Departmental Sustainable Development Strategy 2023-2027

ISSN: 2563-5956

Section 1: Introduction to the Departmental Sustainable Development Strategy

The 2022 to 2026 Federal Sustainable Development Strategy (FSDS) presents the Government of Canada’s sustainable development goals and targets, as required by the Federal Sustainable Development Act. This is the first FSDS to be framed using the 17 Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and provides a balanced view of the environmental, social and economic dimensions of sustainable development.

In keeping with the purpose of the Act, to make decision-making related to sustainable development more transparent and accountable to Parliament, the Department of Finance Canada supports the goals laid out in the FSDS through the activities described in this Departmental Sustainable Development Strategy (DSDS).

The Federal Sustainable Development Act also sets out 7 principles that must be considered in the development
of the FSDS as well as DSDSs. These basic principles have been considered and incorporated in the Department of Finance Canada’s DSDS.

In order to promote coordinated action on sustainable development across the Government of Canada, this departmental strategy integrates efforts to advance Canada’s implementation of the 2030 Agenda National Strategy, supported by the Global Indicator Framework (GIF) and Canadian Indicator Framework (CIF) targets and indicators. The strategy also now captures SDG initiatives that fall outside the scope of the FSDS to inform the development of the Canada’s Annual Report on the 2030 Agenda and the SDGs.

Section 2: Department of Finance Canada’s Sustainable Development Vision

Overall, the Department is committed to a more prosperous, stable, inclusive and sustainable economic future, based on the Department’s vision of sustainable development that aligns with its plan to keep the economy growing in a way that benefits more people today and in the future, contributing to a better quality of life for all Canadians. By providing analysis and advice, and through the development and implementation of policies, the Department engages in an approach to sustainable development that:

supports the Government’s commitment to fight climate change and protect the environment;
encourages productivity, growth and labour force participation in the economy; and
contributes to Government priorities such as reconciliation with Indigenous Peoples, health, quality of life, safety of communities and income security.

The Department is the Government’s primary source of analysis and advice on the broad economic and financial affairs of Canada. In addition to preparing the federal budget, the Department plays an important role in developing and implementing government policy in areas that fall within the Department’s mandate, including tax and tariff legislation, major federal transfers to provinces and territories, legislative and regulatory frameworks for the financial sector, and representing Canada within international financial institutions. In its central agency capacity, the Department provides analysis and advice on the economic merit and fiscal implications of policy and program proposals developed by other government departments. Departmental officials serve as members of broader interdepartmental teams that review options for, and the implications of, proposals that are presented to Cabinet.

The Department focuses its attention and resources on contributing to a strong economy and sound public finances for Canadians by continuing to prioritize four priority areas: sound fiscal management; inclusive and sustainable economic growth; a sound social policy framework, and effective international engagement. The Department will remain focused on ensuring Canada’s economy grows in a sustainable and inclusive manner, providing all Canadians with opportunities to contribute to and benefit from this growth. The Department will continue to incorporate environmental considerations into our analysis and advice, including by conducting Strategic Environmental Assessments as per the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals. The Department will also continue to incorporate gender and diversity considerations into its analysis and advice, including by conducting Gender-Based Analysis Plus, while ensuring that funding proposals take into consideration their impacts on the quality of life for Canadians, climate change, the resilience of Canadians to a changing climate, and the economy.

Detailed information on how the Department of Finance will use its resources to contribute to a strong economy and sound public finances for Canadians is available in the current Departmental Plan. The Minister of Finance is a key contributor to the following FSDS goals:

Reduce Poverty in Canada in all its Forms (SDG 1) – The Department of Finance supports this goal and the target to reduce the poverty rate by 50% from its 2015 level by 2030. The Department is responsible for the policy and legislation underpinning income-tested benefits that are delivered by the Canada Revenue Agency through the tax system, like the Canada Child Benefit and the Canada Workers Benefit.

Increase Canadians’ Access to Clean Energy (SDG 7) – The Department of Finance supports this goal and the target that by 2030, 90%, and in the long term 100% of Canada’s electricity is generated from renewable and non-emitting sources. The Department contributes to a more sustainable energy sector through policy development in relation to an accelerated capital cost allowance for investments in specified clean energy and energy conservation equipment. This business income tax measure complements carbon pricing and can lead to additional reductions in greenhouse gas emissions and air pollutants.

Encourage Inclusive and Sustainable Economic Growth in Canada (SDG 8) – The Department of Finance supports this goal and the target of at least 245,000 jobs in the clean technology products sector by 2026, an increase from 2019. The Department contributes to this goal through policy development in relation to tax incentives to encourage economic activity, including the Reduced Tax Rates for Zero-Emission Technology Manufacturers and the Critical Mineral Exploration Tax Credit. These corporate income tax measures support the clean technology products sector.

Foster Innovation and Green Infrastructure in Canada (SDG 9) – The Department contributes to innovation and green infrastructure through measures to attract and scale up sustainable finance in Canada, including launching and supporting the Sustainable Finance Action Council. Additionally, the Department of Finance issues Green bonds in which the proceeds are allocated exclusively to Government of Canada projects with environmental and climate benefits.

Advance Reconciliation with Indigenous Peoples and Take Action to Reduce Inequality (SDG 10) – The Department of Finance contributes to the advancement of reconciliation targets by promoting the use of Indigenous Businesses to meet procurement needs to the greatest extent possible. Supporting Indigenous business helps to address economic inequalities by promoting prosperity for Indigenous Peoples and creates awareness amongst staff.

Reduce Waste and Transition to Zero-Emission Vehicles (SDG 12) –The Department of Finance supports this goal and the target that for the 2030 model year, at least 60% of new light-duty vehicle sales are zero-emission vehicles, and 100% of vehicle sales will be zero-emission vehicles for the 2035 model year. The Department contributes to a low-carbon economy through policy development in relation to an accelerated capital cost allowance for zero-emission vehicles. This business income tax measure complements carbon pricing, rebates for zero-emission vehicles, and zero-emission vehicle sales targets, which can lead to additional reductions in greenhouse gases and air pollutants. The Department of Finance promotes sustainable waste management practices through the education and mobilization of its workforce, supporting the transition to a cleaner and more circular economy.

Take Action on Climate Change and its Impacts (SDG 13) –The Department of Finance supports this goal and the target to achieve 40 to 45% greenhouse gas emission reductions below 2005 levels by 2030, and achieve net-zero greenhouse gas emissions by 2050. Pricing carbon pollution across the country is a central component of the Pan-Canadian Framework on Clean Growth and Climate Change. In October 2016, the Government published federal requirements to ensure that carbon pollution pricing applies to a broad set of emission sources throughout Canada with increasing stringency over time, and was subsequently strengthened for the 2023 to 2030 period. The Government also committed to implement a federal pollution pricing system that would apply in a province or territory that requests it, and in provinces and territories that do not meet the federal stringency requirements. The Greenhouse Gas Pollution Pricing Act received Royal Assent on June 21, 2018, and provides the legislative framework for the federal system that is composed of a regulatory charge on fossil fuels (the “fuel charge”) and an output-based pricing system for large industrial facilities. The Department is responsible for the policy underpinning the fuel charge, which is administered by the Canada Revenue Agency and currently applies in Ontario, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Saskatchewan, Alberta, Newfoundland and Labrador, Yukon and Nunavut. The Department is also responsible for calculating Climate Action Incentive payment amounts to be specified annually by the Minister of Finance, which are then delivered to individuals and families by the Canada Revenue Agency. Climate Action Incentive payments return 90 per cent of the direct proceeds from the fuel charge to individuals and families in Ontario, Manitoba, Saskatchewan and Alberta, and starting in the 2023-24 fiscal year, to individuals and families in New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. With respect to its departmental operations, climate resilience is promoted through educational and awareness strategies, and by ensuring plans are in place that ensure continuity of operations amongst the increased incidence of extreme weather events.

