Appearance before the Standing Committee on Environment and Sustainable Development – May 17, 2021

Bill C-12

An Act respecting transparency and accountability in Canada’s efforts to achieve net-zero greenhouse gas emissions by the year 2050 (see Parliament of Canada, Bill C-12, First Reading)

Clause-by-clause of Bill C-12

Preamble

The preamble

• states that the science is clear that human activities are driving unprecedented changes in the Earth’s climate;
• indicates that those changes pose significant risks to human health and security, the environment, including its biodiversity, and economic growth;
• indicates that Canada is committed to set and communicate ambitious national climate change mitigation measures and objectives as per its ratification of the Paris Agreement, which was agreed in December 2015 and entered into force in 2016;
• states that the Paris Agreement seeks to strengthen the global response to climate change, and reaffirms the goal of limiting global temperature increase to well below 2°C above pre-industrial levels while pursuing efforts to limit that increase to 1.5°C;
• refers to the conclusion of the Intergovernmental Panel on Climate Change that reaching net-zero greenhouse gas emissions around 2050 is key to limiting the rise in global-mean temperature to 1.5°C above pre-industrial levels and to minimizing climate-change related risks;
• states that Canada is committed to meeting and exceeding the target for 2030 set out in its nationally determined contribution communicated in accordance with the Paris Agreement;
• indicates that the Government of Canada has committed to developing a plan to set Canada on a path to achieve a prosperous net-zero emissions future by 2050, supported by public participation and expert advice;
• refers to the Government of Canada’s commitment to advance the recognition-of-rights approach reflected in section 35 of the Constitution Act, 1982, and in the United Nations Declaration on the Rights of Indigenous Peoples and to strengthen its collaboration with Indigenous peoples with respect to measures for mitigating climate change;
• states that the Government of Canada recognizes that its plan to achieve net-zero emissions by 2050 should contribute to making Canada’s economy more resilient, inclusive and competitive;
• states that climate change is a global problem that requires immediate action by all governments in Canada as well as by industry, non-governmental organizations and individual Canadians;
• states that the Government of Canada recognizes the significant collective and individual actions that have already been taken and intends to sustain the momentum of those actions.

Clause 1: Short title

Section 1 makes the short title of the Act the Canadian Net-Zero Emissions Accountability Act.

Clause 2: Definitions

The definitions under section 2 apply to the Act.

Convention

The term “Convention” means the United Nations Framework Convention on Climate Change, which was adopted in New York on May 9, 1992.

emissions reduction plan

The term “emissions reduction plan” means a plan established under subsection 9(1) for achieving net-zero greenhouse gas emissions by 2050, or for achieving the target set for each milestone year.

Indigenous peoples of Canada

The term “Indigenous peoples of Canada” refers to the definition of Aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982.

milestone year

The term “milestone year” refers to the years 2030, 2035, 2040 and 2045.

Minister

The term “Minister” means the Minister of the Environment unless another federal minister is designated by order of the Governor in Council to be the Minister responsible for this Act under section 5.

net-zero emissions

The term “net-zero emissions” means the state where greenhouse gas emissions released to the atmosphere that originate from human activities (i.e., anthropogenic) and are balanced by human-generated removals of greenhouse gases from the atmosphere over a specified period.

Clause 3: Binding on her Majesty

Section 3 indicates that the Act is binding on her Majesty in right of Canada. Therefore, all the requirements in the Act, including the requirements in regulations made under the Act, may apply to the federal government.

Clause 4: Purpose

Section 4 states the purpose of the Act, which is to require the setting of national targets for the reduction of greenhouse gas emissions based on best available science and to promote transparency and accountability in relation to meeting those targets. More generally, the purpose of this Act is to support Canada’s efforts in achieving net-zero emissions in Canada by 2050 and in carrying out its international commitments with respect to mitigating climate change.

Clause 5: Minister

Section 5 allows the Governor in Council to designate by order any federal minister to be the “Minister” referred to in this Act.

Clause 6: Target – 2050

Section 6 provides that the national greenhouse gas emissions target for the year 2050 is net‑zero emissions.

Clause 7: Target – milestone years, 2030, extension, subsequent targets

Section 7 sets out the Minister of the Environment’s obligations in relation to setting targets for milestone years (i.e. 2030, 2035, 2040 and 2045).

Subsections 7(1) and 7(2) require the Minister of the Environment to set the national greenhouse gas emissions target for 2030 within six months from the day on which the Act comes into force (i.e., upon Royal Assent).

Subsection 7(3) allows the Minister to extend the six-month deadline in subsection 7(2) by 90 days by publishing a decision containing reasons for the extension.

Subsections 7(1) and 7(4) provide that the Minister of the Environment must set the target for the other milestone years (i.e. 2035, 2040 and 2045) at least five years before the beginning of the milestone year to which it relates. In other words, the Minister of the Environment must set the target for the year 2035 by December 31, 2029, the target for the year 2040 by December 31, 2034, and the target for the year 2045 by December 31, 2039. This does not preclude setting the targets sooner, for example a full 10 years prior to the target year.

Clause 8: Setting emissions target

Section 8 states the Minister of the Environment must, when setting a greenhouse gas emissions target, take into account the best scientific information available as well as Canada’s international commitments with respect to climate change.

Clause 9: Emissions reduction plan, 2030 plan, extension, subsequent plans

Section 9 sets out the Minister of Environment’s obligations in relation to developing emissions reduction plans.

Subsections 9(1) and 9(2) require the Minister of Environment to establish an emissions reduction plan for achieving the target set for 2030 within six months of the day on which the Act comes into force (i.e., upon Royal Assent).

Subsection 9(3) allows the Minister to extend the six-month deadline in subsection 9(2) by 90 days by publishing a decision containing reasons for the extension.

Subsections 9(1) and 9(4) provide that the Minister of the Environment must establish an emissions reduction plan for the years 2035, 2040, 2045 and 2050 at least five years before the beginning of the milestone year to which it relates. In other words, the Minister of Environment must finalize the emissions reduction plan for the 2035 target by December 31, 2029, the emissions reduction plan for the 2040 target by December 31, 2034, etc.

Clause 10: Emissions reduction plan – contents, explanation, other information

Section 10 sets out the information that must be included in an emissions reduction plan.

Subsection 10(1) provides that the plan must contain the following:

• the national greenhouse gas emissions target for the year to which the plan relates;
• a description of the key measures the Government of Canada intends to take to achieve the greenhouse gas emissions target, which could include federal regulations, programs and other measures;
• a description of relevant sectoral strategies for the reduction of greenhouse gas emissions, such as for increasing the use of zero-emissions vehicles in the transportation sector; and
• a description of emissions reduction strategies for the federal government operations, such as reducing emissions from federal buildings and vehicle fleets.

Subsection 10(2) provides that the emissions reduction plan must also explain how the greenhouse emissions target, the key measures, and the strategies included in the plan will contribute to Canada achieving net-zero emissions by 2050.

Subsection 10(3) provides an emissions reduction plan may contain any other information that is relevant to the plan or to the purposes of the Act, including initiatives or other measures undertaken by governments of provinces and territories, Indigenous peoples, municipal governments or the private sector that may contribute to the achievement of the greenhouse emission target.

For instance, this could include but is not limited to: emission reduction policies and programs; commitments to net-zero emissions (e.g., from provincial or territorial governments, Indigenous peoples, municipal governments and the private sector); and clean technologies expected to make an impact toward net-zero.

Clause 11: Amendments

Section 11 provides that the Minister of the Environment may amend an emissions target or an emissions reduction plan as long as the changes being made are consistent with the purposes of the Act, such as making the change to incorporate the latest scientific information in a transparent and accountable manner and with a view to achieving net-zero greenhouse gas emissions in Canada by 2050.

Clause 12: Other Ministers

Section 12 provides that when developing or amending an emissions reduction plan for achieving a greenhouse gas emissions target, the Minister of Environment must consult with the other federal ministers that have duties and functions relating to the measures that may be taken to achieve that target.

For instance, if federal measures relate to natural resource sectors, the Minister of the Environment would be expected to consult with the Minister of Natural Resources; if measures pertain to the transportation sector, the Minister of the Environment would be expected to consult with the Minister of Transport.

Clause 13: Public participation

Section 13 provides that the Minister of Environment must, when setting or amending national greenhouse gas emissions targets or emissions reduction plans, provide the following parties with an opportunity to make submissions in a manner that the Minister considers appropriate:

• the governments of the provinces and territories;
• Indigenous peoples of Canada;
• the advisory body established under section 19 of the Act;
• any expert the Minister considers appropriate to consult; and
• other interested persons.

For instance, these opportunities could be both virtual (e.g., webpage, webinar, social media) or in-person (e.g., meetings, roundtables, assemblies), and may be pursued through existing structures or forums, as appropriate, particularly when engaging Indigenous peoples.

Clause 14: Progress report, content of report

Section 14 focuses on the Minister of the Environment’s obligations in relation to progress reports, which are intended to provide an update on progress made by the federal government in implementing its emission reduction plan prior to a year to which a greenhouse gas emissions target applies.

