right here in Canada.
More than ever, over the last months of the COVID-19 pandemic, Canadians have
shown that they are innovators and problem solvers, capable of finding solutions
to the world’s greatest challenges.
This plan will enhance the competitiveness of existing industries, while also
sending a long-term signal to Canadian businesses to support innovation and
clean economic development. It will help maintain and create new career
opportunities in every sector of the economy and in every region of the country.
There will be new manufacturing jobs to make batteries, low-emission and
zero-emission vehicles; new skilled trades jobs retrofitting buildings and
building clean electricity plants; and, new natural resources jobs supporting
tree planting and forest management activities. There will also be cleaner and
more competitive resource extraction, including mining the critical minerals
needed for batteries and other clean energy products.
Canada’s growing clean tech sector
Clean technology is a key driver of innovation, environmental improvements,
economic growth and jobs. Government of Canada investments in clean technology
have totaled more than $3 billion since 2016. In 2018, approximately 195,000
Canadians were employed in clean technology, which contributed $2.6 billion to
the Canadian economy. In a market expected to exceed $2.5 trillion globally by
2022, Canada is recognized internationally for its leadership, with 12 Canadian
companies recognized on the 2020 Global Cleantech 100 list, and with oil and gas
and other resource companies making significant investments in emission
reduction technologies and processes.
Countries around the world are actively positioning themselves to attract
investments and support the creation of jobs in a low-carbon economy through
policies and market incentives. Now is the time for us to be among the leaders,
and to make Canada a destination of choice for investments in low-carbon
solutions. The competitiveness of Canada’s most important sectors depends on it.
As the Government of Canada moves forward, the work of the Economic Strategy
Tables will be critical to the development and implementation of Canada’s clean
industrial development strategy.
SUPPORTING LOCAL ECONOMIES AND SMALL AND MEDIUM BUSINESSES
As Canada grows and diversifies its economy, it is important to remain sensitive
to the particular economic needs of each region. One thing all communities share
is their reliance on small and medium-sized businesses (SMEs). They are the
backbone of local economies and make Canadian communities more vibrant places to
call home. These businesses have borne the brunt of the COVID-19 pandemic, and
the Government of Canada will continue to do whatever it takes to help them
bounce back and take advantage of the incredible opportunities in low-carbon and
environmentally-friendly solutions.
Small businesses are the heart of communities across the country. They employ
the vast majority of Canadians, support vibrant communities, and their owners
are often local leaders. Many want to be part of the solution to climate change,
not just because they know it’s good for the planet but because innovations to
cut pollution will help their bottom lines. From adopting clean technologies for
greener processes, products and services, to installing energy efficient windows
in their shops, to investing in zero-emission delivery vehicles, to finding
innovative ways to work remotely and reduce pollution from unnecessary commutes,
small businesses are putting climate smart solutions into action. The transition
to a decarbonized economy must work for all Canadians, including small business
owners and entrepreneurs.
The Government of Canada will continue to be there to support small businesses
through COVID-19, whether through support for rent or through interest-free
loans and will keep working with them to make sure they get the support they
need to be part of the cleaner economy. The Government’s swift, scalable, and
targeted action to bridge small businesses through the crisis and into 2021
demonstrates its commitment to stand by small businesses to ensure they can
continue to support families and communities across the country. For example,
the Canada Emergency Business Account (CEBA) has helped over 790,000 small
businesses and not-for-profits keep their doors open during the pandemic. The
Government recently extended the availability of CEBA to small businesses that
have not been operating from a commercial banking account, and launched the
expansion of CEBA to provide up to $20,000 in additional support, with half
being forgivable, to make sure businesses in need get the support they require.
Over the past two years, the Government of Canada has facilitated projects to
help small and medium-sized businesses become more energy efficient using carbon
pricing proceeds. For example, one such project will replace old and inefficient
equipment at a welding and fabrication shop in Ontario, while another will
replace the insulated roof linings and exterior sealing at a refrigerated
storage facility in Saskatchewan.
As part of the next phase of this plan, the Government of Canada will consider
opportunities to assist communities and existing and new SMEs to build green,
more resilient and sustainable regional economies. The Government will:
* Maintain its commitment to cut the corporate tax rate in half for companies
making zero-emissions products. These lower taxes will create a strong
incentive for businesses to set up shop in Canada, and help make Canada a
true world leader in zero-emissions clean technology.
* Work with small businesses across the country and in all sectors to get their
feedback on all potential ways to further support them in taking actions to
reduce emissions, including through rebates, targeted investments, and other
supports.
ELIMINATING POLLUTION FROM NATURAL RESOURCE DEVELOPMENT AND HEAVY INDUSTRY
Canada is blessed with a bounty of natural resources, from agriculture,
fisheries, metals, minerals, oil, natural gas, renewable energy sources, and
wood. The wealth they have provided has afforded Canadians an enviable quality
of life throughout this country’s history. In 2019, Canada’s resource sectors
directly employed 880,000 people, representing 11.5% of the economy.Footnote 11
However, greenhouse gas emissions from Canada’s industrial sector, including oil
and gas production, represent 37% of Canada’s total emissions. Clean
technologies can significantly reduce these emissions. Adopting these
technologies will ensure that Canadian industries remain globally competitive
and can capitalize on new opportunities. Through the actions being proposed and
collaborative work with provinces, territories, industry, and labour groups, the
Government will support the creation of new jobs, generate opportunities for
business growth, strengthen and diversify the economy, and reduce emissions.
Canadian companies leading the way with innovative solutions to cut pollution
and save money
Canadian industries are developing innovative technologies to reduce their
environmental footprint and improve their environmental performance. There are
countless examples from coast to coast to coast of this innovation in action.
Here are just a few examples of that progress:
Elysis (a joint venture between Alcoa Corporation and Rio Tinto), headquartered
in Quebec, is developing ground-breaking technology to eliminate the Canadian
aluminum industry’s carbon footprint, and help strengthen the already
well-integrated Canada-United States aluminum and manufacturing industry.
Canada’s mining sector continues to be a constructive partner in the fight
against climate change. In Ontario, Goldcorp Canada Inc.’s Borden Mine is a
demonstration of what a mine of the future could look like – producing ore in a
more environmentally sustainable way. In 2018, the Government of Canada invested
$5 million to support the Borden Mine with replacing all diesel mobile equipment
with battery electric vehicles, making it Canada’s first all battery electric
underground mine.
Canadian oil and gas companies are investing in technology to capture and store
carbon in order to make heavy oil operations more environmentally sustainable.
For example, Calgary-based company Husky Energy Inc. teamed up with British
Columbia-based company Svante Inc., to run a carbon capture and storage project,
developed by Svante, at its oil operation in Saskatchewan. The technology is
used alongside carbon dioxide recovered from other facilities.
As the world transitions to generating clean energy, some of the key metals
required for the construction of electric vehicle batteries, such as lithium,
are found in high quantities in Canada, particularly Alberta. This presents a
major opportunity for Canada and Alberta, and specialized technologies known as
direct lithium extraction (DLE) are being developed to unlock lithium-brine in
the oil fields. In both Alberta and Saskatchewan, Canadian companies such as E3
Metals, Prairie Lithium, Summit Nanotech, and LiEP Energy are piloting and
advancing DLE technology.
The Canadian forest sector is working to advance Canada’s bioeconomy and create
jobs while fighting climate change. For example, Granule 777 Inc., in Quebec, is
building the first fully integrated industrial wood pellet and sawmill complex
in Canada. The Government of Canada has invested $20 million in the project to
enable the company to build the complex and acquire strategic and innovative
production equipment. The new complex will generate wood pellets and biomass
which can replace fossil fuels and lower emissions, while creating new jobs and
diversifying the mill’s product base.
The concrete industry has historically been a large source of carbon emissions,
but is taking important steps to reduce emissions. For example, an innovation by
a Halifax-based company, CarbonCure, has found a way to create low-carbon
concrete. The company has developed a process that injects carbon dioxide,
sourced from industrial emitters, into fresh concrete, where it is converted
into a mineral and becomes permanently captured. The final product is a concrete
that is just as durable, but without the same carbon footprint.
In the clean technology and smart grid space, Atlantic Canada is leading the
way. A partnership between the Government of Canada, New Brunswick Power, Nova
Scotia Power and Siemens Canada, is enabling the research and development of
smart grid technology to help better manage the province’s electricity. It will
also build Canadian expertise that could improve the sustainability and
efficiency of power grids around the world. This project will help improve power
delivery to underserved communities, better integrate renewable energy into the
power grid, reduce future electricity costs for consumers, and create and
maintain highly skilled jobs in Atlantic Canada.
For heavy industries – such as steel, aluminum, and cement – the growth
opportunity lies in ensuring Canadian companies are the most competitive in a
world where investors are increasingly considering carbon pollution a financial
risk. To protect and grow jobs in the industrial sector, there is a need to help
companies decarbonize their operations, with clean sources of electricity, using
low-carbon fuels like hydrogen or new zero-emission technologies like small
modular reactors, and capturing carbon at the source.
Working with large emitters
Working with large final emitters is essential to Canada’s climate goals. In
2018, Canada’s top 25 highest emitting facilities collectively represented about
118 million tonnes of emissions. Eight of those facilities are coal-fired
plants, and those emissions are being addressed through regulations to phase-out
traditional coal-fired electricity. The remaining seventeen are a mix of oil
sands, steel, refining, and a pipeline. Those 17 facilities alone represent
about 78 million tonnes of emissions. The facilities are located in Alberta
(13), Ontario (three) and New Brunswick (one). In order to unlock significant
emission reductions, Governments and industries need to become strategic
partners. Through targeted support to large emitters in the oil and gas sector,
cement, iron, and steel sectors this can enable near-term deployment of
technologies to reduce emissions at the ‘megatonne’ scale. There are also
opportunities to strategically support facilities during their natural capital
renewal process to reduce energy and operating costs, improve competiveness and
protect jobs.
Significantly decarbonizing industry will not be easy. But unlocking industrial
emission reductions is essential for Canada to continue to be competitive in an
increasingly low-carbon global economy, and it will support Canada’s climate
objectives. It will require all Canadians to bring their best ideas and
innovation to the table – from the shop floor, universities and colleges,
businesses, and Government research centres. To be successful, all orders of
Government will need to partner with industry to make the necessary investments.
To that end, the Government of Canada will look to make strategic investments in
large-scale industrial projects, and to enable the adoption of low-carbon
technologies to support economic growth and decarbonization across all sectors
in Canada. The Government intends to keep these industries strong, resilient and
prosperous in Canada – for generations to come.
To bring these benefits to workers, communities and businesses, the Government
will:
* Launch a Net-Zero Challenge for large industrial emitters to encourage and
help them develop and implement plans to transition their facilities to
net-zero emissions by 2050. A growing number of companies are making net-zero
commitments. The Challenge will add momentum, while also promoting rigour in
terms of what constitutes an effective net-zero plan.
* Make significant investments to support decarbonization and drive the
immediate creation of good-paying, resilient jobs, in complement to the
Challenge. An important initial component of those investments will be the
new Strategic Innovation Fund – net-zero Accelerator of $3 billion over five
years, to be delivered via the Strategic Innovation Fund, to rapidly expedite
decarbonization projects with large emitters, scaleup clean technology and
accelerate Canada’s industrial transformation across all sectors. This plan
will drive investment into large emissions reducing and job-creating projects
across every region of Canada.