Section 3: Listening to Canadians

As required by the Federal Sustainable Development Act, the Department of Finance Canada has taken into account comments on the draft 2022-2026 FSDS made during the public consultation held from March 11 to July 9, 2022.

During the public consultation, more than 700 comments were received from a broad range of stakeholders, including governments, Indigenous organizations, non-governmental organizations, academics, businesses, and individual Canadians in different age groups and of various backgrounds. The draft FSDS was also shared with the appropriate committee of each House of Parliament, the Commissioner of the Environment and Sustainable Development, and the Sustainable Development Advisory Council for their review and comment.

What We Heard

Across the submissions received, the Department of Finance Canada identified sustainable development priorities and issues that affect us. Some commenters advocated for supporting the clean energy sector, including through financial assistance products such as tax credits, for industries developing or adopting clean technologies. There were also calls during the consultations to use the Government’s procurement mechanisms to incentivize companies to voluntarily engage in reducing their greenhouse gas emissions.

What We Did

The Department of Finance Canada took the above-mentioned key priorities and issues into consideration in this DSDS. There are various programs and tax incentives led by the Department to support the clean technology sector, such as an accelerated capital cost allowance for zero-emission vehicles. These measures encourage companies to reduce their greenhouse gas emissions. Green procurement practices also contribute to encourage corporations supplying the Department to green their activities.

Please find more information on the FSDS public consultation and its results in the FSDS Consultation Report

Section 4: Department of Finance Canada’s Commitments

Goal 1: Reduce poverty in Canada in all its forms

FSDS Context:

Tax measures, including the Canada Child Benefit and Canada Workers Benefit, support poverty reduction by providing assistance to low-income individuals and families.

Target theme: Poverty Reduction

Target: By 2030, reduce the poverty rate by 50% from its 2015 level (Minister of Families, Children and Social Development)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Make investments to reduce poverty	Continue to provide support to low-income individuals and families through the Canada Child Benefit (CCB), including the Child Disability Benefit (CDB). Program: Tax Policy and Legislation	Performance Indicator: Number of individuals in families benefitting from the CCB with pre-tax and transfer income below the Market Basket Measure (MBM) threshold. Starting point: In 2020, about 3.4 million individuals were in families benefitting from the CCB with pre-tax and transfer income below the MBM threshold.	The CCB provides tax-free support to low- and middle-income families to help with the cost of raising children. The CDB is a supplement to the CCB that provides additional support to families caring for a child with a severe and prolonged impairment in physical or mental functions.These programs help to reduce poverty by increasing the household income of lower-income families. Relevant targets or ambitions: CIF Ambition: 1.1 Reduce poverty in Canada in all its forms CIF Target: 1.1 By 2030, a 50% reduction in the rate of poverty, compared to the 2015 level CIF Indicator: 1.1.1Poverty rate, as measured by Canada’s official poverty line GIF Target: 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
	Continue to provide support to low-income individuals and families through the enhanced Canada Workers Benefit (CWB). Program: Tax Policy and Legislation	Performance Indicator: Number of individuals in families benefiting from the CWB with pre-tax and transfer income below the MBM threshold. Starting point: In 2020, almost 1.4 million individuals were in families benefitting from the CWB with pre-tax and transfer income below the MBM threshold.	The CWB supplements the earnings of low- and modest-income workers, making work more rewarding and attractive for this group, and providing an important source of income support. Relevant targets or ambitions: CIF Ambition: 1.1 Reduce poverty in Canada in all its forms CIF Target: 1.1 By 2030, a 50% reduction in the rate of poverty, compared to the 2015 level CIF Indicator: 1.1.1 Poverty rate, as measured by Canada’s official poverty line GIF Target: 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Make investments to reduce poverty

Continue to provide support to low-income individuals and families through the Canada Child Benefit (CCB), including the Child Disability Benefit (CDB).

Program: Tax Policy and Legislation

Performance Indicator: Number of individuals in families benefitting from the CCB with pre-tax and transfer income below the Market Basket Measure (MBM) threshold.

Starting point: In 2020, about 3.4 million individuals were in families benefitting from the CCB with pre-tax and transfer income below the MBM threshold.

The CCB provides tax-free support to low- and middle-income families to help with the cost of raising children. The CDB is a supplement to the CCB that provides additional support to families caring for a child with a severe and prolonged impairment in physical or mental functions.These programs help to reduce poverty by increasing the household income of lower-income families.

Relevant targets or ambitions:
CIF Ambition: 1.1 Reduce poverty in Canada in all its forms

CIF Target: 1.1 By 2030, a 50% reduction in the rate of poverty, compared to the 2015 level

CIF Indicator: 1.1.1Poverty rate, as measured by Canada’s official poverty line

GIF Target: 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

Continue to provide support to low-income individuals and families through the enhanced Canada Workers Benefit (CWB).

Program: Tax Policy and Legislation

Performance Indicator: Number of individuals in families benefiting from the CWB with pre-tax and transfer income below the MBM threshold.

Starting point: In 2020, almost 1.4 million individuals were in families benefitting from the CWB with pre-tax and transfer income below the MBM threshold.

The CWB supplements the earnings of low- and modest-income workers, making work more rewarding and attractive for this group, and providing an important source of income support.

Relevant targets or ambitions:
CIF Ambition: 1.1 Reduce poverty in Canada in all its forms
CIF Target: 1.1 By 2030, a 50% reduction in the rate of poverty, compared to the 2015 level
CIF Indicator: 1.1.1 Poverty rate, as measured by Canada’s official poverty line
GIF Target: 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

Initiatives advancing Canada’s implementation of SDG 1 – No Poverty

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Goods and Services Tax (GST) Credit The GST Credit helps to offset the financial impact of the GST for low- and modest-income individuals and families. The GST Credit is a tax-free amount paid quarterly, which helps to reduce poverty by increasing the household income of eligible individuals and families.	The GST Credit contributes to advancing the Canadian Indicator Framework ambition 1.1 to “reduce poverty in Canada in all its forms”.
Registered Disability Savings Plan (RDSP) The RDSP is a long-term, tax-preferred savings plan for individuals with severe and prolonged impairments who are eligible for the disability tax credit. Persons with disabilities are more likely to live in poverty than persons without disabilities, and the RDSP contributes to reducing poverty among this population. The federal government helps to increase the savings of eligible Canadians by contributing to their RDSP through government-paid Canada Disability Savings Grant and government-paid Canada Disability Savings Bond (both of which are income-tested to target support to those with lower income), and/or by allowing money to be moved from some retirement and education savings plans.	The RDSP contributes to advancing the Canadian Indicator Framework ambition 1.1 to “reduce poverty in Canada in all its forms”.

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Goods and Services Tax (GST) Credit

The GST Credit helps to offset the financial impact of the GST for low- and modest-income individuals and families. The GST Credit is a tax-free amount paid quarterly, which helps to reduce poverty by increasing the household income of eligible individuals and families.

The GST Credit contributes to advancing the Canadian Indicator Framework ambition 1.1 to “reduce poverty in Canada in all its forms”.

