Canada’s National Reports to the United Nations Framework Convention on Climate Change (2017)

Canada must report regularly on climate action. This report outlines our actions to reduce emissions and address impacts at home and abroad.

Introduction and executive summary

Canada is pleased to present its 7th National Communication and 3rd Biennial Report on Climate Change to meet its reporting requirements under the United Nations Framework Convention on Climate Change (UNFCCC). Canada has prepared these reports in accordance with adopted guidelines and other guidance for National Communications and Biennial Reports.

The following Introduction and Executive Summary provides an overview of Canada’s 7th National Communication and 3rd Biennial Report to the UNFCCC. The complete report can be found on the UNFCCC website.

National action

Canada has taken significant steps to address climate change since its last report to the UNFCCC. In addition to being one of the first Parties to the UNFCCC to sign and ratify the Paris Agreement, Canada has followed through on its Paris commitments by developing a new national plan to reduce greenhouse gas (GHG) emissions, enhance resilience to the impacts of climate change, and transition to a clean growth economy.

Less than 90 days after Paris Climate Change Conference in December 2015, the Prime Minister of Canada met with all Provincial and Territorial Premiers (collectively referred to as First Ministers) to adopt the Vancouver Declaration on Clean Growth and Climate Change. In the Vancouver Declaration, First Ministers agreed to work together to take ambitious action in support of meeting or exceeding Canada’s commitment to reduce GHG emissions by 30 percent below 2005 levels by 2030.

The Declaration also set the path toward the adoption of the Pan-Canadian Framework on Clean Growth and Climate Change on December 9, 2016.Footnote 1  A historic achievement, the Pan-Canadian Framework is Canada’s first climate change plan to include commitments by federal, provincial and territorial governments, and is the country’s overarching framework to reduce emissions across all sectors of the economy, stimulate clean economic growth and build resilience to the impacts of climate change.

The Pan-Canadian Framework is designed to achieve the behavioural and structural changes needed to transition to a low-carbon economy, and was developed collaboratively  by Canada’s  federal, provincial and territorial governments, with input from Indigenous Peoples as well as from businesses, non-governmental organizations, and Canadians across the country.

The Pan-Canadian Framework builds on the early leadership of provinces and territories and the diverse array of policies and measures already in place across Canada to reduce GHG emissions in all sectors of the economy. The Pan-Canadian Framework includes over fifty concrete measures under four key pillars: carbon-pollution pricing; complementary actions to reduce emissions; adaptation and climate resilience; and clean technology, innovation and jobs.

The plan also includes governance and reporting mechanisms to ensure ongoing collaboration across federal, provincial and territorial governments, to track progress in implementing measures under the Pan-Canadian Framework, and to identify opportunities for further action.

Pricing carbon pollution is central to Canada’s plan. The Government of Canada has outlined a benchmark for pricing carbon pollution that will build on existing provincial systems and require a minimum price of $10 per tonne is in place across Canada in 2018, rising to $50 per tonne by 2022. The Pan-Canadian Framework also includes complimentary mitigation measures to achieve emissions reductions in the electricity, transportation, built environment, industry, and forestry, agriculture and waste sectors, both in the near-term and as part of a longer-term strategy.

The Pan-Canadian Framework recognizes the importance of building climate-resilience, and sets out measures to help Canadians understand, plan for, and take action to adapt to the unavoidable impacts of climate change. As Indigenous Peoples and coastal and northern regions are particularly vulnerable to climate impacts, targeted action is being taken to help these communities thrive.

Recognizing the growing global demand for clean technologies, the Pan-Canadian Framework creates the conditions to encourage and enhance the development and adoption of clean technologies.  The Framework includes new actions to support early-stage technological innovation, accelerated commercialization and growth, enhanced adoption of clean technology, and improved metrics to measure success.

To support these measures, the Government of Canada has announced significant investments to support national actions to reduce emissions, build resilience and support clean technology and innovation.

International action

At the international level, Canada is taking strong action to demonstrate its commitment to advancing the international clean growth economy. Under the UNFCCC, Canada is working closely with the international community to implement the Paris Agreement, and at the 23rd Conference of the Parties (COP23) in November 2017 played a leadership role to advance negotiations on the Paris Agreement guidelines.

Leading up to and during COP23, Canada also worked to advance several key initiatives. In September 2017, Canada, in collaboration with China and the European Union, hosted an international ministerial meeting with representatives from 34 countries, including major economies, to support global climate action and the Paris Agreement, providing an opportunity for ministers to advance discussions in support of the Paris Agreement and its goals. Canada will co-host a second meeting in 2018.