The Strategic Innovation Fund – net-zero Accelerator will have three focus
areas:
* Support for the development and adoption of clean technology solutions in all
industrial sectors: Particular emphasis will be placed on the development and
adoption of solutions that help Canada’s largest sources of industrial
emissions move towards net-zero;
* Support for clean technology development in Canada’s aerospace and automobile
manufacturing sectors: These are areas of Canadian strength that will stay
competitive with a concerted shift to develop and supply clean transportation
solutions for the 21st century. The Government of Canada’s investments will
help expedite the sector’s shift to meet market demands; and,
* Support for the development of a Canadian battery innovation and industrial
ecosystem: This funding will build on Canada’s natural resources and leading
expertise to develop an end-to-end battery ecosystem in Canada, from mineral
extraction and processing, to research and design, to manufacturing, and all
the way to recycling.
The Strategic Innovation Fund – net-zero Accelerator will:
* Drive essential, near-term greenhouse gas reductions to ensure Canada exceeds
its 2030 target;
* Create and maintain immediate, good-paying, middle-class jobs to support
Canada’s economic recovery;
* Bolster innovation and encourage disruptive technologies to ensure Canadian
businesses stay competitive in a global economy that increasingly demands
low-carbon products; and,
* Promote R&D, facilitate scale-up of firms providing clean technology
solutions, develop and retain intellectual property in Canada, attract major
investment in strategic sectors and, foster collaboration along a resilient
and sustainable supply chain.
* Help accelerate the reduction in methane emissions through the $750 million
Emissions Reduction Fund that provides repayable funding to eligible onshore
and offshore oil and gas companies to support their investments to reduce
greenhouse gas emissions. Companies that eliminate methane emissions may be
eligible for partially repayable contributions, meaning that a portion of the
funding is forgiven based on the cost per tonne of emission reductions. The
cheaper the project on a cost per tonne basis, the more that can be forgiven,
up to 50% of the total project cost. This will greatly benefit the
environment, and workers and communities involved in the oil and gas
industry. It will also contribute to the achievement of Canada’s target to
reduce methane emissions from the oil and gas sector by 40-45% by the year
2025 and lay the foundation for additional reductions in 2030 and 2035.
* Use proceeds collected from the Output-Based Pricing System (OBPS) for
industry to further support industrial projects to cut emissions and use new
cleaner technologies and processes, as part of the plan to decarbonize
industrial sectors. These proceeds will start to be collected in the spring
of 2021, after which the Government of Canada plans to launch a call for
proposals to find the most promising projects across industries.
* Complete the Federal Greenhouse Gas Offset System to provide additional
flexibility in terms of compliance with the federal OBPS. Offsets create a
further incentive to reduce emissions across Canada, and will generate
additional economic opportunities in sectors such as agriculture, forestry
and waste.
* Deliver on Canada’s G20 commitment to phase-out all inefficient fossil fuel
subsidies by 2025.
The Government of Canada also proposes to:
* Strengthen Canada’s approach to reducing methane emissions from the oil and
gas sector by establishing new targets for 2030 and 2035, based on
international best practices. Canada is an active participant in
international initiatives to reduce methane emissions. For example, Canada is
a founding member of the Climate and Clean Air Coalition. Together with the
International Energy Agency, the Coalition is targeting a 45% reduction in
methane emissions by 2025 and 60-75% by 2030. The design of the amended
federal regulations to achieve additional reductions in 2030 and 2035 will be
determined through consultations with provinces, territories, the oil and gas
industry and civil society.
* To ensure Canada fully achieves its existing 2025 target of 40-45% reduction
in methane emissions, the Government of Canada will monitor and review the
effectiveness of the existing federal regulations, and will continue to work
with provincial partners, civil society, and industry to ensure that these
objectives are achieved. The Government will publicly report on the efficacy
of the suite of federal actions to achieve the 2025 methane target in late
2021.
* Develop a comprehensive carbon capture, use and storage (CCUS) strategy and
explore other opportunities to help keep Canada globally competitive in this
growing industry.
* Continue implementing the new Impact Assessment process, to provide project
proponents with more timely decisions while improving consultations and
considering climate risks and opportunities, including achieving net-zero
emissions by 2050.
* As described in the earlier section Continuing to Ensure Pollution isn’t
Free, the Government is proposing to continue to put a price on carbon
pollution, post-2022, by $15 per year to 2030. This will provide business
with the long-term signals needed for business planning.
Canada’s oil and gas sector
Canada’s oil and gas sector is Canada’s largest emitting sector, accounting for
26% of Canada’s emissions. Without further action, emissions from the oil and
gas sector are projected to increase. Globally, consumers, businesses and
investors are increasingly giving preference to cleaner fuels and investments.
To remain globally competitive, Canada’s energy industry must continue to
innovate and reduce emissions. A number of Canadian oil and gas companies have
pledged to make their operations net-zero.
PRODUCING AND USING CLEANER FUELS ACROSS THE ECONOMY
Canadians and businesses use fuel every day – to produce and transport goods,
and get from place to place. These fuels help power Canada’s economy, but their
extraction and combustion also represent a significant source of pollution in
Canada. In fact, the largest sources of greenhouse gas emissions in Canada are
from the extraction, processing and combustion of fossil fuels. The fossil fuels
we use for transportation also have significant impacts on Canadians’ health,
creating harmful air pollution when they’re extracted, refined and burned in
engines. The Clean Fuel Standard is an important part of Canada’s approach to
cutting pollution and growing the economy. This regulation will reduce the
greenhouse gas emissions from producing and using these fuels in Canada.
The Clean Fuel Standard takes a lifecycle carbon intensity approach, meaning it
takes into account the emissions associated with all stages of fuel production
and use – from extraction through processing, distribution, and end-use. The
Clean Fuel Standard complements the price on carbon pollution. While carbon
pricing creates a broad incentive across the whole economy to use less energy
and improve efficiency, the Clean Fuel Standard targets transformative change in
how fuels are produced and used in Canada. This is crucial for long-term
decarbonization and to put Canada on the path to net-zero emissions by 2050.
The Clean Fuel Standard will incent the uptake of technologies that reduce the
lifecycle carbon intensity of fossil fuels, such as carbon capture and storage
and renewable energy. The Clean Fuel Standard will also create economic
opportunities for low-carbon fuel providers, such as biofuel producers, and
feedstock providers like farmers and foresters supporting low-carbon fuel
production. Finally, the Clean Fuel Standard will promote the uptake of advanced
vehicle technologies, like electric and hydrogen fuel cell vehicles.
The broad range of compliance strategies allowed under the proposed Clean Fuel
Standard will give fossil fuel suppliers the flexibility to choose the lowest
cost compliance actions available. The same compliance strategies that will
support the Clean Fuel Standard will also ensure Canada becomes a leader in
carbon capture, utilization and storage, hydrogen production, and other
technologies that will allow Canada to extract energy from its resources while
significantly reducing and eventually eliminating carbon pollution.
Clean fuel standards at home and abroad
The Clean Fuel Standard builds on the current federal and provincial renewable
fuel rules. By moving to regulations that focus on emissions throughout the
lifecycle of fuels, Canada is following similar approaches that already exist in
British Columbia, California, Oregon and other jurisdictions. In both California
and British Columbia, the use of low-carbon fuels has increased significantly
since the policies have been in place. The use of alternative fuels in place of
fossil fuels has resulted in nearly 53 million metric tons fewer greenhouse gas
emissions on the West Coast, which is equivalent to removing 11 million
passenger cars from the road for an entire year.
Credits generated by low-carbon fuel standards are boosting the market for
electric vehicles. California and Oregon have sold more than 528,000 battery
electric vehicles through December 2018. The proceeds from credit sales in
California fund EV rebate programs, electric buses in transit fleets, charging
stations, and can be applied to lower the cost of charging. Additionally, the
Ontario Government is increasing the amount of renewable content required in
gasoline, from the existing 10 per cent requirement to 11 per cent in 2025, 13
per cent in 2028 and 15 per cent in 2030. Ontario estimates that this increase
will result in one million tonnes fewer annual greenhouse gas emissions by 2030.
As the world strives to achieve net-zero emissions by 2050, countries and
businesses around the world will make a major shift to cleaner and non-emitting
fuels. Canada has the resources and expertise to be a leading producer and
consumer of these cleaner fuels, and the federal Clean Fuel Standard will help
position Canada as a leading clean fuel producer by driving innovation and
investment. The Clean Fuel Standard will drive investment and growth in Canada’s
clean fuel sector by increasing incentives for the development and adoption of
clean fuels and technologies and processes. To speed up that transition and
support the development of a leading clean fuels sector in Canada, our
Government is making several significant investments that complement the Clean
Fuel Standard regulation.
In particular, the Government of Canada will:
* Invest $1.5 billion in a Low-carbon and zero-emissions Fuels Fund to increase
the production and use of low-carbon fuels (e.g., hydrogen, biocrude,
renewable natural gas and diesel, cellulosic ethanol) in a manner that
complements federal carbon pollution pricing, regulatory efforts and other
federal programming.
* Introduce Canada’s Hydrogen Strategy, which sets out a path for integrating
low emitting hydrogen across the Canadian economy, before the end of the
year.
Hydrogen is one of Canada’s most exciting economic transformation opportunities
to help businesses grow, dramatically reduce emissions in the industrial sector,
and enable a new Canadian competitive advantage in a low-carbon economy. The
strategy will be an ambitious framework that will cement this clean fuel as a
key part of the country’s path to net-zero emissions by 2050. This domestic
growth will also position Canada to become a world-leading supplier of hydrogen
and hydrogen technologies, generating economic opportunities through exports and
direct foreign investment. The strategy is the result of three years of research
and analysis including recent engagement with 1,500 leading experts,
stakeholders, provincial and territorial partners, Indigenous businesses and
communities.
The use of clean hydrogen across the country can lower emissions in sectors like
primary resource extraction, transportation, power generation, and
manufacturing. Investment in these projects will ultimately reduce pollution and
will create and sustain well-paying jobs. In order to achieve the scale needed
to seize this opportunity, all low-emissions hydrogen production pathways are
needed – with strategic coordination and investment across the entire value
chain.
The Government will also work with stakeholders, regulators, and technology
innovators to launch efforts to align legislation, codes and standards to
support a flourishing market for low-carbon and clean fuels. For example, this
could include examining the necessary standards to ensure that hydrogen would be
transported, measured, sold and consumed in a consistent way across the country.
Canada is a global producer of hydrogen
As one of the top 10 producers of hydrogen in the world, Canada is
well-positioned to benefit from the growing global demand for hydrogen –
particularly Canada’s heavy-duty fuel cell engine technology that currently
powers more than half of the worldwide hydrogen fuel cell electric buses.
Hydrogen could provide between 18% and 24% of global energy demand by 2050, and
the global sale of hydrogen could total over $700 billion by 2050, with billions
more spent on end use equipment.
MADE-IN-CANADA MANUFACTURING
The ability of Canadian industry to pivot quickly in response to a national
emergency has been on display since the outset of the COVID-19 pandemic. There
has been a remarkable mobilization of resources, on a level not seen since the
Second World War. Through the “Made-in-Canada” project, in a matter of months,
Canadian manufacturers were able to retool their existing production lines and
set up new manufacturing facilities to produce much-needed personal protective
equipment and other critical supplies. Canada must leverage the same
resourcefulness and ingenuity to produce the cleaner, more sustainable products
that the world is looking to buy now and in the future. The Government of Canada
will work hand-in-hand with Canadian businesses to make this happen.
Canadians want a future where people around the world equate “Made-in-Canada”
with the cleanest and most sought after products in a global marketplace that
prizes quality and sustainability. There is no country better placed to own that
brand than Canada.
Electric vehicles sales are growing every year
Bloomberg New Energy Finance (BNEF) forecasts that sales of EVs will reach 10%
of global passenger vehicle sales by 2025 and 28% by 2030, representing between
20-30 million units sold in 2030.
