Main Estimates, 2021-2022, Environment and Climate Change Canada: appearance before the Standing Committee (March 10, 2021)

Overview

Issue

Environment and Climate Change Canada’s (ECCC) reference levels for the 2021-22 Main Estimates are presented at $1,699.1 million.

Points to register

• Environment and Climate Change Canada’s Main Estimates total funding is $1,699.1 million which represents a decrease of $283.8 million or 14% in total funding from the 2020-21 Main Estimates.
• This decrease is mostly due to the Low Carbon Economy Fund for which the funding profile is decreasing significantly in 2021-22, as well as the sunsetting of funding for multiple temporary initatives in 2020-21, such as the Climate Action Incentive Fund and the Chemicals Management Plan.
• Similarly, the planned Full-time Equivalents (FTEs) for 2021-22 are expected to decrease by 170 FTEs between 2020−21 and 2021−22 as a result of a decreasing funding profile for the Low Carbon Economy Fund and sunsetting initiatives with temporary funding such as the Chemicals Management Plan.
• Funding requests for the renewal of such initiatives are subject to government decisions and will be reflected in future Budget exercises and Estimates documents.
• With the funding received in Main Estimates, Environment and Climate Change Canada will continue to provide national leadership to reduce Canadian greenhouse gas and short-lived climate pollutant emissions; engage Indigenous people in clean growth and climate change; prevent pollution in ecosystems, water and air; conserve and protect Canada’s wildlife and habitat, recover species at risk; and, provide weather and environmental information to make decisions on health and safety.

Main Estimates – description of new items

Low Carbon Economy Fund (LCEF) Reprofile of funds: $69.2 million

• As per Budget 2017, ECCC received funding of $1.9 billion over 5 years beginning in 2017-18 for the Low Carbon Economy Fund (LCEF) to reduce greenhouse gas emissions under the Pan-Canadian Framework (PCF) on Clean Growth and Climate Change. The LCEF funds is divided into two parts. The Low Carbon Economy Leadership Fund (Leadership Fund) with $1.4 billion, which are for provinces and territories (PTs) who adopted the PCF. The Low Carbon Economy Challenge Fund (Challenge Fund) with $500 million is comprised of two parts (Champion and Partnerships) for projects selected through a competitive process.
• As several provinces/territories (PTs) were delayed in submitting proposals to access the funding notionally allocated to them through the Low Carbon Economy Leadership Fund, there was less spending than anticipated in 2018-19. This delay caused a ripple effect and many PTs were not able to initiate their approved programs until well into 2019-20, lowering their capacity to spend what was anticipated for 2019-20 and 2020-21. In addition, given the program’s late start in the fiscal year, the difficulty of accurately forecasting sales or the value of rebates provided through the program, and the closure of stores in mid-March due to the COVID-19 pandemic, the estimated expenditures for 2019­-20 were less than expected. As such, ECCC is seeking to reprofile funding initially allocated in 2019­-20 and 2020-21 to future years, in order to ensure that PTs are able to access all funds that have been publically committed and approved.
• Overall, ECCC has sought to reprofile a total of $356.5 million of grants and contributions funds from ECCC’s existing reference levels ($302.4 million from 2019-20 and $54.1 million from 2020-21). Of this amount, $69.2 million will be transferred into 2021-22, $156.7 million will be transferred to 2022-­23 and $130.5 million will be transferred to 2023-24. The reprofile has been approved by Finance Canada.

Compensation Adjustments for Collective Agreements: $13.4 million

• New funding for collective agreements signed between September 12 and November 13, 2020 was allocated to the Department by TBS. These adjustments are related to EB, PA, SV and TC groups. Funding for 2021-22 and retros represent $13.4 million and $13.1 million for 2022-23 and on-going, including EBP.

Funding to Modernize the Enforcement of Environmental Laws and Regulations: $9.7 million

• *Redacted*
• The new resources will help in addressing audit recommendations outlined in four audits conducted on enforcement functions by the Commissioner of Environment and Sustainable Development over the past eleven years. The audit recommendations called for improvements to better prioritize enforcement activities based on environmental and human health risks. The new funding will enable the department to conduct analysis of its entire mandate to identify the greatest risks, conduct field tests and refine its analysis, while ensuring officers are trained and equipped to carry out this work safely and effectively.