Registered Disability Savings Plan (RDSP)

The RDSP is a long-term, tax-preferred savings plan for individuals with severe and prolonged impairments who are eligible for the disability tax credit. Persons with disabilities are more likely to live in poverty than persons without disabilities, and the RDSP contributes to reducing poverty among this population. The federal government helps to increase the savings of eligible Canadians by contributing to their RDSP through government-paid Canada Disability Savings Grant and government-paid Canada Disability Savings Bond (both of which are income-tested to target support to those with lower income), and/or by allowing money to be moved from some retirement and education savings plans.

The RDSP contributes to advancing the Canadian Indicator Framework ambition 1.1 to “reduce poverty in Canada in all its forms”.

Goal 4: Promote knowledge and skills for sustainable development

Initiatives advancing Canada’s implementation of SDG 4 – Quality Education

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Canada Training Credit The Canada Training Credit provides support to Canadian workers who seek qualifying training. Eligible workers accumulate credit balances, which can be used to refund up to half the costs of taking a qualifying course or training program.	The Canada Training Credit contributes to advancing the Canadian Indicator Framework ambition 4.2, that “Canadians have access to inclusive and quality education throughout their lives”.

Goal 5: Champion gender equality

Initiatives advancing Canada’s implementation of SDG 5 – Gender Equality

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Adapt and apply the Canada Business Corporations Act (CBCA) diversity disclosure requirements for federally regulated financial institutions. The CBCA requires publicly traded companies to disclose representation of women, Indigenous Peoples, persons with disabilities and members of Black and racialized communities on their boards of directors and among senior management, as well as diversity related corporate governance policies. Requiring diversity disclosures for federally regulated financial institutions will benefit women by promoting awareness that can lead to their increased representation on boards and among senior management.	The Department is currently consulting on these measures with the objective of proposing potential legislative amendments.

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Adapt and apply the Canada Business Corporations Act (CBCA) diversity disclosure requirements for federally regulated financial institutions. The CBCA requires publicly traded companies to disclose representation of women, Indigenous Peoples, persons with disabilities and members of Black and racialized communities on their boards of directors and among senior management, as well as diversity related corporate governance policies. Requiring diversity disclosures for federally regulated financial institutions will benefit women by promoting awareness that can lead to their increased representation on boards and among senior management.

The Department is currently consulting on these measures with the objective of proposing potential legislative amendments.

Goal 7: Increase Canadians' access to clean energy

FSDS Context:

Tax measures, including the accelerated capital cost allowance for clean energy and energy conservation equipment, support industry deployment of clean energy which can reduce greenhouse gas emission and pollution.

Target theme: Renewable and non-emitting sources of electricity

Target: By 2030, 90%, and in the long term 100% of Canada’s electricity is generated from renewable and non-emitting sources (Minister of Natural Resources)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Support voluntary action to adopt clean energy technologies	Provide an incentive for investment in clean energy equipment available through the accelerated capital cost allowance for clean energy and energy conservation equipment (Class 43.1/43.2). Equipment that qualifies for Class 43.1 or 43.2 currently receives immediate expensing treatment, meaning businesses can immediately write off the full cost of eligible equipment. This full expensing incentive will be subject to a phase-out for property that becomes available for use after 2023; the incentive will not apply to eligible property that becomes available for use after 2028. Program: Tax Policy and Legislation	Performance Indicator: Year-over-year change in new investment in Class 43.1/43.2 equipment. Starting point: From 2020 to 2021, the amount of new investment in Class 43.1/43.2 assets by corporations and partnerships increased from $1.35 billion to $2.65 billion.	The immediate expensing for clean energy equipment makes investments in clean energy generation equipment more attractive by providing a tax incentive that allows businesses to deduct from their taxable income the full cost of specified clean energy equipment in the year the asset is acquired. Relevant targets or ambitions: CIF Ambition: 7.3 Canadians have access to clean and renewable energy CIF Target: 7.2 By 2030, 90%, and in the long term 100%, of Canada’s electricity is generated from renewable and non-emitting sources CIF Indicator: 7.3.1 Proportion of electricity generated from renewable and non-greenhouse gas emitting sources GIF Target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Support voluntary action to adopt clean energy technologies

Provide an incentive for investment in clean energy equipment available through the accelerated capital cost allowance for clean energy and energy conservation equipment (Class 43.1/43.2). Equipment that qualifies for Class 43.1 or 43.2 currently receives immediate expensing treatment, meaning businesses can immediately write off the full cost of eligible equipment. This full expensing incentive will be subject to a phase-out for property that becomes available for use after 2023; the incentive will not apply to eligible property that becomes available for use after 2028.

Program: Tax Policy and Legislation

Performance Indicator: Year-over-year change in new investment in Class 43.1/43.2 equipment.

Starting point: From 2020 to 2021, the amount of new investment in Class 43.1/43.2 assets by corporations and partnerships increased from $1.35 billion to $2.65 billion.

The immediate expensing for clean energy equipment makes investments in clean energy generation equipment more attractive by providing a tax incentive that allows businesses to deduct from their taxable income the full cost of specified clean energy equipment in the year the asset is acquired.

Relevant targets or ambitions:
CIF Ambition: 7.3 Canadians have access to clean and renewable energy

CIF Target: 7.2 By 2030, 90%, and in the long term 100%, of Canada’s electricity is generated from renewable and non-emitting sources

CIF Indicator: 7.3.1 Proportion of electricity generated from renewable and non-greenhouse gas emitting sources

GIF Target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

Initiatives advancing Canada’s implementation of SDG 7 – Affordable and Clean Energy

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Canadian Renewable and Conservation Expenses (CRCE) CRCE can be deducted in full in the year incurred even though some of these expenses are capital in nature. CRCE generally include intangible start-up costs of renewable energy and energy efficiency projects for which at least 50% of the cost of depreciable assets can reasonably be expected to be property that is eligible for accelerated capital cost allowance (CCA) under CCA Class 43.1 or Class 43.2. CRCE can be carried forward indefinitely or transferred to flow-through share investors.	CRCE contributes to advancing: The Canadian Indicator Framework ambition 7.3 of “Canadians have access to clean and renewable energy” The Canadian Indicator Framework target 7.3 “By 2030, 90%, and in the long term 100%, of Canada’s electricity is generated from renewable and non-emitting sources” The Global Indicator Framework target 7.2 “By 2030, increase substantially the share of renewable energy in the global energy mix”

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Canadian Renewable and Conservation Expenses (CRCE)

CRCE can be deducted in full in the year incurred even though some of these expenses are capital in nature. CRCE generally include intangible start-up costs of renewable energy and energy efficiency projects for which at least 50% of the cost of depreciable assets can reasonably be expected to be property that is eligible for accelerated capital cost allowance (CCA) under CCA Class 43.1 or Class 43.2. CRCE can be carried forward indefinitely or transferred to flow-through share investors.

CRCE contributes to advancing:

The Canadian Indicator Framework ambition 7.3 of “Canadians have access to clean and renewable energy”
The Canadian Indicator Framework target 7.3 “By 2030, 90%, and in the long term 100%, of Canada’s electricity is generated from renewable and non-emitting sources”
The Global Indicator Framework target 7.2 “By 2030, increase substantially the share of renewable energy in the global energy mix”

Goal 8: Encourage inclusive and sustainable economic growth in Canada

FSDS Context:

Tax measures, including the Reduced Tax Rates for Zero-Emission Technology Manufacturers and the Critical Mineral Exploration Tax Credit, encourage economic activity and support jobs in the clean technology products sector, among others.

