An ambitious $9.1B sector-by-sector approach to cut 2005 emissions by 40% to reach 2030 targets.
Prime Minister Trudeau announced the much-anticipated release of the 2030 Emissions Reduction Plan: Canada’s Next Steps to Clean Air and a Strong Economy today. It outlines the government’s intended actions to fight climate change, create jobs, and ensure global leadership in a transition to clean technology and cleaner industries.
This is the first Emissions Reduction Plan issued under the Canadian Net-Zero Emissions Accountability Act. Progress will be reviewed in reports produced in 2023, 2025, and 2027. Additional targets and plans will be developed for 2035 through to 2050. The 2030 plan is evergreen and is considered a comprehensive roadmap to guide emissions reduction efforts across several sectors including buildings, vehicles, industry and agriculture.
Our team is currently reviewing the Plan to understand the implications and opportunities it entails for our clients. Our focus will be on energy related imperatives such as:
- New implications for carbon pricing (shadow carbon price, border carbon adjustments)
- New and increased funding and incentive programming for EVs, energy retrofits, energy efficiency and renewables projects
- New Federal GHG Offset System, including nature-based climate solutions projects
Prime Minister Trudeau announced the much-anticipated release of the 2030 Emissions Reduction Plan: Canada’s Next Steps to Clean Air and a Strong Economy today. It outlines the government’s intended actions to fight climate change, create jobs, and ensure global leadership in a transition to clean technology and cleaner industries.
This is the first Emissions Reduction Plan issued under the Canadian Net-Zero Emissions Accountability Act. Progress will be reviewed in reports produced in 2023, 2025, and 2027. Additional targets and plans will be developed for 2035 through to 2050. The 2030 plan is evergreen and is considered a comprehensive roadmap to guide emissions reduction efforts across several sectors including buildings, vehicles, industry and agriculture.
Our team is currently reviewing the Plan to understand the implications and opportunities it entails for our clients. Our focus will be on energy related imperatives such as:
- New implications for carbon pricing (shadow carbon price, border carbon adjustments)
- New and increased funding and incentive programming for EVs, energy retrofits, energy efficiency and renewables projects
- New Federal GHG Offset System, including nature-based climate solutions projects
There are 9 key action areas, each with new investment:
1. Carbon Pricing Guarantees
- From $50 per tonne of emissions to $170 by 2030
- Introduction of a “border carbon adjustment”
2. Home & Building Energy Cost Reduction
- New policies, programs, incentives, standards
- $150M Canada Green Building Strategy
- Retrofits and new construction
- $458.5M Canada Greener Homes Loan Program
3. Community-based Climate Action
- $2.2B renewal of the LCEF Program to support clean energy and energy efficiency projects
- Includes municipalities, universities, colleges, schools, hospitals, businesses, not-for-profit organizations
- $25M Regional Strategic Initiative to support energy systems transformation
4. Electric Vehicle Adoption
- $1.7 billion extension to existing incentives
- Mandate for 20% of all new light-duty vehicles sales be ZEVs by 2026
- 60% of all new vehicles sold in 2030; 100% in 2035
- $400 million to add 50,000 chargers to Canada’s network
- CIB to spend further $500M on EV infrastructure
5. Oil & Gas Sector Carbon Reduction
- Plans to diversify Canada’s energy mix
- Implement oil and gas methane reductions by 75% by 2030
6. Renewable Electricity Adoption
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- transitioning remaining grid generation to clean sources to reduce GHG emissions
- establish a Pan-Canadian Grid Council with provinces & utilities to promote clean electricity infrastructure investments
- $600M for Smart Renewables and Electrification Pathways Program
- $250M for pre-development work for large, provincial clean electricity projects
7. Clean Tech Adoption
- Development of a carbon capture, utilization, and storage (CCUS) strategy, including an investment tax credit to incentivize the development and adoption
- $194M for the Industrial Energy Management System to support ISO 50001 certification, energy managers, cohort-based training, audits, and energy efficiency–focused retrofits for key small-to-moderate projects
8. Nature & Natural Climate Based Solutions
- $780M for the Nature Smart Climate Solutions Fund to deliver emission reductions from nature-based climate solutions
- Continued development of protocols under the Federal GHG Offset System, including nature-based climate solutions projects
- Support for projects that conserve, restore, and enhance Canada’s vast and globally significant endowment of wetlands, peatlands, and grasslands to store and capture carbon
9. Agricultural Climate Solutions
- $470M in On-Farm Climate Action Fund to help farmers adopt sustainable practices such as cover crops, rotational grazing and fertilizer management
- $330M for the Agricultural Clean Technology Program to support the development and purchase of more energy-efficient equipment.
Find the full plan here:
See the full news release here: https://pm.gc.ca/en/news/news-releases/2022/03/29/delivering-clean-air-and-strong-economy-canadians
