441-00873 (Environment)

The science is clear that accelerated efforts to reduce greenhouse gas emissions rapidly by 2030, and to achieve net-zero emissions by 2050, are necessary to avoid the worst impacts of climate change. The economics are clear too – to build a strong, resilient economy for generations to come we must harness the power of a cleaner future.

Over the past seven years, the Government of Canada has taken action and committed to invest over $120 billion to reduce emissions, protect the environment, spur clean technologies and innovation, and help Canadians and communities adapt to the impacts of climate change. In 2016, the Government of Canada developed the Pan-Canadian Framework on Clean Growth and Climate Change in collaboration with provinces and territories, and with input from Indigenous peoples. Building on this national effort, the Government of Canada released its Strengthened Climate Plan, A Healthy Environment and a Healthy Economy in December 2020 to deepen emissions reductions across the economy, create new, well-paying jobs, make life more affordable for households, and build a better future.

In 2021, the Government of Canada committed to achieving an enhanced 2030 greenhouse gas emissions reduction target of 40-45 per cent below 2005 levels under the Paris Agreement and adopted legislation to enshrine this Nationally Determined Contribution (NDC), as well as the commitment to achieve net-zero emissions by 2050 in law. The Canadian Net-Zero Emissions Accountability Act (the Act) provides a durable framework of accountability and transparency to deliver on this commitment. The Act requires the Minister of Environment and Climate Change to set subsequent targets for 2035, 2040, and 2045, at least 10 years in advance. The Actalso holds the federal government accountable as it charts Canada’s path to achieve net-zero emissions by establishing a transparent process to plan, assess, and adjust the federal government’s efforts to achieve our national targets, based on the best scientific information available.

As an early deliverable under the Canadian Net-Zero Emissions Accountability Act, Canada published the 2030 Emissions Reduction Plan (ERP) in 2022. The plan lays out the next steps to reaching Canada’s 2030 emissions reduction target as a concrete milestone that improves transparency and accountability on the way to net-zero. The 2030 ERP includes a suite of new mitigation measures and strategies, $9.1 billion in new investments, and builds on the foundation set by Canada’s existing climate actions. The plan also reflects input from thousands of Canadians, businesses, and communities, as well as submissions from Indigenous partners, provinces, territories and the Net-Zero Advisory Body.

Achieving Canada’s climate objectives demands that all sectors of the economy continue to decarbonize in a manner that makes cleaner alternatives more affordable and creates new sustainable job opportunities for workers. That’s why the 2030 ERP provides a road map that goes sector-by-sector to identify climate action and strategies. For example, the Government is:

• Helping to reduce energy costs for homes and buildings, while driving down emissions to net-zero by 2040 and boosting climate resiliency through the development of the $150 million Canada Green Buildings Strategy and an additional investment of $458.5 million in the Canada Greener Homes Loans program;
• Empowering communities to take climate action by expanding the Low Carbon Economy Fund through a $2.2 billion recapitalization, which will include a new $180-million Indigenous Leadership Fund to support emissions reductions projects led by First Nations, Inuit, and Métis communities and organizations;
• Driving progress on clean cars and trucks through investments of $400 million for zero-emission vehicles charging and refueling infrastructure, $1.7 billion to extend the Incentives for Zero-Emission Vehicles (iZEV) program to make it more affordable for Canadians to buy and drive new electric light-duty vehicles, and introducing a purchase incentive program of $547.5 million for medium-and heavy-duty vehicles;
• Positioning the oil and gas sector to cut pollution by working with stakeholders to implement the cap on oil and gas sector emissions;
• Powering the economy with renewable electricity by continuing to advance the Clean Electricity Standard to enable Canada to achieve a net-zero electricity grid by 2035, and providing $600 million to the Smart Renewables and Electrification Pathways Program for additional renewable electricity and grid modernization projects, and $250 million to support predevelopment work of large clean electricity projects;
• Helping industries to adopt clean technology in their journey to net-zero emissions by committing to develop a carbon capture, utilization and storage (CCUS) strategy, and establishing an investment tax credit of up to 30 per cent focused on net-zero technologies;
• Driving further clean technology innovation through a $1 billion investment to create an independent federal innovation and investment agency;
• Developing of a whole-of-government strategy to strengthen policy coherence and coordination on clean technology and climate innovation;
• Investing in nature and natural climate solutions by investing an additional $780 million to the Nature Smart Climate Solutions Fund to support projects that conserve, restore and enhance wetlands, peatlands, and grasslands to store and capture carbon;
• Supporting farmers as partners in building a clean, prosperous future through investments in new programs such as the $150 million resilient agricultural landscapes program, and by topping up the Agricultural Climate Solutions: On-Farm Climate Action Fund with $470 million to support key climate mitigation practices and providing $300 million to triple funding for the Agricultural Clean Technology Program.