Target theme: Support for Workers and Businesses

Target: By 2026, there are at least 245,000 jobs in the clean technology products sector, an increase from 2019.

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Support job growth in the clean technology products sector	Reduce federal corporate income tax rates by half for eligible income from zero-emission technology manufacturing. Program: Tax Policy and Legislation	Performance Indicator: Year-over-year change in number of businesses that claim zero-emission technology manufacturing income. Starting point: Budget 2021 announced the reduction in tax rates for zero-emission technology manufacturing. Budget 2022 and Budget 2023 announced expanded eligibility for this measure to include additional technologies. As the reduced tax rates apply only to taxation years that begin after 2021, a full year of tax data to properly evaluate performance will not be available until 2025.	Reduced tax rates for zero-emission technology manufacturers will enhance Canada's competitiveness in attracting investment in zero-emission technology manufacturing, while also supporting existing businesses in the sector. This will help create well-paying jobs for Canadians. Relevant targets or ambitions: CIF Ambition: 8.6 Canadians contribute to and benefit from sustainable economic growth CIF Target: 8.6 Achieve a 8% growth in jobs in the clean technology products sector by March 31, 2024 relative to 2019 levels. CIF Indicator: 8.6.1 Jobs in the clean technology products sector GIF Target: 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Support job growth in the clean technology products sector

Reduce federal corporate income tax rates by half for eligible income from zero-emission technology manufacturing.

Program: Tax Policy and Legislation

Performance Indicator: Year-over-year change in number of businesses that claim zero-emission technology manufacturing income.

Starting point: Budget 2021 announced the reduction in tax rates for zero-emission technology manufacturing. Budget 2022 and Budget 2023 announced expanded eligibility for this measure to include additional technologies. As the reduced tax rates apply only to taxation years that begin after 2021, a full year of tax data to properly evaluate performance will not be available until 2025.

Reduced tax rates for zero-emission technology manufacturers will enhance Canada's competitiveness in attracting investment in zero-emission technology manufacturing, while also supporting existing businesses in the sector. This will help create well-paying jobs for Canadians.

Relevant targets or ambitions:
CIF Ambition: 8.6 Canadians contribute to and benefit from sustainable economic growth

CIF Target: 8.6 Achieve a 8% growth in jobs in the clean technology products sector by March 31, 2024 relative to 2019 levels.

CIF Indicator: 8.6.1 Jobs in the clean technology products sector

GIF Target: 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

Implementation strategies supporting the goal

This section is for implementation strategies that support the goal “Encourage Inclusive and Sustainable Economic Growth in Canada” but not a specific FSDS target

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Implement a mines-to-mobility approach to grow strategic supply chains	Provide a 30% non-refundable tax credit for specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors. Program: Tax Policy and Legislation	Performance indicator: Year-over-year change in exploration expenses that received the critical mineral exploration tax creditStarting point: Budget 2022 announced the Critical Mineral Exploration Tax Credit. Budget 2023 announced expanded eligibility for the tax credit to lithium from brines. The first year of data will be for 2022 and will not be available until 2024.	The Critical Mineral Exploration Tax Credit makes critical mineral projects a less risky undertaking for companies and helps grow both Canada’s critical mineral industry and secure good high paying jobs of the future. Relevant targets or ambitions: CIF Ambition 8.5: Canadians contribute to and benefit from sustainable economic growth

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Implement a mines-to-mobility
approach to grow strategic supply chains

Provide a 30% non-refundable tax credit for specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors.

Program: Tax Policy and Legislation

Performance indicator: Year-over-year change in exploration expenses that received the critical mineral exploration tax creditStarting point: Budget 2022 announced the Critical Mineral Exploration Tax Credit. Budget 2023 announced expanded eligibility for the tax credit to lithium from brines. The first year of data will be for 2022 and will not be available until 2024.

The Critical Mineral Exploration Tax Credit makes critical mineral projects a less risky undertaking for companies and helps grow both Canada’s critical mineral industry and secure good high paying jobs of the future.

Relevant targets or ambitions:
CIF Ambition 8.5: Canadians contribute to and benefit from sustainable economic growth

Goal 9: Foster innovation and green infrastrucutre in Canada

FSDS Context:

The Department of Finance Canada indirectly contributes to fostering innovation and green infrastructure in Canada through measures to establish a well-functioning sustainable finance market, such as launching and supporting the Sustainable Finance Action Council and supporting the Government of Canada’s commitment to moving towards mandatory reporting of climate-related financial risks across a broad spectrum of the Canadian economy. Canada’s Green Bond program also supports a well-functioning sustainable finance market. The framework improves market transparency by providing investors a risk-free benchmark against which private investments can be assessed, high quality ESG assets to invest in and improved market transparency.

Target theme: Green infrastructure and innovation

Implementation strategies supporting the goal

This section is for implementation strategies that support thegoal “Foster innovation and green infrastructure in Canada” but not a specific FSDS target

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Attract and scale up sustainable finance in Canada	Continue to support the Sustainable Finance Action Council (SFAC) with Environment and Climate Change Canada while providing departmental advice on establishing a well-functioning sustainable finance market. Program: Financial Sector Policy	Performance indicator: Progress towards mobilizing sustainable investments by Canadian financial institutions and pension plans Starting point: Budget 2022 estimated that current private and government investment towards net-zero emissions in Canada totals about $15-$25 billion annually Target: N/A	Sustainable finance refers to the incorporation of climate and environmental considerations throughout financial decision making. This enables the mobilization and alignment of private sector investments in climate and environmental objectives, thereby supporting sustainable innovation and green infrastructure. The SFAC is mandated to help lead the Canadian financial sector towards integrating sustainable finance into standard industry practice. Relevant targets or ambitions: N/A (This action supports SDG 9, but does not specifically support any target or indicator in the Canadian Indicator Framework or the Global Indicator Framework.)
Program: Sovereign Green Bond Framework	Performance indicator: Amount of CAD denominated green bonds/loans issued each year. Starting point: According to data from Bloomberg, about $16.6 billion of green bonds and loans were issued in Canadian dollars in 2022. Target: N/A	Canada’s sovereign green bond framework aims to support the Canadian sustainable finance market by adding liquidity and highly rated ESG assets, as well as increased transparency. Government of Canada bonds issued under the framework provide investors with liquid, highly rated assets whose proceeds are allocated to programs and projects that meet Canada’s environmental and climate commitments. Moreover, the allocation and impact reporting required under the framework showcase various sectors for investors to consider. Relevant targets or ambitions: N/A (This action supports SDG 9, but does not specifically support any target or indicator in the Canadian Indicator Framework or the Global Indicator Framework.)

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Attract and scale up sustainable finance in Canada

Continue to support the Sustainable Finance Action Council (SFAC) with Environment and Climate Change Canada while providing departmental advice on establishing a well-functioning sustainable finance market.

Program: Financial Sector Policy

Performance indicator: Progress towards mobilizing sustainable investments by Canadian financial institutions and pension plans

Starting point: Budget 2022 estimated that current private and government investment towards net-zero emissions in Canada totals about $15-$25 billion annually

Target: N/A

Sustainable finance refers to the incorporation of climate and environmental considerations throughout financial decision making. This enables the mobilization and alignment of private sector investments in climate and environmental objectives, thereby supporting sustainable innovation and green infrastructure. The SFAC is mandated to help lead the Canadian financial sector towards integrating sustainable finance into standard industry practice.

Relevant targets or ambitions: N/A (This action supports SDG 9, but does not specifically support any target or indicator in the Canadian Indicator Framework or the Global Indicator Framework.)