Funding for the conservation of the Central Group of Southern Mountain Caribou in British Columbia: $-4.5 million including reprofile to 2020-21 and future years

• *Redacted*
• Contribution funding received through the 2021-22 Main Estimates will allow ECCC to lead the implementation of the Species at Risk Act (SARA) and to support obligations under the Act associated with protection and recovery of species at risk. This proposal supports the recovery of a priority species at risk, Southern Mountain Caribou, including the protection of important habitats.

Pan-Canadian Framework Expert Panel – technical adjustment: $-4.0 million

• A technical adjustment was performed in the 2021-22 Annual Reference Level Update (ARLU) in order to realign the PCF Expert Panel funding currently in ECCC’s reference levels with the Fiscal Framework. As part of the Budget 2018, a decision was made to reallocate $4.0 million from 2021-22 to 2022-23 for the Expert Engagement. The adjustment of $4 million is required in the Main Estimates to adjust reference levels between years accordingly. Overall, ECCC is transferring a total of $4.0 million of contribution funds from 2021-22 from ECCC’s existing reference levels to 2022-23.

Transfers to/from Other Government Departments for 2021-22: net amount of $-3.4 million

• From the Department of the Environment to the Department of Natural Resources for the 50 Million Tree Program under the Low Carbon Economy Fund: $-3.4 million;
• From the Department of Environment to the Department of Fisheries and Oceans to continue the environmental restoration of projects under the Canada-United States Great Lakes Water Quality Agreement: $-1.0 million;
• From the Department of the Environment to Crown-Indigenous Relations and Northern Affairs to develop plastics science in support of the Canada-wide Strategy on Zero Plastic Waste: $-0.3 million;
• From Treasury Board Secretariat to the Department of the Environment for Government-Wide Initiatives from the Regulator’s Capacity Fund: $0.5 million;
• From the Department of Fisheries and Oceans to various organizations to respond to Indigenous concerns on the overall health of the Salish Sea: $0.5 million;
• From the National Research Council of Canada to various organizations for genomics research and development: $0.3 million.

Vote Netted Revenue (VNR) adjustment: net impact of $0.0 million

• Vote Netted Revenue (VNR) anticipated collections are decreasing by a total amount of $5.0 million from $80.8 million in 2020-21 to $75.8 million in 2021-22. This is mostly due to:
  • A decrease in anticipated collections from the Joint Canada-Alberta Implementation Plan for Oil Sands ($3.6 million);
  • A decrease in anticipated collections from the Canadian Coast Guard ($0.8 million);
  • A decrease in anticipated collections from the Disposal at Sea Initiative ($0.5 million);
  • A decrease in anticipated collections from the general account ($0.4 million); The decreases are offset by:
    • An increase in anticipated collections from provinces who receive water quantity monitoring services ($0.3 million).

Others items

• Other items are included in the Main Estimates such as $1.8 million in new funding to safeguard the continuous operation of the Dr. Neil Trivett Global Atmosphere Watch Observatory in Alert, Nunavut; $1.7 million in new funding to Implement British Columbia Agreements, $1.3 million in new funding for Capital Revenues relating to the Hydrometric Monitoring Program and others adjustments totaling - $1.2 million.

Please consult detailed description of items for further details.

Grants and contributions

• Environment and Climate Change Canada’s 2021-22 Main Estimates include $623.7 million in voted grants and contributions composed of $10.1 million in grants and $613.6 million in contributions.

Voted Grants - Total $10.1 million including:

• Grants in support of Taking Action on Clean Growth and Climate Change ($3,000,000): These grants enable engagement with municipalities, provinces, territories, Indigenous peoples, other stakeholders to support and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.
• Grant for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer ($2,800,000): The Montreal Protocol on Substances that Deplete the Ozone Layer is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances that are responsible for ozone depletion. This grant enables Canada to meet up to 20 per cent of its annual obligation to the Multilateral Fund for the Implementation of the Montreal Protocol to support projects that assist developing countries comply with their commitments under the Montreal Protocol.
• Grants in support of the Low Carbon Economy Fund ($2,500,000): These grants support incremental actions to current plans that materially reduce greenhouse gas (GHG) emissions and achieve significant reductions within the period of Canada’s first Nationally Determined Contribution under the Paris Agreement. The LCEF will also support the implementation of new technologies and Canada’s long-term transition towards cleaner growth through the decarbonisation of the economy.
• Grant under the Innovative Solutions Canada program ($1,700,000): This grant supports the Innovative Solutions Canada program dedicated to supporting the scale up and growth of Canada’s innovators and entrepreneurs by having the federal government act as a first customer. The Program allows Participating Departments/Agencies to support the scale up of Canadian small businesses through early-stage, pre-commercial R&D. The Program helps to develop a domestic market for early-stage, pre-commercial innovations; provides a mechanism for government to partner with innovative small businesses on the creation of unique IP and novel solutions; and facilitates the subsequent testing and validation of prototypes, as well as prepares a pathway to commercialization and purchase of novel new products by government and non-government customers.
• Grants in support of Weather and Environmental Services for Canadians ($44,000): This grant supports the continued research and the development of highly qualified experts in the scientific areas related to Environment and Climate Change Canada’s mandate, such as atmospheric study and climate change.