The 2030 ERP is expected to benefit diverse groups of people in Canada by helping to alleviate the negative impacts of climate change and strengthen Canada’s ability to meet net-zero emissions by 2050. The plan also includes several measures designed to directly benefit communities affected by climate change, and those seeking to reduce the impacts of greenhouse gas emissions, including those who live in remote and rural communities.

These commitments aim to increase Canada’s ambition and to reduce the intensity and frequency of climate change-related impacts on the environment such as higher temperatures, variable precipitation patterns, rising sea levels, ocean acidification, severe floods, wildfires, drought, and other extreme weather events. This will benefit groups that are disproportionately affected by the negative effects of climate change, including children, low-income communities, seniors, and Indigenous peoples.

The 2030 ERP is designed to be evergreen—a comprehensive roadmap that reflects levels of ambition to guide emissions reduction efforts in each sector. As governments, businesses, non-profits and communities across the country work together to meet Canada’s climate objectives, we will identify, catalyze and respond to new opportunities. In addition, progress under the plan will be reviewed in progress reports produced in 2023, 2025, and 2027. Additional targets and plans will be developed for 2035 through to 2050.

As the Government of Canada continues to implement the commitments set out in its plans, it is doing so in collaboration with its partners. The Government of Canada is committed to working with provinces and territories to advance shared priorities that will further lower emissions, including on a regional and bilateral basis. The Government of Canada fulfills this commitment by working with provinces and territories to tailor approaches and actions that are focused on climate change and green economic recovery. Collaboration with all levels of government, Indigenous peoples, experts, industry, the financial sector, stakeholders, and Canadians is a key component of the 2030 ERP, and the full implementation of its measures and strategies.

The Government of Canada also collaborates with Indigenous partners on climate action and recognizes that Indigenous peoples are among the most vulnerable populations to a rapidly changing environment. 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 maintains strong partnerships with First Nations, Inuit and Métis partners on their climate change priorities through distinctions-based senior bilateral tables on clean growth and climate change with the Assembly of First Nations, Inuit Tapiriit Kanatami and the Métis National Council. These partnerships have meant that, since the launch of the Pan-Canadian Framework in 2016, Indigenous partners have worked directly with Canada to identify ways for policies and programs to better support Indigenous peoples and their climate priorities. More than five years later, the tables continue to demonstrate the benefits of sustained collaboration. For instance, the tables were instrumental in ensuring that Canada’s Strengthened Climate Plan (December 2020), and the 2030 Emissions Reduction Plan respond to Indigenous climate priorities.

Investments in Indigenous climate change action have been important to advancing self-determined priorities of Indigenous peoples. Since the release of the Strengthened Climate Plan, Canada has committed more than $1.3 billion in targeted investments to support Indigenous communities to transition to clean energy, advance nature-based solutions, build new or retrofit green community buildings, promote resilience of health systems, and undertake major disaster mitigation projects. These investments supplement more than $425M over 12 years committed under the Pan-Canadian Framework, as well as funding provided to Indigenous proponents through general climate programs for which they are eligible recipients.

Most recently, in the 2030 ERP, the Government of Canada committed $29.6 million to advance discussions with Indigenous peoples to develop and implement a model of partnership for climate action that empowers self-determined climate action; leverages the transition to a net-zero economy to support efforts toward self-determination and the alleviation of socio-economic inequalities; and supports the expression of Indigenous Knowledge systems in national climate policy.

Looking forward, the transition to a cleaner future will bring new opportunities across our labour force, but also some challenges for those that will need to pivot to new jobs. The Government of Canada is committed to supporting the future and livelihoods of workers and their communities as the world moves to a low carbon future. To seize these opportunities, the Government of Canada is making historic investments in skills and training to build on the agility and resilience of Canada’s workforce and ensure that it is equipped with the range of skills required to deliver on this ambition.

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, reliable, and clean energy to Canadian families, businesses, and industries, while exporting products and technologies around the world. The Government also recognizes that this transition is of paramount importance for individuals, families, and businesses in every part of our country. A real and effective energy transition must ensure a stronger economy, a cleaner environment and good, sustainable jobs for all Canadians.