Program: Sovereign Green Bond Framework

Performance indicator: Amount of CAD denominated green bonds/loans issued each year.

Starting point: According to data from Bloomberg, about $16.6 billion of green bonds and loans were issued in Canadian dollars in 2022.

Target: N/A

Canada’s sovereign green bond framework aims to support the Canadian sustainable finance market by adding liquidity and highly rated ESG assets, as well as increased transparency. Government of Canada bonds issued under the framework provide investors with liquid, highly rated assets whose proceeds are allocated to programs and projects that meet Canada’s environmental and climate commitments. Moreover, the allocation and impact reporting required under the framework showcase various sectors for investors to consider.

Relevant targets or ambitions: N/A
(This action supports SDG 9, but does not specifically support any target or indicator in the Canadian Indicator Framework or the Global Indicator Framework.)

Initiatives advancing Canada’s implementation of SDG 9 – Industry, Innovation and Infrastructure

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Scientific Research and Experimental Development (SR&ED) Tax Incentive Program Eligible current expenditures on SR&ED performed in Canada may be fully deducted in the year they are incurred. A tax credit is also available in respect of these expenses, with an enhanced rate provided to small businesses. These measures encourage the performance of SR&ED by the private sector in all sectors of the economy.	SR&ED contributes to advancing the Canadian Indicator Framework ambition 9.2 of “Canada fosters sustainable research and innovation”.

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Scientific Research and Experimental Development (SR&ED) Tax Incentive Program Eligible current expenditures on SR&ED performed in Canada may be fully deducted in the year they are incurred. A tax credit is also available in respect of these expenses, with an enhanced rate provided to small businesses. These measures encourage the performance of SR&ED by the private sector in all sectors of the economy.

SR&ED contributes to advancing the Canadian Indicator Framework ambition 9.2 of “Canada fosters sustainable research and innovation”.

Goal 10: Advance reconciliation with indigenous peoples and take action on inequality

FSDS Context:

The Department of Finance increases economic opportunities for First Nations, Inuit and Métis communities by leveraging Indigenous businesses to the greatest extent possible to meet its procurement needs. [Insert text here]

Target theme: Advancing reconciliation with First Nations, Inuit, and the Métis communities

Target: Between 2023 and 2026, and every year on an ongoing basis, develop and table annual progress reports on implementing the United Nations Declaration on the Rights of Indigenous Peoples Act (Minister of Justice and Attorney General of Canada)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Implement the United Nations Declaration on the Rights of Indigenous Peoples Act	Promote the use of Indigenous vendors to the greatest extent possible to meet procurement needs, using a comprehensive Procurement Management Framework to manage and monitor compliance with mandatory targets.Include a mandatory commitment in performance plans for senior management to manage procurement needs in a fair, open, and transparent manner and to select Indigenous vendors when available. Program: Internal Services	Performance indicator: Percentage of total dollar value of contracts awarded to Indigenous businesses relative to total overall dollar value of all contracts.Percentage of senior mangers with relevant performance management commitments Starting point: 8% of total dollar value of contracts awarded to Indigenous business (FY 22-23)Mandatory commitments are a new initiative for FY 2023-24 Target: Reach or exceed the minimum requirement of 5% of total dollar value of contracts awarded to Indigenous businesses on an annual basis 100% of senior managers include relevant procurement commitments by FY 2024-25	Supporting Indigenous businesses contributes to addressing economic inequalities by promoting equality and prosperity for Indigenous Peoples and awareness within the public service. Relevant targets or ambitions: GIF Target - 10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Implement the United Nations Declaration on the Rights of Indigenous Peoples Act

Promote the use of Indigenous vendors to the greatest extent possible to meet procurement needs, using a comprehensive Procurement Management Framework to manage and monitor compliance with mandatory targets.Include a mandatory commitment in performance plans for senior management to manage procurement needs in a fair, open, and transparent manner and to select Indigenous vendors when available.

Program: Internal Services

Performance indicator:
Percentage of total dollar value of contracts awarded to Indigenous businesses relative to total overall dollar value of all contracts.Percentage of senior mangers with relevant performance management commitments

Starting point:
8% of total dollar value of contracts awarded to Indigenous business (FY 22-23)Mandatory commitments are a new initiative for FY 2023-24

Target:
Reach or exceed the minimum requirement of 5% of total dollar value of contracts awarded to Indigenous businesses on an annual basis 100% of senior managers include relevant procurement commitments by FY 2024-25

Supporting Indigenous businesses contributes to addressing economic inequalities by promoting equality and prosperity for Indigenous Peoples and awareness within the public service.

Relevant targets or ambitions:
GIF Target - 10.3 Ensure equal opportunity and reduce inequalities
of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard

Goal 12: Reduce waste and transition to zero-emission vehicles

FSDS Context:

Accelerated capital cost allowance for business investment in zero-emission vehicles supports the transition to zero-emission vehicles which can reduce transportation- and industry-related greenhouse gas emissions.

Through both the education and mobilization of its workforce, the Department of Finance implements green principles and practices in its operations that include sustainable waste management supporting the transition to a cleaner and more circular economy. To enhance sustainable consumption and further reduce greenhouse gas emissions, a transition to zero-emission vehicles will be prioritized for its executive fleet.

Target theme: Federal Leadership on Responsible Consumption

Target: By 2030, the Government of Canada will divert from landfill at least 75% by weight of non-hazardous operational waste (All Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Maximize diversion of waste from landfill	Promote waste reduction and recycling through internal awareness campaigns and activities. Program: Internal Services	Performance indicator: Percentage by weight of operational waste diverted from landfill. Starting point: 65.74% Diversion Rate [2022-2023] Target: 75% Diversion Rate by 2030	Actions that reduce non-hazardous operational waste will help reduce emissions for the production, transport, and disposal of material. Diverting waste from landfill reduces landfill gas and hauling emissions. Material recovery via recycling reduces emissions for the extraction and production of virgin materials. Relevant targets or ambitions: CIF Ambition: Canadians consume in a sustainable manner CIF Indicator:12.3.1 Total waste diversion per capita GIF Target: 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse:

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Maximize diversion of waste from landfill

Promote waste reduction and recycling through internal awareness campaigns and activities.

Program: Internal Services

Performance indicator: Percentage by weight of operational waste diverted from landfill.

Starting point: 65.74% Diversion Rate [2022-2023]

Target: 75% Diversion Rate by 2030

Actions that reduce non-hazardous operational waste will help reduce emissions for the production, transport, and disposal of material. Diverting waste from landfill reduces landfill gas and hauling emissions. Material recovery via recycling reduces emissions for the extraction and production of virgin materials.

Relevant targets or ambitions:
CIF Ambition: Canadians consume in a sustainable manner

CIF Indicator:12.3.1 Total waste diversion per capita

GIF Target: 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse:

Target: By 2030, the Government of Canada will divert from landfill at least 90% by weight of all construction and demolition waste (All Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Maximize diversion of waste from landfill *This target only applies to organizations that own real property. As a tenant organization, Finance Canada is only responsible for its own operational waste.	Promote waste reduction and recycling through internal awareness campaigns and activities. Program: Internal Services	Performance indicator: Percentage by weight of operational waste diverted from landfill. Starting point: 65.74% Diversion Rate [2022-2023] Target: 75% Diversion Rate by 2030	Actions that reduce non-hazardous operational waste will help reduce emissions for the production, transport, and disposal of material. Diverting waste from landfill reduces landfill gas and hauling emissions. Material recovery via recycling reduces emissions for the extraction and production of virgin materials. Relevant targets or ambitions: CIF Ambition: Canadians consume in a sustainable manner CIF Indicator:12.3.1 Total waste diversion per capita GIF Target: 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse:

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Maximize diversion of waste from landfill

*This target only applies to organizations that own real property. As a tenant organization, Finance Canada is only responsible for its own operational waste.

