Canada

The Canadian Net Zero Emissions Accountability Act delivers on the government’s commitment to legislate a target of net zero greenhouse gas emissions by 2050. The Act establishes a legally binding process to set five-year national emissions reduction targets for 2030, 2035, 2040 and 2045. It will help develop credible, science-based emissions reduction plans to achieve each target. The Act established an independent advisory body, the Net Zero Advisory Body to provide ongoing advice to the government. 

Further information: Canadian Net-Zero Emissions Accountability Act

The 2030 Emissions Reduction Plan is an ambitious roadmap that outlines a sector-by-sector path for Canada to reach its emissions reduction target of 40% below 2005 levels by 2030 and net zero emissions by 2050.

This includes developing a CCUS strategy and investment approaches, such as Carbon Contracts for Difference.

• Introducing an investment tax credit to incentivise the development and adoption of CCUS technology.
• Investing CAD 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
• The plan includes projected emissions reductions from the oil and gas sector of 31% below 2005 levels, by 2030. It also projects emissions reductions from 39% below 2005 levels, by 2030 from heavy industries.
• The Climate Action and Awareness Fund is investing over CAD 200 million over five years to support projects that help build capacity and raise awareness to reduce Canada’s GHG emissions.
• The Canada Infrastructure Bank (CIB) was established to ensure that Canadians benefit from modern and sustainable infrastructure through partnerships between governments and the private sector. The government has allocated CAD 35 billion for the CIB to set out priority investment areas, which include green infrastructure (CAD 5 billion), public transit (CAD 5 billion) and clean power (CAD 5 billion).

Further information: 2030 Emissions Reduction Plan

The federal OBPS is designed to put a price on carbon pollution while minimising competitiveness and carbon leakage risks from exposure to the federal fuel charge. The federal OBPS is mandatory for facilities that are primarily engaged in the industrial activities listed in the OBPS Regulations and that emit 50kt CO₂ per year or more. Under the scheme, emissions in excess of allowances will be charged at $65 per tonne of CO₂e in 2023 and will increase by $15 per calendar year until 2030, resulting in an excess emissions charge of $170 per tonne of CO₂e in 2030. The federal OBPS applies in Manitoba, Ontario, New Brunswick, Prince Edward Island, Yukon, Nunavut and partially in Saskatchewan.

Further information: Pan-Canadian Approach to Pricing Carbon Pollution; Greenhouse Gas Pollution Pricing Act: Annual report for 2020

The federal OBPS is designed to put a price on carbon pollution while minimising competitiveness and carbon leakage risks from exposure to the federal fuel charge. The federal OBPS is mandatory for facilities that are primarily engaged in the industrial activities listed in the OBPS Regulations and that emit 50kt CO₂ per year or more. Under the scheme, emissions in excess of allowances will be charged at $65 per tonne of CO₂e in 2023 and will increase by $15 per calendar year until 2030, resulting in an excess emissions charge of $170 per tonne of CO₂e in 2030. The federal OBPS applies in Manitoba, Ontario, New Brunswick, Prince Edward Island, Yukon, Nunavut and partially in Saskatchewan.

Further information: Pan-Canadian Approach to Pricing Carbon Pollution; Greenhouse Gas Pollution Pricing Act: Annual report for 2020; Output-Based Pricing System - Canada.ca; 

Provincial and territorial systems continue to apply in British Columbia (carbon tax), Quebec and Nova Scotia (cap and trade), Newfoundland and Labrador (carbon tax). All provincial and territorial carbon pricing systems have to set equivalent or greater carbon prices to the federal scheme.

Further information: Pan-Canadian Approach to Pricing Carbon Pollution; Greenhouse Gas Pollution Pricing Act: Annual report for 2020

• The proposed tax credit for Carbon Capture, Utilization and Storage is being legislated following the 2023 Fall Economic Statement. It will provide a tax credit worth 50% of the capital cost of CCUS equipment for projects beginning before 2030, and worth 25% of these costs for projects beginning between 2031 and 2041.

Further information: Tax measures: Supplementary Information