Subsection 14(1) explains the timing for the preparation of the progress report. The Minister of the Environment must, in consultation with other federal ministers that have duties and functions relating to the measures to achieve the targets, prepare at least one progress report no later than two years prior to the beginning of a milestone year or 2050, as the case may be. For instance, for the 2035 milestone year, the Minister of the Environment must prepare at least one progress report no later than December 31, 2032.

Subsection 14(2) sets out the required content for a progress report:

• an update of the progress that has been made towards meeting the relevant greenhouse gas emissions target;
• an update of the implementation of the key federal emissions reduction measures, any relevant sectoral strategies and emissions reduction strategies for federal government operations described in the related emissions reduction plan; and
• any other information that the Minister of the Environment considers appropriate, including additional measures that could be taken to increase the probability of reaching the upcoming national greenhouse gas emissions target.

Clause 15: Assessment report, contents of report

Section 15 focuses on the Minister of the Environment’s obligations in relation to assessment reports, which are intended to provide a review of the year to which a greenhouse gas emissions target applied.

Subsection 15(1) states that the Minister of the Environment must, in consultation with other federal ministers that have duties and functions relating to the measures to achieve the targets, prepare an assessment report for a milestone year no later than 30 days after the day on which Canada submits its official greenhouse gas emission inventory report in accordance with the Convention for that particular milestone year, or 2050 as the case may be.

For instance, under the current UNFCCC rules and deadlines, Canada would submit its official greenhouse gas inventory report in relation to 2030 by April 15, 2032. Assuming the official inventory report is submitted on April 15, 2032, the Minister of the Environment would be required to complete the assessment report required under the Act no later than May 15, 2032.

Subsection 15(2) sets out the content requirements for the assessment report:

• a summary of Canada’s official greenhouse gas emissions inventory for the relevant year;
• a statement on whether Canada has met its national greenhouse gas emissions target for that year;
• an assessment of how the key federal emissions reduction measures, any relevant sectoral strategies, and emissions reduction strategies for federal government operations described in the relevant emissions reduction plan contributed to Canada’s efforts to achieve the national greenhouse gas emissions target for that year;
• information on any adjustments that could be made to subsequent emissions reduction plans that would increase the probability of meeting subsequent national greenhouse gas emissions targets; and
• any other information that the Minister considers appropriate.

Clause 16: Failure to achieve target

Section 16 imposes an additional obligation on the Minister of the Environment in the event that Canada fails to meet its national greenhouse gas emissions target for a milestone year or for 2050. In consultation with other federal ministers that have duties and functions relating to the measures to achieve the targets, the assessment report must include the following information if the national greenhouse gas emissions target was not met:

• the reasons why Canada failed to meet the greenhouse gas emissions target;
• a description of actions the Government of Canada is taking or will take to address the missed target; and
• any other information that the Minister considers appropriate.

Clause 17: Publication of target

Section 17 enables the Minister of the Environment to publish the national greenhouse gas emissions target before the Minister tables the emissions reduction plan, which will include the target, in each House of Parliament for the milestone year to which it relates.

For example, in order to align Canada with international commitments, a national greenhouse gas emissions target could be set and published 10 years prior to the milestone year to which it relates to align with international commitments, while the plan for that year would be tabled 5 years in advance.

Clause 18: Emissions reduction plan – tabling, amendment – tabling, reports – tabling

Section 18 provides that the Minister must table in each House of Parliament each emissions reduction plan, amendment to an emissions reduction plan, progress report and assessment report. The Minister must do so within the first 15 days on which each House is sitting after the day on which the document or amendment is completed.

For instance, if the Minister of the Environment completes the 2035 emissions reduction plan on December 31, 2029, the plan would have to be tabled in the House of Commons and in the Senate within the first 15 sitting days of 2030 for each respective House.

Clause 19: Emissions reduction plan made public, amendments made public, reports made public

Section 19 clarifies the Minister of the Environment’s obligation to make available to the public each emissions reduction plan, amendment to a greenhouse gas emissions target, amendment to an emissions reduction plan, progress report and assessment report.

The Minister must do so in a manner they consider appropriate and as soon as feasible after a document or amendment is tabled in either House of Parliament.

Clause 20: Establishment and mandate, terms of reference

Subsection 20(1) provides for the creation of an advisory body that has the mandate to:

• provide advice to the Minister of the Environment with respect to pathways to achieve net-zero emissions by 2050, including;
  • advice respecting measures and sectoral strategies that the Government of Canada could implement to achieve a greenhouse gas emissions target; and
  • matters referred to it by the Minister of the Environment;
• conduct engagement activities related to achieving net-zero emissions.

Subsection 20(2) provides authority for the Minister to determine and amend the terms of reference of the advisory body.

Clause 21: Appointment and remuneration of members, composition of body, co-chairs, reimbursement of expenses, deemed employment

Section 21 provides for the appointment process and criteria governing the members of the advisory body and its composition, including the designation of co-chairs. It also sets out the members’ employment status and provides for reimbursement of member’s expenses.

Subsection 21(1) provides that the members of the advisory body will be appointed by the Governor in Council based on the recommendation of the Minister of the Environment and that the Governor in Council will fix the members’ remuneration.

Subsection 21(2) provides that the advisory body is composed of no more than fifteen members, all of whom are appointed on a part-time basis for a renewable term of up to three years.

Subsection 21(3) provides that the Governor in Council designate the co-chairs of the advisory body on the recommendation of the Minister of the Environment.

Subsection 21(4) provides that the members of the advisory body are entitled to be reimbursed in accordance with Treasury Board directives for the travel, living and other expenses incurred, in connection with their work for the advisory body, while absent from their ordinary place of residence.

Subsection 21(5) states that the members of the advisory body are deemed to be federal public administration employees for the purposes of the Government Employees Compensation Act and any regulations made under section 9 of the Aeronautics Act.

Clause 22: Report, Minister’s response

Section 22 sets the advisory body’s duties with respect to reporting and the Minister of the Environment’s responsibility to consider and respond to the advisory body’s advice related to achieving a greenhouse gas emissions target.

Subsection 22(1) states that the advisory body must submit an annual report to the Minister of the Environment detailing its advice and activities for the previous year.

Subsection 22(2) requires the Minister of the Environment to publicly respond to the advice that the advisory body includes in its annual report with respect to measures and sectoral strategies that the Government of Canada could implement to achieve a greenhouse gas emissions target.

Clause 23: Annual report

Section 23 states that the Minister of Finance, in cooperation with the Minister of Environment, must publish an annual report describing the key measures that the federal public administration has taken to manage its financial risks and opportunities related to climate change.

Clause 24: Commissioner’s report, recommendations, submission

Section 24 focuses on the Commissioner of the Environment and Sustainable Development’s role in reviewing federal government actions on climate change mitigation.

Subsection 24(1) requires the Commissioner of the Environment and Sustainable Development to, at least once every five years, examine and report on the Government of Canada’s implementation of the measures aimed at mitigating climate change, including those undertaken to achieving its most recent greenhouse gas emissions target as identified in the relevant emission assessment report.

Subsection 24(2) provides that the report completed by the Commissioner of Environment and Sustainable Development may include recommendations to improve the effectiveness of the Government of Canada’s implementation of the measures with respect to climate change mitigation that it has committed to undertake in an emissions reduction plan.

Subsection 24(3) provides that the Commissioner of the Environment and Sustainable Development’s report should be integrated as part of the next annual report the Commissioner makes to Parliament concerning anything in relation to environmental and other aspects of sustainable development as per subsection 23(2) of the Auditor General Act.

Clause 25: Methodology

Section 25 provides that the methodology used to report on Canada’s greenhouse emissions for each milestone year and for 2050 must be consistent with the methodology used by Canada in its official national greenhouse gas inventory report to the Convention unless a regulation is made under section 25 that indicates otherwise.

Clause 26: Regulations

Section 26 gives the Governor in Council regulation-making authority under the Act such as:

• amending or specifying the methodology used to report on Canada’s greenhouse gas emissions for each milestone year or for 2050, including with respect to greenhouse gas emissions and removals; and
• amending any timeline under the Act or the date of any milestone year for the purposes of aligning with Canada’s international commitments. However, the Governor in Council may not amend the 2050 net-zero greenhouse gas emissions target under section 6 nor the five-year timeline under which the Commissioner of the Environment and Sustainable Development must submit its report under section 24.

Clause 27: Statutory Instruments Act

Section 27 states that the emissions reduction plans, the progress reports and the assessment reports, any ministerial decision made under subsections 7(3) and 9(3), and terms of reference made under subsection 20(2) are not statutory instruments for the purposes of the Statutory Instruments Act. Hence, the requirements under the Statutory Instruments Act do not apply to them.