Voted Contributions - Total of $613.6 million including:

• Contributions in support of the Low Carbon Economy Fund ($421,242,415): These contributions support incremental actions to current plans that materially reduce greenhouse gas (GHG) emissions and achieve significant reductions within the period of Canada’s first Nationally Determined Contribution under the Paris Agreement. The LCEF will also support the implementation of new technologies and Canada’s long-term transition towards cleaner growth through the decarbonisation of the economy.
• Contributions in support of the Canada Nature Fund ($101,573,097): The Canada Nature Fund will support the securement of private land, support provincial and territorial species protection efforts and help build Indigenous capacity to conserve land and species. It will support and enable others to undertake actions that conserve wildlife and protect and improve their habitat.
• Contributions in support of Preventing and Managing Pollution ($29,477,591): These contributions support the collaboration with provinces, territories, Indigenous peoples and others to develop and administer environmental standards, guidelines, regulations and other risk management instruments to reduce releases and monitor levels of contaminants in air, water and soil; promote and enforce compliance with environmental laws and regulations; and administer on the ground projects that have positive impact on the environment.
• Contributions in support of Conserving Nature ($30,432,296): The purpose of these contributions is to advance conservation of biodiversity and sustainable development by supporting projects that enable conservation, protection and recover of Canada’s wildlife including; species at risk and their habitat (including critical habitat) and healthy populations of migratory birds. These contributions will also support Canada’s biodiversity strategy and related domestic and international partnership interests, including the establishment and management of protected areas, Indigenous protected and conserved areas and Indigenous people’s capacity and participation in conservation.
• Contributions in support of Taking Action on Clean Growth and Climate Change ($15,420,016): These contributions support engagement with municipalities, provinces, territories, Indigenous peoples and other stakeholders to assist and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.
• Assessed contribution to the Commission for Environmental Cooperation (CEC) ($3,460,777): This contribution supports Canada’s membership to The Commission for Environmental Cooperation (CEC), established by Canada, the United States and Mexico, under the terms of the North American Agreement for Environmental Cooperation. It addresses environmental concerns in North America, helps prevent potential trade and environmental conflicts among the NAFTA partners, and promotes the effective enforcement of domestic environmental laws in the three countries.
• Contributions in support of the Youth Employment and Skills Strategy ($3,069,000): Environment and Climate Change Canada’s Science Horizons Youth Internship Program (Science Horizons) falls under the Youth Employment and Skills Program led by Employment and Social Development Canada. The objective of Science Horizons is to develop opportunities for youth with post-secondary education by providing eligible employers with wage subsidies to hire youth with a post-secondary education who are eligible to work in science, technology, engineering or math (STEM) linked to the green economy.
• Contributions in support of the Impact Assessment and Regulatory System ($3,060,400): The purpose of these contributions is to support the “Cumulative Effects, Open Science and Evidence” approach which includes the development of an open science and data platform; supporting regional assessments; conducting strategic assessments, including ones on climate change and biodiversity; and coordinating departmental, federal and inter-jurisdictional efforts to implement the proposed approach to addressing the cumulative effects of natural resource development.
• Contributions in support of Predicting Weather and Environmental Conditions ($2,975,378): This contribution encourages and supports international capacity building activities to enable access, understanding and use information on changing weather, water, air quality and climate conditions.
• Assessed contribution to the World Meteorological Organization (WMO) ($2,167,785): This contribution supports Canada’s membership to the World Meteorological Organization (WMO), a specialized agency of the United Nations and the UN system's authoritative voice on the state and behavior of the Earth's atmosphere, its interaction with the oceans, the climate it produces and the resulting distribution of water resources. As one of the most weather-sensitive countries in the world, Canada plays a major role in shaping the world’s weather and climate. This membership allows Canada to selectively participate in areas of the WMO agenda where mutual benefits are derived.
• Assessed contribution to the Convention on Wetlands of International Importance (Ramsar Convention) ($206,140): This contribution supports Canada’s membership to the Convention on Wetlands, known more widely as the Ramsar Convention. The Convention is an intergovernmental treaty that embodies the commitments of its member countries to maintain the ecological character of their Wetlands of International Importance and to plan for the sustainable use of all of the wetlands in their territories.
• Assessed contribution to the Minamata Convention on Mercury ($200,000): This contribution supports Canada’s membership to the Minamata Convention on Mercury, a multi-lateral environmental treaty under the United Nations Environmental Programme with the objective of protecting human health and the environment from the adverse effects of mercury.
• Assessed contribution to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) ($190,000): This contribution supports Canada’s membership to CITES which is an international agreement between governments since 1975 with the aim to ensure that international trade in specimens of wild animals and plants does not threaten their survival. The CITES core programming, as agreed by the Conference of the Parties, contributes to protection and conservation of biodiversity.
• Assessed contribution to the Organization for Economic Co-operation and Development (OECD) ($121,214): This contribution supports Canada’s membership to the Convention on the Organization for Economic Co-operation and Development, an international agreement between governments with the aim to act as a forum for countries committed to democracy and the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies. ECCC is the lead agency responsible for implementing OECD’s Special Programme on the Control of Chemicals.
• Assessed contribution to the International Network for Bamboo and Rattan (INBAR) ($38,000): This contribution supports Canada’s membership to the INBAR which is an intergovernmental organization dedicated to improving the social, economic, and environmental benefits afforded to producers and users of bamboo and rattan. INBAR connects a global network of partners from the government, private, and not-for-profit sectors in over 50 countries to define and implement a global agenda for sustainable development through bamboo and rattan.