This is why the Government of Canada is taking a whole-of-government approach to seize the opportunities of the energy transition – by decarbonizing Canada’s energy sector and making thoughtful and historic investments in critical sectors such as clean technology and renewable energy.

As a part of this effort, Canada joined other countries at COP26 and committed to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022. In addition, Canada committed to phase out inefficient fossil fuel subsidies, and recently accelerated our timeline to do so to 2023. To date, Canada has phased out or rationalized nine tax preferences supporting the fossil fuel sector and has committed to take part in a peer review of inefficient fossil fuel subsidies under the G20 process.

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

At COP27, Canada also joined the United States (U.S.) in a shared commitment to reduce emissions from the oil and gas sector. The U.S.-led Joint Declaration from Energy Importers and Exporters on Reducing Greenhouse Gas Emissions from Fossil Fuels, focuses on solutions to lower methane emissions across the fossil energy value chain.

At the same time, the Government of Canada is committed to moving forward with comprehensive action – including legislation – to support Canadian workers and communities in the transition to a low-carbon economy. Public consultations to inform the development of just transition legislation were launched in July 2021 and have included 17 roundtable sessions with a range of stakeholders, including workers and labour organizations, industry, academia, non-governmental organizations, youth, and experts in skills and training as well as diversity and inclusion. The Government is also in discussions with the provinces and territories, and with Indigenous partners, to understand their priorities and perspectives as it seeks to introduce federal legislation early in 2023.

In addition, Natural Resources Canada is supporting job growth through ambitious projects and programs in energy, forestry and mining, in every region of Canada. This includes working with Employment and Social Development Canada to advance growth opportunities in the natural resource sectors, as well as ways to retrain workers in high-emissions industries to address labour market shortages in emerging areas.

The 2022 federal budget announced actions that will deliver approximately 500,000 training and job opportunities for Canadians, enabling them to take advantage of new opportunities, including in clean energy sectors. These investments include the $960 million Sectoral Workforce Solutions Program that will help both workers and employers by supporting solutions to address current and emerging workforce needs.

Building on those job-creation efforts, the Government’s Fall Economic Statement on November 3, 2022, included the launch of a Sustainable Jobs Secretariat, which is a new sustainable jobs stream under the Union Training and Innovation Program, and the creation of a new Sustainable Jobs Training Centre, which will help workers in key sectors and occupations improve their skills or gain new ones for the net-zero economy.

The Fall Economic Statement also proposed a number of important new initiatives to strengthen Canada’s economic competitiveness and attract new investments in clean growth. These include: the Investment Tax Credit for Clean Technologies, which would provide a refundable tax credit equal to 30 per cent of the capital cost of investments in clean energy technologies for claimants that meet certain labour conditions (20 per cent rate for those who do not); and  the formal unveiling of the Canada Growth Fund, which seeks to attract billions of dollars in private capital to reduce Canada’s emissions, grow the economy and create good jobs.

Amid this concerted action, the Government is also launching Regional Energy and Resource Tables to accelerate Canada’s economic growth opportunities by taking into account each region’s unique advantages and ability to meet the demands of new and emerging markets. Through these regional processes, the Government is working with provincial and territorial governments in partnership with Indigenous peoples, and engaging with experts and stakeholders, to develop comprehensive and actionable place-based economic strategies for every region of Canada to realize the unprecedented opportunities of a net-zero future.

It is important to repeat here that Indigenous peoples will play a vital role in the transition to a low-carbon economy, given their strong relationship to the land and unique role in the stewardship of natural resources. Indigenous Peoples are active leaders of climate action who contribute vital knowledge, experience, and leadership to efforts across Canada, and empowered Indigenous-led clean energy solutions can accelerate the transition, while advancing community resilience, autonomy, self-determination, and reconciliation. To this end, Canada is committed to reconciliation and working collaboratively with Indigenous peoples through the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act, which came into force June 2021. The Act requires the Government to work in partnership with Indigenous peoples to take measures necessary to ensure federal laws are consistent with the declaration, and to develop an action plan within the next two years. Federal departments are currently working in consultation and cooperation with Indigenous peoples to develop a draft action plan that outlines key priorities and measures to help achieve the Act’s objectives. Natural Resources Canada is also committed to increasing inclusion in the clean energy workforce by creating more opportunities for women, LGBTQ2, Indigenous peoples, and other under-represented people in the energy sector.

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