441-00104 (Environment)

The Government of Canada acknowledges the importance of, and the need for, a global energy transition. A more secure and prosperous future depends on a sustainable energy sector, one that provides affordable and clean energy to Canadian families, businesses, and industries, and exports products and technologies around the world.  We also recognize that this transition is of paramount importance for countless individuals, families, and businesses in every part of our country. A real and effective transition to a more sustainable energy future must be one where we ensure a cleaner environment as well as provide significant opportunities to those workers and communities that have relied upon traditional energy sources.

This is why the Government of Canada is taking a whole-of-government approach to take advantage of this transition, decarbonize our energy sector and make thoughtful and historic investments in critical sectors like clean technology and renewable energy.

As a part of this effort, we have committed to phase out inefficient fossil fuel subsidies, and recently accelerated our timeline to do so to 2023. Canada has already phased out or rationalized eight tax preferences supporting the fossil fuel sector and has committed to take part in a peer review of inefficient fossil fuel subsidies under the G20 process.

Canada’s oil and gas sector has also made its own net-zero commitments. At COP26, our government took the industry up on its offer to achieve net-zero emissions by 2050, in announcing that we will cap and cut emissions from the sector in line with our climate targets. Companies are actively investing in the development and deployment of emissions reduction technologies, leading to increased electrification and greater use of hydrogen. These efforts will help lead to a cleaner energy future.

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

Over the past six years, the Government of Canada has demonstrated its leadership on climate change and clean growth, at home and abroad. Canada invested more than $100 billion to address climate change since 2015.

Canada established two significant climate plans: the 2016 Pan-Canadian Framework on Clean Growth and Climate Change and the 2020 strengthened climate plan entitled A Healthy Environment and a Healthy Economy with over 60 new federal measures. The strengthened climate plan is informed by more than four years of engagement with Indigenous peoples through distinction-based, senior bilateral tables on clean growth and climate change. Thanks to these measures, along with strengthened alignment with the United States, Canada is on a path to achieving significant emissions reduction by 2030.

In July, Canada adopted an enhanced 2030 emissions reduction target of 40-45% below 2005 levels. Under the Canadian Net-Zero Emissions Accountability Act, Canada is committed to achieving net-zero emissions by 2050, with a transparent and legally-binding process to guide implementation.

To further illustrate our commitment, at COP26 Canada announced new measures:

• • a commitment to cap Canada’s oil and gas emissions at the pace and scale needed to achieve net-zero by 2050;
  • working with provinces, territories, industry, and other stakeholders so that Canada’s electricity grid achieves net-zero emissions by 2035;
  • working toward ending exports of thermal coal by no later than 2030; and,
  • signing onto the Global Methane Pledge, as well as pledging to reduce oil and gas methane emissions by at least 75% below 2012 levels by 2030.

Canada has also committed to phase out or rationalize inefficient fossil fuel subsidies. It has already taken actions to phase out or rationalize eight tax preferences supporting the fossil fuel sector. Addressing inefficient fossil fuel subsidies supports Canada’s efforts to take action on climate change and transition to a low-carbon economy.

Sectoral Workforce Solutions Program (SWSP):

While climate change will result in a number of employment challenges, the shift to a green economy will also provide exceptional opportunities to build an inclusive and skilled workforce to drive economic growth.

The impact of the transition to a low carbon economy will vary by sector, region and occupation. Employers and workers across all sectors and industries will require varying levels of support to develop the skills needed to seize current and emerging opportunities. Targeted initiatives can help minimize the negative impacts on workers, vulnerable people, and their communities, and help ensure that the transition to a low carbon economy is just and leaves no one behind.

For example, Budget 2021 announced a new Sectoral Workforce Solutions Program (SWSP), to support key sectors of the economy, including those linked to the clean economy, to implement solutions to address current and emerging workforce needs. The program will help employers and connect Canadians with the training they need to access good jobs in sectors where employers are looking for skilled workers, such as the renewable energy sector. It will also place priority on supporting equity-deserving groups and promoting a diverse and inclusive workforce.

Additionally, the Government of Canada has committed to launching a Clean Jobs Training Center, which will help workers across sectors to upskill or reskill in order to be on the leading edge of the low carbon industry.

The Government of Canada has also announced in Budget 2021 a new Community Workforce Development Program that will fund projects at a national and regional level to:

• Support community workforce planning by bringing together organizations from across public, private, labour and not-for-profit sectors to match local sources of labour with employer demand;
• Train displaced workers to acquire the skills, knowledge and experience that would enable them to meet employers’ on-the-job expectations; and,
• Employ workers in new jobs contributing to stimulating economic growth.