Clause 28: Auditor General Act

Consequential Amendment to the Auditor General Act

This Clause adds section 21.2 to the Auditor General Act in order to ensure that the Commissioner of Environment and Sustainable Development has the mandate to carry out its functions under section 24 of the Canadian Net-Zero Emissions Accountability Act.

Clause 29: Coming into force

This clause states that clause 23 (section 23 of the Canadian Net-Zero Emissions Accountability Act) will come into force on a day fixed by order of the Governor in Council. All other clauses under the Act will come into force upon Royal Assent.

Backgrounders

Net-Zero Advisory Body – General context

Issue

• In February 2021, the Minister of Environment and Climate Change announced the Net-Zero Advisory Body.
• It is an independent group of experts with a mandate to engage with Canadians and provide advice to the Minister on the milestones and pathways to achieve net-zero emissions by 2050. Additional details on the Advisory Body’s role, operation and near-term deliverables are set out in the Terms of Reference, which are reproduced below and available on Environment and Climate Change Canada’s website.

Points to register

• Under the proposed Canadian Net-Zero Emissions Accountability Act, the Net-Zero Advisory Body and its role are formalized.
• It is established as a permanent body of up to 15 members to be appointed by the Governor in Council and serve part-time for a renewable term of up to three years (s.20 ff).
• Its mandate under the Act is “to provide the Minister with advice with respect to achieving net-zero emissions by 2050, including advice respecting measures and sectoral strategies that the Government of Canada could implement to achieve a greenhouse gas emissions target, and any matter referred to it by the Minister, and to conduct engagement activities related to achieving net-zero emissions.”
• When setting or amending a national greenhouse gas emissions target or establishing or amending an emissions reduction plan, the Minister must give the Advisory Body an opportunity to make submissions. As well, the Minister must respond to the Advisory Body’s annual report of its advice and activities.
• Over 120 countries have committed to achieving net-zero emissions by 2050. Many, including the United Kingdom, Germany, New Zealand, and France, have already legislated those commitments and introduced their own net-zero advisory bodies.

Background – current Net-Zero Avisory Body

• The Minister announced the initial volunteer members on February 25, 2021. Members will serve on a part-time basis for a renewable term of up to three years. The initial members bring together a diverse range of expertise in science, business, labour, policy-making, rural economic development, and Indigenous governance. Members bring different experiences including from the transportation, clean technology, forestry, electricity, finance, and not-for-profit sectors.
• Marie-Pierre Ippersiel (Co-chair), President and Chief Executive Officer at PRIMA Québec
  • Spent over six years working as Vice-President for the cleantech industry cluster Écotech Québec.
  • Research Advisor for the Montreal Metropolitan Community (MMC) between 2004 and 2010.
  • PhD in Urban Studies from the INRS – Centre Urbanisation Culture Société.
  • Sits on the boards of directors for NanoCanada, Green Surface Engineering for Advanced Manufacturing Strategic Network, ADRIQ and Montreal Space for Life Foundation.
• Dan Wicklum (Co-chair), President and CEO, The Transition Accelerator
  • Has 25 years of experience managing research, driving innovation, and fostering collaboration in and among industry, government, academia and civil society.
  • Launched and was the CEO of Canada’s Oil Sands Innovation Alliance for seven years, was Executive Director of the Canadian Forest Innovation Council, and has been a senior manager at Environment and Climate Change Canada and Natural Resources Canada.
• Catherine Abreu, Executive Director, Climate Action Network Canada
  • Joined CAN-Rac Canada in 2016, after five years spearheading the energy and climate programs at the Ecology Action Centre, Atlantic Canada’s longest-running environmental advocacy organization.
  • Former Coordinator of the Atlantic Canada Sustainable Energy Coalition.
  • 2020 recipient of the Jack Layton Progress Prize.
• Kluane Adamek, Yukon Regional Chief, Assembly of First Nations
  • Assembly of First Nations (AFN) Yukon Regional Chief since January 2018.
  • BA in Canadian Studies from Carleton, and MBA at Simon Fraser University.
  • Served on a number of boards and committees including the Yukon College Board of Governors, Kluane Dana Trust, Actua, the Aboriginal Healing Foundation, and the Aboriginal Sport Circle.
  • Led and founded "Our Voices," a collective of northern Indigenous emerging leaders and is incredibly passionate about supporting youth and emerging leaders in the North and beyond.
  • Currently holds the AFN National Portfolios for Climate Change and the Environment, Youth and Modern Treaties.
• Theresa Baikie, Impact and Benefit Agreement Coordinator - Nunatsiavut Government
  • Has been implementing the Impact and Benefit Agreement between the Nunatsiavut Government and Vale since March 31, 2003.
  • Started out as the Impact and Benefit Agreement Training and Employment Coordinator for the Labrador Inuit Association in March of 2003.
  • Responsible for two Parks Impact and Benefit Agreements between Parks Canada and Nunatsiavut Government for the Torngat Mountains National Park and the Mealy Mountain National Park Reserve.
• Linda Coady, Executive Director, Pembina Institute
  • Was chief sustainability officer for Calgary-based Enbridge Inc. (2013-2019), vice-president of sustainability for the Vancouver 2010 Olympic Games, vice-president of the pacific region for World Wildlife Fund Canada (WWF-Canada), and vice-president of environmental affairs for the BC coastal operations of forest companies Weyerhaeuser and MacMillan Bloedel.
  • Served on several special advisory groups to different levels of government on climate and energy issues including: the Climate Leadership Advisory Panel to the Government of Alberta (2015); the Generation Energy Council (2018), and the Advisory Committee on Indigenous Economic Participation in the Trans Mountain Expansion Project (2019).
  • Has taught Corporate Social Responsibility at UBC’s Sauder School of Business.
• Simon Donner, Professor, Department of Geography, University of British Columbia
  • Interdisciplinary climate scientist and professor in the Department of Geography at the University of British Columbia.
  • Director of the UBC Ocean Leaders program, and holds appointments in UBC’s Institute for the Oceans and Fisheries and UBC's Atmospheric Sciences Program.
  • Currently a lead author on the Intergovernmental Panel on Climate Change’s Sixth Assessment Report.
  • Was awarded a Leopold Leadership Fellowship, a Google Science Communication Fellowship and the UBC President's Award for Public Education through the Media.
  • PhD in Atmospheric and Ocean Sciences from the University of Wisconsin-Madison.
• Sarah Houde, CEO, Propulsion Québec
  • Spent her early career as a communications and public relations director in the private and non‑profit sectors before becoming executive director of Youth Fusion.
  • Joined private equity firm XPND Capital as vice president of public and government affairs steering a number of transport electrification projects.
  • BA and MA in political science and a graduate management diploma.
• Peter Tertzakian, Deputy Director, ARC Energy Research Institute
  • Has written two bestsellers on energy transitions — A Thousand Barrels a Second and The End of Energy Obesity.
  • Launched Energyphile in 2020 with associated book, The Investor Visit and Other Stories.
  • Executive-in-Residence at the Ivey Energy Policy and Management Centre at the Ivey Business School, Western University.
  • Has an undergraduate degree in Geophysics from the University of Alberta, a graduate degree in Econometrics from the University of Southampton UK, and a Master of Science in Management of Technology from the Sloan School of Management at MIT.
• Gaëtan Thomas, CEO, Conseil Économique du Nouveau-Brunswick
  • Enjoyed a long career at NB Power, which he joined in 1982 after obtaining a bachelor’s in electrical engineering from the University of New Brunswick. Became Vice President of the Nuclear Division and the Distribution and Customer Service Division and subsequently served as CEO from 2010 to 2020.
  • Former Chairman of the Board of the World Association of Nuclear Operators (Atlanta Centre).
  • Vice President of the Atlantic Cancer Research Institute Board of Directors.
• Kim Thomassin, Executive Vice-President and Head of Investments in Québec, and Stewardship Investing, Caisse de dépôt et placement du Québec (CDPQ)
  • Has been Executive Vice-President and Head of Investments in Québec and Stewardship Investing since April 2020.
  • Leads the teams responsible for investments in Québec, post-investment management and Espace CDPQ; also oversees the Stewardship Investing team, whose mandate is to deploy CDPQ’s investment strategy to address climate change.
  • Member of the Executive Committee and the Investment-Risk Committee, and sits on the Board of Ivanhoé Cambridge, CDPQ’s global real estate subsidiary.
  • Held the role of Executive Vice-President, Legal Affairs and Secretariat, Compliance and Stewardship Investing.
  • Was National Client Leader and Managing Partner for the Quebec Region at McCarthy Tétrault before joining CDPQ in 2017.
  • Was a member of the Expert Panel on Sustainable Finance in 2018-2019.
• John Wright, Former President SaskPower
  • Acted as DM of Health and DM of Finance for the Government of Saskatchewan.
  • Served as president and CEO of several crown agencies in that province, including SaskPower, Crown Investments Corporation and Saskatchewan Government Insurance.
  • Served on the board of directors of the Canadian Electricity Association as well as the boards of governors for the University of Regina and the University of Saskatchewan.
  • Served on two federal advisory bodies in 2018: the Task Force on Just Transition for Canadian Coal Power Workers and Communities, and the Advisory Council on the Implementation of National Pharmacare.
• Yung Wu, CEO, MaRS Discovery District
  • Co-founder of two not-for-profit organizations, the Coalition of Innovation Leaders Against Racism (CILAR) and DifferentIsCool (DiSC).
  • Currently serves on the boards of OMERS, the Toronto Region Board of Trade, Antibe Therapeutics Inc. (TSE:ATE) and is a member of Green Shield Canada.
  • B.Sc. Computer Science, Economics and Mathematics from the University of Toronto and is a graduate of the Entrepreneurial Masters Program at the MIT, a member of the Young Presidents Organization (YPO) and the Institute of Corporate Directors (ICD.D).
• Hassan Yussuff, President, Canadian Labour Congress
  • Serving his second term as President of the Canadian Labour Congress (CLC).
  • Was elected in 2016 for a second term as president of the Trade Union Confederation of the Americas.
  • Served as a co-chair of Canada’s Task Force on Just Transition for Canadian Coal Power Workers and Communities in 2018.

