Mandate letter: Appearance before the Standing Committee – May 3, 2022

The Net-Zero Advisory Body has been established and will provide independent advice on the most likely pathways for Canada to achieve net-zero emissions by 2050.

The first Emissions Reduction Plan was released on March 29. It explains how the measures and strategies it contains will contribute to Canada achieving net-zero emissions by 2050.

In November 2021, at COP26 in Glasgow, Prime Minister Trudeau announced Canada’s commitment to cap and cut emissions from the oil and gas sector and to achieve net-zero emitting electricity in Canada by 2035.

The 2030 Emissions Reduction Plan noted the Government is considering a range of options to achieve this commitment and reiterated its intent to work closely with industry, provinces, Indigenous partners and civil society on the details of how best to design and implement this cap.

The ERP also notes that the Government will work closely with provinces and the sector to manage competitiveness challenges, remain attuned to evolving energy security and climate risk considerations, maximize opportunities for ongoing investment in the sector, and minimize the risk of carbon leakage.

Preliminary consultations on the oil and gas sector cap were initiated in December 2021. Since then, more than 40 informal engagement sessions have taken place with provinces and territories, Indigenous peoples, industry associations, oil & gas companies, ENGOs, think tanks, and academic researchers.

The Net-Zero Advisory Body also publicly released its advice on key guiding principles for setting emissions reduction targets for the oil and gas sector on March 21, 2022.

The 2030 Emissions Reduction Plan noted the Government’s intent to release its methane plan this year, which will highlight science and clean technology innovation for measurement and quantification to inform reporting, policy development, and mitigation measures across the Canadian economy. The plan will strengthen the clean technology sector, and provide tools to industry and governments to achieve methane emission reductions effectively, including the establishment of a global centre of excellence on methane detection and elimination (NRCan/ISED mandate letter commitment).

Canada is on track to meet the goal of reducing methane emissions from the oil and gas sector by 40–45 per cent by 2025, as stated in a December 2021 Review of Canada’s methane regulations for the upstream oil and gas sector. A discussion paper was published in March 2022 to launch public consultation on regulatory options for meeting the new 75 per cent target.

Consultations have also been underway since January 2022 on regulations to reduce methane emissions from Canada’s municipal solid waste landfills. A discussion paper was released last January.

For agricultural methane, AAFC will soon begin consultations with farmers and other partners/stakeholders on the Green Agricultural Plan, including developing strategies to reduce methane (AAFC mandate letter commitment). Significant investments in agricultural clean tech, etc., were announced in Budget 2022.

Canada worked with key partners and allies in the lead-up to and at COP26 toward enhancing global ambition. Canada made several key commitments to that end. Canada is now planning to continue these efforts for COP27 in November 2022 in Sharm el-Sheikh, Egypt.

At COP 26, Canada called for global leaders to work together to triple the global emissions covered by carbon pollution pricing to 60% by 2030.

Canada is also advocating through other fora such as the G7/G20, as well as through trade agreements and bilateral and regional cooperation.

Canada has been co-leading the Ministerial on Climate Action and the Powering Past Coal Alliance since 2017 and was one of few donor countries to double its international climate financing in 2021, to $5.3 billion over the next five years, to support developing countries.

In 2018, the Government published regulations requiring the phase-out of conventional coal-fired electricity generation in Canada by 2030.

Canada has taken a strong international position opposing international support for coal power, including public/private finance, and notably through its leadership of the Powering Past Coal Alliance (PPCA). At COP26, Canada announced that it would invest up to $1 billion for the Climate Investment Funds Accelerated Coal Transition Investment Program to help developing countries transition from coal-fired electricity to clean power as quickly as possible.

Officials are developing options to ban thermal coal exports no later than 2030.

In June 2021, the Government announced that it considers that any new thermal coal mining projects, or expansions of existing thermal coal mines in Canada, are likely to cause unacceptable environmental effects, and that this position will inform federal decision making on thermal coal mining projects.

At the 2021 G7 Leaders’ Summit, Canada announced a doubling of its international climate finance commitment to $5.3 billion over the next five years.