More and more countries are making commitments to accelerate the transition to
electrified low- and zero-emission vehicles. And electrified and zero-emission
cars and trucks aren’t the only growth opportunity for manufacturing in the
transportation sector. Clean options are already coming to life in other
mobility products, including aircraft, buses, trains, and ships.
The global aerospace sector is being transformed by investments in low-carbon
aviation technologies threatening Canada’s global leadership position in green
aviation. Canada’s aerospace manufacturing sector is the top investor in
research and development in Canada’s manufacturing sector. Canada is a leader in
regional aviation, which is expected to be one of the first segments to recover,
post-pandemic. Preserving Canada’s global leadership position is critical to the
clean and prosperous future of Canada’s highly innovative aerospace sector. The
Government of Canada is committed to ensuring a prosperous aerospace sector in
Canada.
Leading the charge in fuel-efficiency
The Canadian-designed and built Airbus A220 is praised as a leader in fuel
efficiency and was the first aircraft in history to receive an Environmental
Product Declaration (EPD®) published by the International EPD® System.
The growth opportunities go beyond final assembly and manufacturing. Canada is
one of only a few countries in the world with reserves of all the minerals
required for lithium-ion battery production. And it has the rare earth elements
used to make magnets for electric motors. Canada also has a significant
opportunity to develop a robust low-carbon building supply chain, and to unlock
a competitive edge in the development of low-carbon building materials.
EV manufacturing in Canada
The Government of Canada is working with its partners to make Canada a leader in
the design, development, and manufacturing of zero-emission vehicles (ZEV). In
October 2020, the Government announced a joint investment with the Government of
Ontario to support Ford Motor Company of Canada in the retooling of their
Oakville Assembly Complex to produce battery electric vehicles. This project,
valued at $1.8 billion, will help secure 5,400 well-paying middle-class jobs at
the Oakville Assembly Complex. In addition, Fiat Chrysler Automobiles announced
its intention to invest in a state-of-the-art multi-energy vehicle platform at
the Windsor Assembly Plant that will enable the assembly of both Plug–In Hybrid
Vehicles (PHEVs) and Battery Electric Vehicles (BEVs).
Long description
Step 1. Exploration and extraction
Building EVs requires sourcing raw materials from the Earth’s crust through
mineral exploration and mining.
For example, a lithium-ion EV battery requires several naturally occurring raw
materials, including: lithium, graphite, cobalt, and nickel.
Canada has large reserves of cobalt, graphite, lithium, and nickel.
Unprocessed raw materials -> international exports
Step 2. Mineral processing
Extracted minerals and metals are processed via several methods such as:
crushing, grinding, separating, extraction, smelting and refining.
These refined minerals and metals are used in the manufacturing of EV batteries
and other EV components.
Canada is a global top producer of nickel (5th), cobalt (8th), graphite (5th),
and aluminum (4th).
Processed minerals and metals -> international exports
Step 3. Component manufacturing
Battery packs - Individual components are manufactured into battery cells, which
are then assembled into large battery packs.
Other EV components - The EV body, drivetrain, motor, and electrical systems
need to be manufactured.
Manufacturing EV batteries in Canada is a key potential market opportunity.
EV batteries and other EV components -> international exports
Step 4. EV assembly
The assembly plant takes the individual components, including the battery and
car parts and assembles it into a single electric vehicle model.
Typically, one assembly plant will assemble one or a few specific electric
vehicle models.
Ramping up EV production in Canada can grow and secure auto sector jobs now and
into the net-zero future.
EVs -> international exports
Step 5. EV sales and ownership
EVs are then sold to consumers by businesses, such as car dealerships or
e-commerce.
Canada’s EV sales targets are 10% by 2025, 30% by 2030, and 100% by 2040.
EV owners can charge their vehicles at home or at a public charging station.
Canada currently has close to 13,000 public charging outlets from
coast-to-coast.
As of October 2020, over 65,000 Canadians have benefitted from the new federal
ZEV purchase incentive
EVs -> international exports
Step 6. Re-use and recycling
Many parts of an electric vehicle can be recycled, reused and repurposed.
The EV battery can be re-purposed for stationary energy storage or the
high-valued mineral components can be recycled as, such as cobalt and nickel.
Recycled components can be re-used in steps 2, 3 or 4.
Canada can be a first-mover in the North American battery recycling market
leading to a competitive clean tech advantage.
Recycled materials -> international exports
Research, development and deployment
Provide Canada with a competitive advantage and create new technologies.
Good paying jobs would be created across the value chain: automotive research
and development, engineers, skilled trades (e.g., electricians, construction,
maintenance), production assemblers, administration, IT, salesforce and customer
service.
To grow Canada’s manufacturing sector and supply chains, the proposed plan will:
* Support the development of the entire battery supply chain to ensure Canada
can build the batteries that will power the vehicles and the electricity
grids of the future.
* Work with our automotive and aerospace manufacturing partners to attract
investments and create jobs in the manufacturing of zero-emissions
transportation products to enable Canada to become a leading destination for
the design, development, and manufacturing of the sustainable technologies of
the future.
* Help leading clean technology companies commercialize products and grow in
Canada. For more information on the above, please see Building Canada’s Clean
Industrial Advantage.
CLIMATE-SMART AGRICULTURE
Canadian farmers, ranchers and agri-food businesses are constantly innovating to
improve their practices so that they are more sustainable, making greater use of
inputs, developing bio-based products and increasing their energy efficiency.
They have made great progress in reducing the carbon intensity of Canada’s food
production.
In 2018, Canadian agriculture generated 50% fewer greenhouse gas emissions for
every dollar of GDP that it generated, compared with 1997. Improvements in
feeding and breeding lowered emissions by 15% per kilogram of beef over the past
30 years, reducing pressure on land and water at the same time. Similar
declining emission intensities have been measured for other livestock categories
such as dairy, pork and poultry.
While climate change may present an opportunity for Canadian agriculture in the
form of longer growing seasons and an expanded ability to grow different crops,
it poses significant threats related to increased pests and unpredictable
weather events that make it hard for farmers to ensure that they are successful
year-over-year. In 2018, damages to Canadian farms resulting from severe weather
reached $2 billion, the fourth highest cost on record.
Clean technology is helping farms
In March 2020, the Governments of Canada and Prince Edward Island announced
funding under Agriculture and Agri-Food Canada’s Agricultural Clean technology
Program for an innovative project to help increase energy use efficiency and
reduce fossil fuel use at Atlantic Grown Organics. Through this support, the
farm will test and demonstrate the adaptation of a clean technology boiler
system, a first-of-its-kind to be installed in North America. The new boiler
system will help turn the greenhouse operation into 100% renewable heating, and
promote the adoption of clean technologies in the sector.
The Government of Canada has developed a range of Programs and activities to
reduce emissions in the agriculture sector, including: $25 million Agricultural
clean technology Program, $20 million Food Waste Challenge and, over $19 million
in biomass and bioproducts research clusters. However, there is much more that
can be collectively done. New opportunities are emerging in the agricultural
sector as the demand for biofuels grows. For example, Canada’s Clean Fuel
Standard will create a vibrant biofuels market for crops such as canola, corn
and other feedstocks so that the fuels Canadians use in their vehicles will be
cleaner.
A Healthy Environment and a Healthy Economy builds on this important work to
support the adoption of cleaner practices and technologies that further reduce
emissions and protect the land, water and air that farmers depend on for their
long-term sustainability.
To help farmers and food businesses continue to develop and implement clean
practices that reduce greenhouse gas emissions and ensure agriculture remains a
leading part of the solution to climate change, this plan will:
* Invest $165.7 million over seven years to support the agriculture industry in
developing transformative clean technologies and help farmers adopt
commercially available clean technology. Access to the latest clean
technology will help maintain competiveness and reduce greenhouse gas
emissions. Indirectly, technology developers will also benefit through
increased product purchasing, whereas any improvements to the environmental
sustainability of the agriculture sector, including associated reductions in
sectoral emissions, will benefit all Canadians.
* Set a national emission reduction target of 30% below 2020 levels from
fertilizers and work with fertilizer manufacturers, farmers, provinces and
territories, to develop an approach to meet it. Direct emissions associated
with synthetic nitrogen fertilizer application have increased by
approximately 60% since 2005 and these emissions are projected to keep
increasing. Improving how fertilizers are used through better products and
practices will save farmers money and time, and help protect Canada’s land
and water.
* Work with provinces and territories under the Canadian Agricultural
Partnership to boost climate-smart agriculture, including actions related to
crop and livestock production.
The Government also proposes to:
* Help farmers diversify by producing feedstocks for biofuels as described
above in the Low-carbon and zero-emissions Fuels Fund.
Investing in a climate-smart agriculture sector will result in more resilient
production systems, more diversified landscapes, more vibrant rural communities,
and products and commodities which can better meet the expectations that global
markets and domestic consumers now have with respect to sustainability, climate
action and responsible production processes.
REDUCING WASTE
Municipalities and local Governments shoulder much of the responsibility of
managing solid waste and wastewater produced by residents, businesses and
institutions. They manage landfills, waste collection and sorting systems,
composting facilities, anaerobic digesters and wastewater treatment plants. With
existing and evolving technologies, community infrastructure has the potential
to reduce greenhouse gas emissions, create low-emissions energy and unlock
resources from organic waste and biosolids. According to estimates, more than
half of Canada’s food supply is wasted annually and $49.5 billion of that wasted
food is avoidable. Food is wasted from farm to plate, through production,
processing, distribution, retail, food-service and at home.
Canadian landfills are a large source of methane
After decades of throwing away food and other organic waste, Canadian landfills
are releasing large quantities of methane – a potent greenhouse gas. In 2018,
the federal, provincial, and territorial Governments approved in principle the
Canada-wide Strategy on Zero Plastic Waste and endorsed two aspirational waste
reduction goals: to decrease waste by 30% by 2030, and by 50% by 2040.
Food waste reduction challenge
As companies are made responsible for the waste their products generate, the
private sector is expected to create 42,000 direct and indirect jobs as Canada
moves to a more circular plastics economy. In November 2020, the Government of
Canada launched the first two streams of Canada’s $20 million Food Waste
Reduction Challenge. The Challenge’s Streams A and B will award up to $10.8
million to innovators with an innovative way of doing business that can prevent
or divert food waste at any point from farm-to-plate. Challenge Streams C and D,
planned for Spring 2021, will support technologies that can extend the life of
food or transform food that would otherwise be lost or wasted.
The plan proposes to:
* Develop new federal regulations to increase the number of landfills that
collect and treat their methane, and ensure that landfills already operating
these systems make improvements to collect all they can. This will reduce
emissions by an estimated six million tonnes per year by 2030.
* Explore opportunities to support waste and biosolids management
infrastructure, such as composting, anaerobic digestion and landfill methane
collection and use.
There is also a need to support public and private investment in new and
expanded recycling facilities to process the plastics, glass, and paper that are
used daily. Plastic in particular plays an important part in the lives of
Canadians. However, the way plastic waste is generated and managed in Canada is
an issue of growing concern.
Plastics waste
According to a 2018 study, Canadians discarded over three million tonnes of
plastics as waste in 2016, and only 9% was recycled. Plastic pollution threatens
the health of Canada’s wildlife, ecosystems, rivers, lakes and oceans. In 2016,
29,000 tonnes of plastic waste entered the environment as pollution. Plastics
material not recovered represented a lost opportunity of $7.8 billion for Canada
in 2016.
Action is needed to eliminate plastic pollution at its source to reduce the
amount of plastic waste that ends up in landfills or the environment. This can
be achieved through innovation and investment, including in the design and
construction of recycling facilities, as well as the development of new recovery
technologies, remanufacturing processes, and product delivery, reuse and repair
systems.