Net-Zero Advisory Body – Terms of reference

(Published on February 26, 2021)

Context

• The Government of Canada has committed to achieving a resilient, prosperous net-zero emissions future by 2050 and to setting five-year emissions-reduction targets leading up to 2050.
• This net-zero emissions future will be made possible by having a clear strategy, doing the hard work to determine credible pathways to net-zero across key sectors of the economy, and accelerating the existing ingenuity and innovation of the private sector over the next three decades.
• To realize this objective, the Government of Canada is establishing an independent net-zero advisory body (advisory body). The advisory body will draw on existing and emerging research, analysis, and technical expertise. Since all Canadians have a part in shaping an inclusive low-carbon transformation, the advisory body will lead meaningful national conversations with experts and Canadians from coast to coast to coast.
• The advisory body will report regularly to the Minister of Environment and Climate Change and to the public. It will provide ongoing, evergreen advice that is forward-looking but grounded in the current realities of socio-economic circumstances, available technologies, and global trends. As part of its initial mandate, the advisory body will provide advice on actions Canada can take now to ensure a strong economic recovery while laying the foundation for net-zero emissions by 2050.

Mandate

• The advisory body will provide advice on the most likely pathways for Canada to achieve net-zero emissions by 2050.
• The advisory body will also provide advice on emissions reductions milestones leading up to 2050, and identify near-term actions and key building blocks that support this long-term target.
• To this end, the advisory body will provide advice on measures to catalyze long-term, low-carbon economic growth across the Canadian economy, including advice on policy measures to incentivize economically and environmentally beneficial investments that would support a step-change for infrastructure and clean technology.
• The advisory body’s advice will include actions that are within federal jurisdiction, but may also include actions that could be implemented by others, such as individuals, communities, businesses, and other orders of government.

Deliverables

• Within the first three months of its establishment, the advisory body will provide a summary of net-zero pathways work completed domestically and internationally and an outline of proposed priorities for analysis and engagement. The advisory body will share these documents publicly.
• The advisory body will meet at least three times annually with the Minister of Environment and Climate Change to provide updates on its work and interim advice.
• At least once annually, the advisory body will produce a publicly available report that synthesizes its analysis across lines of inquiry, summarizes what it heard from engagement, and provides advice to the Minister on promising net-zero pathways.

Lines of inquiry

• The advisory body’s work will be structured along specific lines of inquiry, which will be set at regular intervals in consultation with the Minister of Environment and Climate Change. These lines of inquiry may include specific sectors (e.g., oil and gas, transportation, buildings, electricity, heavy industry, agriculture, and forestry) or thematic opportunities (e.g., circular economy, social and behavioural shifts to accelerate climate action, nature-based solutions, clean and net-negative technologies). The advisory body will publicly communicate its priorities for lines of inquiry and the schedule on which it will complete analysis on a given line of inquiry. The Minister may refer lines of inquiry to the advisory body. The advisory body may examine specific sectors or themes on a regular cycle to ensure its advice remains aligned with the best available analysis and research.

Considerations

• In developing advice regarding the optimal pathways through which to achieve net-zero by 2050, the advisory body should consider a range of factors, including:
  • Economic costs and opportunities: e.g., impacts on job creation and competitiveness; trade and export opportunities; regional economic impacts; opportunities for small and medium-sized enterprises; domestic and international supply chain considerations.
  • Environmental benefits: e.g., greenhouse gas reduction potential; improved resilience and adaptation to climate change; decreases to other pollutants; nature conservation and other co-benefits.
  • Contributions to inclusivity and well-being: e.g., opportunities to further reconciliation with Indigenous peoples; analysis of the impacts on marginalized or vulnerable people; degree of public engagement, awareness, and support for the proposed actions; improvements to Canada’s education and skills development agenda.
  • Technological readiness and requirements: e.g., available and emerging clean technologies; role of net-negative technologies; technology needs and investments required.

Engagement, analysis, and research activities

• The advisory body will draw from all existing relevant domestic and international research and analysis, and will establish a transparent and inclusive process for stakeholders and partners to provide input. The advisory body will act as a platform to integrate recommendations stemming from multiple net-zero policy initiatives, both internal to and external to the federal government, to a single focal point within the Government of Canada. Where original research is necessary, the advisory body will conduct or commission new studies.
• The advisory body will work closely with other relevant bodies tasked with providing advice to the Government of Canada, including on topics such as sustainable finance, economic sector strategies, future skills development, and supporting workers and communities in a low-carbon transition.
• The advisory body will also undertake robust engagement, including:
  • Pursuing opportunities to discuss sectoral and regional dimensions of the pathways to net-zero with provinces and territories, municipalities, and other stakeholders.
  • Soliciting input from Indigenous governments, organizations, groups, communities, and individuals.
  • Organizing targeted engagement activities such as meetings and roundtable discussions with civil society groups, industry associations and member companies, youth, and academic, scientific, and technical experts.
  • Leveraging innovative techniques for broad public engagement and informed, meaningful dialogue, such as citizen assemblies, based on the advice of experts.

Membership

• Members and chairs will be appointed by the Minister of Environment and Climate Change. The advisory body will consist of up to two co-chairs and thirteen part-time members (15 total). They will hold office during pleasure for terms from one to three years, with potential for renewal. It is expected that no more than half of the members will change from one year to the next.

Secretariat

• Environment and Climate Change Canada (ECCC) will provide logistical, administrative, and policy support to the advisory body. The advisory body may request that ECCC and other government departments provide economic analysis and emissions modelling expertise. Relevant Government of Canada departments may be asked to assist the advisory body by providing briefings and analysis on federal policies and programs.

Reporting, accountability, and transparency

• The advisory body will report to the Minister of Environment and Climate Change. The advisory body may present its recommendations to the Prime Minister, members of Cabinet, or other senior federal officials if requested.
• The Minister will regularly provide direction to the advisory body including on lines of inquiry. The Minister may amend the Terms of Reference if required, and will communicate any material changes to members of the advisory body. Minor amendments to the Terms of Reference can be made by the Secretariat, in consultation with the co-chairs and subject to informing the members at the next meeting.
• Through its website, the advisory body will publicly communicate its lines of inquiry, the schedule on which it will complete analysis on a given line of inquiry, its annual report, and other documents as appropriate.

Travel and expenses

• Members of the advisory body will be eligible for travel-related expenses while on travel status away from their normal place of residence in accordance with the National Joint Council Travel Directive and the Treasury Board Special Travel Authorities, and for any other reasonably necessary incidental expenses.

Operating procedures

• For discussion within the advisory body and with its secretariat, the advisory body may adopt operating procedures to govern its operation, including quorum, consensus building, and other administrative matters.

Conflict of interest

• Advisory body members will be required to disclose activities and interests that could place them in a conflict of interest with respect to the work of the advisory body. To ensure the integrity of the advisory body’s advice, members will embrace full transparency of declaring interests related to any items under discussion by the advisory body and will recuse themselves from providing advice where there is a real or perceived conflict. Guiding principles on conflict of interest will be provided to the advisory body, and may be periodically reviewed and adjusted to ensure the most objective advice is given.

A Healthy Environment and a Healthy Economy

Issue

• On December 11, 2020, the Government of Canada announced A Healthy Environment and a Healthy Economy: Canada’s strengthened climate plan to create jobs and support people, communities, and the planet, which is a cornerstone of the government’s commitment in the 2020 Speech from the Throne to create over one million jobs, restoring employment to pre-pandemic levels.
• The Government has since announced greater ambition in reducing emissions and new funding (see below) which will augment this foundational plan.
• Additional investments in Canada’s Net-Zero Accelerator, new support for world-leading clean technologies, and investments to help more than 200,000 Canadians make their homes greener and more affordable, will help build a clean economy, reduce pollution, and help Canada reach net-zero emissions by 2050.
• The investments made in Budget 2021, along with other action including strengthened alignment with the United States to further cut pollution from transportation and methane emissions, mean that Canada is now positioned to reduce emissions by about 36% below 2005 levels by 2030.

