Appearance before the Standing Committee on Environment and Sustainable Development – November 27, 2024

1.1) Clause-by-clause

Preamble

The preamble

• states that the Government of Canada recognizes that nature is an integral part of Canada’s identity and history;
• states that the Government of Canada recognizes that biodiversity, including the diversity of species and ecosystems, has intrinsic value;
• states that the Government of Canada recognizes that biodiversity must be valued, conserved, restored and wisely used, maintaining ecosystem services, sustaining a healthy planet and delivering benefits essential for all people;
• indicates there is clear scientific evidence that biodiversity is declining at an alarming rate, which poses a pressing and serious threat to nature, human well-being and economic prosperity;
• refers to the Government of Canada’s commitment, as a party to the Convention on Biological Diversity, to contributing to the attainment of global targets and long-term goals and to the fulfillment of the vision of a world living in harmony with nature by 2050;
• states that the Government of Canada recognizes that the development and implementation of measures to address biodiversity loss should contribute to making Canada’s economy more resilient, inclusive and competitive;
• states that the Government of Canada recognizes that addressing biodiversity loss requires transformative, immediate and ambitious action by all governments in Canada, the Indigenous peoples of Canada, the private sector, non-governmental organizations and individual Canadians and welcomes opportunities for collaboration in taking such action;
• refers to the Government of Canada’s commitment to respecting the rights recognized and affirmed by section 35 of the Constitution Act, 1982 and the rights affirmed in the United Nations Declaration on the Rights of Indigenous Peoples and to strengthening its collaborative partnerships with the Indigenous peoples of Canada in developing and implementing measures to address biodiversity loss, including by taking Indigenous knowledge into account when carrying out the purposes of this Act;
• states that the Government of Canada recognizes that First Nations, Inuit and the Métis have distinctive relationships with lands, territories, waters and other resources and hold an important role as stewards of biodiversity; and
• states that the Government of Canada recognizes that the protection of the environment, including biodiversity, contributes to and promotes human well-being, including the ability of present and future generations to effectively enjoy all human rights.

Clause 1: Short title

Section 1 makes the short title of the Act the Nature Accountability Act.

Clause 2: Definitions

The definitions under section 2 apply to the Act and include:

“advisory committee”

The term “advisory committee” means the committee established by the Minister under subsection 7(1) of the Act.

“Conference of the Parties”

The term “Conference of the Parties” means the body established under Article 23 of the Convention on Biological Diversity.

“Convention”

The term “Convention” means the Convention on Biological Diversity, which entered into force on December 29, 1993, as amended from time to time, to the extent that the amendment is in force for Canada.

“Convention Secretariat”

The term “Convention Secretariat” means the secretariat established under Article 24 of the Convention on Biological Diversity.

“global targets”

The term “global targets” means the global targets set out by the Conference of the Parties from time to time, such as the 23 targets set out in the Kunming-Montreal Global Biodiversity Framework adopted by the Conference of the Parties on December 19, 2022.

“Indigenous knowledge”

The term “Indigenous knowledge” refers to the Indigenous knowledge of the Indigenous peoples of Canada.

“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.

“long-term goals”

The term “long-term goals” refers to the four global long-term goals for 2050 set out in the Kunming-Montreal Global Biodiversity Framework adopted by the Conference of the Parties on December 19, 2022.

“Minister”

The term “Minister” means the Minister of the Environment.

“national biodiversity strategy and action plan”

The term “national biodiversity strategy and action plan” means a national biodiversity strategy and action plan established under section 5 of the Act.

“2050 vision”

The term “2050 vision” means the shared vision of a world living in harmony with nature by 2050 that is referred to in the Kunming-Montreal Global Biodiversity Framework adopted by the Conference of the Parties on December 19, 2022.

Clause 3: Binding on His Majesty

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

Clause 4: Purpose

Section 4 states the purpose of the Act, which is to

• recognize Canada’s commitment under the Convention to contributing to the attainment of the global targets and long-term goals and to the fulfillment of the 2050 vision;
• promote the Government of Canada’s transparency and accountability respecting the development and implementation of measures aimed at meeting those commitments; and
• encourage collaboration in the development and implementation of such measures within the federal public administration, as well as between the Government of Canada and the governments of the provinces, the Indigenous peoples of Canada and municipal governments.

Clause 5: National Biodiversity Strategy and Action Plan

Section 5 sets out the Minister of the Environment’s obligations in relation to establishing and submitting national biodiversity strategies and action plans.

Subsection 5(1) requires the Minister to establish a national biodiversity strategy and action plan and submit it to the Convention Secretariat on or before each submission deadline set under the Convention.

Subsection 5(2) requires that each national biodiversity strategy and action plan set out any measures taken or proposed to be taken by the Government of Canada that are intended to contribute to the attainment of the global targets and long-term goals, including any mechanisms for integrating biodiversity considerations into decision-making processes.

Subsection 5(3) provides that a national biodiversity strategy and action plan may set out any other information that the Minister considers appropriate, including information respecting measures intended to contribute to the attainment of the global targets and long-term goals that are taken or proposed to be taken by the governments of the provinces, the Indigenous peoples of Canda, and municipal governments; and the Government of Canada in collaboration with the aforementioned or any other parties.

For instance, this could include provincial policies, programs, or plans that could contribute to the attainment of the global targets and long-term goals, such as those relating to establishing protected areas or addressing invasive alien species.

Subsection 5(4) requires that the Minister must take into account the following considerations when establishing a national biodiversity strategy and action plan:

• the best scientific and technological knowledge relevant to the conservation and restoration of nature, including biodiversity;
• Indigenous knowledge relevant to the conservation and restoration of nature, including biodiversity;
• the rights affirmed in the United Nations Declaration on the Rights of Indigenous Peoples, including the right to self-determination;
• the precautionary principle (i.e. a lack of full scientific certainty should not be used as a reason for postponing cost-effective measures to avoid or minimize a threat of significant reduction or loss of biodiversity);
• the principle of non-regression (i.e. appropriate measures must be taken, based on current scientific knowledge and technological knowledge and on Indigenous knowledge, to prevent any regression of Canada’s contributions to attaining the global targets and to make continuous progress in Canada’s contributions to attaining the long-term goals);
• the principle of intergenerational equity (i.e. it is important to meet the needs of the present generation without compromising the ability of future generations to meet their own needs);
• the goal of advancing equality, including in light of the intersection of sex and gender with other identify factors; and
• any submissions received under subsection 5(7) from the governments of the provinces, the Indigenous peoples of Canada, and the advisory committee.

Subsection 5(5) states, for greater certainty, that when establishing a national biodiversity strategy and action plan, the Minister must ensure respect for the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982, including the inherent right of self-government.

Subsection 5(6) requires that the Minister, when establishing a national biodiversity strategy and action plan, must consult with any federal minister that the Minister considers appropriate.

For instance, if federal measures relate to fish and fish habitat, the Minister would be expected to consult with the Minister of Fisheries, Oceans and the Canadian Coast Guard; if measures pertain to the agricultural sector, the Minister would be expected to consult with the Minister of Agriculture and Agri-Food.

Subsection 5(7) requires that the Minister, when establishing a national biodiversity strategy and action plan, provide (in the manner that the Minister considers appropriate) the governments of the provinces and territories, the Indigenous peoples of Canada, the advisory committee, and interested persons (including any expert the Minister considers appropriate to consult), with the opportunity to make submissions.

For instance, these opportunities could be both virtual (e.g., to provide input on a draft national biodiversity strategy and action plan via webpage) or in-person (e.g., meetings), and may also be pursued through existing structures or forums, as appropriate, particularly when engaging Indigenous peoples.

Subsection 5(8) provides that the Minister must table in each House of Parliament each national biodiversity strategy and action plan. The Minister must do so within the first 15 days on which that House is sitting after the day on which that national biodiversity strategy and action plan is submitted to the Convention Secretariat.

Subsection 5(9) provides that the Minister must publish each national biodiversity strategy and action plan. The Minister must do so in the manner the Minister considers appropriate and as soon as feasible after it is submitted to the Convention Secretariat.

Clause 6: National Report

Section 6 sets out the Minister of the Environment’s obligations in relation to preparing and submitting national reports.

Subsection 6(1) requires the Minister to prepare a national report and submit it to the Convention Secretariat on or before each submission deadline set under the Convention.

Subsection 6(2) requires that each national report must set out the following:

• an assessment of Canada’s progress on its contributions to the attainment of the global targets and long-term goals as a result of the measures set out in its most recent national biodiversity strategy and action plan;
• any corrective measures taken or proposed to be taken to address any failure to make progress on Canada’s contributions to the attainment of those targets or goals; and
• any other information that the Minister considers appropriate.

Subsection 6(3) provides that when preparing a national report, the Minister must take into account the considerations referred to in paragraphs 5(4)(a) to (g), as well as any submissions received under subsection 6(6) (i.e. from the governments of the provinces and territories, the Indigenous peoples of Canada, and the advisory committee). 

Subsection 6(4) states, for greater certainty, that when preparing a national report, the Minister must ensure respect for the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982, including the inherent right of self-government.

Subsection 6(5) requires that the Minister, when preparing a national report, consult with any federal minister that the Minister considers appropriate.

Subsection 6(6) requires that the Minister, when preparing a national report, provide (in the manner that the Minister considers appropriate) the governments of the provinces and territories, the Indigenous peoples of Canada, and the advisory committee with the opportunity to make submissions.

Subsection 6(7) provides that the Minister must table in each House of Parliament each national report. The Minister must do so within the first 15 days on which that House is sitting after the day on which that national report is submitted to the Convention Secretariat.

Subsection 6(8) provides that the Minister must publish each national report. The Minister must do so in the manner the Minister considers appropriate and as soon as feasible after it is submitted to the Convention Secretariat.

Clause 7: Advisory Committee

Subsection 7(1) requires the Minister to establish an advisory committee. It also states that the advisory committee is responsible for providing the Minister with independent advice on matters related to the carrying out of the purposes of the Act, including advice respecting:

• measures that may be taken by the Government of Canada to meet the commitments referred to in paragraph 4(a) (i.e. Canada’s commitment under the Convention to contributing to the attainment of the global targets and long-term goals, and to the fulfillment of the 2050 vision); and
• any other matter referred to the advisory committee by the Minister.

Subsection 7(2) provides authority for the Minister to establish the terms of reference of the advisory committee. In addition, this subsection requires the Minister to publish, in the manner that the Minister considers appropriate, any terms of reference.

Subsection 7(3) provides authority for the Minister to appoint one or more persons as members of the advisory committee.

Subsection 7(4) requires the Minister, when deciding whether to appoint a member, to consider the need for the advisory committee as a whole to have:

• expertise in and knowledge of scientific disciplines relevant to the conservation and restoration of nature, including biodiversity;
• Indigenous knowledge relevant to the conservation and restoration of nature, including biodiversity; and
• expertise in and knowledge of biodiversity policy at the international, national and subnational levels, including the likely effects and efficacy of potential measures aimed at addressing biodiversity loss.

Clause 8: Statutory Instruments Act

Section 8 clarifies that national biodiversity strategies and action plans, national reports prepared under subsection 6(1), and terms of reference established under subsection 7(2) are not statutory instruments for the purposes of the Statutory Instruments Act. Therefore, the requirements under the Statutory Instruments Act do not apply to them.

Clause 9: Review

Section 9 states that a comprehensive review of the provisions and operation of the Act is to be undertaken no later than December 31, 2030, and every 10 years after that date. It also states that each comprehensive review is to be undertaken by a committee of one or both Houses of Parliament that may be designated or established for that purpose by either House or by both, as the case may be.

The timelines for this provision are based on the fact that parties to the Convention on Biological Diversity generally establish new targets every 10 years, with the next update expected in 2030.

2.1) Questions and Answers

Approach and design of the proposed Nature Accountability Act

1. What is the proposed Nature Accountability Act?

• If passed by Parliament, the proposed Nature Accountability Act would establish an accountability and transparency framework (in domestic law) for the federal government in fulfilling its Kunming-Montreal Global Biodiversity Framework (GBF) and related Convention on Biological Diversity (CBD) commitments at the federal level.
• The proposed Nature Accountability Act would provide concrete steps until 2050 to advance these commitments, including an ongoing requirement to develop national biodiversity strategies and action plans (“national strategies”) and to report on their implementation.
• Clear and accessible reporting would allow for an assessment of implementation progress, and, where necessary, provide information on course corrections to stay on track with GBF and related CBD commitments.
• The proposed Nature Accountability Act would also provide a framework for consultation and collaboration nationally as the Government of Canada works to deliver on its commitments, without affecting provincial, territorial or Indigenous actions or jurisdictions.

2. What are the main obligations of the proposed Nature Accountability Act?

• The intent of the proposed Nature Accountability Act is to establish an accountability and transparency framework – with meaningful checkpoints – for the federal government in fulfilling its GBF commitments and related commitments under the CBD.
• If passed into law, the proposed Nature Accountability Act would be a new Act under the responsibility of the Minister of Environment and Climate Change.
• The proposed Nature Accountability Act:
  • codifies Canada’s commitment to contribute to the attainment of global targets (2030 targets and subsequent targets) and 2050 global goals, as well as the fulfillment of the 2050 vision set out in the GBF;
  • requires national biodiversity strategies and action plans (national strategies) to set out measures of the Government of Canada that contribute to the attainment of the global goals and targets;
    • can include information on measures by governments of the provinces, territories, the Indigenous peoples of Canada as well as other parties;
  • requires national reports to provide an assessment of Canada’s progress on its contributions towards the attainment of global goals and targets;
    • can include information on course-corrections to ensure Canada stays on track with its contributions (i.e. that progress is made on the measures set out in national strategies);
  • sets out considerations to be applied by the Minister of ECC in developing national strategies and national reports, including scientific knowledge, Indigenous knowledge, the United Nations Declaration on the Rights of Indigenous Peoples, and certain principles (non-regression, intergenerational equity, precautionary principle);
  • requires opportunities for submissions to be provided when developing national strategies and national reports;
    • includes opportunities for Indigenous peoples, governments of the provinces, etc.;
  • requires the establishment of an advisory committee to provide independent advice, including with respect to measures to contribute to global goals and targets;
    • related authority for the Minister of ECC to establish the terms of reference of the committee and to appoint one or more persons;
  • requires that national strategies and national reports be submitted to the CBD Secretariat, tabled in Parliament and published;
  • requires a parliamentary review of the Act by the end of 2030, and every 10 years thereafter (aligned with CBD timeline for setting global targets).

3. Why is it important to take action on global targets to halt and reverse biodiversity loss?

• The need for Canada to do more to conserve nature is clear from both a biological and economic perspective.
• Nature and its vital contributions to people are deteriorating faster than at any time in human history. Globally, this represents around 1 million known species at risk of extinction and an average decline of 47% of natural ecosystems.  Canada is no exception, with one in five assessed species facing some degree of threat to their viability. Canada has lost 70% of its prairie grasslands, 70% of its prairie wetlands and 80% of its Carolinian forest. In 2019 Canada reported 11.72% of its total land area was degraded, including 450 million hectares of boreal ecosystem.
• From an economic perspective, the World Economic Forum reports that over half of the world’s total GDP is moderately or highly dependent on nature. The documented decline of global biodiversity and the associated increase in climate change risk, pandemics, and food insecurity have brought the need for nature conservation sharply into focus for economies the world over.
• In this context, nature conservation is becoming increasingly important to maintaining Canada’s competitiveness in global markets and to ensuring social license to operate for Canada’s natural resource sectors, be that agriculture, forestry or mining for critical minerals. Trade policies, like the European Union Regulation on Deforestation-free Products, are increasingly linking market access to countries’ environmental track record.
• In short, the imperative for Canada to act now to identify the measures it will take or proposes to take to contribute to the attainment of the GBF targets is crystal clear.