Canada has also taken on a leadership role to enhance the engagement of Indigenous People on international climate action. In September 2017, in the lead-up to COP23, the Government of Canada, in full partnership with Indigenous Peoples of Canada, hosted an Informal Dialogue attended by over 60 governments and Indigenous Peoples from around the world, which advanced discussions on the local communities and Indigenous Peoples platform under the UNFCCC. At COP23 in November 2017, Canada was recognized for its leadership in reaching an agreement to launch the operation of the platform. Also in the lead-up to COP23, Canada hosted an international workshop to exchange views on options for the Gender Action Plan under the UNFCCC, and played a leadership role in achieving agreement on the plan at COP23.

Canada is working to support the countries that are most vulnerable to the impacts of climate change and to support clean growth internationally. Canada is delivering its historic climate finance pledge of $2.65 billion to help developing countries transition to low-carbon, climate resilient economies through diverse bilateral and multilateral initiatives.

Canada is also an active participant in a variety of multilateral fora that work to reduce GHG emissions and enhance resilience. Canada was one of the first countries to ratify the Montreal Protocol, and has been a strong supporter of efforts to phase down hydrofluorocarbons (HFCs) under the Kigali Amendment to the Protocol. Following release of draft regulations to phase down HFCs, Canada ratified the Kigali Amendment in November 2017, helping to bring the amendment into force on January 1, 2019.

Canada is playing a leadership role in Mission Innovation – a global initiative of countries working to scale up investment in clean energy innovation – and is a member of the initiative’s Steering Committee. At COP23, Canada also announced the formation of a North American Climate Leadership Dialogue with Mexico and the United States Climate Alliance, a bipartisan coalition of 15 United States governors committed to reducing GHGs consistent with the goals of the Paris Agreement.

Canada continues to work with international partners, including through the recent announcement with the United Kingdom of the Powering Past Coal Alliance, a global initiative to phase out traditional coal-fired electricity, as well as ongoing work with Mexico to address methane emissions in the oil and gas sector. In addition, in December 2017 Canada and five provinces joined with Mexico, Chile, Colombia, Costa Rica and two U.S. states to establish the Declaration on Carbon Markets in the Americas, which aims to enhance collaboration on carbon pricing systems and promote carbon markets throughout the American continents.

National circumstances

Canada’s unique geographic, demographic, and economic circumstances influence its GHG emissions profile.  For example, while Canada has a relatively small population, it also has one of the largest landmasses in the world, most of it located in the northern half of the northern hemisphere. These factors contribute to heavier energy and transportation use than in smaller and/or more densely populated countries.

Canada’s population remains the smallest among G7 countries but is rapidly growing, mostly through international migration. Currently at 36.7 million inhabitants, it is anticipated that Canada’s population could reach between 40.1 and 47.7 million by 2038. Two-thirds of Canada’s population and urban centers are located within 100 kilometers of the Canada-U.S. border, leaving large parts of the country sparsely populated. The large distance between metropolitan areas and low population density generates high emissions from the transportation sector making it the second largest contributor of GHG emissions in Canada.  

Canada experiences a wide range of climate conditions, with most of the inhabited regions seeing distinct seasons – in particular very warm summers and cold winters. Heating and cooling needs have a great impact on energy use and GHG emissions. Canada’s climate has been increasingly warming over the last several years. Northern regions are the most affected, and extreme events such as drought, forests fires, floods and severe thunderstorms are happening more frequently.

Although climate and geography contribute to making Canada a heavy energy user, energy efficiency has improved in recent years. In addition, 80 percent of Canada’s total electricity is produced from non-GHG emitting sources, with hydroelectricity comprising most of this production. The share of renewable power from other sources than hydro has been increasing steadily since 1990 while the supply generated from coal has decreased substantially over the same time period.

According to the International Monetary Fund, Canada’s growth was the fastest among G7 economies in 2016, with an anticipated real GDP growth rate of 3.5 percent in 2017 and 3.6 percent in 2018. While Canada’s economy is primarily driven by the service sector, its manufacturing, construction, mining, oil and gas, and forestry sectors still represent about 30 percent of the economy which is unique among industrialized countries. These emissions intensive sectors contribute significantly to Canada’s emissions.