Points to register

• The plan includes 64 new measures and $15 billion in investments in addition to the Canada Infrastructure Bank’s $6 billion for clean infrastructure announced last fall as part of its growth plan.
• It builds on continuing work with provinces and territories through the Pan-Canadian Framework on Clean Growth and Climate Change (PCF).
• When coupled with the PCF, the strengthened plan will do more to cut pollution in a practical and affordable way than any other climate plan in Canada’s history: Canada will be in position to meet its 2030 Paris Agreement emissions reduction target and establish the building blocks to get to net-zero by 2050.
• Budget 2021 proposed an additional $17.6 billion in investments towards a green recovery, beyond the $15 billion in investments laid out in Canada’s strengthened climate plan, and the nearly $15 billion for public transit projects.

Background

• A Healthy Environment and a Healthy Economy sets out five pillars of action:
  1. Making the Places Canadians Live and Gather More Affordable by Cutting Energy Waste: Energy-efficient homes and buildings are more comfortable and cost less to power. This will cut pollution, make life more affordable and create thousands of good jobs and new careers in construction, technology, manufacturing and sales.
  2. Making Clean, Affordable Transportation and Power Available in Every Canadian Community: The government will expand the supply of clean electricity through investments in renewable and next-generation clean energy and technology, and encourage cleaner modes of transportation such as low and zero-emission vehicles, transit and active transportation. This will make communities healthier, less congested and more vibrant.
  3. Continuing to Ensure Pollution Isn’t Free and Households Get More Money Back: Canada has proven that putting a price on carbon pollution and returning the proceeds back to households can meet our economic needs and our environmental goals at the same time.
  4. Building Canada’s Clean Industrial Advantage: In the years ahead, Canada’s industrial advantage and the jobs that will come from it will depend on the speed and success of decarbonisation efforts. The government must assist Canadian companies as they seek to meet the demands of domestic and global consumers for low-carbon goods and services, and make investments that can drive Canada’s low-carbon economy.
  5. Embracing the Power of Nature to Support Healthier Families and More Resilient Communities: By planting two billion trees and better conserving and restoring our natural spaces, the government will cut pollution, clean the air we breathe, make communities more resilient and increase access to natural spaces. The government will also create thousands of jobs in areas such as tree planting, urban planning and tourism.

Additional measures

• The plan also commits to developing Canada’s first-ever national adaptation strategy:
  • It contains new measures to support Indigenous climate leadership.
  • It will support a strong Canadian contribution toward international climate action.
• The plan also commits to applying a climate lens to integrate climate considerations throughout government decision-making.

Next steps

• Moving forward, the federal government will consult with provinces and territories, Indigenous partners, and Canadians in all socio-economic sectors to further elaborate a strong plan for a healthier environment and economy that we can implement together.

Canada’s Enhanced Nationally Determined Contribution

Issue

• Canada and other countries around the world need to do more to address climate change, and on a faster timeline. The science is clear that existing efforts are not enough to avoid catastrophic climate change.

Points to register

• Canada has made significant progress to address climate change, and with the release of A Healthy Environment and a Healthy Economy in December 2020, the Government of Canada announced a number of new actions and new investments to further reduce greenhouse gas emissions.
• The measures announced in this strengthened climate plan will bring Canada’s 2030 emissions to at least 31% below 2005 levels, slightly exceeding Canada’s original 2030 target to reduce emissions by 30% below 2005 levels.
• Like other countries, we need to continue to build a sustainable and resilient economy and reduce emissions year over year. This is why Canada is committing to a new 2030 target of 40-45% below 2005 GHG emissions levels.
• Since the launch of Canada’s strengthened climate plan, the Government of Canada has been consulting with provinces, territories, Indigenous organizations, industry and the public on strengthened climate plan measures and new potential climate measures.
• Like many other countries that have set ambitious new emission reduction targets, such as those within the European Union, as well as the United Kingdom and the United States, Canada will continue to work with partners to increase climate action.
• Budget 2021 proposed an additional $17.6 billion in investments towards a green recovery, beyond the $15 billion in investments laid out in Canada’s strengthened climate plan, and the nearly $15 billion for public transit projects.
• Additional investments in Canada’s Net-Zero Accelerator, new support for world-leading clean technologies, and investments to help more than 200,000 Canadians make their homes greener and more affordable, will help build a clean economy, reduce pollution, and help Canada reach net-zero emissions by 2050.
• The investments made in Budget 2021, along with other action including strengthened alignment with the United States to further cut pollution from transportation and methane emissions, means that Canada is now positioned to reduce emissions by about 36% below 2005 levels by 2030.
• The Government of Canada is committed to working with provinces and territories to advance shared priorities that will further lower emissions including on a regional and bilateral basis. Additional federal, provincial and territorial measures will build on the progress that proposed federal measures will achieve leading to further emission reductions.
• Canada and the U.S. have forged a renewed bilateral relationship with cooperation on climate change as a key priority. This includes taking a continental approach to addressing methane emissions reductions in the oil and gas sectors, standards for light-duty and heavy-duty vehicles, and setting a 100% zero-emissions vehicles sales target.
• The Government of Canada will also continue to partner with First Nations, Inuit, and the Métis Nation to advance Indigenous climate leadership and ensure that federal policies and programs are designed to address Indigenous peoples’ climate priorities.
• Canada is committed to reaching net-zero emissions by 2050. Bill C-12, the Canadian Net Zero Emissions Accountability Act will set legally binding, five-year emissions reduction milestones as a key component of our plan to achieve a net-zero emissions economy by 2050.
• The Government of Canada will continue to assess and report on progress towards Canada’s climate goals.

Canada accountability and transparency planning and reporting documents ecosystem

Key messages

• In November 2020, our government tabled Bill C-12: the Canadian Net-Zero Emissions Accountability Act in the House of Commons. This Act enshrines in legislation Canada’s commitment to achieve net-zero emissions by 2050 and provides a durable framework of accountability and transparency to deliver on it.
• By establishing the 2050 target in legislation, it signals the Government’s continued and ongoing commitment to leadership and action on climate change.
• Bill C-12 helps Canada to deliver on its commitments under the Paris Agreement and achieve the emission reductions needed according to the Intergovernmental Panel on Climate Change to limit the risks of climate change. It also supports the international momentum toward net-zero by joining a growing number of jurisdictions who have declared this as their goal.
• Bill C-12 will hold the federal government accountable as it charts Canada’s path to achieve net-zero emissions in Canada by 2050. It will do so by establishing a transparent process to plan, assess and adjust the federal government’s efforts to achieve at regular intervals national targets for the reduction of greenhouse gas emissions based on the best scientific information available, and by allowing for public participation and independent advice and review with respect to those efforts.
• Achieving net-zero will require careful calibration to reflect Canada’s unique circumstances – including geography, the importance of the traditional resource economy, and shared jurisdiction on environment. The transparency and accountability regime set forth by Bill C-12 will ensure that all Canadian voices are heard as we set and make efforts to meet our emissions reduction targets, grow the economy, and build resilience to a changing climate.
• Bill C-12 focuses on actions that will be taken by the federal government to help achieve the GHG emissions reduction targets set by the Minister of Environment and Climate Change. Provinces and territories are responsible to take their own actions to contribute to the fight against climate change and help Canada achieve its climate goals. However, the achievement of the targets and of net-zero GHG emissions by 2050 will necessitate ongoing and extensive engagement and collaboration with provinces and territories.
• Work to reach net-zero by 2050 has already begun: in February 2021, the Minister of Environment and Climate Change announced the Net-Zero Advisory Body. This independent group of experts has a mandate to engage with Canadians and provide advice to the Minister on pathways to achieve net-zero emissions by 2050.
• Prime Minister Trudeau announced Canada’s enhanced 2030 emissions target for its Nationally Determined Contribution (NDC) at the U.S. Leaders’ Climate Summit on April 22, 2021. Like other countries, we need to continue to build a sustainable and resilient economy and reduce emissions year over year. This is why Canada is committing to a new 2030 target of 40-45% below 2005 levels.

Issues raised at Second Reading

• A number of issues were raised by various members at Second Reading debate on Bill C-12.
• For example, with respect to setting targets, some members were concerned that there was no 2025 target and that the 2030 target would not be on track with the Paris Agreement, nor align with its intent of increasing the ambition. Others commented that the targets are not set early enough in advance. We also heard members call for more checkpoints over the next 10 years.
• Some called for measures to provide greater assurance that the Government would meet the established targets, and for more detailed requirements related to the content and development of the progress reports and assessment reports under the Act.
• During the Second Reading debate, members expressed some concerns with regard to the Advisory Body. For example, we heard calls for an expanded role for the Advisory Body, as well as strengthened provisions to ensure its independence and a balanced composition of its members.
• Furthermore, we heard concerns that the Bill does not go far enough in addressing Indigenous Rights and Knowledge, including the United Nations Declaration on the Rights of Indigenous Peoples. We also heard suggestions that the Bill should take into account Canada’s energy policy.
• We listened to these and other issues raised by members at Second Reading debate, and we are open and committed to strengthening this bill. We are pleased to know that the clause-by-clause study of Bill C-12 will ultimately strengthen the proposed Canadian Net-Zero Emissions Accountability Act, and we look forward to collaborating with the honorable members of this committee to ensure that happens.