4. How will the proposed Nature Accountability Act keep Canada accountable for commitments under the GBF?

• The proposed Nature Accountability Act would establish – for the first time – a legislated biodiversity accountability framework for the Government of Canada.
• This framework would align with our obligations to report internationally and provide concrete steps until 2050 for the federal government in fulfilling its GBF and related CBD commitments at the federal level.
• The proposed Nature Accountability Act would require that national strategies set out measures (proposed or ongoing) to contribute to the attainment of the global targets and goals, and that national reports provide information on the implementation of those measures.
• The proposed Nature Accountability Act would also require that certain issues (for example, integrating biodiversity into decision-making) be addressed in national strategies (and national reports), showing that the Government is moving forward on advancing GBF and related CBD commitments, and developing a concrete approach to meeting them in consultation with Canadians.

5. Is the already-published 2030 Nature Strategy subject to the requirements in the proposed Nature Accountability Act?

• The proposed Nature Accountability Act needs to go through the Parliamentary process before it becomes law.
• That said, the 2030 Nature Strategy already reflects many of the considerations that would be required under the Nature Accountability Act.
• The Strategy was shaped by extensive whole-of-society engagement, including with provinces and territories, Indigenous Peoples, the Nature Advisory Committee, and others.
• It was informed by science considerations identified by a diverse cross-section of national experts.
• The Strategy’s principles include the use of best available science and knowledge (which refers to the precautionary principle) and the recognition of Indigenous rights.
• Equity considerations are reflected throughout the document, and Targets 22 (inclusive decision-making) and 23 (gender) specifically address these issues.
• Indigenous rights and perspectives feature prominently in the narrative, and an analysis was conducted to ensure consistency and complementarity with measures found in the UN Declaration Act Action Plan.

6. Why doesn’t the proposed Nature Accountability Act require Canada to set national targets?

• The proposed Nature Accountability Act does not require setting of national targets – as its purpose is to establish an accountability and transparency framework for the federal government in fulfilling its GBF and related CBD commitments at the federal level.
• The GBF sets global targets to which each country contributes. This means that Canada (and other CBD Parties) are free to shape their own implementation approaches in order to contribute to the global targets. In addition, as conservation is a joint responsibility within Canada, no single order of government can contribute to achieving GBF targets alone – halting and reversing biodiversity loss in Canada requires collective action from different levels of government as well as Indigenous partners. A federal law setting national targets would not assure a sustained approach to meeting them, and instead, could be perceived as assuming and asserting that the federal government alone can meet them. This is not the case.

7. Will the law be relevant after 2030 (i.e. after the end of the GBF timeline)?

• The proposed Nature Accountability Act requires the development of national strategies and national reports into the future – and they must be submitted to the CBD Secretariat before each submission deadline set under the CBD.
• In fact, the definition of “global targets” in the proposed Nature Accountability Act contemplates future changes to targets (expected to occur in 2030 and approximately every 10 years thereafter).
• To further establish its enduring relevance, the proposed Nature Accountability Act requires a comprehensive review of the provisions and operation of the Act by the end of 2030 and every 10 years thereafter. The intent is that information from those reviews will help the Act evolve with new CBD decisions.

8. Does the federal government have any existing laws that protect biodiversity?

• There are several federal laws focused on protecting biodiversity. The main statutes administered by ECCC are:
  • the Species at Risk Act (SARA), the purposes of which are:
    • to prevent wildlife species in Canada from disappearing;
    • to provide for the recovery of wildlife species that are extirpated (no longer exist in the wild in Canada), endangered, or threatened as a result of human activity; and
    • to manage species of special concern to prevent them from becoming endangered or threatened.
  • the Migratory Birds Convention Act, 1994 (MBCA), the focus of which is protecting and conserving migratory birds — as populations and individual birds — and their nests;
  • the Canada Wildlife Act (CWA), which allows for the creation, management and protection of wildlife areas for wildlife research activities, or for conservation or interpretation of wildlife; and
  • the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA), the purpose of which is to protect Canadian and foreign species of animals and plants that may be at risk of overexploitation due to illegal trade and also to safeguard Canadian ecosystems from the introduction of species considered to be harmful.

9. Why isn’t the federal government reviewing existing laws and doing a comprehensive conservation law reform?

• At this time, we are moving forward with the proposed Nature Accountability Act, which is focused on accountability and transparency as a way to support a whole-of-society and whole-of-government approach to addressing biodiversity loss.

10.  How does the proposed Nature Accountability Act / Canada’s approach compare to other jurisdictions?

• With the introduction of the proposed Nature Accountability Act, Canada is one of the first countries in the world to propose legislation enshrining an accountability and transparency framework related to GBF commitments.
• Some international jurisdictions that have taken action to enshrine GBF and related CBD commitments into domestic law, including the UK, Scotland, Wales, and France.

Partners and Stakeholders

11. Were Indigenous peoples engaged in the development of the proposed Nature Accountability Act? Were their views taken into account?

• There has been some engagement with Indigenous peoples prior to introduction, in line with obligations under the United Nations Declaration on the Rights of Indigenous Peoples Act (UN Declaration Act).
• Adjustments to the text of the proposed Nature Accountability Act, including strengthening rights language, have been made in order to reflect some of the feedback received from National Indigenous Organizations (NIOs) and interested Indigenous Modern Treaty Partners.

12. Was there any other engagement on the Bill (e.g. with PTs, ENGOs, industry)? If so, what were their reactions?

• I announced the government’s intention to introduce the proposed Nature Accountability Act in December 2023. Since that time, information has been shared with provinces and territories as well as the Nature Advisory Committee.
• While discussions with stakeholders have been ongoing, I would invite this committee to hear directly from stakeholders on their views on the Bill.

13. Will the proposed Nature Accountability Act impact provincial laws or jurisdiction or areas of jurisdiction of Indigenous governments?

• The proposed Nature Accountability Act would not affect provincial jurisdiction. It would also not impact areas of jurisdiction of Indigenous governments in modern treaties and self-governing agreements. The focus of the proposed Nature Accountability Act is on establishing an accountability and transparency framework for the federal government.
• Other governments in Canada as well as Indigenous partners will continue to determine their own policies, plans and priorities to address biodiversity loss. They will also continue to be provided with opportunities to describe measures they are taking to address biodiversity loss and to include them in successive national strategies.

14. Why is the proposed Nature Accountability Act not doing more, or compelling provinces to do more?

• The focus of the proposed Nature Accountability Act is on establishing an accountability and transparency framework for the federal government.
• The full and effective implementation of Canada’s commitments under the GBF is a process that will take time and require action at multiple levels of government.
• Given shared jurisdiction over environmental issues, other governments in Canada as well as Indigenous partners have a key role to play and will continue to determine their own policies, plans and priorities to address biodiversity loss. They will also continue to be provided with opportunities to describe measures they are taking to address biodiversity loss and to include them in successive national strategies.

Elements of the proposed Nature Accountability Act

Indigenous issues

15. Does the proposed Nature Accountability Act address Indigenous rights?

• When developing national strategies and national reports, the proposed Nature Accountability Act requires the Minister to:
  • take into account rights affirmed in the United Nations Declaration on the Rights of Indigenous Peoples, including the right to self-determination,
  • ensure respect for the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982, including the inherent right of self-government.

16. Does the proposed Nature Accountability Act address Indigenous knowledge?

• The proposed Nature Accountability Act requires the consideration of Indigenous knowledge relevant to the conservation and restoration of nature, including biodiversity, in the development of national strategies and national reports.
• Additionally, when the Minister is deciding whether to appoint a member to the advisory committee, he/she must consider the need for the advisory committee as a whole to have Indigenous knowledge.

17. How will the proposed Nature Accountability Act ensure that input of Indigenous peoples is included in national strategies?

• There is a requirement in the proposed Nature Accountability Act to provide opportunities for submissions by Indigenous peoples. This is intended to codify the broad engagement that was undertaken for the current strategy (as well as for past strategies) so that it would be a legal requirement moving forward.
• There is also a requirement for the advisory committee, that will provide advice in carrying out the purposes of the Act, to have Indigenous knowledge. This is designed to ensure the submissions of the committee respect and promote Indigenous rights and interests and advance consideration of Indigenous knowledge.   

Considerations

18. What does the Minister need to consider when developing national strategies and national reports?

• The proposed Nature Accountability Act requires the Minister, when developing national strategies and national reports, to consider:
• the best scientific and technological knowledge as well as Indigenous knowledge relevant to the conservation and restoration of nature, including biodiversity;
• certain principles (i.e. the precautionary principle, the principle of non-regression, and the principle of intergenerational equity);
• Indigenous rights affirmed under the United Nations Declaration on the Rights of Indigenous Peoples;
• the goal of advancing equality, including the intersection of sex and gender with other identity factors; and
• submissions received as part of consultations with provinces and territories, Indigenous peoples, and the advisory committee.

National biodiversity strategies and action plans (national strategies)

19. What are the requirements for national strategies?

• The proposed Nature Accountability Act requires the Minister of ECC to develop, submit to the CBD Secretariat, and table in Parliament national strategies that will set out measures taken or proposed to be taken to contribute to the attainment of the global targets and goals.
• The only required information on measures are those of the federal government. However, the proposed Nature Accountability Act also provides for, but does not require, the inclusion of measures taken by others, for example provinces and territories.
• Timelines in the proposed Nature Accountability Act for the completion of national strategies align with requirements under the CBD. Generally, national strategies need to be updated once new targets are set by the CBD, which happens approximately every 10 years.

20. Will the measures in the strategy require that other Ministers take action?

• The proposed Nature Accountability Act provides that each national strategy must include information respecting any measures taken or proposed to be taken by the Government of Canada. This could include measures under the responsibility of other federal Ministers.
• In other words, national strategies are not intended to create enforceable obligations on federal departments, agencies or others. This is why one of the purposes of the proposed Nature Accountability Act is to encourage collaboration within the federal government. It is also why the proposed Nature Accountability Act requires consultation with other relevant Ministers in developing national strategies.

National reports

21. What kind of reporting requirements would there be? How many reports?

• The proposed Nature Accountability Act will codify existing reporting requirements under the CBD relating to national strategies and national reports.
• This includes the requirement to develop, submit to the CBD Secretariat, and table in Parliament, national reports, to provide an assessment of Canada’s progress towards the global goals and targets, as well as a description of any corrective measures to address any failure to make progress.
• Timelines in the proposed Nature Accountability Act for the completion of national reports align with requirements under the CBD – this means that the next national report is due by February 28, 2026.

Advisory Committee

22. Will the proposed Nature Accountability Act establish a new advisory committee, or will it use the existing Nature Advisory Committee?

• The proposed Nature Accountability Act requires the establishment of an advisory committee – a committee could be created, or an existing committee could be adapted to fulfil that role.

23. What are the required qualifications for the advisory committee?

• The proposed Nature Accountability Act requires that when the Minister is deciding whether to appoint a member to the advisory committee, he/she must consider the need for the advisory committee as a whole to have:
• expertise in and knowledge of scientific disciplines relevant to the conservation and restoration of nature;
• Indigenous knowledge relevant to the conservation and restoration of nature; and
• expertise in and knowledge of biodiversity policy at the international, national and subnational levels.

Parliamentary review

24. Why is there a review in 2030? Why are there reviews every 10 years after that?

• The proposed Nature Accountability Act requires a comprehensive review of the provisions and operation of the Act. The intent is that information from reviews will help the Act evolve with new CBD decisions.
• The timing of the review is set to align with the timing for expected CBD targets – 10 years is the average time interval for setting new CBD targets, and new targets are expected in 2030.

3.1) Quick Overview of the Convention on Biological Diversity and the GBF

What is the Convention on Biological Diversity (CBD)?

• The CBD entered into force in 1993 and has 196 Parties, including Canada but not the United States. It commits the Parties to: 1) conserve biodiversity; 2) use its components sustainably; and 3) share the benefits arising from the use of genetic resources in a fair and equitable manner.
• The CBD is a binding international treaty negotiated by governments. However, the CBD leaves broad discretion to Parties in the implementation of most of their obligations. The Convention consists of general obligations, including Article 7 (identification and monitoring), Article 8 (in-situ conservation), Article 9 (ex-situ conservation), Article 10 (sustainable use of components of biological diversity), Article 14 (impact assessment and minimizing adverse impacts), and Article 15 (access to genetic resources). Many of these general obligations contain various qualifiers (e.g. “as far as possible”, “as appropriate”, or “subject to national legislation”).
• One of the obligations in the CBD that does not include such a qualifier is Article 26, which establishes an obligation for each contracting party to issue “reports on measures which it has taken for the implementation of the provisions of this Convention and their effectiveness”. These reports are usually delivered via National Biodiversity Strategies and Action Plans (NBSAPs) that parties are required to develop under Article 6. Accordingly, NBSAPs have become the Convention’s main instrument for implementation at the national level.

What is the Global Biodiversity Framework (GBF)?

• The Kunming-Montreal Global Biodiversity Framework (GBF) – adopted in December 2022 at the fifteenth meeting of the Conference of the Parties (COP15) to the CBD – builds on the CBD’s previous Strategic Plans and seeks to halt and reverse biodiversity domestic loss by 2030 and put nature on a path to recovery by 2050. The GBF is the latest Strategic Plan (i.e., GBF is a plan for implementation rather than an obligation for implementation).
• The GBF (which is annexed to decision 15/4 (PDF) of CBD COP) commits Parties to the CBD, including Canada, to 23 targets for 2030 and four overarching goals for 2050, as part of the pathway to reach the global vision of a world living in harmony with nature by 2050. In light of this commitment, Parties are expected to update their NBSAPs to reflect implementing the GBF domestically and support the global goals and targets set out therein.
• Revised national strategies must be completed before COP16, which took place in Colombia from October 21 to November 1, 2024. ECCC led the development of Canada’s 2030 Nature Strategy, which establishes a shared vision for halting and reversing biodiversity loss in Canada, reflects Canada’s priorities for biodiversity conservation and sustainable use, and guides how Canada implements the GBF domestically.
• A draft of Canada’s 2030 Strategy (Milestone Document) was released for public comment in 2023. ECCC, supported by relevant federal departments and agencies, finalized the Strategy in June 2024 and submitted it to the CBD before COP16.
• CBD COP decision 15/6 (PDF) requests at paragraph 11 that Parties submit their seventh national report by February 28, 2026, and their eighth national report by June 30, 2029, as required by Article 26 of the Convention. Decision 15/6 further stipulates, at annex II, that the seventh and eighth national reports should provide an assessment of Parties’ progress in the implementation of the GBF, including progress towards national targets in the revised or updated NBSAP, using the most up-to-date data and information from appropriate sources.

3.3) Key Outcomes of the Sixteenth Meeting of the Conference of the Parties (COP16) to the Convention on Biological Diversity (CBD)

Summary

• COP16 took place October 21 – November 1, 2024.
• With 23,000 registered participants, this was the largest CBD COP ever.
• The high-level session took place October 29-30, 2024, and featured the launch of the Peace for Nature Declaration, which Canada joined.
• GAC-ECCC jointly announced $62M in international biodiversity support.

What were some of the successes and challenges of the COP from a Canadian perspective?

Successes:

• Enhanced Indigenous engagement in CBD process. A new permanent subsidiary body on issues related to biodiversity and Indigenous peoples and traditional local communities was created. This was a top priority for Canada.
• Another success was the decision to enhance multilateral policy coherence on biodiversity and climate change and to better integrate nature and climate actions.
• The COP also allowed for a successful showcasing of Canada’s domestic action on nature, including Canada-led events related to Indigenous-led Project Finance for Permanence (PFPs) and Indigenous-led Conservation and Stewardship.
  • The delegation also provided high-level Canadian perspectives in at least 36 other side-events.
• The establishment of the “Cali Fund” for sharing benefits from the use of genetic information under the UNDP Multi-Partner Trust Fund Office was another successful outcome.