Promote waste reduction and recycling through internal awareness campaigns and activities.

Program: Internal Services

Performance indicator: Percentage by weight of operational waste diverted from landfill.

Starting point: 65.74% Diversion Rate [2022-2023]

Target: 75% Diversion Rate by 2030

Relevant targets or ambitions:
CIF Ambition: Canadians consume in a sustainable manner

CIF Indicator:12.3.1 Total waste diversion per capita

GIF Target: 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse:

Target: The Government of Canada’s procurement of goods and services will be net-zero emissions by 2050, to aid the transition to a net-zero, circular economy (All Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Transform the federal light-duty fleet	Each year, new executive fleet vehicle purchases will be zero-emission vehicles or hybrid-electric vehicles. Program: Internal Services	Performance indicator: Percentage of executive fleet that is ZEV and HEV Starting point: 100% HEV, 0% ZEV [2022-23] Target: 100% ZEV by 2027	Purchasing zero emission vehicles reduces greenhouse gas emissions from conventional fleet operations. This enhances sustainable consumption. Relevant targets or ambitions: CIF Ambition: 12.1 Canadians consume in a sustainable manner CIF Indicator: 12.1.1 Proportion of new light duty vehicle registrations that are zero-emission vehicles GIF Target: 12.1 Implement the 10-year framework of programmes on sustainable consumption and production, all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries
Strengthen green procurement criteria	Ensure all procurement and materiel management specialists are trained in green procurement (such as, the Canada School of Public Service course on green procurement, or equivalent) within one year of being identified/hired.Ensure all procurement and materiel management specialists have to meet green procurement work objectives through the annual performance management exercise. Program: Internal Services	Performance indicator: Percentage of procurement and material management specialists that have completed green procurement training and have green procurement work objectives included in their annual performance management plans within one year of being identified/hired. Starting point: 100% of current specialists in procurement and materiel management have completed training on green procurement and have annual performance management objectives related to green procurement [2022-23] Target: Maintain 100% completion rate.	Green procurement incorporates environmental considerations into purchasing decisions and is expected to motivate suppliers to reduce the environmental impact of the goods and services they deliver, and their supply chains. Relevant targets or ambitions: CIF Ambition: Canadians consume in a sustainable manner CIF Indicator: 12.2.1Proportion of businesses that adopted selected environmental protection activities and management practices GIF Target: 12.7 Promote public procurement practices that are sustainable, in accordance with national policies and priorities

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Transform the federal
light-duty fleet

Each year, new executive fleet vehicle purchases will be zero-emission vehicles or hybrid-electric vehicles.

Program: Internal Services

Performance indicator: Percentage of executive fleet that is ZEV and HEV

Starting point: 100% HEV, 0% ZEV [2022-23]

Target: 100% ZEV by 2027

Purchasing zero emission vehicles reduces greenhouse gas emissions from conventional fleet operations. This enhances sustainable consumption.

Relevant targets or ambitions:
CIF Ambition: 12.1 Canadians consume in a sustainable manner

CIF Indicator: 12.1.1 Proportion of new light duty vehicle registrations that are zero-emission vehicles

GIF Target: 12.1 Implement the 10-year framework of programmes on sustainable consumption and production, all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries

Strengthen green procurement criteria

Ensure all procurement and materiel management specialists are trained in green procurement (such as, the Canada School of Public Service course on green procurement, or equivalent) within one year of being identified/hired.Ensure all procurement and materiel management specialists have to meet green procurement work objectives through the annual performance management exercise.

Program: Internal Services

Performance indicator:
Percentage of procurement and material management specialists that have completed green procurement training and have green procurement work objectives included in their annual performance management plans within one year of being identified/hired.

Starting point:
100% of current specialists in procurement and materiel management have completed training on green procurement and have annual performance management objectives related to green procurement [2022-23]

Target:
Maintain 100% completion rate.

Green procurement incorporates environmental considerations into purchasing decisions and is expected to motivate suppliers to reduce the environmental impact of the goods and services they deliver, and their supply chains.

Relevant targets or ambitions:
CIF Ambition: Canadians consume in a sustainable manner

CIF Indicator: 12.2.1Proportion of businesses that adopted selected environmental protection activities and management practices

GIF Target: 12.7 Promote public procurement practices that are sustainable, in accordance with national policies and priorities

Target theme: Zero-Emission Vehicles

Target: For the 2030 model year, at least 60% of new light-duty vehicle sales are zero-emission vehicles, and
100% of vehicle sales will be zero-emission vehicles for the 2035 model year (Minister of Transport;
Minister of Environment and Climate Change)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Other	Provide an accelerated capital cost allowance forbusiness investments in eligible zero-emission vehicles and automotive equipment. Program: Tax Policy and Legislation	Performance indicator: Year-over-year change in business investment in zero-emission vehicles and automotive equipment (Classes 54, 55 and 56) Starting point: From 2020 to 2021, the amount of business investment in Capital Cost Allowance Classes 54, 55, and 56 by corporations and partnerships decreased from $215 million to $173 million. This does not include investments by unincorporated businesses or in vehicles that received the federal rebate for on-road light-duty vehicles (iZEV). Businesses must choose between these Capital Cost Allowance Classes and the iZEV.	Immediate expensing makes business investments in zero-emission vehicles less expensive by providing a tax incentive. Relevant targets or ambitions: CIF Ambition: 12.1 Canadians consume in a sustainable manner. CIF Target: 12.1 Zero-emission vehicles represent 10% of new light duty vehicle sales by 2025, 30% by 2030 and 100% by 2040 CIF Indicator: 12.1.1 Proportion of new light duty vehicle registrations that are zero-emission vehicles GIF Target: 12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Other

Provide an accelerated capital cost allowance forbusiness investments in eligible zero-emission vehicles and automotive equipment.

Program: Tax Policy and Legislation

Performance indicator: Year-over-year change in business investment in zero-emission vehicles and automotive equipment (Classes 54, 55 and 56)

Starting point: From 2020 to 2021, the amount of business investment in Capital Cost Allowance Classes 54, 55, and 56 by corporations and partnerships decreased from $215 million to $173 million. This does not include investments by unincorporated businesses or in vehicles that received the federal rebate for on-road light-duty vehicles (iZEV). Businesses must choose between these Capital Cost Allowance Classes and the iZEV.

Immediate expensing makes business investments in zero-emission vehicles less expensive by providing a tax incentive.

Relevant targets or ambitions:
CIF Ambition: 12.1 Canadians consume in a sustainable manner.

CIF Target: 12.1 Zero-emission vehicles represent 10% of new light duty vehicle sales by 2025, 30% by 2030 and 100% by 2040

CIF Indicator: 12.1.1 Proportion of new light duty vehicle registrations that are zero-emission vehicles

GIF Target: 12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle

Initiatives advancing Canada’s implementation of SDG 12 – Responsible Consumption and Production

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Excise Tax on fuel-inefficient vehicles (Green Levy) The federal government imposes an excise tax on certain fuel-inefficient vehicles (also known as the Green Levy) based on their fuel efficiency rating. Automobiles (including station wagons, vans and sport utility vehicles) designed primarily for use as passenger vehicles that have a weighted average fuel consumption rating of 13 or more litres per 100 km are subject to an excise tax ranging from $1,000 up to $4,000. The Green Levy encourages the development, production and purchase of more fuel-efficient vehicles by making it more expensive to buy less fuel-efficient vehicles, which could contribute to reducing air pollutant/GHG emissions and a cleaner, healthier environment.	The Green Levy contributes to advancing the Canadian Indicator Framework ambition 12.1 of “Canadians consume in a sustainable manner”.