The Government of Canada’s comprehensive approach to achieve zero plastic waste
has included investing in research through Canada’s Plastics Science Agenda, $19
million in innovation through the Canadian Plastics Innovation Challenges, and
in community action through the Zero Plastic Waste Initiative. In October of
2020, the Government of Canada launched public consultations on proposed next
steps: a framework for managing single-use plastics, a targeted list of harmful
single-use items to be banned or restricted, as well as other measures to
increase Canada’s ability to recycle and recover plastics.
The Government of Canada is also preventing exports of plastic waste to
countries that have established import restrictions, and taking steps to
implement new controls under the Basel Convention. These new controls, that will
come into effect on January 1, 2021, will help ensure that plastic waste that is
traded is clean, sorted and ready for recycling.
FROM THE RESEARCH LAB TO MAIN STREET – CLEAN TECHNOLOGY
Canada’s clean technology sector is diverse and rapidly scaling up. It reflects
the innovative spirit of Canada’s entrepreneurs. In 2018, there were
approximately 195,000 clean technology jobs in Canada, and clean technology
activity contributed $26.6 billion to Canada’s GDP. Clean innovation feeds a
fast-growing global market for environmental solutions that will be worth
between $2.5 and $6.4 trillion by 2022-23.
There is a need for more Canadian innovation and a rapid scale up of these
technologies to compete in this global marketplace. Put simply, without clean
technology, Canada will not achieve its net-zero emissions goal by 2050. This is
why Canada must take more action.
Over the past five years, Canadians have invested in expanding the country’s
clean technology sector. To further grow this sector, this plan will:
* Continue support to Sustainable Development Technology Canada with an
additional $750 million over five years, to support startups and to scale-up
companies to enable pre-commercial clean technologies to successfully
demonstrate feasibility as well as to support early commercialization
efforts.
* Leverage the Government of Canada’s purchasing power to support emerging
clean technologies across Canada’s economic sectors, such as technologies to
reduce emissions in federal buildings and to reduce embodied carbon in
construction materials, as part of the updated greening Government strategy.
* Continue helping Canadian businesses navigate available federal resources and
measures, understand their environmental outcomes, explore opportunities to
integrate into the supply chains of larger private and public purchasers, and
expand their reach in Canadian and global markets.
The Government also proposes to:
* Consult with investors and other stakeholders in developing tax measures to
ensure that Canada has a competitive investment environment for the
commercialization of technologies to help meet and exceed Canada’s Paris
Agreement target.
* Identify opportunities to bring together industry and academia to research
and develop solutions to the key greenhouse gas challenges facing industry.
* Examine options to help large-scale technology projects leverage significant
private capital investments in the scale-up and adoption of clean
technologies.
* Explore opportunities to support the research and development of cutting-edge
clean technologies, such as precision agriculture, hydrogen, new ways to
store energy, and advancing green automotive and aerospace technologies. In
addition, the Government will examine ways to connect Canada’s most promising
clean technology innovators with federal laboratory energy research and
development expertise and testing infrastructure.
SKILLS DEVELOPMENT AND CAREERS
Canada has a hard working, diverse and highly skilled workforce. As the world
moves towards a net-zero future, Canada’s ability to respond to evolving
workforce needs and unexpected challenges, by upskilling and reskilling workers,
increasing workforce participation by underrepresented groups, and attracting
international talent, will continue to be a competitive advantage for Canada.
The Government of Canada has already taken action to prepare the Canadian
workforce for a net-zero emissions economy by identifying skills that are in
demand now and in the future, developing new approaches to skills development,
and providing new opportunities for Canadian workers. The Government’s
Innovation and Skills Plan is helping Canadian businesses to start up, scale up,
and become globally competitive. The Plan is an ambitious effort to help create
good, well-paying jobs by making Canada a world leader in innovation—and it’s
already delivering results.
For example, the Future Skills program provides an opportunity to support the
deep transformations that will be required across a range of economic sectors in
order to meet Canada’s climate change targets, and give Canadians the tools they
need to grow and succeed in high-growth sectors such as clean tech, agri-food,
construction, manufacturing, natural resources and transportation. Good jobs in
these sectors already exist and there is room for significantly more jobs to be
added.
When these new jobs are created, the Government of Canada wants to make sure
that they are available to all Canadians – so that youth can access the
training, education and skills development they need to be Canada’s future
leaders, while also ensuring that those who have historically faced
discrimination in hiring or the workplace can benefit equally from new training
and job opportunities. Workers should be given opportunities to consistently
upskill in the jobs they are in now. The Government will work with its partners,
labour unions in particular, to design programs that take into account current
barriers and underrepresentation, so that there is a level playing field.
As the move to net-zero emissions changes production and opens up new job
opportunities, Governments have a role to play in ensuring the transition is
fair for workers and communities. The Government of Canada has already taken
steps to support a just transition in response to the accelerated phase-out of
coal power. On March 11, 2019, the federal Just Transition Task Force released
its final report, including a series of recommendations. In response to the Task
Force’s recommendations, the Government of Canada has already launched:
* The creation of the new Canada Coal Transition Initiative, a $35 million fund
that supports skills development and economic diversification in Canada’s
coal regions;
* A commitment to create a dedicated $150 million infrastructure fund, to
support priority projects and economic diversification in impacted
communities; and,
* The Canada Training Benefit of up to $5,000 for every Canadian to gain new
skills and seize the opportunities of the clean growth economy. This is
complemented by the Employment Insurance Training Support Benefit, to provide
workers with up to four-weeks of Employment Insurance while on leave for
training. Canada has also implemented new leave provisions to protect
workers’ ability to take time away from work to pursue training.
As the world transitions to a low-carbon economy, and the global market
continues to demand cleaner products and services, the Government will equip
Canada’s workforce to take advantage of this opportunity. The Government of
Canada remains committed to working with partners to advance legislation to
support the future and livelihood of workers and their communities in the
transition to a low-carbon economy.
FACTORING CLIMATE RISK INTO DECISION-MAKING
Climate change is already imposing significant costs on individuals,
Governments, communities and businesses. Continued increases in greenhouse gas
emissions will make those costs grow and become even more uncertain. These
impacts and future risks carry real costs today, as homeowners and
businesses—backstopped by insurance companies and Governments—pay to repair and
rebuild after floods, fires and storms made worse or more frequent by a changing
climate. Climate change-related events like these don’t just cost insurers, but
all Canadians, as Governments expend even greater public resources above and
beyond insured damage.
Understanding the risks and opportunities posed by climate change and the
emerging low-carbon economy are now an essential part of good financial
decision-making. That is why a growing number of companies and countries are
factoring climate considerations into their planning.
In April 2018, the Minister of Finance and Minister of Environment and Climate
Change appointed Canada’s Expert Panel on Sustainable Finance, which provided
recommendations to ensure Canada keeps pace with carbon disclosure reporting
standards and develops an effective sustainable finance ecosystem. The
Government of Canada is acting on these recommendations, while also recognizing
provincial jurisdiction over financial securities regulations.
On November 19, 2020, the Minister of Environment and Climate Change tabled the
Canadian Net-Zero Emissions Accountability Act. Bill C-12 will require the
Minister of Finance, in cooperation with the Minister of Environment and Climate
Change to publish an annual report outlining key measures that the federal
public administration (departments and crown corporations) has taken to manage
its financial risks and opportunities related to climate change. Departments and
all federal crown corporations will include climate risks and opportunities in
their planning, leading to better decisions that invest in a safer, cleaner, and
more prosperous Canada.
Additionally, recipients of the Large Employer Emergency Financing Facility
(LEEFF), a program created in May 2020 to help bridge larger businesses through
COVID-19, are required to publish annual climate-related financial disclosure
reports, including how their future operations will support environmental
sustainability and national climate goals.
Sustainable finance
“Businesses of all stripes increasingly recognize that changing consumer
preferences and new climate policies are creating the greatest commercial
opportunity of our time. The leaders are publishing their transition plans for
net-zero.”
Mark Carney, Former Governor of the Bank of Canada and Bank of England, and UN
Special Envoy on Climate Action and Finance, November 9, 2020.
Mobilizing private sector capital is critical to financing the transition to a
low-carbon economy. Through the 2020 Fall Economic Statement, $7.3 million was
provided for Finance Canada and Environment and Climate Change Canada to
establish a public-private Sustainable Finance Action Council. The Action
Council will make recommendations on the critical market infrastructure needed
to attract and scale-up sustainable finance in Canada, including enhancing
climate disclosures, ensuring access to useful critical data on sustainability
and climate risks to inform decisions, and developing standards for investments
to be identified as sustainable. The Government of Canada will launch the Action
Council in early 2021.
To help finance historic investments in green infrastructure and other green
initiatives, the Government has announced its intention to issue the federal
Government’s first-ever green bond in 2021-22. The Government will continue to
assess options on the appropriate structure for a federal green bond issuance
and will provide more information in the context of the 2021-22 Debt Management
Strategy, which will be presented in Budget 2021.
EMBRACING THE POWER OF NATURE TO SUPPORT HEALTHIER FAMILIES AND MORE RESILIENT
COMMUNITIES
Canada is world renowned for having some of the most vast, diverse and pristine
natural spaces. Canada is the steward of some of the world’s most critical
natural environments: 28% of the world’s boreal forest (“lungs” of the planet);
24% of the world’s wetlands; 20% of the world’s freshwater resources; and, the
longest coastline in the world. And while nature is under threat due to climate
change, nature is also a critical ally in the fight against it.
In fact, nature-based solutions to climate change can make a significant and
cost-effective contribution to the global emission reductions needed by 2030 to
hold warming to well below 2°C.
Nature-based solutions unlock the power of nature to reduce emissions in the
atmosphere through things like planting trees, restoring grasslands and
wetlands, and improving agricultural land management to capture and store much
more carbon. Large amounts of carbon are stored in Canada’s forests, soils,
wetlands, grasslands and oceans today, and nature-based solutions can increase
that storage, keeping harmful emissions out of the atmosphere.
Investments to protect nature and accelerate the sequestration potential of the
natural environment have important co-benefits for society. For example, natural
wetlands have been shown to reduce climate-related flooding costs by as much as
38%, making Canada’s communities more resilient to a changing climate.
When nature is protected, climate benefits can be unlocked – enabling
communities to be more resilient to a warming world. Healthy ecosystems can
filter toxic substances from the air, water, and soil, protect us against
flooding, storm surges, and erosion, sequester carbon, maintain the water cycle,
and help stabilize local climates.
EMBRACING THE POWER OF NATURE TO TACKLE CLIMATE CHANGE
Canada’s Climate Plan strengthens nature and climate benefits by capturing
carbon to reduce overall emissions, supporting Nature’s resilience, and
improving the quality of Canadians’ lives. Planting trees, conserving and
restoring ecosystems, and improving management of lands and waters alongside
Indigenous peoples, communities, organizations, and the private sector will
benefit both the environment and society.
Long description
By taking these steps:
* planting 2 billion trees
* protecting lands and waters
* establishing Indigenous Protected Areas
* conserving and restoring ecosystems
We grow these benefits:
* removes toxins from air
* captures and stores CO2
* reduces impacts of extreme weather
* supports human health and well-being
* protects biodiversity
* creates jobs
* strengthens cultural identity
* encourages recreation and tourism
increases access to natural spaces
Nature is also a significant part of the day-to-day life for Canadians of all
ages and income levels – and it is and has been an invaluable source of mental,
physical and community health throughout the COVID-19 pandemic. A recent study
commissioned by Trans Canada Trail helped to highlight how Canadians value,
utilize, and perceive trails, and showcased the benefits to Canadians during
COVID-19. Some of the most powerful metrics were that among 18-24-year olds,
100% of respondents indicated they used trails to enhance mental health, and
that 98% of Canadians with incomes under $40,000 used trails for mental
health.Footnote 12 Trails have increasingly become a buffer against the
challenges of physical and mental health over the past year, with Canadians
reinforcing how trails represent a low-cost or no-cost way for Canadians to
access nature in their neighborhoods and in their communities.
