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2030 emissions reduction plan - Canada’s Next Steps for Clean Air and a Strong Economy

legislation type Executive
Plan
Passed in 2022
This plan is the first developed under the Canadian Net-Zero Emissions Accountability Act. It develops sectoral projections of emissions reductions to 2030 with a view on achieving net-zero by 2050, details the government's low-carbon strategy and announces $9.1 billion in new federal investments. The government notably states its objective of reducing methane emissions from the fossil fuel industry. Progress under the plan will be reviewed in 2023, 2025, and 2027. Additional targets and plans will be developed for 2035 through to 2050.

Sectoral goals, funding and measures laid out in the document include the following: 
  • Homes and buildings: develop a  $150 million Canada Green Buildings Strategy and provide $458.5 million of new investment to the Canada Greener Homes Loan program in order to reduce energy costs
  • Indigenous climate action: the Low Carbon Economy Fund is renewed ($2.2 billion funding) and include a dedicated $180 million Indigenous Leadership Fund
  • Energy systems: support regional growth, jobs and transformation of energy systems with a $25 million investment in Regional Strategic Initiatives
  • Electricity grid: aim of establishing a Pan-Canadian Grid Council to promote clean electricity infrastructure investments in coordination with provinces and utilities. Investment of $600 million in the Smart Renewables and Electrification Pathways Program and $250 million to support predevelopment work for large clean electricity projects
  • Clean transport: reduction of emissions from light, and heavy vehicles. provision of $1.7 billion to extend the Incentives for Zero-Emission Vehicles (iZEV). $400 million in additional funding for zero-emission vehicles (ZEVs) charging stations. The Canada Infrastructure Bank will also invest $500 million in ZEV charging and refueling infrastructure. Sales mandate to be put in place to ensure thresholds of clean vehicles sales. Development of a MHDV ZEV (medium- and heavy-duty zero emission vehicles) regulation. 
  • Industry: developing a carbon capture, utilization and storage (CCUS) strategy, introducing an investment tax credit to incentivize the development and adoption of this important technology, and investing $194 million to expand 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.
  • Agriculture: help the sector to adopt sustainable practices thanks to an investment of $470 million in the Agricultural Climate Solutions: On-Farm Climate Action Fund. Further to this, there will be a tripling of investment of the funding for the Agricultural Clean Technology Program (to $330 million) to support the purchase of energy-efficient equipment. $100 million will also be invested on science to support a sectoral transition to net-zero by 2050.
  • Environment: promote nature-based emissions reductions through an additional provision of $780 million for the Nature Smart Climate Solutions Fund.
  • carbon pricing: develop strategy to "guarantee the price of pollution", using  legislative approaches and investment approaches, like carbon contracts for differences. Aims to see carbon price rising by $15 a year in order to reach $170/tonne by 2030.

Documents

  • Reductions expected from industry:  32%


    Industry | Base year target | Target year: 2030 | Base year: 2022
  • Reductions expected from transport:  23%


    Transport | Base year target | Target year: 2030 | Base year: 2022
  • Reductions expected from buildings  42%


    Buildings | Base year target | Target year: 2030 | Base year: 2022
  • Reductions expected from electricity  77%


    Energy | Base year target | Target year: 2030 | Base year: 2022
  • Reductions expected from waste of 43%
    Waste | Base year target | Target year: 2030 | Base year: 2022
  • The government is also working to reduce oil and gas methane by at least 75% by 2030, support clean technologies to further decarbonize the sector, and working to create sustainable jobs.
    Energy | Base year target | Target year: 2030 | Base year: 2022
  • Projected contribution from the oil and gas sector of emission reductions to 31% below 2005 levels in 2030 (or to 42% below 2019 levels). 
    Energy | Base year target | Target year: 2030 | Base year: 2005
  • Medium- and heavy-duty zero emission vehicles: require 100% MHDV sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that would vary for different vehicle categories based on feasibility, and explore interim targets for the mid-2020s.
    Transport | Fixed level target | Target year: 2040 | Base year: 2022
  • To reduce emissions from medium-and heavy-duty vehicles (MHDVs), the Government of Canada will aim to achieve 35% of total MHDV sales being ZEVs by 2030.
    Transport | Fixed level target | Target year: 2030 | Base year: 2022
  • ensure at least 20% of new light-duty vehicle sales will be zero-emission vehicles by 2026, at least 60% by 2030 and 100% by 2035
    Transport | Fixed level target | Target year: 2035 | Base year: 2022
  • Government’s objective of adding 50,000 ZEV chargers to Canada’s network. NB: target year not specified.
    Transport | Fixed level target | Target year: 2030 | Base year: 2022
  • Emissions reduction target of 40 to 45% below 2005 levels by 2030 and put us on a path to achieve net-zero emissions by 2050
    Economy-wide | Base year target | Target year: 2030 | Base year: 2022
from the Grantham Research Institute
from the Grantham Research Institute
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