At COP26 Canada provided further details on how this funding will support developing countries as they adapt to climate change and transition to a cleaner economy, notably by increasing the provision of grants as well as funding towards adaptation. At least 20% of Canada’s $5.3-billion climate finance commitment will support nature-based climate solutions and biodiversity co-benefits in developing countries over the next five years, representing more than CA$1 billion.

Funding is being disbursed as planned, guided by a whole-of-government governance process.

The Net Zero Accelerator (NZA) will provide up to $8 billion in support of projects that will enable Canada to reduce its domestic greenhouse gas emissions and drive industrial transition and transformation to excel in a net zero future.

The initiative will support projects that promote the decarbonisation of large emitters, accelerate industrial transformation, and advance clean technology development and Canada’s battery ecosystem.

Work is underway to support the decarbonisation of transportation. Discussion papers seeking input to achieve Canada’s zero-emission vehicle objectives for light- and heavy-duty vehicles were published in December 2021, with consultations held in December 2021 and January 2022. As committed to in the Emissions Reduction Plan, ECCC will:

• Put in place a sales mandate to ensure at least 20 per cent of new light-duty vehicle sales will be zero-emission vehicles (ZEVs) by 2026, at least 60 per cent by 2030 and 100 per cent by 2035.
• Require 100 per cent MHDV sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that would vary for different vehicle categories based on feasibility, and explore interim targets for the mid-2020s.

Significant measures to support increased zero-emission vehicle adoption were expanded in Budget 2022, including:

• Purchase incentives
• Investments in charging infrastructure
• Partnerships with auto manufacturers to help re-tool and produce zero-emission vehicles right here in Canada

A Clean Electricity Standard is being developed to achieve a net-zero clean electricity grid by 2035.

Canada’s strengthened climate plan already includes a number of measures to reduce emissions from the electricity sector. This includes key investments to advance smart renewable energy and grid modernization projects and help build key intertie projects.

On March 15, 2022, the discussion paper A Clean Electricity Standard in support of a net-zero electricity sector was released to start public consultation. Written comments can be provided until April 15th. Stakeholder and PT Webinars were also held March 23rd and 24th. Bilateral engagement is ongoing with PTs, utilities, Indigenous organizations, NGOs, experts, etc.

Canada’s Strengthened Climate Plan announced the Government’s objective of working with provinces and territories to help build key intertie projects with support from the Canada Infrastructure Bank, including the “Atlantic Loop”.

Negotiations with key provinces are underway.

Since 2019, every jurisdiction in Canada has had a comparable price on carbon pollution.

In August 2021, the federal government published strengthened benchmark criteria that all systems will need to meet from 2023-2030.

A key element of the federal benchmark is the price on carbon pollution. Starting in 2023, the price will start rising by $15 per year until it reaches $170 per tonne in 2030. The price schedule is laid out to 2030 to create certainty, which is important for attracting private sector investment.

Along with G20 partners, Canada committed to phase out inefficient fossil fuel subsidies.

At COP26, Canada announced its commitment to end new direct public support for the international unabated fossil fuel sector by the end of 2022.

The government has already phased out or rationalized eight tax preferences. Budget 2022 proposed the phase-out of flow-through shares for oil, gas, and coal exploration and development. Work is continuing on reviewing additional tax and non-tax measures.

The Sustainable Finance Action Council was launched in May 2021. The council’s initial focus is on enhancing climate-related financial disclosures in Canada’s private and public sector, aligned with the recommendations of the Task Force on Climate-related Financial Disclosures.

The Canadian Net-Zero Emissions Accountability Act will require the publication of an annual report on action the federal government has taken to manage the financial risks and opportunities related to climate change, once the relevant provision is brought into force.

Building on early outreach, in fall 2021, the Government of Canada established five thematic advisory tables co-chaired by federal departments and external stakeholders on health and wellbeing, natural and built infrastructure, thriving natural environment, strong and resilient economy, and disaster resilience and security.

The Government of Canada will continue to engage with stakeholders and partners, as well as the broader public, with a view to releasing the finalized National Adaptation Strategy in fall 2022.