Canada’s Nature Legacy
The Government of Canada made the single-largest investment in nature
conservation in Canadian history in 2018. Since then, under the Nature Legacy,
Canada has conserved land areas equal to more than three times the size of Nova
Scotia. In addition, Canada exceeded its 2020 oceans protection target early by
boosting the amount of conserved coastal and ocean areas from 1% to nearly 14%;
expanded Rouge National Urban Park, North America’s largest urban park; and,
worked with Inuit partners to protect the Arctic’s last year-round sea ice.
Under Nature Legacy, Canada has also conserved sensitive areas in the Gulf of
St. Lawrence, and protected glass sponge reefs off the coast of British
Columbia.
Canada has conserved over 12% of its lands for future generations. But it is
increasingly understood that more needs to be protected – for the health and
well-being of Canadians, and for Canada’s economy. Conserving and sustainably
managing ecosystems that are high in carbon, such as forests, native grasslands,
and wetlands, also helps to safeguard against releasing more carbon into the
atmosphere. And on average, the benefits of land restoration are 10 times higher
than the costs.Footnote 13
Building on those commitments, over the next ten years the Government of Canada
will deliver on its promise to use nature-based climate solutions for the
benefit of all Canadians, including by planting two billion trees and by
supporting actions in other ecosystems through a new Natural Climate Solutions
Fund. This will be done while protecting a quarter of Canada’s land and oceans
in five years.
This plan will:
* Invest up to $3.16 billion over 10 years, to partner with provinces,
territories, non-Government organizations, Indigenous communities,
municipalities, private landowners, and others to plant two billion trees.
These trees will be planted across Canada, on provincial and federal Crown
lands, in cities and communities, on farms and on private rural and urban
lands.
* Invest up to $631 million over 10 years to work with provinces, territories,
conservation organizations, Indigenous communities, private landowners, and
others to restore and enhance wetlands, peatlands, grasslands and
agricultural lands to boost carbon sequestration. This initiative will
support improved land and resource management practices in sectors that have
some of the greatest potential for increased carbon storage, and will
conserve carbon-rich ecosystems.
* Provide $98.4 million over 10 years to establish a new Natural Climate
Solutions for Agriculture Fund. This fund will leverage $85 million in
existing programming and will be guided by a new Canadian Agri-Environmental
Strategy, to be developed in collaboration with partners, to support the
sector’s actions on climate change and other environmental priorities towards
2030 and 2050.
As a next step, the Ministers of Environment and Climate Change and Natural
Resources will jointly appoint an advisory committee of experts on nature-based
climate solutions to advise on program delivery to maximize emission reductions,
while also delivering biodiversity and human wellbeing co-benefits.
These investments will have broad benefits for all Canadians through the
resulting reductions in emissions, contributions to climate change adaptation,
by increasing Canada’s forest land cover and by restoring other natural spaces,
which can have positive physical and mental health benefits. Indigenous peoples
and children – two groups that are more vulnerable to the impacts of climate
change – will particularly benefit, along with workers engaged in the sectors
more directly implicated in the implementation of this initiative.
Combined, these actions to accelerate nature-based climate solutions will reduce
Canada’s carbon emissions by an estimated four to seven million tonnes annually
in 2030.
WORKING WITH INDIGENOUS COMMUNITIES
The Government of Canada will also continue to move forward with delivering on
its commitment to conserve and protect 25% of Canada’s land and 25% of Canada’s
oceans by 2025, working towards 30% of each by 2030. The Government will ground
these efforts in science, Indigenous knowledge, and local perspectives. It will
also advocate for countries around the world to set a 30% conservation goal as
well.
Indigenous peoples and their ancestors have long been stewards and managers of
the land and waters, and leaders in ecosystem conservation in Canada. The
Government of Canada will continue to support partnerships with Indigenous
communities across the country through the establishment of new Indigenous
Protected and Conserved Areas (IPCAs) and Indigenous Guardians programs. Since
2018, the Canada Nature Fund has invested in the development of 30 IPCAs and 25
additional projects aimed to enable planning and capacity building needed to
establish IPCAs. New IPCAs such as Edehzhie, Qat’muk, Thaidene Nene, Arqvilliit
and Peel Watershed, are examples of some the exciting work underway. The
Government has also invested in more than 70 Indigenous Guardians projects in
communities from coast to coast to coast to provide Indigenous peoples with
greater opportunity to exercise responsibility in stewardship of their
traditional lands, waters, and ice. Together these measures represent one of
largest and most concrete steps forward in advancing Indigenous leadership in
conservation in recent times.
Qat’muk Indigenous Protected and Conserved Area
In early 2020, the Government of Canada announced $16.1 million from the Canada
Nature Fund to support the establishment of Qat’muk Indigenous Protected and
Conserved Area (IPCA) in the Central Purcell Mountains in BC. The project, led
by the Ktunaxa First Nation, will protect 700 km2 in the Jumbo Valley, putting
an end to a three-decade-long battle to develop the valley as a ski resort. The
land, which holds spiritual and cultural significance to the Ktunaxa Nation,
will now be protected for generations to come.
OUR NATURE-BASED ECONOMY
Nature also provides us with significant economic opportunities. Approximately
12.2% of Canada’s GDP is directly dependent on the agriculture, forestry and
ocean sectors alone. For example, in 2018, landings from commercial fishing were
valued at $3.7 billion. Pollination from honeybees contributes billions of
dollars a year to the value of Canada’s agricultural crops. And opportunities to
enjoy nature also contribute to Canada’s economy. Based on the 2012 Canadian
Nature Survey, Canadian adults spent more than an estimated $40 billion over a
year on nature-based activities like hiking, camping, bird watching, gardening,
hunting, and fishing.
Working in partnership with the forestry sector
Canada is home to 9% of the world’s forests, and 36% of the world’s certified
sustainably managed forests.Footnote 14 As Canada shifts towards a low-carbon,
sustainable economy, its forestry industry has entered a renewed era of
transformation. The unique combination of biomass availability and technical
capacity presents Canada with an unprecedented opportunity to provide global
leadership in the forest bio-economy.
Earlier this year, the Government also provided $30 million to help ensure the
forest sector could safely continue their mill and tree planting operations
amidst the pandemic. This investment helped to ensure that this season’s
scheduled planting of more than 600 million trees could move forward, and that
forestry firms and nurseries will be prepared for the next one.
The forest sector has also stepped up in response to COVID-19. For example, FP
Innovations is developing a biodegradable mask filter for single-use face masks
made from wood-fibre.
Conserving unique places people love will allow communities in every region in
the country to develop ecotourism offers that will attract more visitors and
create more jobs for local residents. Tourism is Canada’s number one service
export and accounts for one in ten jobs.
The tourism industry has been hit particularly hard by the pandemic and
associated travel restrictions. Protecting and restoring unique places people
love will allow communities in every region of the country to develop ecotourism
opportunities that will attract more visitors and create more jobs for local
residents. When Canada emerges from the pandemic, Canadians will continue to
turn to nature when looking for a break from the everyday, to recharge, and to
enjoy adventure with friends and family.
Canada must protect more nature– for the health and well-being of Canadians, and
for Canada’s economy. And that is what the Government of Canada will continue to
deliver.
Oceans Protection Plan
Canada is a maritime nation, with the world’s longest coastline, and water is
one of the country’s most important resources. In 2016, the Prime Minister
launched the $1.5 billion national Oceans Protection Plan, the largest
investment the Government of Canada has ever made to build a world-leading
marine safety system, that protects Canada’s coasts and waterways. This funding
is ensuring Canada’s oceans are cleaner, healthier and safer, and prioritizes
direct partnerships with coastal and Indigenous communities. This plan placed
Canada as a world leader in ocean protection.
WORKING TOGETHER TO GREEN GOVERNMENT OPERATIONS
ACHIEVING NET-ZERO EMISSIONS ACROSS THE GOVERNMENT OF CANADA’S OPERATIONS
The Government of Canada is an important player in Canada’s fight against
climate change. It owns and manages the largest fixed asset portfolio in Canada
with 32,000 buildings, 30,000 vehicles, and 20,000 engineered assets such as
bridges and dams. Through the 2017 Greening Government Strategy, the Government
set an ambitious target to reduce greenhouse gas emissions from federal
facilities and conventional fleets by 40% below 2005 levels by 2030.
The Government of Canada is the largest public purchaser of goods and services
in the country with purchases of more than $20 billion a year. By including this
procurement in the greening Government strategies, the Government will help make
the transition to a circular, net-zero emissions economy. This will be achieved
through green procurement based on life cycle assessment principles, as well as
through the adoption of clean technologies and green products and services.
The Government of Canada has already achieved a more than 34% reduction in
emissions from federal facilities and conventional fleets, and is on track to
meet the 40% target by 2030 or sooner. A number of federal departments are
investing in low-carbon buildings and heat plants, energy efficiency, retrofits,
clean electricity, and are rightsizing their fleets.
The Greening Government Strategy applies to all core Government departments and
agencies. Crown corporations with significant real property, fleet and
procurement are encouraged to adopt the Greening Government Strategy or an
equivalent set of commitments including the commitment to net-zero emissions by
2050.
To ensure the Government of Canada’s operations reflect Canada’s ambition, the
proposed plan will do the following:
* The Greening Government Strategy has been updated to align with the new
federal target to be net-zero emissions by 2050 and accelerates the interim
target for federal facilities and conventional fleet to a 40% reduction by
2025 (instead of 2030). The Government of Canada will also expand its scope
to include additional assets and enhance commitments related to climate
resilience. In addition, the updated strategy includes:
* Procurement commitments to drive competitive market transformation in key
sectors; these actions can also incent major suppliers to set their own
emissions reduction targets;
* The inclusion of the national safety and security fleet towards the
net-zero by 2050 target; and,
* The procurement of clean technologies by federal departments and agencies.
* Explore opportunities to transform the way the Government manages its federal
real property portfolio and to decarbonize its real property footprint.
* Apply a climate lens to integrate climate considerations throughout
Government decision-making. Meeting climate goals means Government decisions
must consider climate ambitions in a rigorous, consistent and measurable
manner. These considerations include both short and long-term climate
mitigation, Indigenous climate leadership, as well as climate resilience and
adaptation. This transformation will require an aligned approach that ensures
that Government spending and decisions support Canada’s climate goals.
* Immediately begin updating the Government of Canada’s social cost of carbon
estimates to ensure Canada’s methodology aligns with the best international
climate science and economic modelling.
EXCEEDING CANADA’S 2030 TARGET
Under the Paris Agreement, countries are required to submit national greenhouse
gas reduction targets, called Nationally Determined Contributions (NDCs), every
five years. Each successive NDC is required to be more ambitious than the
previous one. Canada’s existing NDC is to reduce greenhouse gas emissions by 30%
below 2005 levels by 2030.
Targets are necessary to signal ambition and are a useful tool to hold
Governments to account for climate action. But, on their own, they are
insufficient – a Government’s policies, programs and strategies ultimately
dictate its ability to achieve its target.
Over the past five years, an intensive national effort has been made to put in
place the measures needed to put Canada on a path to significantly reduce
emissions in ways that create the basis for full participation in the emerging
global low-carbon economy. This effort has been guided by the Pan-Canadian
Framework. Prior to the Pan-Canadian Framework, Canada’s emissions were on a
steady upwards climb. Despite significant investments in energy efficiency and
reductions in the carbon intensity of many economic activities, total emissions
continued to rise as economic activity grew. Following the introduction of the
Pan-Canadian Framework, Canada’s emissions are now declining.