Challenges:

• There were over 20 substantive items on the agenda to negotiate.
• The agenda was not concluded before COP16 was suspended on November 2 due to lack of quorum.
• While there was broad agreement on how to improve Parties’ monitoring and reporting and how to review collective progress for COP17, related decisions were not finalized before COP16 was suspended.
• Discussions on resource mobilization were difficult and unresolved. There was a continued push by developing countries for more assistance through a new, separate Global Biodiversity Fund, which Canada opposed.

What are the next steps?

• An “extraordinary COP 16.2” is needed to conclude unresolved issues, including resource mobilization, the budget and multi-year programme of work, and planning, monitoring, reporting and review. The location and timing of the extraordinary COP have yet to be announced.
• CBD subsidiary body meetings are likely to occur in the last quarter of 2025 and second quarter of 2026.
• Work will begin to support Canada’s next national report to the CBD, which is due in February 2026.
• COP17: Last quarter of 2026 in Armenia.

4.1) Excerpts from the GBF

2050 Vision

10. The vision of the Kunming-Montreal Global Biodiversity Framework is a world of living in harmony with nature where “by 2050, biodiversity is valued, conserved, restored and wisely used, maintaining ecosystem services, sustaining a healthy planet and delivering benefits essential for all people.”  […]

Global goals for 2050

12. The Kunming-Montreal Global Biodiversity Framework has four long-term goals for 2050 related to the 2050 Vision for biodiversity.

Goal A

The integrity, connectivity and resilience of all ecosystems are maintained, enhanced, or restored, substantially increasing the area of natural ecosystems by 2050;

Human induced extinction of known threatened species is halted, and, by 2050, the extinction rate and risk of all species are reduced tenfold and the abundance of native wild species is increased to healthy and resilient levels;

The genetic diversity within populations of wild and domesticated species, is maintained, safeguarding their adaptive potential.

Goal B

Biodiversity is sustainably used and managed and nature’s contributions to people, including ecosystem functions and services, are valued, maintained and enhanced, with those currently in decline being restored, supporting the achievement of sustainable development for the benefit of present and future generations by 2050.

Goal C

The monetary and non-monetary benefits from the utilization of genetic resources and digital sequence information on genetic resources, and of traditional knowledge associated with genetic resources, as applicable, are shared fairly and equitably, including, as appropriate with Indigenous peoples and local communities, and substantially increased by 2050, while ensuring traditional knowledge associated with genetic resources is appropriately protected, thereby contributing to the conservation and sustainable use of biodiversity, in accordance with internationally agreed access and benefit-sharing instruments.

Goal D

Adequate means of implementation, including financial resources, capacity-building, technical and scientific cooperation, and access to and transfer of technology to fully implement the Kunming-Montreal Global Biodiversity Framework are secured and equitably accessible to all Parties, especially developing country Parties, in particular the least developed countries and small island developing States, as well as countries with economies in transition, progressively closing the biodiversity finance gap of $700 billion per year, and aligning financial flows with the Kunming-Montreal Global Biodiversity Framework and the 2050 Vision for biodiversity.

Global targets for 2030

13. The Kunming-Montreal Global Biodiversity Framework has 23 action-oriented global targets for urgent action over the decade to 2030. The actions set out in each Target need to be initiated immediately and completed by 2030. Together, the results will enable achievement towards the outcome-oriented goals for 2050. Actions to reach these targets should be implemented consistently and in harmony with the Convention on Biological Diversity and its Protocols, and other relevant international obligations, taking into account national circumstances, priorities and socioeconomic conditions.

1. Reducing threats to biodiversity

Target 1 

Ensure that all areas are under participatory, integrated and biodiversity inclusive spatial planning and/or effective management processes addressing land- and sea use‑ change, to bring the loss of areas of high biodiversity importance, including ecosystems of high ecological integrity, close to zero by 2030, while respecting the rights of Indigenous peoples and local communities.

Target 2

Ensure that by 2030 at least 30 per cent of areas of degraded terrestrial, inland water, and marine and coastal ecosystems are under effective restoration, in order to enhance biodiversity and ecosystem functions and services, ecological integrity and connectivity.

Target 3

Ensure and enable that by 2030 at least 30 per cent of terrestrial and inland water areas, and of marine and coastal areas, especially areas of particular importance for biodiversity and ecosystem functions and services, are effectively conserved and managed through ecologically representative, well-connected and equitably governed systems of protected areas and other effective area-based conservation measures, recognizing indigenous and traditional territories, where applicable, and integrated into wider landscapes, seascapes and the ocean, while ensuring that any sustainable use, where appropriate in such areas, is fully consistent with conservation outcomes, recognizing and respecting the rights of Indigenous peoples and local communities, including over their traditional territories.

Target 4

Ensure urgent management actions to halt human induced extinction of known threatened species and for the recovery and conservation of species, in particular threatened species, to significantly reduce extinction risk, as well as to maintain and restore the genetic diversity within and between populations of native, wild and domesticated species to maintain their adaptive potential, including through in situ and ex situ conservation and sustainable management practices, and effectively manage human-wildlife interactions to minimize human-wildlife conflict for coexistence.

Target 5

Ensure that the use, harvesting and trade of wild species is sustainable, safe and legal, preventing overexploitation, minimizing impacts on non-Target species and ecosystems, and reducing the risk of pathogen spillover, applying the ecosystem approach, while respecting and protecting customary sustainable use by Indigenous peoples and local communities.

Target 6

Eliminate, minimize, reduce and or mitigate the impacts of invasive alien species on biodiversity and ecosystem services by identifying and managing pathways of the introduction of alien species, preventing the introduction and establishment of priority invasive alien species, reducing the rates of introduction and establishment of other known or potential invasive alien species by at least 50 per cent by 2030, and eradicating or controlling invasive alien species, especially in priority sites, such as islands.

Target 7

Reduce pollution risks and the negative impact of pollution from all sources by 2030, to levels that are not harmful to biodiversity and ecosystem functions and services, considering cumulative effects, including: (a) by reducing excess nutrients lost to the environment by at least half, including through more efficient nutrient cycling and use; (b) by reducing the overall risk from pesticides and highly hazardous chemicals by at least half, including through integrated pest management, based on science, taking into account food security and livelihoods; and (c) by preventing, reducing, and working towards eliminating plastic pollution.

Target 8

Minimize the impact of climate change and ocean acidification on biodiversity and increase its resilience through mitigation, adaptation, and disaster risk reduction actions, including through nature-based solutions and/or ecosystem-based approaches, while minimizing negative and fostering positive impacts of climate action on biodiversity.

2. Meeting people’s needs through sustainable use and benefit-sharing

Target 9

Ensure that the management and use of wild species are sustainable, thereby providing social, economic and environmental benefits for people, especially those in vulnerable situations and those most dependent on biodiversity, including through sustainable biodiversity-based activities, products and services that enhance biodiversity, and protecting and encouraging customary sustainable use by indigenous peoples and local communities.

Target 10

Ensure that areas under agriculture, aquaculture, fisheries and forestry are managed sustainably, in particular through the sustainable use of biodiversity, including through a substantial increase of the application of biodiversity friendly practices, such as sustainable intensification, agroecological and other innovative approaches, contributing to the resilience and long-term efficiency and productivity of these production systems, and to food security, conserving and restoring biodiversity and maintaining nature’s contributions to people, including ecosystem functions and services.

Target 11

Restore, maintain and enhance nature’s contributions to people, including ecosystem functions and services, such as the regulation of air, water and climate, soil health, pollination and reduction of disease risk, as well as protection from natural hazards and disasters, through nature-based solutions and/or ecosystem-based approaches for the benefit of all people and nature.

Target 12 

Significantly increase the area and quality, and connectivity of, access to, and benefits from green and blue spaces in urban and densely populated areas sustainably, by mainstreaming the conservation and sustainable use of biodiversity, and ensure biodiversity-inclusive urban planning, enhancing native biodiversity, ecological connectivity and integrity, and improving human health and well-being and connection to nature, and contributing to inclusive and sustainable urbanization and to the provision of ecosystem functions and services.

Target 13

Take effective legal, policy, administrative and capacity-building measures at all levels, as appropriate, to ensure the fair and equitable sharing of benefits that arise from the utilization of genetic resources and from digital sequence information on genetic resources, as well as traditional knowledge associated with genetic resources, and facilitating appropriate access to genetic resources, and by 2030, facilitating a significant increase of the benefits shared, in accordance with applicable international access and benefit-sharing instruments.

3. Tools and solutions for implementation and mainstreaming

Target 14

Ensure the full integration of biodiversity and its multiple values into policies, regulations, planning and development processes, poverty eradication strategies, strategic environmental assessments, environmental impact assessments and, as appropriate, national accounting, within and across all levels of government and across all sectors, in particular those with significant impacts on biodiversity, progressively aligning all relevant public and private activities, and fiscal and financial flows with the goals and targets of this framework.

Target 15

Take legal, administrative or policy measures to encourage and enable business, and in particular to ensure that large and transnational companies and financial institutions:

1. Regularly monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity, including with requirements for all large as well as transnational companies and financial institutions along their operations, supply and value chains, and portfolios;
2. Provide information needed to consumers to promote sustainable consumption patterns;
3. Report on compliance with access and benefit-sharing regulations and measures, as applicable;

in order to progressively reduce negative impacts on biodiversity, increase positive impacts, reduce biodiversity-related risks to business and financial institutions, and promote actions to ensure sustainable patterns of production.

Target 16

Ensure that people are encouraged and enabled to make sustainable consumption choices, including by establishing supportive policy, legislative or regulatory frameworks, improving education and access to relevant and accurate information and alternatives, and by 2030, reduce the global footprint of consumption in an equitable manner, including through halving global food waste, significantly reducing overconsumption and substantially reducing waste generation, in order for all people to live well in harmony with Mother Earth.

Target 17

Establish, strengthen capacity for, and implement in all countries, biosafety measures as set out in Article 8(g) of the Convention on Biological Diversity and measures for the handling of biotechnology and distribution of its benefits as set out in Article 19 of the Convention.

Target 18

Identify by 2025, and eliminate, phase out or reform incentives, including subsidies, harmful for biodiversity, in a proportionate, just, fair, effective and equitable way, while substantially and progressively reducing them by at least $500 billion per year by 2030, starting with the most harmful incentives, and scale up positive incentives for the conservation and sustainable use of biodiversity.

Target 19

Substantially and progressively increase the level of financial resources from all sources, in an effective, timely and easily accessible manner, including domestic, international, public and private resources, in accordance with Article 20 of the Convention, to implement national biodiversity strategies and action plans, mobilizing at least $200 billion per year by 2030, including by:

1. Increasing total biodiversity related international financial resources from developed countries, including official development assistance, and from countries that voluntarily assume obligations of developed country Parties, to developing countries, in particular the least developed countries and small island developing States, as well as countries with economies in transition, to at least $20 billion per year by 2025, and to at least $30 billion per year by 2030;
2. Significantly increasing domestic resource mobilization, facilitated by the preparation and implementation of national biodiversity finance plans or similar instruments according to national needs, priorities and circumstances;
3. Leveraging private finance, promoting blended finance, implementing strategies for raising new and additional resources, and encouraging the private sector to invest in biodiversity, including through impact funds and other instruments;
4. Stimulating innovative schemes such as payment for ecosystem services, green bonds, biodiversity offsets and credits, and benefit-sharing mechanisms, with environmental and social safeguards;
5. Optimizing co-benefits and synergies of finance targeting the biodiversity and climate crises;
6. Enhancing the role of collective actions, including by Indigenous peoples and local communities, Mother Earth centric actions¹ and non-market-based approaches including community based natural resource management and civil society cooperation and solidarity aimed at the conservation of biodiversity;
7. Enhancing the effectiveness, efficiency and transparency of resource provision and use;

Note 1: Mother Earth Centric Actions: Ecocentric and rights-based approach enabling the implementation of actions towards harmonic and complementary relationships between peoples and nature, promoting the continuity of all living beings and their communities and ensuring the non-commodification of environmental functions of Mother Earth.

Target 20

Strengthen capacity-building and development, access to and transfer of technology, and promote development of and access to innovation and technical and scientific cooperation, including through South-South‑, North-South and triangular cooperation, to meet the needs for effective implementation, particularly in developing countries, fostering joint technology development and joint scientific research programmes for the conservation and sustainable use of biodiversity and strengthening scientific research and monitoring capacities, commensurate with the ambition of the goals and targets of the Framework.

Target 21

Ensure that the best available data, information and knowledge are accessible to decision makers, practitioners and the public to guide effective and equitable governance, integrated and participatory management of biodiversity, and to strengthen communication, awareness-raising, education, monitoring, research and knowledge management and, also in this context, traditional knowledge, innovations, practices and technologies of Indigenous peoples and local communities should only be accessed with their free, prior and informed consent², in accordance with national legislation.

Note 2: Free, prior and informed consent refers to the tripartite terminology of “prior and informed consent” or “free, prior and informed consent” or “approval and involvement.”

Target 22

Ensure the full, equitable, inclusive, effective and gender-responsive representation and participation in decision-making, and access to justice and information related to biodiversity by Indigenous peoples and local communities, respecting their cultures and their rights over lands, territories, resources, and traditional knowledge, as well as by women and girls, children and youth, and persons with disabilities and ensure the full protection of environmental human rights defenders.

Target 23

Ensure gender equality in the implementation of the Framework through a gender-responsive approach, where all women and girls have equal opportunity and capacity to contribute to the three objectives of the Convention, including by recognizing their equal rights and access to land and natural resources and their full, equitable, meaningful and informed participation and leadership at all levels of action, engagement, policy and decision-making related to biodiversity.

Clean fuel regulations

Q1. When did the Clean Fuel Regulations come into force?

The Clean Fuel Regulations came into force in June 2022.  The reduction requirements under the Regulations started on July 1, 2023.

Q2. What do the Clean Fuel Regulations cover?

The Regulations aim to reduce greenhouse gas emissions from liquid fossil fuels used in Canada for transportation, i.e. gasoline and diesel. The Regulations require liquid fossil fuel suppliers to reduce the lifecycle carbon intensity of the fuels they produce and import for use in Canada. A lifecycle approach accounts for emissions across all stages of fuel production and use, from extraction through processing, distribution, and end use. 

Q3. Do the Clean Fuel Regulations duplicate what would be achieved by carbon pollution pricing or the oil and gas cap?

The Clean Fuel Regulations complement carbon pricing.

• Carbon pricing sends a broad signal across the economy to spur the lowest cost reductions wherever they may be found.
• The Clean Fuel Regulations complement these general signals by sending a targeted incentive to drive transformational changes along the lifecycle of liquid fuels for longer-term capital investments such as carbon capture and storage.
• Actions taken under the Clean Fuel Regulations can also reduce the overall emissions of a refinery helping it to meet compliance under other provincial or federal regulations like the Output-Based Pricing System.

The oil and gas emissions cap applies to the emissions of upstream producers of oil and natural gas, as well as producers of liquified natural gas (LNG), not suppliers of gasoline and diesel as in the Clean Fuel Regulations.

• In particular, refineries are covered under the Clean Fuel Regulations but are not covered under the emissions cap.

The price on carbon, Clean Fuel Regulations, and the oil and gas emissions cap will all help meet Canada meet our emission reduction target, and to put Canada on a path towards achieving the goal of net-zero emissions by 2050.

Q4. What does success look like for the Clean Fuel Regulations?

The Clean Fuel Regulations are expected to result in significant GHG reductions (up to 26 Mt in 2030) by lowering the lifecycle carbon intensity of gasoline and diesel used in transportation. In addition, the Regulations are driving innovation and support sustainable jobs across multiple sectors of the economy, including in clean technology and low-carbon energy sectors such as biofuels and hydrogen.

