Key Budget 2021 initiatives for the portfolio

Appearance before the Standing Committee on Environment and Sustainable Development – May 12, 2021

Issue

• Budget 2021

Points to register

• Finance Minister and Deputy Prime Minister Chrystia Freeland tabled Budget 2021 entitled “A Recovery Plan for Jobs, Growth, and Resilience” on April 19, 2021.
• This is the first Federal Budget in two years since Budget 2019 (March 19, 2019).
• In addition to the extensive pandemic support measures and an ambitious national child care program, Budget 2021 proposes to “punch our way out of the COVID recession” and “build a more resilient Canada” with $17.6B towards a green recovery to create jobs, build a clean economy, and fight and protect against climate change.
• The Environment Portfolio will play an important role in implementing the initiatives proposed in Budget 2021.

Environment and Climate Change Canada

The Budget 2021 document included the following items for Environment and Climate Change Canada:

Steering Canada’s Strengthened Climate Plan (p. 172):

• $94.4M over five years, starting in 2021-2022, to ECCC to increase domestic and international capacity and action to address climate change, enhance clean tech policy capacity, including in support of the Clean Growth Hub, and to fund reporting requirements under the Canadian Net-Zero Emissions Accountability Act. This includes $34M to be sourced from existing departmental resources over five years.

Integrating Climate Into Federal Decisions (p. 175):

• $36.2 million over five years to ECCC to develop and apply a climate lens, including resources to increase economic and emissions modelling capacity. This includes $2M to be sourced from existing departmental resources.

Cleaner Fuels for a Cleaner Environment (p. 169):

• $67.2M over seven years, starting in 2021-2022, with $0.5M in remaining amortization, to ECCC to implement and administer the Clean Fuel Standard. This includes $20M to be sourced from existing departmental resources.

Reducing Transportation and Landfill Emissions (p. 165):

• $104.6M over five years, starting in 2021-2022, with $2.8M remaining amortization, to ECCC to strengthen greenhouse gas emissions regulations for light- and heavy-duty vehicles and off-road residential equipment, establish national methane regulations for large landfills, and undertake additional actions to reduce and better use waste at these sites. This includes $37M to be sourced from existing departmental resources over five years.

First Federal Green Bond (p. 166):

• The government will publish a green bond framework in the coming months in advance of issuing its inaugural federal green bond in 2021-2022, with an issuance target of $5 billion, subject to market conditions. The Department of Finance Canada will co-lead the development of Canada’s green bond framework with ECCC, in co-development with other departments: Natural Resources Canada; Infrastructure Canada; Innovation, Science and Economic Development Canada; Transport Canada; Agriculture and Agri-Food Canada; Public Safety Canada; as well as related Crown corporations.

Returning the Proceeds from the Price on Pollution (p. 173):

• Change the delivery of Climate Action Incentive payments from a refundable credit claimed annually on personal income tax returns to quarterly payments made through the benefit system starting in 2022.

Keeping Canadians Safer from Floods (p. 179):

• $63.8M over 3 years, starting in 2021-2022, to Natural Resources Canada, ECCC, and Public Safety Canada to work with provinces and territories to complete flood maps for higher-risk areas.

Addressing Climate Change in Yukon (p. 180):

• $25 million in 2021-2022 to the Government of Yukon to support its climate change priorities, in collaboration with Crown-Indigenous Relations and Northern Affairs Canada and Environment and Climate Change Canada.

Historic Investments in Canada’s Nature Legacy (p. 181):

• $2.3B over five years, starting in 2021-2022, with $100.5M in remaining amortization, to ECCC, PCA, and DFO. This includes $386M to be sourced from existing departmental resources over five years. Funds are to be used to Achieve Canada’s 25 per cent protected area by 2025 target, create thousands of jobs in nature conservation/management, accelerate new provincial and territorial protected areas, support Indigenous Guardians, and take action to prevent priority species at imminent risk of disappearing, including through partnerships with Indigenous peoples.

Conserving Canada’s Oceans (p. 184):

• $976.8M over five years, starting in 2021-2022, with $80.0M in remaining amortization, to help Canada reach its 25% by 2025 target to protect the health of our oceans, commercial fishing stocks, and Canadians’ quality of life, especially in coastal communities. Both ECCC and PCA are expected to support this initiative.