Questions and answers

What does the Act do?

• The Act enshrines Canada’s objective to achieve net-zero GHG by 2050.
• For each milestone year (i.e. 2030, 2035, 2040, 2045) and 2050, the Act requires the Minister of Environment and Climate Change to
  • set targets and develop plans following engagement
  • publish progress reports
  • publish assessment reports on achievement of target
• The Act requires tabling and publication of the targets, plans, progress reports and assessment reports.
• The Act provides for public participation, and also establishes an advisory body to provide advice to the Minister on ways to achieve net-zero emissions by 2050.
• It requires an annual report regarding the federal administration management of financial risks and opportunities related to climate change.
• Finally, the Act requires the Commissioner of the Environment and Sustainable Development (CESD) to examine and report on the Government’s implementation efforts at least once every 5 years.
• More broadly, the Act demonstrates to Canadians and the global community the Government of Canada’s ongoing commitment to taking action on climate change.

Supplemental: General Context

• Scientists say the world must aim for net-zero by 2050 if it is to avoid the worst impacts of climate change.
• Achieving net-zero emissions means either emitting no greenhouse gas emissions at all or offsetting them completely through actions that remove carbon dioxide and other climate warming gases from the atmosphere.
• This is not just a plan for the environment; it is a plan to build a cleaner, more competitive economy.
• Canada’s emission reduction plans will create a competitive advantage in the clean economy that attracts investment, stimulates economic growth, and leads to more jobs and less pollution.

Supplemental: Advisory Body

• In February 2021, the Minister of Environment and Climate Change announced the Net-Zero Advisory Body and its first group of volunteer members.
• The Canadian Net-Zero Emissions Accountability Act proposes to establish the Net-Zero Advisory Body as a permanent feature of the framework for achieving net-zero emissions by 2050.

What are carbon budgets? Why were they not included in the Act?

• The Canadian Net-Zero Emissions Accountability Act will require the Government of Canada to set national targets every five years together with a plan for achieving the targets. Targets will be based on the best scientific information available and Canada’s international climate change commitments.
• Carbon budgets represent another way to set emissions reduction goals where a “budget” refers to the acceptable GHG emissions for a specific timeframe.
• Instead of carbon budgets, the Government of Canada’s approach it to set five-year targets and require a detailed plan to achieve that target.
• This approach is tailored to the Canadian circumstances ensuring that target setting and planning of the key measures, including sectoral measures, is made with the collaboration of all governments in Canada, Indigenous peoples, industry, non-governmental organizations and Canadians.
• The level of ambition of a target or a budget is more important than which of the two approaches is used. Canada has recently announced a highly ambitious new target for 2030: 40-45% reduction of greenhouse gas emissions below 2005 levels.
• Other jurisdictions like Denmark, Norway and Scotland have adopted an approach similar to the one in the Canadian Net-Zero Emissions Accountability Act, choosing to set targets on a rolling-basis instead of adopting carbon budgets.

Supplemental: Provincial Carbon Budgets

• Reducing emissions is an area of shared responsibility, and we are working with all of the provinces and territories to bring solutions to the table.
• Setting budgets or targets for provinces is outside of federal jurisdiction.
• This Act will set national targets and hold the federal government to account, but we welcome provinces and territories to set their own targets in line with the national ones.

Why will the first target be set for 2030? Would it not have been more appropriate to set for 2025 as there is currently a lack of government accountability between 2021 and 2030?

• Canada and other countries around the world need to do more to address climate change, and on a faster timeline. The science is clear that existing efforts are not enough to avoid catastrophic climate change.
• Like other countries, we need to continue to build a sustainable and resilient economy and reduce emissions year over year. This is why Canada is committing to a new 2030 target of 40-45% below 2005 levels.
• Last fall, the Government announced its strengthened climate plan to exceed the current target in 2030. The plan contains specific actions to reach the goal. While it may be a few years before we see the results, the work on these measures is underway.
• There are several elements of the Canadian Net-Zero Emissions Accountability Act that will help ensure that the work of reaching the 2030 target starts early and stays on track:
  • The Act requires the federal government to table and make public an emissions reduction plan that sets out the key measures and strategies to achieve the 2030 target within 9 months of Royal Assent;
  • The Minister must also provide an update on progress toward achieving the 2030 target at least once by the end of 2027;
  • The Commissioner of the Environment and Sustainable Development must, at least once every five years after Royal Assent, examine and report on implementation of the measures meant to achieve the target.
  • The Advisory Body will provide an annual report to which the Minister must respond publically.
• However, to answer the concerns expressed at Second Reading, we are open to amending Bill C-12 to add the following additional requirements:
  • Preparation of two additional progress reports in 2023 and 2025.
  • Submission of the first report prepared by the CESD in 2024.

Supplemental: International Reporting

• The reporting under Bill C-12 will complement Canada’s reporting obligations to the United Nations Framework Convention on Climate Change (UNFCCC).
• These include the annual submission of a National Inventory Report detailing Canada’s greenhouse gas emissions for every year dating back to 1990. Canada also submits a Biennial Report every two years and a National Communication every four years.
• These reports provide extensive information on Canada’s actions to address climate change and projections of Canada’s future emissions.

Why are the targets and emissions reduction plans not set earlier?

• Targets will be established on a rolling basis. The Act proposes that targets be set at least 5 years prior to a milestone year.
• The Act mirrors the approach taken in the Paris Agreement which obligates countries to put forward increasingly ambitious Nationally Determined Contributions (NDCs).
• This Act will support Canada in meeting its targets under the Paris Agreement by aligning national five-year targets and emissions reduction plans with the implementation of Canada’s NDCs under the Paris Agreement.
• As factors such as economic circumstances, technological advances and international commitments will evolve with time, setting targets on a rolling basis will facilitate the most efficient path possible to achieving net-zero in 2050.
• However, to answer the concerns expressed at Second Reading, we are open to amending Bill C-12 to add the following additional requirements:
  • Each target would be set 10 years before the beginning of the milestone year to which it relates.
  • As soon as feasible after a greenhouse gas emissions target would be set for a milestone year after 2030, the Minister would publish a high level description of the key emissions reduction measures the Government of Canada intends to take to achieve that target.

Why isn’t the 2030 target set directly in the Act?

• The Act proposes that the target for 2030 be set at the maximum 9 months after the coming into force of the Act. This was to allow for alignment with international processes where countries declare their targets.
• On April 22, 2021, during the Leaders’ Summit on Climate organized by U.S. President Biden, Prime Minister Justin Trudeau announced that Canada will enhance its emissions reduction target under the Paris Agreement – known as a Nationally Determined Contribution (NDC) – by 40-45% reduction of greenhouse gas emissions below 2005 levels by 2030. This is a significant increase in ambition from Canada’s previous Paris Agreement target of 30% below 2005 levels by 2030.
• The Leaders’ Summit on Climate was an important opportunity for heads of state and government to meet and discuss stronger climate action in the lead up to COP26 that is taking place this November in Glasgow.
• Canada will formally submit its new NDC to the UNFCCC in the coming months.

What is Canada’s current 2030 target under the Paris Agreement and what impact will the Act have on the target?

• In December 2020 the Government of Canada released its strengthened federal climate plan, A Healthy Environment and a Healthy Economy.
• Through Budget 2021 the Government proposes $17.6 billion in additional investments towards a green recovery to create well-paying middle class jobs, build a clean economy, and fight and protect against climate change.
• On April 22, 2021, during the Leaders’ Summit on Climate organized by U.S. President Biden, Prime Minister Justin Trudeau announced that Canada will enhance its emissions reduction target under the Paris Agreement – known as a Nationally Determined Contribution (NDC) – by 40-45% reduction of greenhouse gas emissions below 2005 levels by 2030. This is a significant increase in ambition from Canada’s previous Paris Agreement target of 30% below 2005 levels by 2030.
• The Leaders’ Summit on Climate was an important opportunity for heads of state and government to meet and discuss stronger climate action in the lead up to COP26 that is taking place this November in Glasgow.
• Canada will formally submit its new NDC to the UNFCCC in the coming months.
• The Canadian Net-Zero Emissions Accountability Act is aligned with the Paris Agreement’s timelines for new NDC targets as well as its requirements for increasing ambition over time.
• In addition, when setting a greenhouse gas emissions target, the Minister must take into account the best scientific information available as well as Canada’s international commitments with respect to climate change, including its commitment under the Paris Agreement.

Two Private Members’ Bills (PMBs) were submitted to Parliament with similar objectives, Bill C-215 and Bill C-232. Why did the Government not support them?