Other jurisdictions that have adopted a low-carbon fuel standard such as California and B.C. have seen increases in low-carbon intensity fuel production and consumption.

Q5. What is the status of the credit market?

• On June 26, 2024, ECCC published its first Clean Fuel Regulations credit market report. The initial report covers the first 18 months of activity since the Regulations came into force.
• The report shows that, while the CFR credit market has not yet reached maturity, it is functioning well and as expected. 240 credit transfers have been reported with a price, with an average price of $133.20 per credit. This reflects a healthy market with significant opportunity for credit trading amongst market participants.

Q6. When will ECCC publish CFR market data to provide more information for regulated parties and investors?

• ECCC understands the importance of market information to investors and regulated parties. As such, we published a first credit market report in June 2024.
• Moving forward, ECCC plans to publish a report each year at a minimum.
• Additional metrics will be added to the CFR Credit Market Data Report as more data becomes available, such as information on annual emission reduction requirements and contributions to emissions reduction funding programs.
• The first annual Credit Market Data Report did not include some information – such as credit creation for emission reduction projects by province – to protect confidential business information. As the number of organizations participating in the CFR credit market increases over time, more data may be shared publicly.

Q7. What is ECCC's view on the price adjustment that some Atlantic Provinces have included in their retail regulated fuel prices in response to their analysis of the compliance costs associated with the Clean Fuels Regulations?

• The CFR does not set a price, instead it requires fuel suppliers to reduce the lifecycle carbon intensity of the gasoline and diesel they produce and import for use in Canada. The compliance obligation is designed to be minimal in the early years.
• Price impacts depend on the choices of the regulated parties in the oil and gas sector, each of which have the flexibility to find the most cost-effective approaches that work best for them, whether investing in cleaner production or blending with biofuels.
• To ensure the compliance costs and fuel price impacts are well understood, we commissioned and shared an independent study of the CFR by ESMIA (Energy Super Modelers and International Analysts).
• That study was published on January 25, 2024. It found that the fuel price impacts from the CFR are likely to be negligible in 2023 and 2024, with increases of less than half a cent per litre for gasoline.

Clean Electricity Regulations

Q1. Why do we need the Clean Electricity Regulations (CER)?

• While 84% of Canada’s electricity is currently non-emitting, demand for electricity is expected to increase significantly in the coming decades as our population and economy grow and as Canadians switch to electric vehicles, adopt electric home heating, and use electricity to power industry. To ensure this increased demand does not lead to a significant increase in the deployment of natural gas-fired fossil fuel-based electricity and GHG emissions, the Government is implementing a series of measures, including the CER. This is being designed to reduce emissions while enabling continued access to an affordable and reliable grid.
• The Government of Canada is complementing the regulations with a suite of measures to support the transition to clean electricity, including over $60 billion in investments over the next 10 years through investment tax credits, low-cost financing through the Canada Infrastructure Bank, and other funding announced in Budget 2023.
• The CER will contribute to enhanced competitiveness for the Canadian economy, including attracting new investments and the creation of new jobs.
• Creating a clear path forward to net-zero electricity is already helping enhance Canada’s ability to attract industry and investors looking for a clean power advantage. We are already seeing the economic benefits of a clean electricity supply, with significant investments being made in Canada’s economic growth. For example, in April 2023, Volkswagen committed to build one of largest battery factories in the world because of Canada’s ability to supply clean and affordable electricity in the decades ahead. Having clean electricity is a competitive advantage.

Q2. What is the status of the CER and next steps?

• ECCC has received substantial feedback and constructive suggestions for making improvements from provinces and utilities on the draft Regulations.
• Following extensive consultation on the draft regulation, an update to the CER was published in February 2024 proposing more flexibility for operators so that they can continue to deliver reliable and affordable power, while still delivering significant emissions reductions. These new flexibilities were well received.
• The changes under consideration are expected to give provinces more flexibility and control to enable them to manage cost and reliability concerns as they build and operate grids in the context of growing electricity demand.
• We are targeting to finalize the regulations very soon.

Q3. What do the proposed changes to the draft Clean Electricity Regulations mean for electricity rates for Canadians?

• Electricity rates in Canada are set by provincial governments and regulators.
• Even without the CER, in a business-as-usual scenario, provincial operators will need to make large investments to respond to growing electricity demand.
• The CER would simply ensure that this necessary expansion is clean and is expected to have negligible impacts on rates.
• The Government of Canada has committed more than $60 billion over the next decade to support the build out of a clean electricity grid. It is expected that provinces will be well-positioned to take advantage of this suite of funding measures, which would help them reduce incremental costs and impacts on rates. Studies indicate that consumers can expect to save money over the long run on their household energy bill with clean electrification of the economy.

Q4. Why do we need net-zero electricity by 2050?

• As the Canadian population and economy grow and more Canadians switch to electricity to power their vehicles, heat their homes, and operate their businesses, the total demand for electricity will grow.
• We need to ensure this demand is met with clean electricity so that Canada can reach its net zero by 2050 target.
• Investors are turning to countries with non-emitting electricity to meet their own emissions reduction targets and connect to grids that offer reliable and affordable electricity, just as Volkswagen and Stellantis are doing in Ontario. Building an affordable, reliable, and clean supply of electricity will help Canada remain competitive and attract investments.

Q5. What is the Government of Canada doing to support the transition to net-zero electricity?

• Convening: Working with provinces, territories, Indigenous peoples, and others to identify and support regional priorities for clean electricity and clean energy. This includes the Canada Electricity Advisory Council, the Regional Energy Tables and other fora.
• Complementary policies: The regulations are one component of a broader plan for net-zero climate policies under the Emissions Reduction Plan that includes carbon pricing, Clean Fuel Regulations and Oil and Gas Caps.
• Funding: The Government has a suite of measures totaling over $60 billion over the next 10 years to support provinces and territories, Indigenous partners, utilities, and industry accelerate progress towards a net-zero electricity sector by 2035.

Supplementary:

• Nearly $3 billion Smart Renewables and Electrification Pathways Program.
• $10 billion in low-cost financing from the Canada Infrastructure Bank for clean electricity projects.
• 15% Clean Electricity Investment Tax Credit for eligible investments by taxable and non-taxable entities in certain technologies for the generation and storage of clean electricity and its transmission between provinces and territories.
• 30% Clean Technology Investment Tax Credit for eligible investments by businesses in certain electricity generation and storage equipment, low-carbon heating, and industrial zero-emission vehicles and related charging or refuelling infrastructure.
• 30% Clean Technology Manufacturing Investment Tax Credit for eligible investments in machinery and equipment used to manufacture or process clean technologies, and extract, process, and recycle key critical minerals.
• $520 million for the Clean Energy for Indigenous, Rural and Remote Communities programs for renewable energy and capacity-building projects and related energy efficiency measures across Canada. This includes the complementary Indigenous Off-Diesel Initiative that provides clean energy training and funding for Indigenous-led climate solutions in remote Indigenous communities.
• The Canada Growth Fund is devoting $7 Billion to support clean growth projects by providing carbon contracts for difference.
• Innovation, Science and Economic Development Canada is also investing in clean electricity projects via the Strategic Innovation Fund and Net Zero Accelerator initiative.

Q6. How is Canada recognizing the large regional differences in electricity systems?

• This last February, we announced our intent to increase the regulatory flexibility needed to enable provinces to continue supplying reliable power in the context of each of their regional circumstances, including through the continued use of natural gas where necessary during the transition to net-zero.
• We are aiming to enhance the ability of provinces to address peak power needs and take immediate action to respond to emergency circumstances. We are open to negotiating equivalency agreements with interested provinces.
• Our Government has now announced over $60 billion over the next 10 years for clean electricity to assist regions in making the transition. The federal government is working closely with provinces through regional energy tables to identify regional opportunities, priorities, and challenges for moving to clean energy. Opportunities exist for regions to work together to develop interties to move clean power amongst themselves. The recent announcement from Nova Scotia and New Brunswick indicating plans to build a new reliability intertie is an example of such interprovincial collaboration.

Clean Technology

Q1. Why is clean technology important for reducing emissions and the transition to net-zero?

• Meeting Canada’s climate commitments set out in the Canadian Net-Zero Emissions Accountability Act hinges on a transition to clean technologies across every economic sector, shifting from carbon-intensive technologies to those that can significantly reduce or eliminate greenhouse gas emissions from process and practices.
• Reaching net-zero by 2050 requires current clean technologies to be deployed on a greater scale in parallel with the development of emerging technologies. In 2021, the International Energy Agency (IEA) estimated that emerging technologies would be needed for up to half of the emissions reductions required to achieve net-zero emissions by 2050. In its latest 2023 outlook, the IEA has estimated that this has already been reduced to 35%. This shows both the rapid pace of change and the enormous opportunity that remains.

Q2. What are some of the critical clean technologies in achieving Canada’s 2030 targets and net-zero by 2050?

• Many of the clean technologies needed to achieve our 2030 targets are already commercially available - but we will need to scale up these solutions.
• Canada has an important clean electricity advantage with an 82% non-emitting grid. Renewable energy technologies and interties will help further clean the grid, and Canada is developing Clean Electricity Regulations to provide an early signal for provinces and territories to move towards a cleaner grid. A clean grid can lay the foundation for electrification of many applications across the economy and help reduce our use of fossil fuels.
• Accelerating our transition to zero-emission vehicles will be critical and we’ve set a target to transition to 100% zero-emission vehicle by 2035. Switching to electric vehicles is more affordable in the long-run when accounting for the costs of recharging and cumulative ownership costs over 10 years.
• Electrifying heat in buildings is also a significant opportunity to reduce emissions and can save consumers money in the long run. Efforts in this area have been advanced through the development of programs such as the Canada Greener Homes Grant and Oil to Heat Pump Affordability Program.
• Clean fuels such as biofuels, clean hydrogen and renewable natural gas, can provide an alternative low or zero-carbon energy source to help reduce GHG emissions in various sectors, including industry, freight transport, marine and aviation.
• Carbon capture, utilization and storage (CCUS) is a critical technology that will be required to help decarbonize hard-to-abate industrial sectors such as cement, steel and chemicals, as well as the oil and gas sector, especially where other solutions such as electrification are not available.
  • CCUS technologies have been deployed for decades and are getting better over time.
  • The basic technology is proven and effective; deployment will be a matter of scaling-up commercial projects and reducing costs.
  • Increased use of CCUS features in the mix of every credible path to achieving net-zero by 2050, including all 1.5 C pathways developed by the Intergovernmental Panel on Climate Change (IPCC) and the IEA.
  • Canada is continuing to advance RD&D to improve the commercial viability of carbon management technologies—including point source carbon capture, direct air capture (DAC) and CO2 utilization, transport, and storage across a broad range of sectors.

• Carbon removal technologies can remove CO2 from the atmosphere to directly address historical emissions, which have accumulated over centuries of industrial activity and continue to contribute to global temperature rise.
• The Government of Canada is investing in carbon removal services to help balance out its own emissions, with at least $10 million to be invested in carbon removal services between now and 2030 to help reach the federal government’s goal of net-zero emissions in Government operations by 2050.

Q3. What challenges do clean technologies face?

• There are numerous challenges that impact the pace and scale of clean technology adoption and innovation. At the early stages of development, deployment and adoption, clean technologies can be more expensive, incurring higher capital costs than their equivalent emissions-intensive options, which means a mix of incentives, carbon pricing, and/or regulations are needed to build momentum and to encourage sufficient private sector investment and public uptake.
• In a 2022 Cleantech Industry Survey conducted by ISED, 44% of clean tech firms cited the lack of regulatory drivers to adoption as a major challenge to clean tech commercialization in Canada.
• In the same Cleantech Industry Survey, 36% of firms reported that raising capital is their greatest overall challenge – Canadian private investors are scarce and firms are dependent on patient capital, often from pubic sources, to innovate and de-risk technology.
• Given the relatively early stage of the transition in most sectors, clean technologies are also confronted by uneven supply chains and enabling infrastructure; these require time to build out before widespread adoption and cost reductions can take hold.
• Moreover, there tends to be a general lack of awareness among stakeholders about clean technology solutions or the necessity of shifting towards them.
• We also know that emissions from some sectors are harder to abate than others, for example, emissions from heavy industry, oil & gas, medium- and heavy- duty freight, aviation, etc.
• However, the Government of Canada is working to address these challenges, for example, as outlined by the 2030 Emissions Reduction Plan (ERP) Progress Report, Canada is implementing a series of measures designed to support emissions reduction in all sectors of the economy, including hard-to-abate sectors.
• These include helping industries to adopt clean technology in their journey to net-zero emissions, through funding programs and a suite of clean investment tax credits, and regulatory measures including carbon pricing, methane regulations and the Clean Fuel Regulations, and an emissions cap for the oil and gas sector.

Q4. How is the federal government supporting clean technology in Canada?

• The Government of Canada has made significant investments since 2016 to accelerate clean technology deployment and development, with investments of over $120 billion in clean growth and other emissions reduction measures.
• The Government of Canada’s suite of Clean Economy investment tax credits (ITCs) is providing the support companies need to invest in clean technologies.
• These tax credits will encourage investment in Canada in clean technology manufacturing, carbon capture technologies, clean hydrogen and clean electricity.
• Prominent federal measures, such as the Canada Growth Fund, the Strategic Innovation Fund – Net Zero Accelerator, the Energy Innovation Program and the Low Carbon Economy Fund, are propelling clean technology research, development and demonstration (RD&D) in emerging innovations and de-risking investment in clean technology deployment to guide decarbonization across industries.
• Beyond this, the Government implements enabling actions to encourage clean technology development and adoption, such as the Clean Growth Hub, Clean Technology Data Strategy, Mission Innovation, and the Clean Technology and Climate Innovation Strategy.
• The Government of Canada estimates that between $125 to $140 billion in annual private and public investment across all levels of government is needed to reach net zero by 2050, but as of 2022 only $15 to $25 billion was being invested each year. Given the fiscal support already provided by the Government of Canada, it is increasingly important for business, investment, and financial sector leaders to respond to the strong market signals that have been put in place.

Q5. What is the size of Canada’s clean tech sector?

• The clean technology sector in Canada continues to grow – reaching an estimated $37 billion in 2022. Canada’s total clean tech market was estimated at $34 billion in 2021, with approximately $9.1 billion in exports and $14.7 billion in imports.
• Canada is home to thousands of clean tech firms with annual revenues worth over $17 billion. The sector is predominantly composed of small- and medium-sized enterprises (SMEs).
• Clean tech employment continues to grow – increasing by 9% over 5 years. Globally, Canada is a leader in clean technology. We are the second most represented country on the Global Cleantech 100. We are the third largest producer of hydroelectricity and we have 20% of the world’s large-scale carbon capture, utilization and storage projects.
• According to EDC, key clean tech exports include transportation and vehicle technologies, energy efficiency technologies, clean energy equipment such as wind and solar parts and biofuel technologies. The U.S. remains the main export market for Canadian clean tech producers.

Q6. Why does clean tech/climate innovation matter to Canadians?

• Clean technology offers significant benefits to Canadians, from environmental benefits to cost savings and clean air, to more than 200,000 well-paying jobs. Creative solutions and innovative technologies are key to helping the world tackle climate change (e.g., electric vehicles, renewable energy, energy efficient heat pumps, etc.), plastic waste, and other environmental challenges we face.
• The global clean technology market is set to triple over the coming decade. This is an enormous opportunity for Canadian businesses in clean technology to grow and capture a large share of global markets while improving environmental outcomes.
• Canadian innovation has had an outsized impact globally, including in clean technology. From electric streetcars to biodegradable plastics to being a leader in carbon capture technologies, Canadians benefit from this ingenuity. Canada is well-positioned to be among the leaders in this area.
• Overtime, clean tech innovations lower costs for Canadians. In the last century, innovations in building insulation vastly lowered heating costs for Canadians. Energy efficiency improvements today from triple pane windows to heat pumps, means Canadians will need to spend less and less on energy.
• By developing and adopting clean technologies, companies and industry can better control costs, meet new regulatory requirements at home and abroad, improve global competitiveness and reduce impacts on climate, water, land and air. Canadians have the opportunity to build on our strengths as innovators and producers of clean technology solutions to help Canada transition to a resilient and prosperous clean growth economy.