Developing the Canada Water Agency (p. 186):

• $17.4M over 2 years, starting in 2021-2022, to ECCC to support work with the provinces, territories, Indigenous peoples and key stakeholders on the scope of the Canada Water Agency’s mandate. This includes identifying opportunities to build and support more resilient water and irrigation infrastructure. The agency would be headquartered outside the National Capital Region.

Lake of the Woods (p. 191):

• $2M in 2021-2022 for ECCC to maintain research and monitoring activities and to develop phosphorous pollution reduction targets in Lake of the Woods. This will allow the federal government to continue its efforts to address toxic algae in the lake.

Continuing Canada’s Chemicals Management Regime (p. 187):

• $476.7M over five years, starting in 2021-2022, with $0.9M in remaining amortization, to ECCC, Health Canada, and the Public Health Agency to renew the Chemicals Management Plan and continue to protect Canadians and the environment from exposure to chemicals that can be harmful. This includes $182M to be sourced from existing departmental resources over five years.

Better Understanding Our Environment (p. 186):

• $1.9M over five years, starting in 2021-2022, and $0.3M ongoing to ECCC to create a Census of the Environment to help monitor environmental trends and better inform decision-making. This announcement also includes additional funding for Statistics Canada.

Maintaining Momentum on Regulatory Modernization (p. 142):

• The second round of Regulatory Roadmaps, on digitization and technology neutral regulations, international standards, and clean technology, will be released in the coming weeks.

Capitalizing on Space-Based Earth Observation (p. 152):

• $80.2M over eleven years, starting in 2021-2022, with $14.9M remaining amortization and $6.2M per year ongoing, to Natural Resources Canada and ECCC to replace and expand critical but aging ground-based infrastructure to receive satellite data.

Youth Employment and Skills Strategy (p. 111):

• $109.3M for the Youth Employment and Skills Strategy to better meet the needs of vulnerable youth facing multiple barriers to employment, while also supporting over 7,000 additional job placements for youth. Both ECCC and the PCA are expected to contribute to the Youth Employment and Skills Strategy initiative through the Science Horizons program and the employment of youth in national parks and national historic sites.

Parks Canada

In addition to the Nature Legacy and Youth Employment and Skills Strategy initiatives listed above, Parks Canada Agency also received funding for:

Improving Wildfire Resilience and Preparedness (p. 179):

• $100.6 M over five years, starting in 2021-2022, and $4.7 million in remaining amortization, to PCA to enhance wildfire preparedness in Canada’s National Parks. This includes $53M over five years, starting in 2021-2022, to be sourced from existing departmental resources.

Wood Buffalo National Park Action Plan (p. 352):

• Funding was announced for PCA and ECCC to implement federal commitments under the Wood Buffalo National Park World Heritage Site Action Plan.

Replacing Lost Revenue at Parks Canada due to COVID-19 (p. 191):

• $71.7M in 2021-2022 for PCA to continue to replace future lost visitor revenues due to closures and restrictions at national parks, national marine conservation areas, and national historic sites as a result of COVID-19 restrictions

Interim Capital Asset Program Capacity Funding for Parks Canada (p. 191):

• $35M in 2022-2023 for PCA to maintain internal capacity to manage capital assets.

Parks Canada Capacity for Indigenous Engagement (p. 274):

• $11M, and $2.3M ongoing, over five years to PCA to support the Agency’s capacity to engage at Recognition of Indigenous Rights and Self-Determination discussion tables. This measure will support the government’s commitment to negotiating workable arrangements with Indigenous groups to define how each group will exercise its Aboriginal rights.

Protecting Canada’s Historic Places (p. 205):

• $28.7M over five years, starting in 2021-2022 and $5.8M ongoing, for PCA to implement new legislation that, if enacted, would provide for a transparent designation framework as well as the sustainable protection of the over 300 federally-owned historic places.

Learn to Camp (p. 191):

• $13M over five years to PCA to continue an expanded Learn to Camp program to provide Canadians with the skills and experience needed to fully enjoy the great Canadian outdoors. This includes $7M over five years, starting in 2021-2022, to be sourced from existing departmental resources.

Preserving the HMS Erebus and HMS Terror (p. 180):

• $15M over three years, starting in 2021-2022, to PCA to accelerate archeological and conservation work of these artifacts of international importance.