• The Canadian Net-Zero Emissions Accountability Act is very much aligned with the goal of Bills C-215 and C-232.
• The Act incorporates many elements of the PMBs and establishes a more comprehensive regime, for example by ensuring public participation and the creation of an independent advisory body, creating a stronger framework for Canada to reach net‑zero emissions.

Is the federal government imposing targets on the provinces and territories?

• Provinces and territories are important partners in climate action. Their innovative local solutions will help reduce greenhouse gas emissions and set the country on its path to net-zero emissions.
• The Act requires the federal government to set national targets.
• Setting targets for provinces and territories is outside of federal jurisdiction.

Supplemental

• Provinces and territories are building upon the national work already underway to protect our environment, strengthen local economies, and create well-paying jobs in communities across the country.
• A number of provinces such as Nova Scotia, British Columbia, Newfoundland and Labrador, and Quebec have already implemented, or are working towards implementing, net-zero emission targets by 2050, including in legislation.
• Although each province and territory independently undertakes its own actions to contribute to the fight against climate change, working collectively will be important to help Canada exceed its climate goals and accelerate the transition to a carbon-neutral future.

Why is the Act not addressing measures taken by provinces and territories?

• Setting targets or establishing measures for provinces and territories is outside of federal jurisdiction.
• However, the Act recognizes that provinces and territories are important partners in climate action. Their innovative local solutions will help reduce greenhouse gas emissions and set the country on its path to net-zero emissions.
• The Act requires the federal government to set national targets and establishes emissions reduction plans to reach those targets, and it provides that emissions reduction plans may include information on initiatives or other measures undertaken by the governments of the provinces, Indigenous peoples of Canada, municipal governments or the private sector that may contribute to achieving the greenhouse gas emissions target.

What are the economic and environmental risks to Canada if there is no net-zero legislation?

• Both the international Paris Agreement and the Canadian Net-Zero Emissions Accountability Act recognize the importance of limiting warming to 1.5 degrees.
• According to the Intergovernmental Panel on Climate Change, global human-caused CO₂ emissions must reach net-zero around 2050 to achieve 1.5°C.
• Canadians are already experiencing the impacts of a changing climate. Canada’s climate is warming twice as fast as the rest of the world, and three times as fast in the north. The effects are projected to intensify in the future.
• The potential costs of inaction are much greater than the costs of actually addressing climate challenges. The costs of climate change in Canada could escalate from an estimated $5 billion per year in 2020 to between $21 billion and $43 billion per year by 2050.
• Already there is global momentum to a net-zero economy as over 120 countries have made this commitment including our economic competitors and major trading partners like the European Union, the UK and New Zealand.
• Canada has an opportunity to provide the products the world wants to buy – now and in the decades to come.
• Global consumers and investors are demanding and rewarding climate action and Canada must seize this opportunity to create good, well-paying jobs, otherwise we risk falling behind.

What cost will the Act have on households and businesses? How much will this Act cost Canadian taxpayers?

• The purpose of the Act is to require the federal government to set national targets at 5 year intervals to reduce greenhouse gas emissions in support of achieving net-zero emissions by the year 2050. The Act establishes a transparent approach to holding successive governments accountable for achieving this goal.
• The Act does not prescribe how current and future federal governments will reach net‑zero but requires successive governments to continually demonstrate how they are moving Canada towards the goal of net-zero.

Supplemental

• Canada’s climate plan is reducing emissions across the country while making life more affordable for Canadians.
• Addressing climate change also ensures that Canadian workers and businesses remain competitive on the world stage as investors and consumers increasingly look for environmentally sustainable products.
• The costs of inaction are high.
  • A 2019 Bank of Canada report found that climate change could cost the economy $21-$43 billion a year by 2050 if no action is taken.
  • The Insurance Bureau of Canada estimated that insured losses to the private sector and individuals from catastrophic weather events have more than quadrupled to $1.8 billion per year over the past decade. Uninsured losses are roughly three to four times that amount.
  • The frequency and growing costs are evidenced by recent climate-related disasters including flooding across the Prairies and southern Ontario from 2013-2018, and wildfires in Slave Lake (2011), Fort McMurray (2016) and in British Columbia (2017 and 2018). These fire events each cost over $1 billion, including Fort McMurray which alone cost almost $9 billion.

Why didn’t the Government of Canada act sooner? Isn’t 2050 too late?

• Net-zero emissions by 2050 is the target scientists say the world must aim for if it is to avoid the worst impacts of climate change.
• Progress is underway to fully implement Canada’s national climate plan, which will see the biggest emissions reductions in our history.
• In December 2020, the Government of Canada released its strengthened federal climate plan, A Healthy Environment and a Healthy Economy.
• Building on the measures included in the Pan-Canadian Framework on Clean Growth and Climate Change, the proposed actions outlined in the strengthened climate plan will – once fully implemented – enable Canada to exceed its current 2030 target.
• The IPCC has also identified deeper near term emission reductions by 2030 as key to limiting warming to 1.5°C. Accordingly, the Prime Minister recently announced that Canada will enhance its emissions reduction target for 2030 to 40-45% below 2005 levels. This is a significant increase in ambition from Canada’s previous Paris Agreement target of 30% below 2005 levels by 2030.

Why is there no legal framework on the Advisory Body’s composition, role and independence?

• The Act establishes the Advisory Body, along with its mandate and matters related to the appointment and remuneration of its members. It also requires the Advisory Body to submit an annual report to the Minister of Environment and Climate Change.
• As set out in the Act, the core mandate of the Advisory Body is to provide advice on the most likely pathways for Canada to achieve net-zero emissions by 2050. The Advisory Body will also provide advice on emissions reductions milestones leading up to 2050, and identify near-term actions and key building blocks that support this long-term target.
• For transparency and accountability, the Act provides that the Minister of Environment and Climate Change must publicly respond to advice included in the annual report of the Advisory Body.
• The Advisory Body will be fully independent in delivering its mandate. For example, it will control its operations and activities, approach to referred matters, and development of advice to the Minister.
• Additional detail on the Advisory Body’s role, operation and near-term deliverables are set out in the Terms of Reference, which is publicly available on Environment and Climate Change Canada’s website.
• One of its first tasks is to provide a summary of net-zero pathways work completed domestically and internationally and an outline of proposed priorities for analysis and engagement. In developing its advice, the Body will take into account economic costs and opportunities, environmental benefits, contributions to inclusivity and well-being and technological readiness and requirements.
• **Redacted**

Why did you choose to appoint the members of the Advisory Body prior to the enactment of C-12 and without consulting Parliament?

• The Minister announced the first group of volunteer members on February 25, 2021.
• Expert advice will be critical to informing plans to achieve net-zero emissions. In the interest of establishing a dedicated process to generate expert advice as soon as possible, the Minister used his authority to appoint a group of experts that he judged to have the appropriate mix of experience, skills, knowledge and perspectives to support his decision-making.
• Members will serve on a part-time basis for a renewable term of up to three years.
• Currently, the Advisory Body brings together 14 volunteers with a range of expertise in science, business, labor, policy-making, rural economic development, and Indigenous governance and different experiences, including from the transportation, clean technology, forestry, electricity, finance, and not-for-profit sectors.
• The members were selected to represent the diversity of the Canadian population including members from BC, the Prairies, Ontario, Quebec, Atlantic Canada, and the North.
• To provide continuity and enable these vetted appointees to serve their terms, we are proposing that these ministerial appointees become GIC appointments, per the legislation, as soon as feasible. This process will be contingent on an exemption from a competitive GIC appointment process, which is subject to approval by the Prime Minister.
• Going forward, all future appointments will be done through the open and transparent GIC process, on recommendation of the Minister of Environment and Climate Change.

What will be included in the Government’s annual climate disclosure report?

• The Government intends to use the report to enhance transparency with respect to its actions to manage its financial risks and opportunities related to climate change.
• There are a number of established and emerging frameworks that underpin climate disclosure in both the public and private sectors. Should Parliament approve the bill, the Government would carefully analyze these frameworks and develop a suitable model for the Government of Canada.
• More details will follow as they are available.

Why are there no consequences for the federal government if the targets are not met? Why does this Act lack accountability measures and is not aligned with stronger legislation like the United Kingdom’s Climate Change Act?

• There are a range of accountability measures outlined in the Act.
• If a target is not met, the federal government will need to address the failure in its mandatory assessment report tabled in Parliament. This must include an explanation of the reasons why the target was not met, and a description of any planned corrective actions that will be taken to address the failure.
• The Act is also proactive – it requires the federal government to bring forward climate plans to meet targets based on the best available science and the advice of experts. The Government must also give provinces, territories, Indigenous peoples and other interested parties with the opportunity to provide input.
• In addition, for each target, the federal government must develop at least one progress report, providing an update on the progress that has been made towards achieving the greenhouse gas emissions target and on the implementation of the measures and strategies described in the relevant emissions reduction plan.
• To ensure transparency, all required plans and reports will be tabled in Parliament and made available to the public.
• The Commissioner of the Environment and Sustainable Development will help to ensure accountability as well with the Act calling upon them to examine and report on the Government’s implementation of mitigation measures at least once for every target.
• The Government will also rely on the independent advice from the advisory body on achieving net-zero emissions by 2050 and respond publicly to the advice included in its annual report.
• The Minister of Finance, in cooperation with the Minister of Environment and Climate Change, will publish an annual report respecting key measures that the federal public administration has taken to manage its financial risks and opportunities related to climate change.
• Finally, all of these processes ensure transparency and ongoing discussion with Canadians on the Government’s actions to combat climate change and demonstrate accountability both in Parliament and with Canadians.