Canada’s greenhouse gas inventory

Canada’s National Inventory Report is prepared and submitted annually to the UNFCCC and includes estimates of CO₂ equivalent (CO₂ eq) in the following six sector categories, as defined by the Intergovernmental Panel on Climate Change: Energy, Industrial Processes and Product Use, Agriculture, Waste, and Land Use, Land-use Change and Forestry (LULUCF).Footnote 2  Canada also reports estimates of historical emissions and removals according to the following economic sector categories: electricity, transportation, oil and gas, heavy industry, buildings, agriculture, and waste and others.

In 2015, Canada emitted 722 megatonnes (Mt) of CO₂ eq. The energy sector (consisting of Stationary Combustion Sources, Transport, and Fugitive Sources) continues to account for the majority of Canada’s emissions, at 81% or 587 Mt. Other emissions are generated from the Agriculture sector (8%), the Industrial Processes and Product Use sector(7%), and the Waste sector (3%). Alberta continues to have the highest emissions among Canadian provinces, primarily due to expanding oil and gas operations.

Figure 1: Canada's emissions breakdown by IPCC sector (2015)

Figure 2: Canada's total emissions breakdown by greenhouse gas (2015)

Similar to other industrialized counties, carbon dioxide from the combustion of fossil fuels is the largest contributor to Canada’s GHG emissions and accounted for 79% of Canada’s emissions in 2015.  Other emissions include methane (14%) largely from fugitive sources in oil and natural gas systems, agriculture and landfills and nitrous oxide (5%) from agricultural soil management and transport. Combined, perfluorocarbons, sulphur hexafluoride, hydrofluorocarbons and nitrogen trifluoride contributed less than 2% of Canada’s emissions.

Since 1990, Canada’s emissions have overall been increasing gradually, and have increased by 20 Mt since the 6th National Communication report.

However, Canada’s economy has grown more rapidly than GHG emissions and emissions intensity has declined by 33% since 1990 and 16% since 2005.

Figure 3: indexed trend in GHG emissions and GHG emissions intensity (1990-2015)

The reduction in emissions intensity since 1995 is largely due to fuel switching, increases in efficiency, the modernization of industrial processes, and structural changes in the economy.

As the federal agency responsible for preparing and submitting the national inventory to the UNFCCC, Environment and Climate Change Canada has established and manages all aspects of the arrangements supporting the GHG inventory. The development of Canada’s GHG inventory is based on a continuous process of data collection, methodological refinement and review.

Policies and measures

Institutional arrangements

Within the Government of Canada, the Minister of Environment is responsible for domestic and international climate change policies. However, as the environment is of shared jurisdiction in Canada and given the cross-cutting nature of climate change, several federal, provincial and territorial ministries work together to address this issue. At the federal level, most climate change regulations are developed under the authorities of the Canadian Environmental Protection Act, 1999 (CEPA 1999).

The Pan-Canadian Framework on Clean Growth and Climate Change and its supporting governance architecture is now the overarching framework for the coordination and implementation of climate change policy across Canada. Federal, provincial and territorial Ministers are working together through longstanding inter-ministerial fora, such as the Canadian Council of Ministers of Environment or the Energy and Mining Ministers Conference, to implement and report on Pan-Canadian Framework actions.  

Policies and measures to reduce emissions

A number of key cross-cutting measures are planned or in place to reduce emissions across Canada. Several provinces already have carbon pricing systems in place: British Columbia has had a carbon tax in place since 2008, Québec and Ontario adopted a cap-and-trade system in 2013 and 2017 respectively, and Alberta extended the scope of its carbon levy in 2017. As a result, over 80 percent of Canada’s economy and population are covered by a carbon pricing system in one form or another. Other provinces and territories are considering options to develop systems for carbon pricing. In addition, under the Pan-Canadian Framework the federal government committed to implement a benchmark for pricing carbon pollution. A federal carbon pricing backstop system will be applied in jurisdictions that request it or that do not have a carbon pricing system in place in 2018 that meets the pan-Canadian carbon pricing benchmark. The federal system would take effect January 1, 2019.

Under the Pan-Canadian Framework and through a comprehensive array of existing measures, federal, provincial and territorial governments are working to target emissions across all sectors of the economy. For example:

• In the electricity sector, the federal government is working to phase out traditional coal-fired electricity generation by 2030, and investing in renewable power, Smart Grids, and reducing reliance on diesel in Indigenous, northern and remote communities.
• In the transportation sector, the federal government is regulating emissions standards for light and heavy duty vehicles and investing in infrastructure for zero-emission vehicles. Federal, provincial and territorial governments are also developing a Zero-Emissions Vehicle Strategy for 2018.
• In the building sector, the Pan-Canadian Framework includes measures to improve energy efficiency in buildings and appliances, with work underway to adopt more stringent  codes for new and existing buildings, including  the goal that provinces and territories adopt a “net-zero energy ready” model building code by 2030.
• The federal government is also taking steps to reduce GHG emissions from the industrial sector through adopting regulations to reduce hydrofluorocarbon emissions and methane emissions from the oil and gas sector, as well as via energy efficiency benchmarking programs such as ENERGY STAR for Industry and ISO 5001.

