Canada's Actions on Climate Change

Outline: Canada is taking action to address climate change, involving all sectors of the economy and shaping the transition path according to their own characteristics. The government drives emissions reductions through policy tools such as carbon pricing, while focusing on economic growth and job creation. Canada is committed to building a zero-emission economy, taking advantage of the opportunities of the global transition to promote sustainable economic growth, and working with provinces, territories and others to accelerate the transition. The deployment of innovative technologies and processes is critical to achieving decarbonisation, and the government is taking steps to support their application.

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Every economic sector has a role to play and a responsibility to act. At the same time, each sector and the workforces and communities they support are distinct. This diversity means that every sector will have a unique transition pathway. The policy tools employed to reduce emissions will need to take into account the realities of the regions and people they impact. Economic sectors are linked and interdependent; decarbonizing one sector will often have positive spillover effects to enable reductions from another sector. For example, reducing emissions from Canada's electricity sector by transitioning to a net zero-emissions grid will allow other zero-emissions technologies that rely on electrification, like zero-emission cars, trucks, and buses, to yield greater emissions reductions.

Canada's climate actions carefully consider the need to increase climate ambition, while also maintaining or enhancing equity, creating jobs, and growing a strong economy where everyone has a fair chance at success. As Canada works to achieve its 2030 and 2050 goals, maintaining this balance will be paramount. As emphasized by the Net-Zero Advisory Body in their Foundational Values and Design Principles for Pathways to Net-Zero report, the guiding force behind Canada's efforts to 2030 and 2050 will be to seize the upsides of the transition, and pursue measures with the broadest benefits for individuals, families, workers, businesses, society as a whole, and future generations.

Working to build a prosperous, net-zero economy in every region of Canada

The global shift to net-zero presents a significant opportunity for Canada to grow its economy significantly and sustainably, creating jobs and economic prosperity now and into the future. Each region of the country is uniquely positioned to take advantage of new markets emerging from the transition while creating jobs and reducing GHG emissions. This is why, over the coming years, the Government of Canada is proposing to work in partnership with provinces and territories, Indigenous Peoples, industry and others towards building Canada's net zero economy. The Government proposes to accelerate regional growth opportunities and energy systems transformation through a $25 million investment in Regional Strategic Initiatives that will drive economic prosperity and the creation of sustainable jobs in a net-zero economy.

Putting a price on carbon pollution

Fuel Charge

The federal fuel charge applies in Ontario, Manitoba, Saskatchewan, Alberta, Yukon, and Nunavut. Applying the fuel charge at higher rates over time will help to reduce GHG emissions and support clean growth. It also sends a signal to markets and provides an increasing incentive to choose cleaner sources of energy and reduce energy use through conservation and efficiency measures.

Output-Based Pricing System

The OBPS applies to industrial emitters that are emissions intensive and trade exposed. It ensures there is a price incentive for industrial emitters to reduce their emissions, spurring innovation and encouraging the adoption of cleaner technologies and fuels while minimizing competitiveness and "carbon leakage" risks (i.e. the risk of industrial facilities moving from one region to another to avoid paying a price on carbon pollution). The federal OBPS applies in Prince Edward Island, Manitoba, Yukon, Nunavut, and partially in Saskatchewan. All other provinces and territories are implementing their own pricing systems for industrial emitters, aligned with the federal benchmark.

Carbon pricing is the cornerstone of Canada's approach to climate action. The Government of Canada has established a globally-recognized pricing system focused on the return of revenue, putting money back in the pockets of Canadians, and incentivizing decarbonization throughout the economy. Ensuring that the federal benchmark price will rise by $15 per year, increasing to $170 per tonne by 2030, is key to achieving Canada's climate objectives. This requires that provinces and territories update their carbon pollution pricing systems where necessary to align with the strengthened benchmark.

Supporting the transition to a clean growth economy

Deployment of innovative and efficient technologies and processes remains critical to unlocking transformational change and achieving decarbonization. Programs that target specific barriers can help industry, governments and the public adopt technologies and approaches that reduce carbon emissions. Programs targeting Indigenous participation in a clean growth economy can enhance socio-economic outcomes for communities while increasing buy-in and the eventual success of key projects.

The news comes from: https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview/emissions-reduction-2030/plan/chapter-2.html