Low carbon economy fund

Q1. What is the Low Carbon Economy Fund (LCEF)?

• The Low Carbon Economy Fund is an important part of Canada’s clean growth and climate action plans. It supports projects that help to reduce Canada’s greenhouse gas (GHG) emissions, generate clean growth, build resilient communities, and create good jobs for Canadians.
• The Low Carbon Economy Fund was first funded in Budget 2017 in support of the Pan Canadian Framework on Clean Growth and Climate Change. The up to $2 billion of federal funding announced in 2017 has and continues to leverage investments in projects that generate clean growth, reduce greenhouse gas emissions, and contribute towards Canada’s climate targets.
• The original Low Carbon Economy Fund had two parts: the Low Carbon Economy Leadership Fund, providing up to $1.4 billion to provinces and territories to deliver on their commitments to reduce carbon pollution and contribute to meeting Canada’s 2030 climate targets; and the Low Carbon Economy Challenge including both the Champions and Partnerships streams, with a combined investment of approximately $500 million to support projects that reduce carbon pollution.
• Through Canada’s 2030 Emissions Reduction Plan and Budget 2022, the Government of Canada announced it committed additional funding to the Low Carbon Economy Fund. This would extend the Low Carbon Economy Fund through to 2028-2029.
• There are four parts to the recapitalized Low Carbon Economy Fund:
  1. The recapitalized Leadership Fund continues to provide support to stimulate provincial and territorial climate action, with a focus on deploying proven low-carbon technologies that will result in GHG emissions reductions in 2030 and align with Canada’s net-zero by 2050 goals.
  2. The recapitalized Challenge Fund continues to support the low-carbon economy transition of provinces and territories, municipalities, universities/colleges, schools, hospitals (MUSH), businesses of all sizes, not-for-profit organizations, and Indigenous governments, communities and organizations. The recapitalized Challenge Fund will support the deployment of proven, low-carbon technologies that will result in GHG emissions reductions in 2030, align with Canada’s net-zero by 2050 goals, and generate economic benefits such as job creation.
  3. Dedicated funding for climate action by Indigenous peoples, with an Indigenous Leadership Fund. This stream funds Indigenous-owned and led renewable energy, energy efficiency, and low-carbon heating projects. These projects will help meet Canada’s 2030 emissions reduction target and net-zero emissions by 2050. As announced in Budget 2022, up to $32.2 million would be directed to the Atlin Hydro Expansion project, which would provide clean electricity to the Yukon and help reduce GHG emissions.
  4. The Implementation Readiness Fund, which provides funding for activities and investments that increase the readiness to deploy GHG emissions reduction projects and remove barriers to low-carbon technology adoption and 2030 climate mitigation action. Projects funded through the program focus on developing and enhancing human and/or institutional resources through activities that facilitate the deployment of GHG emissions reduction technology.

Q2. How much funding will be available under the recapitalized LCEF?

• As a part of the 2030 Emissions Reduction Plan, Canada’s Next Steps for Clean Air and a Strong Economy, the Government of Canada is investing in further climate action.
• In Budget 2022, the Government of Canada reaffirmed its commitment to empowering communities to take climate action by making investments in and extending the Low Carbon Economy Fund until 2028-2029.
• As articulated in federal Budgets 2023 and 2024, the Government of Canada has been considering how to refocus spending to serve Canadians most effectively.
• For example, Budget 2024 provides $903.5 million over six years, starting in 2024-25, for a Canada Green Buildings Strategy to address the twin challenges of energy affordability and climate change. This represents an important next step in meeting Canada's climate targets and helping Canadians save money on their energy bills. Budget 2024 also confirmed over $750 million for the Natural Resources Canada-administered Oil to Heat Pump Affordability program, which supports households, notably those with low- to median-incomes, to transition from expensive oil heating to more energy efficient, cost-saving electric heat pumps.
• The Government’s refocusing efforts have reduced the funding available to the LCEF. The program’s updated total value is approximately $820 million.

Q3. How will Indigenous communities and organizations benefit from the Indigenous Leadership Fund?

• The Indigenous Leadership Fund (ILF) has been designed to better support Indigenous-owned and led projects that will reduce GHG emissions, while reducing the administrative burden for applicants.
• The ILF stream supports Indigenous leadership on climate change mitigation projects including through the deployment of renewable energy projects and energy efficiency improvements across Canada. Additionally, the Indigenous Leadership Fund has the potential to deliver numerous co-benefits ranging from training and skills development opportunities and economic development to the advancement of Indigenous climate priorities and self-determination.
• Environment and Climate Change Canada continues to work with Indigenous partners to support Indigenous-led emissions reduction projects in Indigenous communities. The ILF applied a distinctions-based, collaborative approach to designing the framework and implementation of the Indigenous Leadership Fund streams – First Nations, Inuit, Métis and Designated with funding available over six years (2023-24 to 2028-29).
  • The First Nations stream has $73.9 million available to provide to First Nations projects through an open call for proposals which was open from October 30, 2023, to October 17, 2024.
  • The Inuit stream has $29.5 million available through a directed continuous intake that opened in summer 2023 with four Inuit land claim organizations.
  • The Métis stream has $36.9 million available through a directed continuous intake that opened in spring 2023 with each Métis Nation government.
  • The Designated stream has $7.3 million available to provide to those Indigenous governments, communities and organizations not already included in the other funding streams through an open call for proposals which was open from January 31, 2024, to October 17, 2024.

Net Zero Accelerator Initiative

Q1. What is the Net Zero Accelerator Initiative?

• As part of the Strategic Innovation Fund, the Net Zero Accelerator Initiative (NZA) will provide up to $8 billion in funding to projects in Canada and is designed to balance near-term existing operational facilities’ emissions reductions with long-term industrial transformation to net zero. It supports Canada’s strengthened climate plan, which has as its goal to reduce greenhouse gas (GHG) emissions by 40% to 45% by 2030 and achieve net zero by 2050.
• The initiative supports projects that promote the decarbonization of large emitters, accelerate industrial transformation, and advance clean technology development and Canada’s battery ecosystem.
• The initiative will help Canadian businesses seize new opportunities as the world builds a greener global economy.  

Q2. What role does Environment and Climate Change Canada have in the initiative?

• I, as the Minister of Environment and Climate Change, support the Minister of Innovation, Science and Industry in the implementation of the initiative including by providing advice and perspective in the context of strategic investments to support Canada’s climate plans.
• As part of enhanced governance efforts, Environment and Climate Change Canada works collaboratively to help ensure that investments drive industrial transition and significant reductions in greenhouse gas emissions. The scale of the investments needs to be consistent with achieving Canada’s climate goals and ability to meaningfully transform Canadian industry to lead and compete in a net-zero emissions future.

Q3. What does Environment and Climate Change Canada do in the context of the ISED- administered Net Zero Accelerator Fund?

• Environment and Climate Change Canada (ECCC) supports Innovation, Science and Economic Development Canada (ISED) in the implementation of the Strategic Innovation Fund’s Net Zero Accelerator by providing technical advice and perspective in the context of strategic investments to support Canada’s climate plans.
• ECCC is engaged in the Net Zero Accelerator initiative at various levels, ranging from Ministerial support to evaluation of emission reductions and due diligence reviews of applications including:
  • Co-chairing the Greenhouse Gas Interdepartmental Working Group (GHGIWG) alongside ISED to evaluate emission reductions. ECCC Analysts and Engineers participate in the GHGIWG as project evaluators.
  • Participating in the Directors General Investment Review Committee, where the department provides advice and guidance on contributions to NZA projects. Retained projects then advance for further joint due diligence reviews and approvals.
  • Participating in the Strategic Innovation Fund Associate Deputy Ministers Interdepartmental Policy and Program Committee, where the department provides advice on the strategic implementation of the Net Zero Accelerator and provides guidance on project selection.
  • The Minister of Environment and Climate Change provides letters of concurrence for NZA-related Strategic Innovation Fund projects seeking over $50 million in investment from the NZA. Letters of Concurrence signal ECCC support for ISED to proceed with negotiations to finalize the terms of the project.
• ECCC has provided advice on GHG reporting requirements for contribution agreements to ISED, but it does not participate in the negotiation of final terms with successful applicants. Contribution agreements are negotiated and managed between ISED officials and applicants.

Q4. Can you give an example of the types of investments that are being made?

• In July 2021, the Prime Minister announced an important investment. Algoma Steel Inc. will receive up to $200 million from the Net-Zero Accelerator Initiative to retrofit their operations and phase out coal-fired steelmaking processes at their facility in Sault Ste. Marie, Ontario.
• This funding will enable the company to purchase state-of-the-art equipment to support its transition to Electric-Arc Furnace production. This electricity-based process is expected to cut GHG emissions by more than 3 million tonnes per year by 2030 making a meaningful contribution to achieving Canada’s climate goals.
• Also in July 2021, the Minister of Innovation, Science and Industry announced a $25 million investment in Svante Inc., to support its project to develop and commercialize its novel low-cost carbon capture technology that will prevent significant release of carbon dioxide (CO₂) into the atmosphere from industrial sites like cement and blue hydrogen plants. This innovative industrial point-source carbon capture technology will collect CO₂, concentrate it and release it for safe storage or industrial use. Svante is planning to manufacture systems with the ability to capture up to 2,000 tonnes of CO₂ per day, depending on the application. This technology is one of the tools that will help achieve Canada’s goal of net-zero by 2050, especially for heavy emitting industries that continue to produce goods Canadians use every day.
• In November 2022, the Government of Canada announced that ten projects under the Call to Action for high-emitting sectors were selected to move forward to the due diligence review process. These companies were assessed as promising early movers that would significantly reduce emissions at existing facilities and contribute to the decarbonization of their industry sectors, including electricity generation, hydrogen production and iron for the steel industry.
• The companies include:
  • Capital Power Corporation^{Footnote 1} 
  • ENMAX (Shepard Energy Centre)
  • Federated Co-operatives Limited (FCL)
  • Strathcona Resources Ltd.
  • Lafarge Canada Inc.
  • ArcelorMittal Mining Canada G.P.
  • Suncor ATCO Heartland Hydrogen Hub
  • Alberta Power (2000) Ltd. (Heartland Generation)
  • Stelco Inc.
  • Dow Chemical Canada ULC^{Footnote 2}

Q5. What projects have you provided Letters of Concurrence for under the Net-Zero Accelerator?

• I have provided Letters of Concurrence for 24 projects under the Net Zero Accelerator Fund.
• Most of these projects have not been announced publicly, so I cannot discuss them here, but some examples of projects that have been announced are:
  • Ultium CAM
  • Pratt & Whitney Canada
  • E-One Moli Energy Limited
  • Umicore Canada
  • Rio Tinto Fer et Titane Inc.
  • Vale Canada Limited
  • PowerCo

Q6. What kinds of projects does ECCC approve under the NZA?

• ECCC does not approve projects. ECCC provides technical reviews of projects to ISED, providing advice on the GHG reduction estimates and identifying environmental concerns.
  • Projects that are sent to ECCC for review include those from several industrial sectors where the department has regulatory and technical expertise, such as chemicals production, minerals and metals processing, steel and cement, pulp and paper and biofuels.
  • While the focus of the project reviews is on GHG reductions, ECCC sector reviews will identify any negative environmental impacts a proposed project may cause during construction or operations to ISED officials.
• ECCC also takes part in several advisory bodies in the SIF that afford the department opportunities to provide technical advice and guidance on proposals received by the fund.
• The Minister of Environment and Climate Change provides Letters of Concurrence on the advice of ECCC to ISED on projects where Cabinet approval is required. These letters indicate ECCCs support for ISED to enter negotiations and finalize agreement conditions with applicants. This support is not equivalent to final approval of specific projects or investments.

Q7. How does ECCC monitor whether it is doing a good job in supporting the NZA?

• ECCC’s success in supporting the NZA is measured by the timely delivery of project reviews to ISED that enable GHG and environmental aspects to be considered in decision making. ECCC evaluates proposals to the fund for GHG direct emissions reduction potential, adherence to GHG emissions reductions estimation standards, and other environmental concerns.
• ECCC has provided over 150 reviews to ISED, often reviewing projects multiple times as new information becomes available. ECCC’s success is determined by ensuring that ISED has the information relating to estimated GHG reductions and environmental concerns they need to make informed decisions about funding recommendations made to the investment review committee and to senior ISED officials that align with NZA’s emissions reductions goals.
• ECCC’s efforts have influenced decisions such as what technologies to invest in and whether to require more advanced design documents for larger and more complex projects prior to the execution of contribution agreements. ECCC also validates GHG emissions reductions estimates provided by applicants.

Q8. Has ECCC ever challenged a project under the NZA?

• Yes, ECCC has performed due diligence by ensuring that project GHG and environmental benefits are understood before decisions to retain projects are made. For projects where GHG and environmental benefits are expected to be low, ECCC ensures that ISED is aware of the issues and that it is considered when briefing decision makers.
• ECCC has challenged projects for lack of incremental GHG reductions and where investments in technology that do not align with Canada’s climate ambitions, such as Enhanced Oil Recovery.
• ECCC has challenged projects that are not sufficiently advanced to allow for reasonable and accurate GHG accounting, requesting that the applicant provide more detailed information so that the Department can be satisfied that the project will likely achieve claimed emissions reductions.
• ISED does not make public announcements about rejected SIF projects.

Q9. What has been the fund’s impact on reducing GHG emissions in Canada?

• My colleagues from ISED are best positioned to answer that question.
• All projects funded through the NZA Pillar 1 must support direct GHG emissions reductions in Canada, either at the site of the project or downstream of it. All Pillar 1 applications, for projects that reduce GHG emissions from large emitting sectors in Canada, provide the fund with detailed information that allows the emissions reduction to be quantified.
• For Pillars 2 and 3, GHG emissions reductions come from other companies buying and using technology the applicant makes, such as batteries. In these cases, we anticipate GHG benefits downstream of the project as the technology is used to displace higher-emitting technologies (e.g., electric vehicles replacing combustion engine vehicles). These downstream GHG benefits are much more complex to evaluate and rely on variables that may not be known until a project is constructed. These GHG benefits are therefore only quantified for projects where the use of the product directly follows the production, such as immediate use of carbon capture and storage technology once a producer has made it.

Q10. Has the fund supported any Indigenous-led projects?

• ISED colleagues are in a better position to comment on whether any projects to date have been from indigenous-led organizations or First Nations. ECCC does not review applicant type as part of project evaluations.

Q11. The NZA has not achieved much by way of GHG emissions reductions relative to the amount of money invested. Why is that?

• Net Zero Accelerator projects are evaluated on more than their quantifiable GHG emissions reductions. Beyond decarbonizing Canada’s large emitters, the fund also has core requirements to help established industries transition to the net-zero economy, to help develop new clean technologies, and to develop a battery ecosystem in Canada.
• For example, the NZA invested in Svante, a Canadian producer of carbon capture technology. The investment would help Svante develop and commercialize its novel low-cost carbon capture technology. While the project would not result in any direct emissions reductions from Svante’s operations, it would help provide new decarbonization options to other companies in Canada.
• Because of investments like Svante, we cannot judge the program’s performance exclusively on the cost of GHG emissions reductions over the next 5 years to 2030. The government must also consider the role of the NZA in supporting our transition to a net-zero economy.

Progress to reduce emissions

Q1. What are Canada’s climate targets?

