This morning the Minister of Environment and Climate Change, the Honourable Steven Guilbeault, supported by Prime Minister Trudeau, tabled Canada’s new 2030 Emissions Reduction Plan in the House of Commons. At 271 pages, the Plan provides a detailed roadmap setting out Canada’s intended path to achieving the country’s Paris Agreement targets.
The Plan describes the existing and new measures that seek to ensure that Canada reaches its emissions reduction target of 40 to 45 percent below 2005 levels by 2030 and sets Canada on a path to achieving net-zero emissions by 2050. Much work remains ahead. Total national greenhouse emissions were 730 million tonnes (Mt) in 2019, only 9 Mt lower than in 2005. To reach the lower-bound goal of a 40 percent emission reduction, Canada must emit only 443 Mt by 2030, a decrease of 283 Mt in just eight years.
The Plan breaks down needed contributions by sector (buildings, electricity, heavy industry, oil & gas, transportation, agriculture and waste), noting that since 2005, emissions in the oil and gas and transportation sectors have increased by 20 percent and 16 percent, respectively. Decreases in electricity (48 percent), heavy industry (12 percent) and waste and others (10 percent) have offset these increases. Each sector must now do more in order for Canada to achieve its target in 2030.
This is the first Emissions Reduction Plan issued under the Canadian Net-Zero Emissions Accountability Act. 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.
Efforts will seek to build on existing measures and focus on five priority areas:
To assist in this progress, the Plan includes $9.1 billion in new investments. Key spending commitments include:
The Plan further reaffirms the Government’s commitment to introduce an investment tax credit in support of CCUS technology, and an investment tax credit to support research and development in emerging clean technology solutions, such as battery storage, hydrogen and renewable energy. Sustainable finance and building jobs of the future are also referenced as central elements in the race to achieve 2030 and 2050 targets.
The Plan concludes with the recognition that Canada’s path to 2030 and beyond will not be linear. The 2030 ERP is a living document and will evolve in the coming years as Canada’s emissions reduction trajectory also evolves.
There is much work ahead. Sussex is here to assist companies and organizations as Canada works towards its ambitious targets.
Chris Benedetti, Managing Partner
Devin McCarthy, Senior Vice President & Federal Practice Lead
Eric Johnson, Vice President, Federal Government Relations
Roberto Chavez, Senior Associate, Federal Government Relations
Ingrid Ravary Konopka, Senior Associate, Federal Government Relations
Liam Daly, Senior Associate, Federal Government Relations
Robyn Gray, Principal and Environment Practice Lead
Christina Marciano, Vice President
Bonnie Hiltz, Vice President and Energy Practice Group Lead
Mark Olsheski, Vice President
Patrick Gajos, Director and General Counsel
Alex Simakov, Senior Associate