The Pan-Canadian Framework has reduced national emissions
In December 2019, Canada’s published projections showed that its greenhouse gas
emissions in 2030 will be 227 million tonnes lower than had been projected for
2030 before the Pan-Canadian Framework. This is equivalent to a reduction of 19%
below 2005 levels.Footnote 15
The Pan-Canadian Framework was an historic achievement, and represents an
important first step for Canada to achieve its Paris Agreement target.
Canadians’ collective effort and commitment put Canada’s greenhouse gas
emissions on a strong downward trend for the first time in its history.
While this progress and foundation are impressive, they are also insufficient in
the face of the climate crisis. Now, with less than a decade left to achieve
Canada’s 2030 target, and with countries around the world moving to a cleaner
economy to attract investment and secure jobs for their citizens, more action is
required. Further, the science has made it clear that countries need to do more.
Countries need to be more ambitious, and need to move faster. For these reasons,
the Government of Canada has committed to exceeding the current 2030 reduction
goal.
Based on the Government’s projections, the proposed actions outlined in this
plan will – once fully implemented – enable Canada to exceed its current 2030
target. Environment and Climate Change Canada’s analysis indicates that these
actions could further reduce emissions by at least 85 million tonnes beyond the
reductions that will be driven by the Pan-Canadian Framework, putting us in the
range of 32% to 40% below 2005 levels in 2030. This analysis also shows that
this can be done while maintaining strong GDP growth.
These emission reduction projections are conservative relative to the
significant investments and economic transformation likely to unfold over the
coming decade. Certain investments, such as those in clean technology or public
transit, are difficult to quantify in advance but can be expected to have a
material impact on greenhouse gas emissions. These projections also do not
account for the reality that Canada is just starting along the innovation curves
associated with some of the most promising decarbonization technologies, such as
industrial electrification, CCUS, and hydrogen.
Investments in clean technology and innovation, like those detailed in this
plan, help to accelerate the development of next generation technologies. As
Canada and the rest of the world continue to invest in these and other areas,
innovation will accelerate and costs will decline, as has already proven to be
true with renewable energy.
In a North American context, there will be increased opportunities for
regulatory harmonization which will also help advance technology development and
deployment. Over the longer-term, these technologies will not only reduce
greenhouse gas emissions but also enhance Canadians’ quality of life, help
Canadian companies create jobs and allow them to compete successfully in the
global shift to net-zero emissions.
The Government of Canada is committed to all of the actions in this plan. This
plan is comprehensive and clearly demonstrates the federal Government’s
commitment to exceeding Canada’s 2030 target. However, federal actions are only
part of Canada’s story.
Many provinces have committed to deep greenhouse gas reduction targets – for
both 2030 and 2050 – but not all have announced a complete set of measures to
reach these targets. Additional provincial and territorial measures will build
on the impacts of the proposed federal measures, leading to further emission
reductions. In addition, investor decisions by leaders in the private and
financial sectors will also drive and accelerate reductions as companies move to
capitalize on the growing demand for low-carbon products and services. In
partnership with provinces and territories, and working with the private sector
and others, the Government believes that Canada can, as a nation, strive for the
upper end of a range of 32-40% below 2005 levels.
FIGURE A: EXCEEDING CANADA’S 2030 TARGET
1These projections do not include further commitments from provinces and
territories.
*For more information, please refer to the annex on Modelling and Analysis of A
Healthy Environment and a Healthy Economy.
The model likely underestimates emission reductions because it does not capture
the full range of innovative technologies that are in the early stages of the
commercialization process nor does it reflect the likely improvements in
technology performance or cost reductions.
Long description
Projected greenhouse gas (GHG) emissions in 2030 (Megatonnes CO2 eq.):
* before Canada’s Climate Plan - 2015 (815 MT)
* Canada’s Climate Plan - 2016 (588 MT)
* Canada’s Strengthened Climate Plan - 2020 (503 MT)1
Canada’s 2030 target (511 MT)
The distribution of projected emission reductions by sector are presented in
Figure B:
Long description
Emissions as millions of tonnes of CO2 e (MT)
Starting point: 815 MT
Reductions:
* buildings (-44 MT)
* oil and gas (-104 MT)
* electricity (-47 MT)
* heavy industry (-46 MT)
* transportation (-12 MT)
* waste and others (-28 MT)
* agriculture (-2 MT)
* land (-27 MT)
2030 target: 511 MT
End point: 503 MT
A deep respect for, and recognition of, shared constitutional jurisdiction will
continue to be an important guiding pillar in all of Canada’s efforts to fight
climate change. Provinces and territories hold jurisdiction over many important
sources of emissions in Canada, and have taken leadership in many important
areas. Working together, Canada can further strengthen climate action and
strengthen the economy.
In the coming months, the Government of Canada will consult on the proposed
actions identified in this plan. And, the Government will work with provinces
and territories, with Indigenous peoples, with cities, labour, industry
partners, and civil society to see how Canada can do even more.
Net-zero by 2050
The Canadian Net-Zero Emissions Accountability Act (Bill C-12) will require the
Government of Canada to achieve net-zero emission by 2050, and to put in place a
rigorous process of interim targets, plans and reporting. It will require the
Government of Canada to set targets for each five-year milestone from 2030 to
2050. Emission reduction plans will describe the actions the Government will
undertake to meet the target. Progress reports and final assessment reports will
update Canadians on the implementation of each plan and the emission reductions
they are achieving. If a target is not met, the Government will have to explain
the reasons why, and indicate what it will do to change course. In addition to
creating an expert advisory body, the Act requires Canada’s Commissioner of the
Environment and Sustainable Development to examine and report on the
Government’s progress at least once every five years.
The Government of Canada is committed to establishing a new, more ambitious
target under the Paris Agreement before the next United Nations Climate Change
Conference in November 2021. This plan is the federal contribution towards
exceeding Canada’s current NDC. As the Government works with its partners to
refine the measures proposed in this plan, it will also publish updated emission
forecasts.
This is an ambitious plan – a plan that will fundamentally accelerate
environmental and economic progress in Canada. It represents the federal
Government delivering on its commitments, especially to today’s youth. Canadians
all want their children to enjoy a future with a healthy environment and a
healthy economy. The Government of Canada looks forward to working with
provinces, territories, Indigenous peoples and all Canadians to deliver.
WORKING TOGETHER TO MAKE CANADA MORE RESILIENT TO A CHANGING CLIMATE
The COVID-19 pandemic underlines the importance of building resilience to risks
across Canada. While the Government of Canada focuses on the current pandemic
risk, it must also work to be better prepared for the climate risks it knows it
will face, such as flooding, wildfire, extreme heat, the spread of infectious
disease, sea-level rise and permafrost thaw. Building resilience will not only
help Canadian communities adapt to the current realities of a changing climate,
it reduces lost productivity and economic losses from climate-related disasters,
as well as enhances the health, well-being, and safety of Canadians and
communities.
Important progress was made under the Pan-Canadian Framework to build awareness
of climate impacts and the capacity to take action. For example, the Canadian
Centre for Climate Services’ climate data portal provides engineers, public
health professionals, urban planners and other users with the right data to plan
and adapt to climate change. In addition, through programs such as the $2
billion Disaster Mitigation and Adaptation Fund, the Government of Canada is
helping communities to build on-the-ground solutions to mitigate climate impacts
such as flooding, wildfires and drought. For example, in Nova Scotia,
communities in the Bay of Fundy are at risk of flooding and coastal erosion.
Through the Fund, the Government has invested some $25 million in an innovative
project to restore saltmarshes and improve 60 kilometers of dykes – reducing
coastal flooding for tens of thousands of residents, businesses, world heritage
sites, Indigenous peoples, and farmland. In York Region, Ontario, the Government
is investing over $10 million to plant over 400,000 trees to enhance urban areas
and urban forests. This will help protect over 1.2 million residents from
extreme heat, flooding and erosion, while also sequestering carbon and providing
better air quality. In British Columbia, the Government is investing over $76
million in a project that uses a mix of both grey and natural infrastructure to
protect the cities of Surrey and Delta and the Semiahmoo First Nation from
coastal flooding.
Council of Canadian Academies expert panel report
Twelve major areas of climate risk for Canada were identified by an independent
expert panel convened in 2019 by the Council of Canadian Academies, based on the
extent and likelihood of potential impact. The top six areas of risk were:
physical infrastructure, coastal communities, northern communities, human health
and wellness, ecosystems and fisheries. The panel also recognized the severe
impacts to Indigenous peoples’ ways of life and the need to recognize their
inherent rights and priority for self-determination by meaningfully including
Indigenous peoples as full partners in climate change adaptation activities.
Canada’s international leadership on adaptation and climate resilience
Canada is playing a leadership role as part of the Global Commission on
Adaptation, a two-year global initiative to scale-up and accelerate climate
adaptation solutions. The Commission is convened by 23 countries and co-chaired
by Ban Ki-moon, Bill Gates, and Kristalina Georgieva. Canada and Mexico are
co-leading work on nature-based solutions, which includes identifying innovative
approaches for financing nature-based solutions.
Despite this progress, climate impacts and costs continue to grow. As part of a
comprehensive plan to address the climate crisis, a more ambitious, strategic
and collaborative approach to adaptation in Canada is required. This approach
would build on the successes of the Pan-Canadian Framework and focus efforts on
key climate risks.
Moving forward, the Government of Canada proposes to:
* Develop Canada’s first-ever National Adaptation Strategy, working with
provincial, territorial and municipal Governments, Indigenous peoples, and
other key partners. The strategy would establish a shared vision for climate
resilience in Canada, identify key priorities for increased collaboration and
establish a framework for measuring progress at the national level. This work
will help inform where the Government of Canada should best target its
policies programs and investments going forward.
* Co-develop, on a distinction basis, an Indigenous Climate Leadership agenda
which builds regional and national capacity and progressively vests
authorities and resources for climate action in the hands of First Nations,
Inuit, and Métis and representative organizations.
* Continue to provide support to Canadians and communities to respond to
accelerating climate change impacts, taking into account the major areas of
risk identified by the expert panel convened by the Canadian Council of
Academies.
CANADA’S PARTNERSHIP WITH INDIGENOUS PEOPLES
It is well understood that Canada’s changing climate exacerbates existing
challenges and health stressors for Indigenous peoples in Canada, including
wildfires, permafrost thaw, changing wildlife patterns, diminishing access to
traditional food sources, and flooding. Each of these is already having a direct
impact on the social and economic well-being of First Nations, Inuit and Métis
peoples.
Indeed, there is strong evidence that Indigenous peoples already face and will
to continue to experience climate pressures that exceed their current adaptation
capacity. On average, more than 100 natural hazard emergencies affect First
Nations reserves every year. Flooding alone has resulted in over 160 community
evacuations between 2009-2017 across Ontario, Manitoba, Saskatchewan, Alberta,
and British Columbia. It is estimated that 25% of the $5.2 billion worth in
existing infrastructure assets across 33 communities in the Northwest
Territories – approximately $1.3 billion – is at risk due to permafrost impacts.
A 2018 study further estimated that up to 3.6 million people and between 48-87%
of Arctic infrastructure could be threatened by thawing permafrost over the next
30 years.
Greenhouse gas emissions originating from Indigenous communities are modest –
estimated at less than one million tonnes per year across the country. In
contrast, when compared to other segments of Canadian society, the impacts of
climate change on Indigenous peoples are disproportionally greater. Indigenous
rights-holders, and their representatives and organizations are critical
partners to conversations about addressing climate change at all levels of
Canadian society, and have demonstrated their commitment to advancing positive
climate outcomes through Indigenous-led solutions.