The Government of Canada is making significant investments to support the measures in the Pan-Canadian Framework.  For example, the Low Carbon Economy Fund invests in projects that will generate clean growth and reduce GHG emissions, and the federal government is also providing billions of investments in green infrastructure and public transit investments, which will contribute directly to climate change mitigation and adaptation activities.

Complementary to the Pan-Canadian Framework, Canada released a Strategy on Short-Lived Climate Pollutants which will be instrumental in achieving short-term results on climate change as well as health benefits, especially in the North. In November 2016, Canada also announced its Mid-Century Long-Term Low-Greenhouse Gas Development Strategy as required under the Paris Agreement. The Mid-Century Strategy looks beyond 2030 and describes various pathways for innovative and creative solutions for meeting long-term climate change objectives and enabling economic growth. 

Projections

For its 7th National Communication and 3rd Biennial Report, Canada has presented projections with both a “with measures” scenario and a “with additional measures” scenario.

The “with measures” scenario includes actions taken by governments, consumers and businesses put in place over the last two years, up to September 2017. This scenario does not account for all measures of the Pan-Canadian Framework as a number of them are still under development.

Taking into consideration all climate change policies and measures that have been announced in Canada and for which enough information is available, a “with additional measures scenario” has also been developed. The "with additional measures" scenario accounts for those additional policies and measures that are under development but have not yet been fully implemented, some of which were announced as part of the Pan-Canadian Framework (e.g. pan-Canadian carbon pricing). This scenario is provided for the purposes of presenting progress to Canada's 2030 target and to better demonstrate the expected impact of the Pan-Canadian Framework.

Under this scenario, emissions in 2030 would be 583 Mt, a 232 Mt decline from projections included in the "with measures" scenario in the 2nd Biennial Report. This decline, equivalent to approximately a third of Canada’s emissions in 2015, is widespread across all economic sectors, reflecting the breadth and the depth of the Pan-Canadian Framework.

Figure 4 shows the "with measures" and "with additional measures" projections, as well as the projections presented in Canada's 2nd Biennial Report. Going forward, it is expected that further progress will take place, especially as current estimates do not include the full reductions from investment in public transit, clean technology and innovation. Potential increases in stored carbon (carbon sequestration) in forests, soils and wetlands will also contribute to reductions which, for a country such as Canada, could also play an important role in achieving the 2030 target.

Figure 4: scenarios of Canadian emissions to 2020 and 2030 (Mt CO₂ eq) (excluding Land use, Land-Use Change and Forestry)

Moreover, these projected emission reductions do not account for additional mitigation measures that could be implemented by the provinces and territories between now and 2030. Emissions reductions from additional future actions will be assessed as new measures are implemented.

Environment and Climate Change Canada updates these projections annually, reflecting the latest historical data and up-to-date future economic and energy market assumptions. However, there is significant uncertainty with regards to key drivers of GHG emissions, such as future world oil and gas prices, economic growth and developments in technologies. Projections therefore fluctuate over time as a result of changes in these key drivers assumptions.

Vulnerabilities

Climate change impacts are already being felt in Canada with some of the most vulnerable communities among the most affected. In the Canadian Arctic, average temperature has increased at a rate of nearly three times the global average. Extreme weather events such as those experienced in 2016 with forest fires in Fort McMurray, Alberta, and again in 2017 with forest fires in British Columbia and floods in Ontario and Québec, are also expected to become increasingly frequent.

Northern and Indigenous Peoples and communities are among the most exposed to the impacts of climate change which affects not only infrastructures but also sources of food and water. Federal, provincial and territorial governments have committed to work in partnership with Indigenous communities to address climate change impacts. In Budget 2017, the Government of Canada provided funding to increase support for First Nations and Inuit communities to undertake climate change and health-adaptation projects that protect public health.

Adapting and building resilience to the impacts of climate change is one of the pillars of the Pan-Canadian Framework on Clean Growth and Climate Change. Building climate resilient infrastructure and developing codes and standards will be instrumental in addressing vulnerabilities and strengthening the resilience of communities and ecosystems. To achieve this, the federal government announced investments of $22 billion in green infrastructure, a portion of which will support adaptation activities. These investments will include $9.2 billion for bilateral agreements with provinces and territories which will include investments in adaptation and climate resilience, and $2 billion for a Disaster Mitigation and Adaptation Fund to support infrastructure required to deal with the effects of a changing climate.