• In 2021, Canada announced an enhanced 2030 target, increasing the Nationally Determined Contribution under the Paris Agreement and committing to reduce emissions by 40% to 45% below 2005 levels by 2030.
• Also in 2021, Canada enshrined into legislation the commitment to being net-zero by 2050 through the Canadian Net-Zero Emissions Accountability Act (CNZEAA). Under the CNZEAA, the Government of Canada is required to set progressively more ambitious emissions targets for 2035, 2040, and 2045, supported by emissions reduction plans.
• In March 2022, the Government released the 2030 Emissions Reduction Plan, which identifies a credible pathway to achieving Canada’s enhanced 2030 target. The Plan highlights the emissions reduction potential for all economic sectors to reduce emissions by 2030 and includes concrete actions that are being taken to reach the target.

Q2. What are the latest levels of ghg emissions from Canada?

• Canada’s established methodology for reporting on progress toward emissions reduction targets considers (1) historical greenhouse gas emissions and (2) greenhouse gas emissions projections.
• Canada’s most recent emissions projections were released in December 2023, and indicated that Canada was on track to reduce emissions by 36.2% by 2030, with additional actions being considered to ensure that Canada could meet its 2030 target of 40% to 45% below 2005 levels.
• Canada’s projections at that time indicated that Canada would be at about 16% below 2005 levels in 2024 and just over 21% below 2005 levels by 2026.
• While the 2024 National Inventory Report was released in May 2024, providing historical estimates for economic sectors to 2022, the Land Use, Land-Use Change and Forestry (LULUCF) Accounting Contribution value is not available until later this year. Canada’s progress against its target for 2022 cannot be calculated until that accounting contribution becomes available.
• Canada will be releasing updated projections and the historical data inclusive of the LULUCF accounting contribution in December, as part of our commitment to transparent reporting on progress under the Paris Agreement.

Q3. What are the ghg emissions trends since 2005 levels?

• Canada has made substantial and enduring progress toward emissions reductions since the establishment of the Pan-Canadian Framework on Clean Growth and Climate Change with provinces and territories in 2016.
• Based on the most recently available data, Canada’s GHG emissions peaked in 2007. This represents a significant accomplishment, given that in 2015, Canada’s emissions were projected to be 2.2% above 2005 levels in 2020, and to continue to grow, reaching 9% above 2005 levels by 2030.
• In contrast, Canada’s 2020 emissions were 14.3% below 2005 levels. The most recent projections indicate that Canada’s emissions are expected to be more than 30% below 2005 levels by 2030. Emissions continue to fall post 2030, on the road to net zero by 2050.
• In addition to absolute reductions in emissions, Canada’s emissions intensity is also decreasing. The decoupling of emissions from economic growth is an essential step toward achieving emissions reductions while maintaining economic prosperity. While Canada’s economy continues to grow, emissions continue to decrease.

Q4. How is progress tracked?

• The primary means through which Canada assesses achievement of its target is through emissions in the target year. As stated in Canada's Nationally Determined Contribution, Canada’s 2030 GHG target is a 40% to 45% reduction below our 2005 national total grow GHG emissions.
• Canada's reporting on its target is based on the national total net GHG emissions plus the LULUCF Accounting Contribution. Historical emissions data is available 15 months after the end of the calendar year. In advance of historical emissions being available, projections data is referenced to track progress towards the target.
• The national total emissions data is published in the National Inventory Report each spring. The historical LULUCF Accounting Contribution is published alongside emissions projections towards the end of the calendar year.
• In addition to emissions in the target year, progress is also assessed through other means, including:
  • Emissions Trajectory: The emissions trajectory combines historical and projected emissions. Historical emissions describe the path we have taken. Emissions projections indicate where we think emissions will be in the future, based on the best available information. The emissions trajectory, including historical and projected emissions, illustrates the expected peak of emissions and the pattern of emissions change. In other words, it shows if we are headed in the right direction and where we expect emissions to be in the target year.
  • GHG Intensity: The ratio of GHG emissions and unit of GDP. GHG emissions intensity indicates how closely linked emissions are to economic growth. The decoupling of emissions from economic growth is an essential step toward achieving emissions reductions while maintaining economic prosperity.
  • Implementation of Measures: The assessment of implementation status for each ERP measure, using an assessment grid.

Q5. What progress has the Government of Canada made towards achieving its 2030 target?

• Since 2016, an intensive national effort has been made by the Government of Canada to undertake historic climate action – including putting in place one of the most stringent carbon-pricing regimes in the world, and committing more than $160 billion to reduce emissions, drive the emergence of clean technologies, and help Canadians adapt to the impacts of climate change.
• Canada has achieved meaningful emissions reductions – reversing its emissions trajectory from one of continued emissions growth into the future to one of significant emissions reductions, and decoupling emissions from economic growth. This has required concerted effort by many, including all orders of government, the private sector, and individual Canadians.
• Canada has already made significant progress. As noted in the 2023 Progress Report on the 2030 ERP, we are on a solid path toward our 2030 target.
• With additional actions and engagement from provinces, territories, municipalities, Indigenous communities, the financial sector, and the business sector, Canada can and will meet our 2030 emissions reduction target.
• Grâce à des actions supplémentaires et à l'engagement des provinces, des territoires, des municipalités, des communautés autochtones, du secteur financier et du secteur des entreprises, le Canada peut atteindre et atteindra son objectif de réduction des émissions pour 2030.

Q6. How will the Government of Canada continue to stay on track to meet its emissions reduction targets?

• The Government of Canada continues to take extensive action on climate change, putting in place key measures and collaborating with partners to collectively reduce emissions across the economy, while also taking into account affordability and broader socio-economic issues.
• Since the launch of the 2030 Emissions Reduction Plan in 2022, the Government of Canada has been working with partners on over 140 concrete measures in the plan. A number of major initiatives are under development and the government continues to look for more opportunities to reduce emissions. Every sector of the economy has a role to play, and by taking these actions, Canada’s economy will be stronger and more sustainable well into the future. 
• For Canada to meet its emissions reduction targets, ongoing and additional collaboration with provinces and territories, Indigenous Peoples, industries, financial institutions, and municipalities are key. It is important to take the necessary time to work with partners to implement measures successfully.

Q7. How does Canada’s emissions compare to other countries?

• Unlike peer countries, Canada’s emissions were on a steady upwards climb and were projected to increase until the Pan-Canadian Framework on Clean Growth and Climate Change was adopted in 2016.
• It is important to note the uniqueness of Canada’s economy and the challenges it presents, relative to G7 countries and some of its major trading partners:
  • Canada has a large landmass, with a dispersed population and cold climate.
  • Canada is a major energy exporter, while the majority of G7 countries are energy importers and most of the emissions arising from energy production are borne by other countries (e.g., Germany importing electricity from Poland).
• While emissions intensity (per capita and GDP) remains high (due to small population and extraction-oriented economic activity), Canada has made considerable progress in reducing emission intensity and more will be achieved as Canada implements policies to meet its 2030 and net-zero target.
• Analysis by the International Monetary Fund (IMF) shows that, if the G20 adopted even half of the incremental carbon pricing policies that Canada has committed to, they would nearly triple their emissions reduction pledges under the Paris Agreement. The IMF also stated that Canada’s enhanced carbon pricing measures put it on track to meet its Paris Agreement targets, providing a model for other large-emitting countries to follow.

Q8. How does the government plan to close the gap between emissions reduction commitments and implementation timelines?

• We know that there can be a delay in implementing measures. However, delays should not be viewed only in the negative. Often, they can reflect that additional time has been taken to meaningfully engage with those who are most impacted, before finalizing the measure’s design.
• It is also important to ensure that we are putting in place robust accountability mechanisms that are necessary to safeguard public funds and help ensure that measures will have their intended impact.
• This is all part of the necessary due diligence that goes into the development of measures, and which can lead to longer implementation times than expected, particularly for more complex and/ or far-reaching initiatives.
• That said, we also know that we have limited time to make the emissions reductions necessary to achieve our 2030 target, and time is of the essence in getting measures in place.
• A number of actions are being taken to better track climate measures and ensure that we are transparent and accountable, reporting clearly and comprehensively on measures, how timelines are changing, and why.

National inventory report

Q1. What are the key highlights from the 2024 National Inventory Report?

• Canada’s greenhouse gas emissions were 708 Mt of CO2 equivalent in 2022. This is an increase of 9 Mt from the revised 2021 emissions, but 44 Mt below the revised 2019 pre-pandemic emission levels. Emissions for 2005 were revised upward by 17 Mt to 761 Mt.

• Noteworthy changes in emissions between 2021 and 2022 came from:
  • Emissions from Transport increased by 7.8 Mt largely due to more travelling.
  • Emissions from commercial, institutional, and residential fuel combustion increased by 3.8 Mt, driven by a colder winter.
  • Emissions from public electricity and heat production also decreased by 4.3 Mt due to further reductions in coal consumption.
  • Emissions from Fugitives Sources from Oil and Gas extraction decreased by 2.1 Mt.
• The emissions data for 2022 confirms Canada’s economy continues to decouple from its GHG emissions. The emissions intensity for the entire economy has declined by 42% since 1990.

Q2. Are GHG emissions data available by industrial facility in Canada?

• The Greenhouse Gas Reporting Program collects information on GHG emissions annually from over 1700 facilities across Canada under section 46 of the Canadian Environmental Protection Act. This data is complementary to NIR data, and is available online at Greenhouse gas reporting: facilities.

Q3. ls Canada improving methane emissions estimates in future editions of the NIR? 

• Continuous improvements to quantify and report Canada’s emissions are essential to ensure Canada’s inventory estimates are based on the best available science and data. This includes regularly engaging with experts and stakeholders to identify knowledge gaps and prioritize input to the scientific process that underlies GHG estimation and reporting.
• In the 2024 edition of the NIR, significant improvements and revisions were made to methodologies for fugitive methane from oil and gas, incorporating atmospheric measurements of methane from upstream oil and gas facilities. Additional improvements are expected in a future edition of the NIR. These improvements include methane estimates from wastewater, landfills and manure management as well as the addition of a new methane source from flooded lands.

Q4. How is Canada consulting with Provinces and Territories on emissions?

• The National Inventory Report is one way federal, provincial and territorial governments take annual stock of emissions reduction progress of the various federal, provincial, territories climate plans.        
• Improvements to Canada’s National GHG Inventory Report (NIR) often results in revisions to historical GHG estimates and changes to provincial and territorial GHG estimates. The commitment to quality and evidence-based information includes collaborating with stakeholders to reconcile national, provincial and territorial data towards nationally-consistent data sets.
• As part of its regular consultation process, Environment and Climate Change Canada (ECCC) shares preliminary GHG emissions data with provinces and territories. ECCC reviews and addresses any comments received to the extent possible prior to the NIR’s publishing.

Q5. How are wildfires reported in the National Inventory Report?

• GHG emissions from natural disturbances are reported in section 6.3 of the NIR. Monitoring the impact of natural disturbances such as wildfire and severe forest insect outbreaks is important in Canada’s GHG inventory to understand total emissions and removals from our managed forest and track the total change in terrestrial carbon stocks.
• Emissions of CO₂ that result from fire and removals of CO₂ that occur as the forests that have burned regrow are tracked under the natural disturbance component. These lands are reported separately until they have regrown to maturity and the carbon loss resulting from the fire is replaced on the landscape.
• Why are all fires considered natural?
• All forest fires are tracked under the natural disturbance component of the NIR because it is not possible to clearly establish if human intervention has increased or decreased areas burned over time. Forest fires have been an integral part of the Canadian landscape for millennia.
• Why are they reported separately?
• This approach enables the inventory to assess how forest management activities affect GHG estimates relative to the fire regime. If this approach is not applied natural disturbances would dominate emissions and removals estimates. For example, natural disturbance emissions can vary by over 200 million tonnes of carbon dioxide equivalent (Mt CO₂e) from year to year, depending on the area burned by wildfire.
• In Summary:
• To provide a clear picture of the impacts of human activity over time, the focus of Canada’s GHG inventory report is the emissions and removals that are a direct result of forest management practices. Having a clear understanding of direct human impacts can inform how we develop approaches to reduce carbon emissions and increase the carbon sequestered by our forests.
• Nonetheless, wildfire and other natural disturbance are an important part of the terrestrial carbon cycle in Canada and for this reason, emissions and removals associated with natural disturbances are tracked and reported separately.

Q6. What is being done to ensure accurate forest GHG reporting following the CESD audit on Forests and Climate Change?

• As documented in the Departments’ response to the CESD Audit on Forests and Climate Change, the methodology used for reporting emissions and removals of greenhouse gases from Forests in Canada is informed by continual scientific consultation and review.
• Since the publication of the results of the CESD audit in June 2023, Environment and Climate Change Canada and the Canadian Forest Service of Natural Resources Canada have finalized a major revision to the data underlying forest estimates, have negotiated the publication of provincial LULUCF estimates in the NIR and have initiated a broad stakeholder and expert consultation on forest carbon accounting.
• The 2023 Blueprint for Forest Carbon Science in Canada was completed and published following extensive consultation with experts and stakeholders.
• An external review of Canada’s NIR by independent experts assembled by the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat was completed in September. This spring, a second review by UNFCCC secretariat experts was undertaken, this time of Canada’s 2022 Biennial Report (BR). The reports of recommendations stemming from these reviews are publicly available via the UNFCCC website.
• These actions and others are underway in accordance with the Management Action Plan prepared in response to the CESD-audit.

Cap and Cut Emissions from Oil and Gas

Q1. What is the proposed approach to cap and cut oil and gas sector emissions?

• The Government is proposing a regulated cap-and-trade system that would apply to all upstream oil and gas production – including offshore development – as well as liquified natural gas (LNG) production. Together this represents approximately 85 per cent of the sector’s total emissions.
• The proposed system would establish a cap on GHG emissions, equivalent to 35% below 2019 levels, and create corresponding emissions allowance credits that would be distributed to operators of oil and gas facilities.
• To meet their emission reduction goals, the approach also gives facilities access to some compliance flexibilities, which would allow operators to use offset credits or make contributions to a new decarbonization program up to a prescribed limit. Together – the emissions cap and total compliance flexibility establish an upper limit on emissions for the sector, or “legal upper bound”.
• The approach is designed to ensure predictable emissions reductions while taking into account continued growth in production in line with expected changes in global demand. The sector will have an incentive to reduce GHG emissions to the level of the emissions cap but will have the flexibility to emit up to the legal upper bound.
• The approach will establish a framework to ensure the sector’s GHG emissions decrease over time on a pathway consistent with the shared goal of carbon neutrality by 2050. The Government would review the system at regular intervals to ensure the approach remains effective.

Q2. How would an emissions cap affect oil and gas production, exports, and energy security?

• To be clear, the purpose of the emissions cap is to reduce GHG emissions, not to cap oil and gas production in Canada.
• The approach is designed to ensure predictable emissions reductions while taking into account continued growth in production in line with expected changes in global demand.
• The GHG emissions cap is designed to stimulate re-investment into the economy from oil and gas companies who in recent years have experienced record profits. Operating profits have increased tenfold since the pandemic.
• Estimates show that production in the oil and gas sector under a GHG emissions cap will continue to grow. The GHG emissions cap will better position the sector over time, minimizing future climate-related financial risks for companies, workers and Canadians.
• We will continue to work closely with provinces and the sector as we develop the details of the regulations and remain attuned to evolving energy security and climate risk considerations.

Q3. Why do we need an emissions cap when PTs/industry say they are doing enough without it?

• There is a lot of significant action in the climate change space, from federal, provincial and territorial governments as well as industry.
• What this policy provides – which is not found elsewhere – is a predictable path for emissions reductions in the oil and gas sector.

Q4. No other sector faces an emissions cap. Why single out oil and gas?