Successfully meeting these challenges head-on is dependent upon a series of
enabling factors, including strong nation-to-nation, Inuit-to-Crown, and
Government-to-Government partnerships, socio-economic resources, institutional
capacity, access to information and technologies, strong linkages to external
governance bodies, and enabling policy, regulatory, and legislative frameworks.
To help support Indigenous peoples advance their climate priorities and adapt to
the changing climate, the Government of Canada is committed to renewed
nation-to-nation, Inuit-to-Crown and Government-to-Government relationships with
First Nations, Inuit, and Métis peoples, based on the recognition of rights,
respect, cooperation, and partnership. The Government of Canada also supports
without qualification the United Nations Declaration on the Rights of Indigenous
Peoples, including free, prior and informed consent. Supporting self-determined
climate action is critical to advancing Canada’s reconciliation with Indigenous
peoples.
Canada recognizes that the Government must continue to support co-development,
collaboration, and Indigenous self-determination. This includes improving food
security, community health, clean energy, resilient infrastructure, and the
protection of biodiversity, while building capacity to lead on climate action.
Many of the proposed measures in A Healthy Environment and a Healthy Economy
will support these objectives, and the Government of Canada will continue to
work in partnership with Indigenous peoples to address their unique
circumstances and support them with the tools they need to respond to a changing
climate.
Canada’s established partnerships and actions under the Pan-Canadian Framework
Climate change presents significant environmental, economic, and social risks to
Indigenous peoples and their communities. To help respond to these challenges,
in 2016, the Prime Minister along with the leaders of the Assembly of First
Nations, Inuit Tapiriit Kanatami and the Métis National Council established
three distinct, senior-level bilateral tables to support self-determination and
enable Indigenous-led climate solutions. Through these tables, Government
officials and Indigenous partners have learned from one another, leading to
stronger climate action that better responds to the unique needs and
circumstances of Indigenous peoples.
The partnerships built through the bilateral tables have directly contributed to
improvements in the way Canada supports Indigenous climate leadership. These
include:
* Investments of over $770 million to support Indigenous-led projects under the
Pan-Canadian Framework, in support of adaptation planning, clean energy,
health, infrastructure, climate monitoring, and more;
* The creation of the Partnership stream of the Low-Carbon Economy Fund, which
provided additional support for Indigenous projects reducing greenhouse
emissions;
* Amendments to the Clean Energy for Rural and Remote Communities program, such
that the program now supports capacity building, training, skill development
and knowledge dissemination to help communities transition away from diesel
dependence; and,
A new commitment to improve Indigenous peoples’ access to the Disaster
Mitigation and Adaptation Fund.
INDIGENOUS CLIMATE LEADERSHIP
First Nations, Inuit, and Métis peoples have been at the forefront of the
impacts of climate change. Many Indigenous leaders have reinforced the need to
take action to reduce pollution, to adapt to the impacts of climate change, and
to improve the ways in which the natural environment is respected and protected.
In doing so, they reinforce that leadership by Indigenous peoples is critical to
achieving the foundational changes required to address climate change.
Wataynikaneyap Power Project
In March 2018, the Government of Canada announced a $1.6 billion investment in
the Wataynikaneyap Power Project to connect 16 remote First Nations to the
provincial power grid in northwestern Ontario. Wataynikaneyap Power is a
licenced transmission company which is owned by 24 First Nations alongside
industry partner, FortisOntario. In December 2018, the fly-in community of
Pikangikum First Nation was the first community connected to the Ontario power
grid, eliminating their dependency on diesel for electricity generation. Work is
continuing to connect the 15 other diesel dependent First Nations by the end of
2023. Over 40 years, this project is estimated to result in over 6.6 million
tonnes of avoided carbon dioxide emissions, which is comparable to taking almost
35,000 cars off the road.
Kugluktuk, Nunavut – solar photovoltaic system
In the Hamlet of Kugluktuk, Nunavut, the Government of Canada supported the
installation of a 10 kilowatt solar photovoltaic system on the community
recreation complex, which was later expanded to a total of 60 kilowatts. The
system saves the recreation centre $170,000 a year in energy costs with savings
being re-invested in recreational programming, which is often the first to be
cut. Two employees were trained to maintain and monitor the solar array and the
hamlet now wants to install more solar panels on other community buildings.
To position Indigenous climate leadership as a cornerstone of Canada’s
strengthened climate plan, the Government of Canada will partner with First
Nations, Inuit and Métis peoples to set an agenda for climate action and a
framework for collaboration. Recognizing Indigenous climate leadership means
investing in the agency of Indigenous peoples and communities, supporting
Indigenous-led and delivered solutions, equipping Indigenous peoples with
equitable resources, and ensuring appropriate access to funding to implement
self-determined climate action.
Canada’s A Healthy Environment and a Healthy Economy plan builds on the
foundational principles of Indigenous climate leadership, including:
* Recognizing the unique realities, needs, and priorities of Indigenous peoples
across and within distinctions;
* Respecting and promoting self-determination;
* Advancing early and meaningful engagement;
* Incorporating inclusiveness-by-design principles in all of its climate
actions;
* Advancing co-development and other collaborative approaches to find
solutions;
* Creating a space for Indigenous voices across and within distinctions;
* Positioning Indigenous peoples to have a say at governance tables; and,
* Supporting Indigenous approaches and ways of doing, by acknowledging
traditional, local, and Indigenous Knowledge systems as an equal part in
policy development, programs, and decision-making.
In practice, this means working closely with Indigenous peoples to learn from
their systems of knowledge, empowering their communities and organizations, and
supporting their self-determined climate priorities.
As an initial step in the direction of strengthened Indigenous climate
leadership, the Government has identified some early opportunities to partner
with Indigenous organizations and communities.
The Government proposes to:
* Work with First Nations, Inuit and Métis peoples to co-develop
decision-making guidance that will ensure all of Canada’s future climate
actions help advance Indigenous climate self-determination.
* Support the implementation of Indigenous-led climate strategies for First
Nations, Inuit and Métis peoples, such as the National Inuit Climate Change
Strategy.
* Engage Indigenous groups in the development of protocols under the Federal
Greenhouse Gas Offset System.
* Work closely with Indigenous peoples on the development of a National
Adaptation Strategy.
* Create a legislative requirement in the proposed Canadian Net-Zero Emissions
Accountability Act that the Minister of Environment and Climate Change must
provide Indigenous peoples of Canada with the opportunity to make submissions
when setting or amending a national greenhouse gas emissions target or an
emissions reduction plan under this legislation.
* Continue developing a new national benefits-sharing framework for major
resource projects on Indigenous territory.
Canada also understands how critical it is for First Nations, Inuit and Métis
peoples to find solutions to the changing climate now, on the ground, in their
communities and their homes. This is why A Healthy Environment and a Healthy
Economy sets out a range of actions designed to respond to Indigenous peoples’
climate priorities, from infrastructure resilience to food security to clean
energy.
To accomplish this, the Government of Canada will:
* As described under “Making Canada a World Leader in Clean Power, ” invest an
additional $300 million over five years to transitioning diesel-reliant
rural, remote and Indigenous communities onto clean energy, and to engage
with Indigenous communities on ensuring this funding is delivered in a
streamlined fashion.
* Starting in 2020-21, triple the net fuel charge proceeds available to
Indigenous Governments in federal backstop jurisdictions. These proceeds will
be returned through co-developed solutions.
* Explore opportunities to strengthen federal adaptation programs for
Indigenous communities.
* Integrate climate risk assessments and adaptation solutions into
infrastructure management to improve the climate resiliency of First Nations
on reserve.
* Enhance responsiveness to addressing vulnerabilities in Indigenous food
systems and improving food security, including developing an evidence base
that leads to strengthened food security programs and interventions.
* Through the commitment on Nature-Based Solutions, partner with Indigenous
communities and organizations in the two billion trees initiative, as well as
efforts to conserve wetlands, grasslands and restore land and habitat.
* In pursuing Canada’s goal of protecting 25% of its lands and oceans by 2025,
partner with Indigenous communities to lead the development and management of
Indigenous Protected and Conserved Areas.
WORKING TOGETHER ACROSS THE FEDERATION
The Government of Canada is committed to exceeding Canada’s 2030 climate target
and developing pathways to 2050 net-zero greenhouse gas emissions. Working
together with provinces and territories is key to achieving these goals. This
proposed plan is focused on new and strengthened federal measures, but also
offers new opportunities to augment federal, provincial and territorial
collaboration.
Each jurisdiction faces unique circumstances, including demographics, geography,
and economic fundamentals. Respect for shared constitutional jurisdiction on
matters of the environment will continue to be a fundamental pillar of the
Government of Canada’s engagement on these issues. To that end, collaboration
with provinces and territories will continue to be a priority in designing and
implementing new measures to exceed Canada’s 2030 target as well as developing
pathways to reach net-zero emissions by 2050.
Provinces and territories recognize the urgency of climate change, and have been
working to reduce emissions within their respective jurisdictions. Moving
forward, the Government of Canada will work with all provinces and territories
on a bilateral and regional basis, to ensure that Governments are jointly
increasing Canada’s climate efforts, and creating solid middle-class jobs across
Canada.
Engagement will focus on areas of mutual interest, and where strategies and
initiatives can build on, or complement, federal measures. This will include:
home retrofits; increasing net-zero public transit and active transportation;
making zero-emission vehicles more affordable; leveraging Canada’s competitive
advantage (e.g., mineral resources) to develop domestic electric vehicles and
the battery sector; investing in renewables and next generation clean technology
solutions; investing in electricity transmission between provinces; planting two
billion trees and protecting 25% of Canada’s lands and oceans; and, investing in
biofuels, hydrogen and CCUS.
By working together, there is an opportunity to take even greater climate
action, and to link actions on climate change with other environmental
priorities, including a “green” economic recovery, nature, water, clean
technologies, emissions trading, climate resilience and adaptation, and plastic
waste reduction. Collaboration and engagement with provinces and territories
will continue leading up to the announcement of an updated Nationally Determined
Contribution (NDC).
WORKING TOGETHER GLOBALLY
CANADA’S ROLE IN THE WORLD
Canada has a long history of stepping up to tackle global challenges, always
striving to be a constructive part of global and multilateral solutions. Whether
it is security, humanitarian or environmental challenges, Canada is a willing
and active partner on the international stage. Canadians from all walks of life
have been rolling up their sleeves to help make the world a better place.
Canadians scientists have been leaders in the global scientific effort to
understand climate change. Through Canada’s leadership in the G7, G20, the
United Nations, multilateral development banks, and other fora, the Government
of Canada has consistently pushed for increased global ambition in addressing
climate change and other environmental issues such as biodiversity loss, plastic
pollution and protection of the ozone layer. Throughout, Canada has consistently
advocated for inclusive approaches and global solutions that recognize that all
actors have a role to play.
Paris Agreement
The Paris Agreement is an international agreement under the United Nations
Framework Convention on Climate Change (UNFCCC). It was adopted by 196 countries
in 2015. Its goals are: to keep the global average temperature to well below 2°C
above pre-industrial levels and undertake efforts to limit temperature increase
even further to 1.5°C; to enhance climate resilience and the ability to adapt to
climate change; and, to make global finance flows consistent with low greenhouse
gas emissions and climate-resilient development. Canada played an active and
constructive role in securing international consensus on the Paris Agreement.
Canada’s multilateral work has led to inclusive free trade agreements ensuring
high environmental standards are maintained as trade is liberalized and by
supporting the trade of climate-friendly goods and services. Examples of such
trade agreements include: Canada-European Union Comprehensive Economic and Trade
Agreement (CETA), Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP), and Canada-United States-Mexico Agreement (CUSMA). In 2017,
Canada filled an important voice for North America by co-founding with the
European Union and China the Ministerial on Climate Action. This annual forum
brings together Environment Ministers from around the world, including all major
economies, to drive momentum on climate change.