Building on significant investments to date, Budget 2022 announced key items to advance federal adaptation efforts, including funding to support Indigenous Climate Leadership and the development of a Canada Green Homes Strategy, which will help to increase the climate resilience of existing buildings. Budget 2022 also announced other investments related to adaptation such as funding for freshwater initiatives, wildfire response, agriculture, and to enhance federal coordination of emergency responses.

Policy development is underway.

The Sustainable Finance Action Council, launched in May 2021, will provide input on the development of foundational market infrastructure including climate data and analytics.

Canada’s 2030 Emissions Reduction Plan announced $29.6M to support Indigenous Climate Leadership, including engagement with Indigenous Partners to develop and implement a model of partnership for climate action that empowers self-determined climate action. Canada’s Strengthened Climate Plan (December 2020) and Budget 2021 committed more than $1.3 billion in targeted investments to support Indigenous communities to transition to clean energy, advance nature-based solutions, build new or retrofit green community buildings, promote resilience of health systems, and undertake major disaster mitigation projects.

These investments supplement more than $425M over 12 years committed under the Pan-Canadian Framework (2016), as well as funding provided to Indigenous proponents through general climate programs for which they are eligible recipients.

Three distinctions-based (First Nation, Metis, Inuit) senior bilateral tables foster a collaborative approach and support Indigenous climate leadership.

Building on significant investments to date to support Indigenous partners address climate change and its impacts, Budget 2022 announced funding for the co-development of an Indigenous Climate Leadership Agenda and to advance self-determined action in addressing Indigenous peoples’ climate priorities. This funding will also support the phased implementation of distinctions-based climate strategies.

The Government is currently evaluating options. Scientific and IT requirements to inform the continuity of the High Performance Computing solution have been identified by ECCC’s Meteorological Service of Canada, jointly with Shared Services Canada.

A risk assessment of monitoring networks has also been conducted by ECCC’s Meteorological Service of Canada.

Engagement with PTs, ENGOs, the public, and other stakeholders related to the creation of a Canada Water Agency occurred in 2021. The report “Toward the Creation of a Canada Water Agency: Stakeholder and Public Engagement – What We Heard” summarized the input received from stakeholders and the public and was published in June 2021.

Indigenous engagement occurred throughout 2021 and will continue in FY2022-23.

Budget 2022 announced funding for:

• the creation of the CWA in 2022
• an additional year for the FWAP
• the Experimental Lakes Area

A bill to strengthen the Canadian Environmental Protection Act was introduced in the Senate in February 2022.

The bill introduces a right to a healthy environment for the first time in a federal statute in Canada, and includes enhanced requirements to consider vulnerable populations in decision making under the Act.

A bill to strengthen the Canadian Environmental Protection Act was introduced in the Senate in February 2022.

The bill introduces a right to a healthy environment for the first time in a federal statute in Canada.

With respect to the latter part of this commitment, the Government supports Private Member’s Bill C-226, An Act respecting the development of a national strategy to assess, prevent and address environmental racism and to advance environmental justice.

A plan to protect firefighters from harmful chemicals released during household fires was released in August 2021.

The Government has already assessed more than 150 flame retardants, taken action to restrict or phase out twelve harmful flame-retardant substances, and proposed to take action on an additional six flame retardants.

December 2021 - Publication of proposed Single-use Plastics Prohibition Regulations in Canada Gazette, Part I – public consultation ended on March 5, 2022. Portions of the Regulations will come into force as early as late 2022.

Science Assessment of Plastic Pollution published in October 2020, in order to add "plastic manufactured items" to Schedule 1 of CEPA in spring 2021, giving Government the ability to regulate plastics.

Canada has provided considerable leadership on the delivery of Phase 1 & 2 Canada-wide Zero Plastic Waste Action Plan deliverables; it co-led the Guidance on Consistent Extended Producer Responsibility Policies, the Roadmap for Single use and Disposable Plastics, and the Report on the Use of Labels and Terms.

ECCC and ISED are exploring key design elements of the proposed fund.

This fund did not receive an allocation in Budget 2022, and implementation options are still being developed.

On March 2, 2022, the UN Environment Assembly (UNEA-5.2) agreed to a mandate aimed at ending plastic pollution globally by launching an ambitious process to develop an international legally binding agreement based on a comprehensive approach that addresses the full lifecycle of plastics by 2024.