• The oil and gas sector is Canada’s largest source of greenhouse gas emissions.
• Despite steady reductions in emissions intensity, oil and gas sector emissions remain consistently high and emissions from the oil sands continue to grow.
• In addition to economy-wide measures like carbon pricing, the government has taken action to ensure emissions from specific sectors are reduced over time. Other sectors – like transportation and electricity – have existing or proposed measures that require GHG reductions specific to that sector. While the methane Regulations and the Clean Fuel Regulations impact some emissions in the sector, the emissions cap is the first measure to broadly address emissions from the production of oil and gas.

Q5. Is the oil and gas sector target achievable? If it costs too much won’t it just scare investment away from Canada?

• The cap will set a limit on emissions, not on production.
• The design will ensure predictable emissions reductions while enabling continued production and providing flexibility to respond to changes in global markets and demand.
• Estimates show that production in the oil and gas sector under a GHG emissions cap will continue to grow.
• The design of the proposed Regulations considers detailed feedback from industry on what reductions are technically achievable and by when.
• Proposed compliance options, including the use of offset credits and contributions to a decarbonization fund, provide flexibility and certainty.
• The proposed approach will ensure that the reductions and investments needed to achieve net zero in 2050 are made, as committed to by many industries within the sector.
• Demand for low carbon fossil fuels is expected to increase over time. Reducing emissions in Canada’s oil and gas sector is expected to help to maintain sector competitiveness.
• The proposed approach is designed to enable increased production in response to global demand, incent investments in decarbonization, and ensure the sector reduces emissions to achieve net zero by 2050.

Q6. What are the most promising decarbonisation pathways for the oil and gas sector?

• Large-scale deployment of multiple technologies are required for oil sands and other oil and gas producers to reduce GHG emissions.
• Some key mitigation pathways include steam displacement (which includes solvent injections), CCUS, electrification, fuel switching and energy efficiency applications.

Q7: How much will this oil and gas GHG pollution cap increase the cost of propane, natural gas, home heating oil, diesel, and gasoline, on average, across Canada?

• The oil and gas GHG pollution cap is designed to make sure oil and gas producers are accountable for their emissions, not increase the cost of fuels for consumers.
• Because oil prices are set internationally and gas prices are set continentally, there will not be an impact on consumers at the pump.
• The Government’s focus has always been on taking climate action that also makes life affordable for Canadians.

Q8. How many jobs will this oil and gas GHG pollution cap cost the energy sector? Has the government modelled the long-term job impacts of the oil and gas GHG pollution cap?

• Canada’s oil and gas sector is already making investments in decarbonization that are creating new jobs, and these types of investments will continue to generate new jobs in the jurisdictions where oil and gas is located.
• Look no further than projects such as Strathcona Resources, an oil sands company that has a $2 billion project with agreements to store up to two million tonnes of CO2 per year.
• Or Entropy, an Alberta-based natural gas company that will capture 90 per cent of CO2 emissions and is expected to come online in the second quarter of 2026.
• The Government of Canada is supporting investment in decarbonization of the sector through significant complementary measures so that it can continue to decarbonize and compete in a low carbon economy.

Q9. What are the impacts of the proposed Regulations to establish the oil and gas emissions cap?

• The proposed Regulations deliver net benefits, estimated to be about a half a billion $ over 2025 to 2032.
• This is likely an under-estimate because it does not include all the expected impacts of the proposed Regulations, such as the benefits from reduced air pollution, or the new jobs and economic activity from the development of low-carbon industries and export opportunities driven by decarbonization of the oil and gas sector after 2032.
• It also doesn’t include any long-term competitiveness benefits of a decarbonized Canadian oil and gas sector in a world that could start to place a premium on oil and gas that is produced with the lowest possible emissions.
• Importantly, we estimate that the proposed Regulations would achieve 13.4 Mt of incremental GHG reductions over the period 2025-2032 while still allowing for considerable economic growth – all analysis shows that production, GDP and jobs in the sector will continue to grow substantially from today with the emissions cap in place.
• Our modelling projects that production is expected to grow by 16% from 2019 levels in the 2030-32 period while still leading to emissions reductions. That’s only slightly below the 17% growth that we project would occur in the absence of the Regulations.
• Similarly, we estimate minimal impact on GDP growth – with the analysis showing 22% growth over the same timeframe, which is only 0.1% less than without the emissions cap – and this doesn’t account for the expected long-term benefits to the Canadian economy of a decarbonized oil and gas sector in a net-zero future.
• The oil and gas emissions cap is designed to make sure oil and gas producers are accountable for their emissions, not increase the cost of fuels for consumers. No impact is expected on consumers at the pump.

Methane Emissions Reductions

Q1. Why is methane important? Why is it necessary to have a strategy focused specifically on methane rather than all greenhouse gases?

• Methane is a potent greenhouse gas and a short-lived climate pollutant with a global warming potential of more than 25 times greater than carbon dioxide over 100 years, and 86 times greater than carbon dioxide over a 20-year period.
• Methane is responsible for about 30% of the global rise in temperature and half a million premature deaths globally each year. The IPCC has made it clear that there is no pathway to limiting warming to 1.5 degrees without strong, rapid, and sustained reductions in short-lived climate pollutants (including methane) alongside action on carbon dioxide.
• Unlike other GHGs, methane is also an energy source so there is economic value in capturing methane emissions or preventing methane leaks.
• Natural gas is composed almost entirely of methane, and is a valuable resource used by Canadians to heat their homes and power factories. However, a significant amount of the natural gas extracted by the oil and gas industry is wasted due to leaks and intentional venting. In addition to oil and gas, landfills and agriculture are Canada’s other major sources of methane emissions.

Q2. What is the government doing or planning to do about methane emissions?

• At the November 2021 UN Climate Summit (COP26), Canada joined the Global Methane Pledge, along with the United States, the European Union and over 100 other countries. The Pledge aims to reduce global anthropogenic methane emissions economy-wide by at least 30% below 2020 levels by 2030.
• In September 2022, Canada released its methane strategy which outlines measures to reduce methane emissions across the economy, consistent with the Global Methane Pledge.
• The strategy outlines plans for addressing methane from the three sectors that account for over 90% of Canada’s anthropogenic methane emissions: oil and gas (43%), agriculture (31%), and landfills/waste (20%).
• With the measures outlined in Canada’s Methane Strategy, Canada will reduce domestic methane emissions by more than 35 per cent by 2030, compared to 2020 levels. This will exceed Canada’s share of the Global Methane Pledge collective target.
• In 2016, Canada set a target of reducing methane emissions from the oil and gas sector by 40-45 per cent below 2012 levels by 2025 and has had regulations in place since 2018 to help achieve it.
• Responding to the global imperative for further cuts, Canada has committed to reduce oil and gas methane emissions by at least 75% below 2012 levels by 2030. The Government of Canada is strengthening the oil and gas methane regulations towards achieving this target.
• On November 4, 2024, Canada announced the proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations to establish a cap on greenhouse gas emissions from the upstream oil and gas sector. The emissions cap would apply to methane emissions from covered sources, providing an additional incentive for the sector to reduce these emissions.
• As part of the 2020 COVID-19 Economic Response Plan, the Government launched the $750 million Emissions Reduction Fund to support emission reduction efforts.
• In June 2024, Canada published draft regulations to cut landfill methane emissions approximately in half by 2030 from 2019 levels. Further, as part of Canada’s Greenhouse Gas (GHG) Offset Credit System, in June 2022 ECCC published the Landfill Methane Recovery and Destruction federal offset protocol, which incentivizes projects that destroy landfill methane.
• Canadian farmers and industry partners who are taking action to reduce emissions, sequester carbon and make their operations more sustainable, productive, and competitive are being supported through various initiatives.
• The Government of Canada has programs in place to assist in the implementation of a wide range of beneficial management practices that can support efficient nutrient management and reduction of greenhouse gas emissions in the agriculture sector.
• Between 2021 and 2022, more than $1.5 billion in initiatives were announced to support the sector in developing and adopting emissions reducing practices and technologies. This includes the Agricultural Methane Reduction Challenge, which will provide up to $12 million to innovators advancing low-cost, scalable, and economically viable practices, processes, and technologies that can reduce enteric methane emissions from the cattle sector.
• Canada published a draft Reducing Enteric Methane Emissions from Beef Cattle federal offset protocol in December 2023 intended for use by a proponent undertaking a project to reduce enteric methane emissions in confined beef cattle feeding operations through improved management, diet reformulation, the use of feed additives, growth promotors or other innovative strategies.
• In addition, federal, provincial and territorial Ministers of Agriculture have launched a new agreement on a Sustainable Canadian Agricultural Partnership. This five-year agreement will inject $3.5 billion in funds over 2023- 2028 to support the sustainability, competitiveness, and innovation of the agricultural and agri-food sector.
• As part of our ambitious methane abatement plan, a $30 million investment was announced to establish a Methane Centre of Excellence, which launched in March 2024. The Centre will accelerate the development of methane measurement methods and technologies as well as mitigation projects. It will achieve this through increased government-led research efforts and project funding and by connecting Canadian experts to exchange knowledge and expertise.

Q3. What is the status of the government’s commitment to develop an economy-wide methane plan as per the Environment Minister’s mandate letter?

• In September 2022, Canada released its strategy to reduce methane emissions across the broader Canadian economy, consistent with the Global Methane Pledge.
• With the measures outlined in the Strategy, Canada will reduce domestic methane emissions by more than 35 per cent by 2030 compared to 2020 levels. This will exceed the Global Methane Pledge target of 30 per cent that Canada signed on to in 2021.
• The Strategy focuses on the three sectors that account for over 90% of Canada’s anthropogenic methane emissions: oil and gas (43%), agriculture (31%), and landfills/waste (20%).

Q4. Is the Global Methane Pledge target of reducing methane economy-wide by 30% by 2030 achievable? How are you going to achieve that target?

• In September 2022, Canada released its strategy to reduce methane emissions across the broader Canadian economy, consistent with the Global Methane Pledge.
• With the measures outlined in Canada’s Methane Strategy, Canada will reduce domestic methane emissions by more than 35 per cent by 2030, compared to 2020 levels. This will exceed the Global Methane Pledge target of 30 per cent that Canada signed on to in 2021.
• Our government’s progress on addressing oil and gas methane shows that significant methane reductions are achievable in Canada.
• In 2016, Canada set a target of reducing methane emissions from the oil and gas sector by 40–45 per cent below 2012 levels by 2025, and in 2018, we put regulations in place to help achieve it.
• Canada has now committed to reduce oil and gas methane emissions by at least 75% below 2012 levels by 2030.
• In December 2023, proposed amendments strengthening the 2018 oil and gas methane regulations were published towards achieving this commitment. Final regulations are expected to be published this winter, with requirements phased in beginning in 2027 and full implementation in 2030.

Provinces have also indicated intent to strengthen their approaches to reduce oil and gas methane emissions.

• In 2023, over 50 global oil and gas companies, representing 43% of global production, committed to achieve near-zero methane emissions across upstream operations by 2030 under the Oil and Gas Decarbonization Charter.
• Canada published draft regulations in June 2024, Regulations Respecting the Reduction in the Release of Methane (Waste Sector), to cut landfill methane emissions approximately in half by 2030 from 2019 levels. The new regulations will place limits on landfill surface methane concentrations and venting, and will require the destruction of recovered methane, regular monitoring, and leak repair. Final regulations are anticipated in 2025.
• By going further on oil and gas methane reductions, introducing new methane regulations for landfill methane, and exploring opportunities to address methane from agriculture, we are confident that we can achieve economy-wide methane reductions consistent with the Global Methane Pledge.

Q5. Are the government’s methane plans going to impact farmers?

• Our government is exploring ways to reduce methane emissions from all of the top-emitting sectors including agriculture.
• We will be consulting with farmers and the agricultural industry about the best opportunities and approaches for reducing methane from agriculture.
• Our government is committed to supporting Canadian farmers and industry partners who are taking action to reduce emissions, sequester carbon and make their operations more sustainable, productive, and competitive.
• Our government continues to provide support for the abatement of methane and other GHGs to Canadian farmers and ranchers through several funding programs including the $704.1-million Agricultural Climate Solutions - On-Farm Climate Action Fund and the $429.4-million Agricultural Clean Technology Program.
• In January 2024, the Canadian Food Inspection Agency approved the use of a methane-reducing feed additive, 3-nitrooxypropanol (3-NOP), for use as a component of gut modifier products for cattle. It has the potential to significantly reduce methane emissions from enteric fermentation. Reductions of roughly 1.2 Mt CO2e per year by 2030 could be achieved under an aspirational adoption target of 25 percent.
• Through the development of the Sustainable Agriculture Strategy, the Government of Canada will continue to work with the agricultural community to explore opportunities to reduce greenhouse gas emissions, including methane.

Q6. What is the status of the oil and gas methane regulations?

• In December 2023, proposed amendments to strengthen the 2018 oil and gas methane regulations were published as an important step towards meeting this commitment. The proposed amended regulations will achieve significant methane emission reductions from new and existing upstream oil and gas facilities by expanding the scope and stringency of the existing regulations.
• The proposed amendments introduce a focus on maximizing emission reductions, remove some previous exclusions, and ensure all achievable and cost-effective actions are in place by 2030.
• In developing these amendments, extensive engagement has been undertaken with oil and gas producing provinces, key stakeholders including industry and environmental organizations, and Indigenous partners. Comments submitted during the formal consultation process are available online alongside the proposed amendments. Final regulations are on track to be published this winter, with requirements phased in beginning in 2027 and full implementation in 2030.

Thermal coal export ban

Q1. Why is the government ending exports of thermal coal?

• The Government of Canada has long recognized that unabated coal power-generation is the most carbon-intensive source of electricity and that addressing this source of emissions is critical in the fight against climate change. To address this important carbon source, Canada has shown leadership over the past few years both domestically and internationally.
• In November 2021, at the UN Climate Change Conference (COP26), the Government of Canada announced its intention to ban thermal coal exports by 2030.
• The impacts of climate change are already being seen, with the most severe impacts happening in the developing world. Ending emissions from coal power generation is one of the single most important steps the world must take in the fight against climate change. It will also lead to cleaner air and healthier communities for hundreds of millions of people around the world.
• The falling costs of renewables and low-carbon energy are providing more clean energy options in many countries.

Q2. What is the government doing to end exports of thermal coal?

• The Government of Canada is exploring options for implementing an export ban on thermal coal. This includes an assessment of socio-economic and environmental impacts, alignment with other policies and potential impacts on trade. An update on the next steps will be provided following assessment of the options.

UN conference on climate change: COP29

Q1. What were Canada’s goals for COP29 and were they achieved?

• Canada headed to COP29 with a constructive agenda seeking to build on the outcomes of the Global Stocktake at COP28 and seek negotiated outcomes that can keep the world on track to achieve the temperature goal of the Paris Agreement. In particular, we advanced three main objectives:
  • Adoption of an ambitious post-2025 climate finance goal, the New Collective Quantified Goal (NCQG), that reflects the scale of global needs
  • Political messages on the need for ambitious new Nationally Determined Contributions next year (NDCs) 
  • Follow up discussions on GHG commitments made at COP28, especially on the energy sector (tripling renewables capacity, doubling energy efficiency, phasing down unabated coal power)
• In addition to these three negotiation outcomes, Canada also sought to mainstream inclusive practices across the UNFCCC’s mandates.
• The global political context challenged negotiations in many ways. It became apparent earlier in the year that discussions on mitigation were challenged by some countries were openly manifesting discontent with the outcomes of COP28’s energy transition objectives.
• Climate finance and resilience issues were also challenged by the trust deficit between developed and developing countries.
• Ultimately the outcome of COP29 are ….

Q2. How big is the delegation? How much has the Government spent on COP29? How can you justify the cost of Canada’s participation?