In 2017, Canada co-founded the Powering Past Coal Alliance (PPCA) with the
United Kingdom. Three years after its launch, the PPCA has positioned itself as
a driving force behind the global phase-out of coal-fired electricity and the
United Nations Secretary General’s call for no new coal after 2020. It has grown
to over 110 members, including both national and sub-national jurisdictions and
an increasing number of private sector actors, as well as strategic partnerships
with leading philanthropic organizations. The PPCA is driving the global market
shift towards clean and sustainable energy.
Working with its North American partners, Canada played a key role to secure
global consensus for the Kigali amendment to the Montreal Protocol, which aims
to gradually eliminate powerful greenhouse gas emissions known as
hydrofluorocarbons (HFCs). Canada was among the first countries to ratify the
amendment, which allowed it to come into force in 2019. This critical leap
forward will contribute to the avoidance of a 0.4˚C increase in global
temperature by the end of the century, further reinforcing the Montreal
Protocol’s status as one of the most successful global environmental agreements
to date.
Canada has also been delivering on its 2015 $2.65 billion climate finance
commitment to support developing countries, particularly the poorest and most
vulnerable, in their mitigation and adaptation efforts. Canada has pioneered
initiatives to leverage private sector resources that are essential for meeting
the global collective financing goal of mobilizing USD $100 billion per year for
climate action from all sources.
Support for international climate action
As part of its commitment, Canada is providing $35 million to combat short-lived
climate pollutants in developing countries. In 2020, Canada continued delivering
its support, working with bilateral partners in Chile, Cote d’Ivoire and Senegal
to advance work that reduces methane emissions from the solid waste sector.
Canada also continued supporting the Climate and Clean Air Coalition’s efforts
to reduce global emissions of short-lived climate pollutants such as black
carbon, methane, and hydrofluorocarbons (HFCs). This work can help address
near-term climate change effects and substantially reduce the health impacts of
short-lived climate pollutants in developing countries.
Canada has a long history of close collaboration with the United States on
shared environmental concerns. This cooperation has allowed Canada to address
issues such as acid rain and Great Lakes pollution. The Government of Canada
continues to work collaboratively with partners in the United States, including
at the state-level with the Climate Alliance and through the North American
Climate Leaders Dialogue. Canada looks forward to deepening collaboration with
Governments and partners in North America to drive common objectives including
on green recovery, net-zero goals, carbon market alignment, and harmonization of
regulatory frameworks for climate action (i.e., methane emissions).
In the context of the COVID-19 pandemic, Governments around the world are
looking for ways to grow a cleaner economy that creates opportunities for their
citizens and generates an economy that is sustainable, environmentally
conscious, and creates the jobs of the future. The path to a resilient future
requires the adoption of clean technologies and resource efficient approaches
that underpin a circular economy. Recognizing the interdependency of its
ecosystems, Canada is embracing smart solutions that will better integrate
nature, conservation and ocean protection efforts with climate action.
Given the abundance of natural resources in Canada, the Government of Canada has
a great responsibility to provide leadership for nature. For example, Canada is
home to one quarter of the earth’s boreal forests and wetlands. As a member of
both the High Ambition Coalition for Nature and People and the Global Ocean
Alliance, Canada will push for targets to conserve 30% of the world’s lands and
oceans by 2030. The Government wants not only to achieve Canada’s climate
ambitions, but also to build more resilient communities and ecosystems in line
with biodiversity goals. Canada will support the international community in
delivering a strong post-2020 global biodiversity framework, noting that climate
change is one of the five main drivers of biodiversity loss.
Sustainable development goals
In 2015, Canada and all other members of the United Nations adopted the 2030
Agenda for Sustainable Development – a global call to action to end poverty,
protect the planet and ensure that all people enjoy peace and prosperity by
2030. The Government of Canada is working with its partners to advance the 2030
Agenda at home and abroad through concrete actions on the 17 Sustainable
Development Goals, which include reduced inequalities, sustainable cities and
communities, responsible consumption and production, and climate action.
Moving forward the Government of Canada will:
* Promote the effective implementation of the Paris Agreement by advocating for
ambitious and enhanced mitigation and adaptation efforts and by shaping
global discussions on sustainable finance flows. Canada will also continue to
push for strong rules for international carbon markets (Article 6 of the
Paris Agreement) to establish a credible regime that is based on
environmental integrity, and provides predictability and certainty for
investors and Canada’s exporters of clean technology solutions.
* Continue to advocate for a global minimum price on pollution. As we have seen
in Canada, a price on pollution is a critical tool to cut emissions and drive
innovation. This tool will work even better when more countries adopt it.
* Work with the United Kingdom and other international partners to ensure that
climate ambition remains the driving force behind the United Nations Climate
Change Conference in 2021 (COP26). Canada will help advance global climate
priorities, including on sustainable finance, green transportation,
resilience and adaptation, nature-based solutions, and energy transition.
* As part of these efforts, and as a leading manufacturer of cars and trucks,
join a core group of countries under the Zero Emission Vehicle Transition
Council to facilitate a global transition to zero-emission vehicles in line
with the goals of the Paris Agreement.
* Work with the United Kingdom and Italy through their respective G7 and G20
Presidencies to build ambition for upcoming international negotiations on
climate change and on biodiversity, and to deliver enhanced global action and
support for climate change, nature, and biodiversity, including by advancing
nature-based solutions as an opportunity for addressing these issues
holistically.
* Commit to renewed funding for international climate finance and biodiversity
in 2021. This funding will be announced ahead of the United Nations Climate
Change Conference.
* Work with the international community in delivering a strong post-2020 global
biodiversity framework.
* Continue to promote a holistic approach to address climate change including
the need to integrate circular economy approaches, such as through the
hosting of the World Circular Economy Forum 2021.
NEXT STEPS
A Healthy Environment and a Healthy Economy is an ambitious, credible and
progressive vision to achieve Canada’s environmental and economic objectives.
Immediate action is key to addressing the short-term needs of economic recovery
coming from the pandemic, taking the concrete steps required to exceed Canada’s
2030 emission reductions target, and setting the foundation for Canada to
achieve a net-zero emissions economy by 2050. The benefits to Canada’s economy
and environment are clear. The Government has built a plan to ensure Canada
achieves – for the first time in its history – its international climate
objectives.
Some of the funding measures in this proposed plan have been featured in the
2020 Fall Economic Statement. These actions will begin swiftly. Other actions
will be elaborated following consultations.
Many of the proposed actions in this plan require further consultation and
engagement with provinces, territories, Indigenous peoples, labour, industry,
and civil society to make sure they are designed to be as effective as possible.
This will include consultation on regulatory, policy and program measures. These
consultations will begin immediately in order to ensure additional climate
actions are launched in 2021.
Together, this work will enable Canada to present to the world in 2021 its
updated commitment to tackling climate change through a new Nationally
Determined Contribution (NDC).
Throughout 2021, the Government will create opportunities to build global
momentum towards ambitious climate action in the lead-up to the next United
Nations Climate Change Conference at the end of the year. The Government will do
this through regular bilateral engagement with Canada’s global partners, and by
ensuring that Canada’s climate priorities have a prominent role in next year’s
G20 and G7 Summits and other multilateral fora.
Canada will also continue to support developing countries in moving toward a
low-carbon and resilient future. The Government will press the urgency of global
coal phase-out through Canada’s leadership of the growing and influential
Powering Past Coal Alliance, and raise the profile of nature-based solutions at
the Climate Adaptation Summit. And the Government will showcase the climate
benefits of moving towards a circular economy through hosting the World Circular
Economy Forum. Finally, the Government will continue to advocate for an
ambitious global agreement to protect nature under the Convention on Biological
Diversity, recognizing that maintaining strong ecosystems and resilient oceans
helps the world in the fight against climate change.
The Government of Canada has also tabled legislation enshrining a net-zero
emissions target for 2050. Reaching net-zero emissions is what the science says
the world must achieve, and this 30-year project will require every future
Government to take actions to grow Canada’s economy while reducing emissions in
every sector.
Net-Zero Advisory Body
The Government of Canada is committing $15.4 million over three years, starting
in 2020-21 to create and support the Net-Zero Advisory Body. It will consult
with Canadians and provide independent advice to the Minister of Environment and
Climate Change on pathways to achieve net-zero emissions by 2050.
Over the past year, as Canadians joined in the global battle against the
COVID-19 pandemic, they also faced unprecedented jobs losses. They found
themselves asking not only how to stay healthy in the face of a sweeping deadly
disease but also what kind of jobs and careers might make up the post-COVID
world.
As Canadians look to the future, they have a common vision. Canadians want
healthy, inclusive communities, long-lasting jobs and competitive industries in
a resilient economy. And Canadians want a clean and safe environment – today,
and for their kids and their grandkids. This vision of Canada is within reach.
Canadians have the know-how, the skills, the technologies and the will to
achieve this. However, as a country, Canada needs to start planning in the
short-term, amidst the pandemic, to build back better. To build a cleaner, more
resilient and competitive economy that keeps pace with what Canada’s major
trading partners and economic competitors are doing.
A Healthy Environment and a Healthy Economy is Canada’s plan to do just that: to
address climate change while building the vibrant economy of the 21st century.
LIST OF ANNEXES
* Modeling and Analysis of A Healthy Environment and a Healthy Economy
* Carbon Pollution Pricing
* Clean Fuel Standard - Liquid Fuels
* Clean Electricity
* Clean Transportation
* Clean Industry
* Homes and Buildings
* Climate-smart agriculture
* Reducing Waste
* Natural Climate Solutions
* Greening Government
* Gender Based Analysis Plus
* Pan-Canadian Framework on Clean Growth and Climate Change — Progress Report
Footnote 1
See Annex ‘Pan-Canadian Framework on Clean Growth and Climate Change - Progress
Report’
Return to footnote1 Referrer
Footnote 2
Source: Clean Energy Canada and Efficiency Canada
Return to footnote2 Referrer
Footnote 3
Source: Federation of Canadian Municipalities
Return to footnote3 Referrer
Footnote 4
Source: Clean Energy Canada
Return to footnote4 Referrer
Footnote 5
Source: International Energy Agency
Return to footnote5 Referrer
Footnote 6
Source: Policy Options
Return to footnote6 Referrer
Footnote 7
Source: Pembina (PDF)
Return to footnote7 Referrer
Footnote 8
These illustrative examples are based on carbon pricing proceeds estimates
provided by Environment and Climate Change Canada (ECCC), as of November 17,
2020. The ECCC estimates are based on the ‘December 2019 Reference Case’
scenario for greenhouse gas emissions, which assumes no further Government
actions to address greenhouse gas emissions beyond those already in place as of
September 2019.
Return to footnote8 Referrer
Footnote 9
Source: Government of Sweden
Return to footnote9 Referrer
Footnote 10
For more details on Canada’s current approach to the benchmark assessment, see
Guidance on the pan-Canadian carbon pollution pricing benchmark
Return to footnote10 Referrer
Footnote 11
Source: Natural Resources Canada
Return to footnote11 Referrer
Footnote 12
Source: National Survey of Canadians on Trail Use During COVID, November
11th-17th (Leger)
Return to footnote12 Referrer
Footnote 13
Source: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem
Services
Return to footnote13 Referrer
Footnote 14
Source: Natural Resources Canada
Return to footnote14 Referrer
Footnote 15
See Annex ‘Pan-Canadian Framework on Clean Growth and Climate Change - Progress
Report’ for more information.
Return to footnote15 Referrer
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Date modified: 2021-04-08
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