Canada played a key role in delivering this outcome both as one of the co-facilitators guiding the UNEA negotiations and in our national capacity.

ECCC and ISED are exploring key policy elements for a right to repair, which will compliment the encouragement of value retention processes (remanufacturing, refurbishment, repair and reuse) in Canada.

ECCC and Health Canada have launched national consultations on improved and mandatory labelling for certain consumer products, including cosmetics, cleaning products, and flame retardants in upholstered furniture. The consultations will also seek views on how the Government can take action to improve information about chemicals in product supply chains. The consultations will take place through a series of workshops and interactive events until summer 2022.

As of December 2021, approximately 13.5% of terrestrial and almost 14% of ocean areas have been conserved or protected in Canada. By working with key partners, the Government of Canada continues to advance work that is grounded in both western and Indigenous science, and inclusive of local perspectives.

Budget 2021 investments set the stage to meet the 25% by 2025 domestic target and support efforts to achieve 30% protection by 2030. This work has already begun.

As part of the Enhanced Nature Legacy, the Government of Canada announced $340 million to support Indigenous-led conservation. This includes up to $173 million over five years to support new and existing Indigenous Guardians initiatives and the development of Indigenous Guardians Networks for First Nations, Inuit and Métis through existing distinctions-based governance structures.

The Government of Canada will also work with Indigenous partners at Parks Canada–administered places to enhance current Guardian initiatives and co-create new ones. Additionally, the Government of Canada will invest $166 million to support Indigenous-led area based conservation.

A First Nations call for proposals for funding closed at the end of January, and Inuit and Metis directed calls for proposals closed at the end of February.

A first round of Indigenous-led area based conservation funding for 2022-23 is being directed to Indigenous groups who had originally submitted requests for funding under the Nature Legacy’s Target 1 Challenge fund in 2019.

An initial roadmap to achieve the target has been established and work is underway to confirm prospective sites. Currently, Parks Canada has two active national park and seven active NMCA establishment projects. Recent achievements include:

• Signing a memorandum of understanding with the Epekwitk Assembly of Councils to establish a new national park reserve in PItuamkek/Hog-Island Sandhills (January 2022).
• Signing a memorandum of understanding with the Nunatsiavut Government to launch a feasibility assessment for a proposed NMCA and Indigenous Protected Area in Northern Labrador (February 2022).
• Announcing that Parks Canada and the Government of Newfoundland and Labrador are negotiating a memorandum of understanding to launch a feasibility assessment for a national marine conservation area to protect the South Coast Fjords near Burgeo.

In 2021, Parks Canada, First Nations and the Province of British Columbia announced the launch of a feasibility assessment for a new NMCA reserve for the Central Coast; a second feasibility study was launched with Indigenous communities for an NMCA in Western James Bay and Southwestern Hudson Bay.

On August 4, 2021, the Government of Canada launched the new program to support the creation of a network of national urban parks.

To date, exploratory work to assess the potential for national urban park sites has begun in:

• Victoria, British Columbia
• Meewasin Valley in Saskatoon, Saskatchewan
• Winnipeg, Manitoba
• Windsor, Ontario
• Halifax, Nova Scotia
• Edmonton, Alberta

Pre-feasibility studies are underway in four of these cities (Edmonton, Meewasin Valley, Windsor and Halifax). Parks Canada has also begun exploratory discussions with Montreal.

The Department has begun preliminary discussions with the Province of British Columbia with the intent to quickly make progress on the establishment of the B.C. Old Growth Nature Fund.

Canada and BC nature agreement launched in Feb 2021.

Budget 2022 provided funding to establish an Old Growth Nature Fund in collaboration with the Province of British Columbia, non-governmental organizations, and Indigenous and local communities. This funding will be conditional on the Government of British Columbia making a matching investment.

ECCC has worked to advance the threat risk assessment on international illegal wildlife trade that will shape the proposed strategy and engagement of key partners and stakeholders.

Public consultation on potential trade controls on elephant ivory held from July 24 to September 22, 2021.