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Excise Tax on fuel-inefficient vehicles (Green Levy)

The federal government imposes an excise tax on certain fuel-inefficient vehicles (also known as the Green Levy) based on their fuel efficiency rating. Automobiles (including station wagons, vans and sport utility vehicles) designed primarily for use as passenger vehicles that have a weighted average fuel consumption rating of 13 or more litres per 100 km are subject to an excise tax ranging from $1,000 up to $4,000. The Green Levy encourages the development, production and purchase of more fuel-efficient vehicles by making it more expensive to buy less fuel-efficient vehicles, which could contribute to reducing air pollutant/GHG emissions and a cleaner, healthier environment.

The Green Levy contributes to advancing the Canadian Indicator Framework ambition 12.1 of “Canadians consume in a sustainable manner”.

Goal 13: Take action on climate change and its impacts

FSDS Context:

Climate action is critical to Canada’s long-term health and economic prosperity. Putting a price on pollution remains the most effective way to fight climate change while making life more affordable for Canadians. The federal fuel charge applies in jurisdictions that request it or that do not have their own pollution pricing system which meet the federal benchmark. All direct proceeds from the fuel charge are returned to the jurisdiction of origin. In provinces where the fuel charge applies, 90 per cent of direct proceeds are returned to residents of those provinces through Climate Action Incentive payments. The other 10 per cent is used to support small and medium-sized businesses and Indigenous groups.

Climate resilience in departmental operations is promoted through educational and awareness strategies, and by ensuring plans are in place that ensure continuity of operations amongst despite the increased incidence of extreme weather events.

Target theme: Climate Change Mitigation and Adaption

Target: Achieve 40 to 45% greenhouse gas emission reductions below 2005 levels by 2030, and achieve net-zero greenhouse gas emissions by 2050 (Minister of Environment and Climate Change supported by all other Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Continue to implement Canada’s climate plans and actions	Oversee the fuel charge component of the federal pollution pricing system that applies in provinces and territories upon request, and in provinces and territories that do not have in place a carbon pricing system that meets the federal stringency requirements. Continue to oversee the return of 90 per cent of direct fuel charge proceeds through Climate Action Incentive payments to individuals and families in provinces where the federal fuel charge applies and continue to specify Climate Action Incentive payment amounts annually for those provinces. Program: Tax Policy and Legislation	Performance indicator: Carbon pollution pricing applies broadly across Canada, in accordance with the federal stringency requirements, as assessed by Environment and Climate Change Canada. Starting point: The Government released for consultation draft legislative proposals related to the federal pollution pricing system in January 2018. Target: The Greenhouse Gas Pollution Pricing Act is maintained and Fuel Charge Regulations are implemented.	The federal pollution pricing system ensures that carbon pricing is implemented in all provinces and territories that do not have in place a carbon pricing system that meets the federal stringency requirements and thus encourages the use of clean technologies, which can reduce the amount of GHG emissions emitted. Relevant targets or ambitions: CIF Ambition: 13.1 Canadians reduce their greenhouse gas emissions CIF Target: 13.1 By 2030, reduce Canada’s total greenhouse gas emissions by 40 to 45%, relative to 2005 emission levels. By 2050, achieve economy-wide net-zero greenhouse gas emissions. CIF Indicator: 13.1.1 Greenhouse gas emissions GIF Target: 13.2 Integrate climate change measures into national policies, strategies and planning
Implement the Canadian Net-Zero Emissions Accountability Act	Oversee the preparation and release of an annual report on key measures that the federal public administration undertakes to manage its financial risks and opportunities related to climate change under Section 23 of the Canadian Net-Zero Emissions Accountability Act. Program: Economic Development Policy	Performance indicator: The report is released annually and meets legislative requirements. Starting point: The Canadian Net-Zero Emissions Accountability Act received Royal Assent on June 29, 2021. The Government intends to publish the first report, covering 2023–2024, by the end of 2024 and will publish annually thereafter. Target: The Minister of Finance is required to produce this report every year, beginning in 2024.	This annual report will provide Canadians with greater insight into actions the federal public administration is taking to manage its financial risks and opportunities arising from climate change. Relevant targets or ambitions: CIF Ambition/Target: 13.3 Canadians are well-equipped and resilient to face the effects of Climate change GIF Target: 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Continue to implement Canada’s climate plans and actions

Oversee the fuel charge component of the federal pollution pricing system that applies in provinces and territories upon request, and in provinces and territories that do not have in place a carbon pricing system that meets the federal stringency requirements. Continue to oversee the return of 90 per cent of direct fuel charge proceeds through Climate Action Incentive payments to individuals and families in provinces where the federal fuel charge applies and continue to specify Climate Action Incentive payment amounts annually for those provinces.

Program: Tax Policy and Legislation

Performance indicator: Carbon pollution pricing applies broadly across Canada, in accordance with the federal stringency requirements, as assessed by Environment and Climate Change Canada.

Starting point: The Government released for consultation draft legislative proposals related to the federal pollution pricing system in January 2018.

Target: The Greenhouse Gas Pollution Pricing Act is maintained and Fuel Charge Regulations are implemented.

The federal pollution pricing system ensures that carbon pricing is implemented in all provinces and territories that do not have in place a carbon pricing system that meets the federal stringency requirements and thus encourages the use of clean technologies, which can reduce the amount of GHG emissions emitted.

Relevant targets or ambitions:
CIF Ambition: 13.1 Canadians reduce their greenhouse gas emissions

CIF Target: 13.1 By 2030, reduce Canada’s total greenhouse gas emissions by 40 to 45%, relative to 2005 emission levels. By 2050, achieve economy-wide net-zero greenhouse gas emissions.

CIF Indicator: 13.1.1 Greenhouse gas emissions

GIF Target: 13.2 Integrate climate change measures into national policies, strategies and planning

Implement the Canadian Net-Zero Emissions Accountability Act

Oversee the preparation and release of an annual report on key measures that the federal public administration undertakes to manage its financial risks and opportunities related to climate change under Section 23 of the Canadian Net-Zero Emissions Accountability Act.

Program: Economic Development Policy

Performance indicator: The report is released annually and meets legislative requirements.

Starting point: The Canadian Net-Zero Emissions Accountability Act received Royal Assent on June 29, 2021. The Government intends to publish the first report, covering 2023–2024, by the end of 2024 and will publish annually thereafter.

Target: The Minister of Finance is required to produce this report every year, beginning in 2024.

This annual report will provide Canadians with greater insight into actions the federal public administration is taking to manage its financial risks and opportunities arising from climate change.