2021-2022 Main Estimates in comparison to the 2020-2021 Main Estimates

The decrease of $283.8 million or 14% in total funding from the 2020-21 Main Estimates is primarily attributable to:

• A decrease of $185.8 million supporting the Low Carbon Economy Fund;
• A decrease of $109.1 million supporting the Climate Action Incentive Fund;
• A decrease of $27.0 million supporting the Chemical Management Plan;
• A decrease of $12.1 million for initiatives supporting Clean Growth and Climate Change; and,
• A decrease of $8.0 million supporting the National Zero Plastic Waste Strategy.

Offset by:

• An increase of $18.9 million related to compensation allocations from Treasury Board Secretariat related to newly signed collective agreements;
• An increase of $13.9 million for the Federal Contaminated Sites Action Plan;
• An increase of $9.5 million for Strong Artic and Northern Communities;
• An increase of $9.2 million for Modernizing the Enforcement of Environmental Laws and Regulations;
• An increase of $3.3 million for the conservation of the Central Group of Southern Mountain Caribou in British Columbia;
• An increase of $3.1 million for the Trans Mountain Expansion Project; and,
• An increase of $0.3 million for various other initiatives.

The overall decrease is the result of sunsetting initiatives with temporary funding. Funding requests for such initiatives are subject to government decisions and will be reflected in future Budget exercises and Estimates documents.

Summary

*Other adjustments includes transfers with other organizations and other technical adjustments.
*Totals may differ due to rounding of figures.

2021-2022 Main Estimates

Raison d’être

The Minister of Environment and Climate Change is responsible for this organization.

Environment and Climate Change Canada is the lead federal department for a wide range of environmental issues, including taking action on clean growth and climate change. The Department is also engaged in activities aimed at preventing and managing pollution, conserving nature, and predicting weather and environmental conditions. The Department addresses these issues through various actions including the implementation of the Pan-Canadian Framework on clean growth and climate change, engaging with our strategic partners including provinces, territories and Indigenous peoples, monitoring; science-based research, policy and regulatory development, and through the enforcement of environmental laws.

The Departmentʼs program focus reflects the interdependence between environmental sustainability and economic well-being.

Additional information can be found in Environment and Climate Change Canada’s Departmental Plan.

Organizational Estimates

2021–22 Main Estimates by Purpose

Listing of the 2021–22 Transfer Payments

Listing of Statutory Authorities