Supplemental: UK’s legislation

• The provisions in Bill C-12 are very similar to the UK Climate Change Act. Both laws place an obligation on the Minister to set targets and develop emissions reduction plans with a view to achieving the net-zero 2050 target.

What are the similarities and differences between the UK Climate Change Act and the Canadian Net-Zero Emissions Accountability Act (CNZEAA)?

The UK Climate Change Act:

• Set the goal to reach a net UK carbon account by 2050.
  • Similar to CNZEAA.
• Mandates the Secretary of State for the Environment to set carbon budgets for 5-year periods on a rolling basis.
  • The UK Act sets carbon budgets for 5-year periods while CNZEAA sets one target every 5 years.
  • The UK Act requires more factors than CNZEAA to consider in setting carbon budgets (e.g., science, technological, economic, social circumstances).
• Establishes a duty to prepare proposals and policies for meeting carbon budgets.
  • Similar to CNZEAA (emissions reduction plans).
• Mandates the publication of an annual statement on UK emissions, a final statement at the end of each budgetary period and a final statement for 2050.
  • Similar to CNZEAA.
  • (note: The UK Act, like CNZEAA, requires government to set out policies that would make up for going over carbon budget.)
• Creates a Committee on Climate Change, an independent, non-departmental public body.
  • The UK Committee appears to play a dual advice and review role with respect to government actions to meet carbon budgets.
  • CNZEAA uses two separate bodies for this role (advisory body and CESD).
• Climate change adaptation requirements (assessment of risks and actions to meet adaptation objectives)
  • CNZEAA does not address climate change adaptation.

Supplemental

• The UK Act also contains provisions with respect to trading regimes (akin to the GGPPA).

How many jurisdictions have established legislation on achieving net zero by 2050 and GHG emissions targets?

• At least six other countries have already put in place legislation to reach net-zero emissions by 2050: Denmark, France, Hungary, New Zealand, Sweden (2045) and the United Kingdom.
• Over 120 countries, 20 regions and over 450 cities have indicated they are working to achieve net-zero carbon emissions by 2050.
• Canada joined the Carbon Neutrality Coalition in 2017 along with 28 other countries to develop long-term, low-emissions, climate-resilient development strategies by 2020 that are in line with the objectives of the Paris Agreement.
• A number of provinces and territories have already made net-zero by 2050 commitments including Newfoundland and Labrador and most recently Quebec, have put into place or are in the process of putting into place net-zero legislation such as Nova Scotia and British Columbia.
• In April 2021, the United States announced it aims to reach a net-zero emissions economy-wide by 2050. In addition, Maine (2045), Nevada (2050) and New York (2050) enshrined in legislation the goal to reach net-zero emissions. Others like California have enshrined the goal to achieve net-zero by 2050 in executive orders.

Supplemental: G7

• Both France and the United Kingdom has enshrined in legislation the goal of reaching net zero by 2050.
  • In 2019, France has enshrined the goal to reach carbon neutrality by 2050 in its Code de l’Énergie.
  • The United Kingdom amended its Climate Change Act in 2019. Its target for the year 2050 is to reach a net carbon account at least 100% lower than the 1990 baseline, meaning net zero.
• The European Union aims to reach net zero by 2050. This goal would be enshrined in the European Climate Law, currently at the European Parliament.
• In its Federal Climate Change Act, Germany mentions the commitment previously made to pursue the long-term goal of carbon neutrality by 2050.
• The United States (April 2021) and Japan (October 2020) have committed to reach net-zero by 2050. They are not enshrined in legislation.
• Italy has not officially committed to reach net zero by 2050.

What are the similarities and differences between the UK Climate Change Act and the Canadian Net Zero Emissions Accountability Act (CNZEAA)?

The UK Climate Change Act:

• Sets the goal of reaching a net UK carbon account by 2050.
  • Similar to CNZEAA.
• Mandates the Secretary of State for the Environment to set carbon budgets for 5 year periods on a rolling basis.
  • Similar idea, different approach: UK Act sets carbon budgets for 5 year periods (that is, the total GHG emissions for a 5-yr period) while CNZEAA sets one target for GHG reductions every 5 years.
  • UK Act specifies slightly different factors to consider (science, technological, economic, social circumstances). CNZEAA focuses on establishing science-based targets, respecting our international commitments.
• Creates a duty on the Secretary of State for the Environment to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget and that UK reaches net-zero by 2050.
  • Similar idea, different approach: while CNZEAA does not include a provision about a duty to reach the targets, the Minister is responsible to ensure Canada attains net-zero by 2050 (e.g. when setting measures and strategies in emissions reduction plans).
• Establishes a duty to prepare proposals and policies for meeting carbon budgets.
  • Similar to CNZEAA’s emissions reduction plans.
• Mandates the publication of an annual statement on UK emissions, a final statement at the end of each budgetary period and a final statement for 2050.
  • Similar to CNZEAA.
  • Like CNZEAA, the UK Act requires Government to set out reasons and measures that would make up for going over carbon budget/targets.
• Creates an independent, non-departmental public body, known as the Committee on Climate Change.
  • The UK Committee appears to play a dual advice and review role with respect to Government actions to meet carbon budgets.
  • The CNZEAA uses two separate bodies for this role (advisory body and CESD).
• Climate change adaptation requirements (assessment of risks and actions to meet adaptation objectives)
  • CNZEAA focuses on establishing a framework addressing climate mitigation. Other initiatives developed or being developed across the Government of Canada address climate adaptation.

What are the similarities and differences between the NZ Climate Change Response Act 2002 and the Canadian Net Zero Emissions Accountability Act (CNZEAA)?

The NZ Climate Change Response Act:

• Sets the goal for NZ of reaching a net-accounting GHG emissions of zero by 2050.
  • Similar to CNZEAA.
• Sets a separate goal for biogenic methane emissions (24% to 47% biogenic methane emissions less than 2017 emissions by 2050 and for each subsequent calendar year)
  • Different from CNZEAA; there is not a specific target for biogenic methane emissions.
• Mandates the Minister to set 5-year emissions budget on a rolling basis.
  • Similar idea, different approach: NZ Act sets emissions budgets for 5 year periods while CNZEAA sets one target every 5 years.
  • NZ Act requires different factors to consider in setting carbon budgets (e.g., science, technological, economic, results of public consultation, distribution of impacts on current and future generations). CNZEAA focuses on establishing science-based targets, respecting our international commitments.
• Requires that emissions budgets are to be met, as far as possible, through domestic emissions reductions and domestic removals.
  • CNZEAA does not address the balance between domestic reductions/removals and offsets. However, it focuses on national measures and strategies to be taken to reduce GHG emissions in Canada.
• Creates a duty on the Minister to ensure that the net accounting emissions do not exceed the emissions budget for the relevant emissions budget period.
  • Similar idea, different approach: While CNZEAA does not include a provision about a duty to reach the targets, the Minister is responsible to ensure Canada attains net-zero by 2050 (e.g. when setting measures and strategies in emissions reduction plans).
• Mandates the Minister to prepare and make publicly available a plan setting out the policies and strategies for meeting the next emissions budget.
  • Similar to CNZEAA (emissions reduction plans).
• Requires the Climate Change Commission to publish an annual report on progress toward meeting emissions budget, and a final report at the end of every emissions budget period.
  • Similar to CNZEAA, except for the entity responsible for making those reports (Commission in NZ Act, Minister in CNZEAA). In addition, under CNZEAA the CESD will publish a report at least once every five years on the Government of Canada’s implementation of the measures aimed at mitigating climate change.
  • Like CNZEAA, the NZ Act requires government to set out reasons for going over carbon budget/targets.
• Limits the judicial remedy of a failure to meet 2050 target and emissions budgets to a declaratory order by a court of law, along with an award of costs.
  • CNZEAA does not address or limit existing judicial remedies.
• Creates an independent, non-departmental public body, known as the Climate Change Commission.
  • The Climate Change Commission appears to play a dual advice and review role with respect to government actions to meet emissions budgets.
  • CNZEAA uses two separate bodies for this role (advisory body and CESD).
• Climate change adaptation requirements (preparation of a national climate change risk assessments and national adaptation plans).
  • CNZEAA focuses on establishing a framework addressing climate mitigation. Other initiatives developed or being develop across the Government of Canada addresses climate adaptation.