Relevant targets or ambitions:
CIF Ambition/Target: 13.3 Canadians are well-equipped and resilient to face the effects of Climate change

GIF Target: 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Target theme: Federal Leadership on Greenhouse Gas Emissions Reductions and Climate Resilience

Target: The Government of Canada will transition to net-zero carbon operations for facilities and conventional fleets by 2050 (All Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Implement the Greening Government Strategy through measures that reduce greenhouse gas emissions, improve climate resilience, and green the government’s overall operations	Promote more sustainable operational practices through events and informational campaigns. Program: Internal Services	Performance indicator: Capture rate as indicated in annual building waste audit. Starting point: 65.74% capture rate [2023] Target: 75% capture rate [2027]	Internal awareness strategies target a reduction in human climate change impacts. Operational waste reductions help address climate pollutant emissions such as landfill gas and hauling emissions, supporting a transition to net-zero carbon operations. Relevant targets or ambitions: CIF Ambition: 13.1 Canadians reduce their greenhouse gas emissions GIF Target: 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Implement the Greening Government Strategy through measures that reduce greenhouse gas emissions, improve climate resilience, and green the government’s overall operations

Promote more sustainable operational practices through events and informational campaigns.

Program: Internal Services

Performance indicator: Capture rate as indicated in annual building waste audit.

Starting point: 65.74% capture rate [2023]

Target: 75% capture rate [2027]

Internal awareness strategies target a reduction in human climate change impacts. Operational waste reductions help address climate pollutant emissions such as landfill gas and hauling emissions, supporting a transition to net-zero carbon operations.

Relevant targets or ambitions:
CIF Ambition: 13.1 Canadians reduce their greenhouse gas emissions

GIF Target: 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

Target: The Government of Canada will transition to climate resilient operations by 2050 (All Ministers)

Implementation strategy	Departmental action	Performance indicator starting point target	How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS
Reduce risks posed by climate change to federal assets, services and operations	Regular review of risk and response strategies to ensure the continuity of operations as an immediate result of an extreme weather event and its relation to the delivery of departmental programs and services. Program: Internal Services	Performance indicator: Frequency of departmental BCP review, update, and engagement. Starting point: Departmental BCP is reviewed and updated annually with internal stakeholder engagement.	Annual reviews ensure response strategies remain relevant to current climate change risks, strengthening the department’s ability to respond and recover from natural disasters, and reducing the risk of a disruption to the delivery of critical services to and for Canadians. Relevant targets or ambitions: CIF Ambition: Canadians are well-equipped and resilient to face the effects of climate change GIF Target: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Implementation strategy

Departmental action

Performance indicator starting point target

How the departmental action contributes to the FSDS goal and target and, where applicable, to Canada’s 2030 agenda national strategy and SDGS

Reduce risks posed by climate change to federal assets, services and operations

Regular review of risk and response strategies to ensure the continuity of operations as an immediate result of an extreme weather event and its relation to the delivery of departmental programs and services.

Program: Internal Services

Performance indicator:
Frequency of departmental BCP review, update, and engagement.

Starting point: Departmental BCP is reviewed and updated annually with internal stakeholder engagement.

Annual reviews ensure response strategies remain relevant to current climate change risks, strengthening the department’s ability to respond and recover from natural disasters, and reducing the risk of a disruption to the delivery of critical services to and for Canadians.

Relevant targets or ambitions:
CIF Ambition: Canadians are well-equipped and resilient to face the effects of climate change

GIF Target: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Goal 15: Protect and recover species, conserve canadian biodiversity

Initiatives advancing Canada’s implementation of SDG 15 – Life on Land

The following initiatives demonstrate how the Department of Finance Canada’s programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Relevant initiatives	Associated domestics targets or ambitions and/or global targets
Ecological Gifts Program Under the Ecological Gifts Program, Canadian landowners may donate ecologically sensitive land, or partial interests in such land, to conservation charities to ensure its preservation in perpetuity. Under this program, donors may benefit from the charitable donations tax credit (for individuals) or the charitable donations deduction (for corporations) on the full value of the gifts of ecologically sensitive land.	The Ecological Gifts Program contributes to advancing: The Canadian Indicator Framework ambition 15.3 of “Canada conserves and restores ecosystems and habitat” The Canadian Indicator Framework target 15.3 of “Conserve 25% of Canada's land by 2025, working towards 30% by 2030”.

Relevant initiatives

Associated domestics targets or ambitions and/or global targets

Ecological Gifts Program

Under the Ecological Gifts Program, Canadian landowners may donate ecologically sensitive land, or partial interests in such land, to conservation charities to ensure its preservation in perpetuity. Under this program, donors may benefit from the charitable donations tax credit (for individuals) or the charitable donations deduction (for corporations) on the full value of the gifts of ecologically sensitive land.

The Ecological Gifts Program contributes to advancing:

The Canadian Indicator Framework ambition 15.3 of “Canada conserves and restores ecosystems and habitat”
The Canadian Indicator Framework target 15.3 of “Conserve 25% of Canada's land by 2025, working towards 30% by 2030”.

Section 5: Integrating Sustainable Development

Economic analysis and considerations are the foundation of the Department's work. The Department uses Gender-Based Analysis Plus (GBA Plus) and Strategic Environmental Assessment (SEA) to analyse and develop policy and fiscal advice that takes into consideration social and environmental impacts. A GBA Plus and an SEA are conducted for policies, plans and program proposals submitted by the Department to Cabinet or the Minister of Finance for decision.

The Budget 2023 process asked departments to identify the impacts of each of their proposal on the quality of life of Canadians by using a Quality of Life framework which was introduced in 2021. Budget 2023 also asked some departments to conduct an Integrated Climate Lens (ICL), a qualitative and quantitative assessment of their proposals’ effects on climate change, the economy, and Canada’s resilience to a changing climate.

As per the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, an SEA for a policy, plan or program proposal includes an analysis of the impacts of the given proposal on the environment, including on relevant FSDS goals and targets. For policy, plan or program proposals developed by the Department, and submitted to Cabinet or the Minister of Finance, a preliminary scan is conducted to determine whether the proposal is likely to cause important environmental effects, including impacts on FSDS goals and targets. If the scan concludes that such effects are likely, then a full SEA is conducted to analyze the scope and nature of the proposal's environmental effects and determine possible measures to reduce negative environmental effects and increase positive environmental effects. During the 2022-23 reporting cycle, the Department considered the environmental effects of 118 proposals, including 11 that were subject to a full SEA. The Department of Finance Canada will continue to ensure that its decision-making process includes consideration of FSDS goals and targets through its SEA process.

Public statements on the results of the Department of Finance Canada’s assessments are made public when an initiative has undergone a detailed SEA. The purpose of the public statement is to demonstrate that the environmental effects, including the impacts on achieving the FSDS goals and targets, of the approved policy, plan or program have been considered during proposal development and decision making.

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Date modified:: 2023-11-15

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Departmental Sustainable Development Strategy 2023-2027

Section 1: Introduction to the Departmental Sustainable Development Strategy

Section 2: Department of Finance Canada’s Sustainable Development Vision

Section 3: Listening to Canadians

What We Heard

What We Did

Section 4: Department of Finance Canada’s Commitments

Goal 1: Reduce poverty in Canada in all its forms

Goal 4: Promote knowledge and skills for sustainable development

Goal 5: Champion gender equality

Goal 7: Increase Canadians' access to clean energy

Goal 8: Encourage inclusive and sustainable economic growth in Canada

Implementation strategies supporting the goal

Goal 9: Foster innovation and green infrastrucutre in Canada

Implementation strategies supporting the goal

Goal 10: Advance reconciliation with indigenous peoples and take action on inequality

Goal 12: Reduce waste and transition to zero-emission vehicles

Goal 13: Take action on climate change and its impacts

Goal 15: Protect and recover species, conserve canadian biodiversity

Section 5: Integrating Sustainable Development

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