• Canada’s delegation was fewer this year (approx. 330), yet remained diverse and inclusive including:
  • Federal officials
  • Senators  
  • Provincial and Territorial nominees  
  • Indigenous representatives   
  • Youth  
  • Labour  
  • Environmental non-governmental organizations   
  • Canada pavilion participants not captured above or accredited by other means   
• The full Canadian delegation list will be published on ECCC’s website shortly.
• In terms of costs, it is not possible to have a definitive view of the final costs at this time as invoices and travel claims are still being processed.
• Canada hosted it’s third national Pavillon this year, which was well received by partners and stakeholders on the ground, including the provinces, Indigenous organization, private sector, civil society, academia and youth. The pavilion hosted 65 events over 10 days and welcomed thousands of delegates from around the world.
• National pavilions at COPs are high-visibility spaces that provide countries and organizations a unique opportunity to showcase their domestic and international climate efforts, host events, and offer a central networking hub for key partners

Q.3 How is the government offsetting the carbon footprint resulting from the Canadian delegation's travel to and from the conference?

• Air travel-related greenhouse gas (GHG) data is available on a departmental basis and is published online.
• Air travel GHG data is generated through the centralized travel booking service and includes departmental public servant travel, which represents most of the travel. This does not include Ministerial travel as it is not booked through the centralized system. This does not include disaggregated data by passenger.
• Environment and Climate Change Canada purchases carbon offset credits in bulk, not by travel to a specific conference or event, to help mitigate the greenhouse gas emissions associated with Ministerial air travel.
• Departments and agencies that generate greenhouse gas (GHG) emissions in excess of 1 kilotonne per year from air travel are required to contribute annually to the Greening Government Fund (GGF) and have been charged a TBS-set fee based on the average total annual air-travel emissions of that organization over the previous three years.

International Climate Finance

Q1. What are the main objectives of Canada’s climate finance?

• Climate finance is a critical part of Canada’s efforts to support climate mitigation and adaptation action in developing countries in line with the objectives of the Paris Agreement.
• In 2021, Canada doubled its climate finance commitment to $5.3 billion (B) over 5 years to support developing countries to transition to sustainable, low-carbon, climate-resilient, nature-positive and inclusive development.
• To support developing countries in combating the dual crises of climate change and biodiversity loss, a minimum of 20% of $5.3B is being allocated to projects that leverage nature-based climate solutions and projects that contribute to biodiversity co-benefits.
• Canada’s climate finance envelope is comprised of 40% grants and 60% loans, having increased its provision of grants up from 30% under the previous five-year commitment to support improved access by affected communities.
• As part of its $5.3B climate finance commitment, Canada increased its provision of funding towards adaptation to 40% and will double its funding for adaptation from 2019 levels by 2025, in line with the Glasgow Climate Pact. This increase represents more than double the provision of adaptation finance relative to Canada’s previous $2.65B commitment.
• Canada’s climate finance is aligned with our Feminist International Assistance Policy and will continue to support women’s leadership and decision-making in climate action. Canada will ensure that 80% of its climate finance projects integrate gender equality.
• During the five years of the commitment, Canada is focusing its international climate finance on four main thematic areas: clean energy transition and coal phase-out, climate-smart agriculture and food systems, nature-based solutions and biodiversity, and climate governance.
• Canada’s climate finance plays an important role in demonstrating Canada’s commitment to deliver on its part of the collective $100 billion annual climate finance goal through to 2025.

Q2. What results has Canada achieved from its international climate finance?

• Since 2017, Canada’s climate finance reduced or avoided over 230 megatonnes of GHG emissions and provided 10.5 million people with increased resilience to climate change. The impacts of Canada’s climate finance will continue to fluctuate over time as results of the investments materialize in the long-term.
• Canada’s climate finance has other impacts that are harder to quantify. For example, Canada’s contribution to the National Adaptation Plan (NAP) Global Network has enabled developing countries to build capacity and adopt best practices in developing and implementing NAPs, as well as strengthening gender considerations in NAPs.
• To achieve results, Canada works with partners that have clear accountability frameworks and closely monitors the progress of our support through rigorous performance measurement at the programmatic level.
• Results from Canada’s climate finance investments are published on a regular basis, notably through our Departmental Results Reports, Canada’s National Communications and Biennial Reports to the UNFCCC, the Annual Synthesis Report on the Status of Implementation of the Pan-Canadian Framework, and on our climate finance website.

Q3. Is Canada contributing its fair share of climate finance?

• Yes, Canada recognizes that developing countries are the hardest hit by climate change and that transformational financial investments are needed to help vulnerable communities better address climate change. Canada’s $5.3B climate finance commitment builds on the previous $2.65B commitment (2015-16 to 2020-21) and the $1.2B Fast Start Finance (2010-11 to 2012-13). Canada’s $5.3B commitment is a significant increase compared with previous levels and has contributed to meeting the collective goal of U.S. $100 billion per year through 2025.
• Canada’s total climate finance contribution goes much further than its core commitment. It includes climate finance mobilized from a variety of sources beyond Canada’s climate finance pledge such as private finance mobilized through blended finance, additional international assistance with a climate component, core contributions to multilateral development banks, and climate relevant financing by Export Development Canada and FinDev Canada. Canada has provided and mobilized over a total of $8.73 billion in climate finance from all sources from 2015-2022.

Q4. Have we met the collective $100 billion goal?

• Canada was steadfast in its efforts to meet the $100 billion collective goal and worked with Germany to build trust with partners and to increase ambition among contributor countries.
• In May 2024, the Organization for Economic Cooperation and Development (OECD) reported that developed countries provided and mobilised USD 115.9 billion in climate finance for developing countries in 2022, exceeding the annual 100 billion goal for the first time.

Q5. What is Canada doing to support Small Island Developing States (SIDS)?

• One of the key objectives of Canada’s climate finance is to support the climate resilience of the poorest and most vulnerable countries, including SIDS.
• In addition to scaling up support for adaptation finance in its current $5.3B commitment, Canada is working to bolster efforts to address the barriers to accessing climate finance faced by SIDS, which compound the issue of vulnerability.
• For example, Canada supported the creation of the Climate Finance Access Network (CFAN) initiative that supports developing countries build their capacity to structure and secure finance for priority climate mitigation and adaptation investments. Canada is providing a renewed contribution of $5.25M in funding to support CFAN expand its work with climate-vulnerable countries. Canada is also providing $7.5M in bilateral support to Caribbean and Pacific Island SIDS to assist in the implementation and achievement of nationally determined contributions (NDCs) through methane reductions.

Q6. How is Canada addressing the issue of loss and damage?

• Canada is taking concrete measures to address loss and damage in developing countries and to build resilience to safeguard future generations. Loss and damage can result from adverse climate events and can, for example, include damage to infrastructure due to hurricanes or the loss of territory due to sea-level rise to which SIDS are particularly vulnerable.
• Previous measures to address loss and damage include Canada’s $10 million contributions to Climate Risk Early Warning Systems (CREWS), and $1 million contribution to the Systematic Observation Funding Facility (SOFF), to help build early warning systems in developing countries to strengthen the resilience of the most vulnerable.
• At COP28, Canada announced a $16 million contribution to the start-up cost of a global fund to address loss and damage. This contribution will support the fund as it starts to provide vulnerable countries and communities with the resources they need to respond to the worst impacts of climate change.
• Canada has secured a seat on the Board of the global fund to address loss and damage and will continue to shape the Fund’s strategic direction emphasizing the importance of sound governance, the prioritization of the most vulnerable countries and inclusion.

Q7. How much of the $5.3B climate finance envelope is ECCC implementing?

• Over 5 years, ECCC will implement at least $160M in grants and contributions in 3 thematic areas: Clean Energy and Coal Phase-Out ($50M), Nature-based Solutions ($15M) and Climate Governance ($90M). An Emerging Priority Fund sets aside $5M to retain flexibility to support Canada’s international climate change priorities and allow for responsive and opportunity-driven participation in key initiatives, in particular international events such as the G7/G20 and UNFCCC conferences.
• ECCC’s funding will support developing countries’ transition to clean energy primarily by phasing out coal-fired electricity and promoting equitable access to reliable and cost-effective clean energy solutions and energy efficient technologies, complementing Canada's leadership through the Powering Past Coal Alliance.
• The funding will also support initiatives that catalyze the private sector’s role in the blue economy, coastal resilience and coral reef conservation to help advance ocean health, reduce vulnerability and build resilience in the most vulnerable coastal regions and communities.
• ECCC will also support projects that strengthen the enabling environments for effective climate governance in developing countries at the global, national and subnational levels.
• For 2024-25, ECCC is allocating a total of $45.9M in grants and contributions, building on $45M in 2023-24. This includes $17.8M in support for clean energy and coal phase-out, over $2.8M in funding for nature-based solutions and biodiversity, over $24M for climate governance, and $1.3M allocated for the emerging priorities fund.

Zero-emission vehicles

Q1. What is the role of zero-emission vehicles in GHG emissions reduction?

• Canada is taking action across all sectors to meet its commitment under the Paris Agreement to reduce GHG emissions by 40% to 45% below 2005 levels by 2030 and to reach net-zero emissions by 2050.
• Recognizing that the transportation sector accounts for about 27% of Canada’s GHG emissions, the Government is taking multiple actions to reduce these emissions including expanding the number of ZEVs on Canadian roads.
• We have published Regulations to require that 20% of light-duty vehicles offered for sale are zero emission by 2026, 60% by 2030 and 100% by 2035.
• We will also update our emission standards for light- and heavy-duty vehicles to align with the U.S. EPA standards finalized in spring 2024.
• The Government is also investing in key areas such as consumer rebates for ZEV purchases, consumer education and awareness, expanding charging infrastructure, etc.\

Q2. Is Canada’s ZEV target too ambitious?

• Canada is not alone in setting ambitious ZEV targets. Quebec, B.C., California and at least 15 U.S. States have similar ZEV regulations. Globally and in North America, EV sales continue to increase year over year.
• We are complementing the sales requirements with measures to make ZEVs more affordable, significantly expand charging infrastructure, and lead by example via federal procurement rules.

Q3. How does Canada compare to other countries in terms of ambition?

• Quebec, BC, the UK, Japan, and Thailand, as well as California and other states that comprise up to 40% of the U.S. market have committed to 100% light-duty ZEVs by 2035.
• Others are even more ambitious. The Netherlands, Sweden and Denmark have a target of 100% of light-duty vehicle sales to be ZEVs by 2030. Norway has committed to get there by 2025.
• The European Union has finalized regulations that will require a 100% reduction in CO2e from vehicles by 2035.

Q4. How is Canada going to support the existing on-road medium and heavy-duty vehicle fleet?

• Minister Wilkinson’s NRCan mandate letter includes a requirement to develop a plan for making investments to retrofit large trucks currently on the road, and supporting the production, distribution, and use of clean fuels, including low or zero carbon hydrogen.

Q5. How are GHGs from passenger automobiles and light trucks currently regulated?

• GHGs from new passenger automobiles and light trucks are regulated federally, with progressively more stringent GHG emission standards over the 2011 to 2026 model years that are aligned with the standards in the U.S.
• Heavy-duty vehicles are regulated under separate regulations. These also set progressively more stringent GHG emission standards for the various types of heavy-duty vehicles.
• This March, the U.S. released new GHG emission standards for light-, medium- and heavy-duty vehicles for model years 2027 to 2032. Canada will align our emission standards with the U.S. standards.

Q6. What ZEV-related investments were included in Budget 2024?

• Budget 2024 provided $607.9 million over two years, starting in 2024-25, to Transport Canada to top-up the Incentives for Zero-Emission Vehicles program. Since 2019, the GoC has provided $2.6B to the iZEV program
• Budget 2024 proposed the Electric Vehicle Supply Chain investment tax credit for businesses that invest in three supply chain segments: electric vehicle assembly, electric vehicle battery production, and cathode active material production. $80 million/5 years, beginning in 2024-25; $1.02 billion from 2029-30 to 2034-35.  Design and implementation details to be provided in the 2024 Fall Economic Statement.
• Retooling the Clean Fuels Fund of $776.3 million to support clean fuel projects through 2029-2030.
• [Note: No new Zero-Emission Vehicle Infrastructure Program (ZEVIP) or Green Freight Program (GFP) funding for NRCan Programs Branch in Budget 2024, nor for CIB ZEV infrastructure.]

Previous ZEV-related investments included in Budget 2022 and the 2022 Fall Economic Update?

• $1.7 billion (3 years) to extend the iZEV program until March 2025 (TC).
• $500 million (from existing) in large-scale urban and commercial ZEV charging and refuelling infrastructure (CIB).
• $400 million (5 years) for the Zero-Emission Vehicle Infrastructure Program (ZEVIP) to fund the deployment of ZEV charging infrastructure in sub-urban and remote communities (NRCan).
• $547.5 million (4 years) for a purchase incentive program for medium- and heavy-duty ZEVs (TC).
• $33.8 million (4 years, with $42.1 million in remaining amortization) to work with provinces and territories to develop and harmonize regulations and to conduct safety testing for long-haul zero-emission trucks (TC).
• $199.6 million (5 years, $0.4 million ongoing) to expand the renamed Green Freight Program to support increased assessments and retrofits (NRCan).
• The 2022 Fall Economic Statement proposed to establish a refundable tax credit equal to 30 per cent of the cost of investments in zero-emission industrial vehicles and related charging and refuelling equipment, such as electric or hydrogen-powered heavy machinery used in mining or construction.
• $2.2 million (5 years) for the Greening Government Operations Fleet Program (NRCan).

Q7. How are electric vehicle (EV) batteries being managed at end of life?

• Given the size and weight of EV batteries, and the value of the minerals and metals they contain, such batteries are not expected to be disposed in landfill; rather they would be recovered through various stakeholders (e.g. automotive recyclers, dealerships) at the end of their useful life. Some batteries would go on to be refurbished, so functioning components could be re-combined into batteries and reused as electric vehicle batteries or repurposed as batteries in other applications (wheelchairs, e-bikes, or energy storage solutions). Other batteries, or no longer viable components, would be sent to a recycling facility for electric vehicle batteries for material recovery.
• While on-going initiatives demonstrate effort in moving towards minimizing waste and creating a circular economy in Canada, we acknowledge that there are ongoing focus areas, including the collection/analysis of data concerning the complete lifecycle of EV batteries in Canada , available infrastructure and recycling capabilities.
• Management of EV batteries at their end-of-life falls primarily under provincial and territorial jurisdictions.

Q8. What is the implication for Canada’s vehicle regulations if the Trump Administration rolls back the EPA’s Vehicle regulations?

• Canada has aligned with the U.S. EPA vehicle GHG regulations since 2011. Canada has also aligned with the U.S. air pollution standards for vehicles since the early 2000s.
• The U.S. Administration had promised to roll back the regulations in 2016. While the stringency was temporarily reduced, the regulations were maintained after calls from the auto sector to maintain the regulations.
• It is too early to say if a new Administration will adjust the EPA regulations, and if so, what the impact would be for Canada. In the meantime, we will continue our work to align with the most recent EPA standards.

Q9. What is the impact of new and potential tariffs on EVs and other auto components on our ability to meet our ZEV targets and for automakers to comply with the ZEV regulations?

• Canada’s ZEV targets were established long before low-cost Chinese EVs were available and before tariff issues were raised.
• The associated cost-benefit analysis for Canada’s ZEV regulations did take into account an integrated North American auto sector. North American ZEV prices are expected to decrease as the auto transitions to an EV future.
• We are therefore not planning to modify the regulations in response to the tariffs.

Q10. What is the status of a ZEV regulation for MHDVs?

• Canada has committed to achieve a 35% ZEV target for 2030 and 100% by 2040 depending on the feasibility in various MHDV classes.
• ECCC is intending to align with US EPA GHG regulations for MHDV. It is expected that this alignment will drive significant MHDV ZEV adoption.