All levels of government in Canada, as well as communities, are increasingly aware of climate change impacts and integrating climate considerations in assessments and decision-support tools. The Government of Canada has published sectoral level and national level assessments and has supported provincial and territorial assessments of climate change impacts and risks, for example in Prince Edward Island which is particularly exposed to flooding and erosion.  

The federal government, provinces and territories, municipalities, and several Indigenous communities have been developing plans and strategies to adapt to climate change. The Federal Adaptation Policy Framework and the Pan-Canadian Framework both offer strong guidance and actions for Canada to adapt and strengthen its resilience to climate change.  Several provinces and territories have released their own adaptation strategies or action plans since the 6th National Communication (Yukon, Northwest Territories, Nunavut, British Columbia, Ontario, Québec, Prince Edward Island, and Newfoundland and Labrador) and many others have integrated adaptation planning to better guide government decision-making.

Furthermore, efforts are underway to establish a Canadian Centre for Climate Services as committed to in the Pan-Canadian Framework. This centre will work with provincial and territorial governments, Indigenous Peoples and other partners and provide climate information products, tools and services to support adaptation decision making across the country.

Financial, technology and capacity-building support

Canada is committed to supporting developing countries to obtain clean and reliable sources of energy and enhance resilience, particularly the poorest and most vulnerable countries, in their fight to adapt to the impacts of climate change.

Recently, Canada significantly increased its financial contribution to support developing countries’ transition to low carbon economies. In 2015, Canada pledged $2.65 billion over five years for this initiative and began delivering on this pledge in 2016. Over the last two years, Canada has announced an additional $353 million for assistance to developing countries.

Over 50 developing countries are benefitting directly from recent Canadian climate change support, and a much larger number of countries are also benefitting from contributions made by Canada to other multilateral funds.

Figure 5: global map of countries directly receiving Canadian climate finance

Over 2015 and 2016, 54% of Canada’s climate finance was allocated to adaptation initiatives, 42% to clean energy and mitigation initiatives, and 4% to cross-cutting initiatives that targeted both mitigation and adaptation.

Canada’s climate finance is delivered through various federal departments, sub-national governments, and agencies which work closely together to track Canada’s climate finance to present a comprehensive picture of Canada’s contribution to the transition to low carbon and climate resilient economies.

The private sector also plays a key role in reaching the investment levels required to shift the world towards a low-carbon and climate resilient path. Canada is actively contributing to global efforts to mobilize private investment, using public climate funding to catalyze private investment for transformational climate change mitigation and adaptation initiatives. This funding helps mobilize private sector investment and expertise, including in clean technology innovation, in developing countries so that they too may seize the economic opportunities of the global shift towards clean growth.

Canada is also actively engaged in a broad range of actions to advance the development and deployment of clean technologies globally. These actions include developing and sharing knowledge and tools to support clean energy software and smart grids.

Research and systematic observation

In Canada, climate science research and monitoring approaches involve federal, provincial, municipal, academic and private sector partners.

The federal government is currently developing a federal climate change science plan to support implementation of the Pan-Canadian Framework on Clean Growth and Climate Change and several other research initiatives are already underway within the Government of Canada.

Several research and climate observation programs are being supported by the Canadian Space Agency such as the Polar Space Task Group or the Earth Observation Application Development Program. Three federal Research Granting Agencies are also contributing financial resources to research initiatives related to climate change and atmospheric research led by universities, governments, or partner organizations and through the Network of Centers of Excellence and the Canada Research Chairs program. Two Networks of Centers of Excellence initiatives are directly related to climate research and monitoring: ArcticNet and the Marine Environmental Observation Prediction and Response Network.

With regard to systematic climate monitoring and observation, Canada endorsed the Joint Declaration on Harnessing the Data Revolution for Climate Resilience in December 2016. Canada plays a proactive role in supporting the emerging Open Data for Climate Actions initiative coordinated by the International Open Data Charter.

The Government of Canada is also deploying considerable expertise and resources in monitoring and researching atmospheric, oceans, and land data. As a northern country, Canada is also actively involved in research and observation of sea ice, snow, permafrost and glaciers which will help us understand the impacts of climate change on these fragile ecosystems and the populations living in these regions.

Canada continues to support the involvement of Canadian experts in national and international climate science assessments. Canadian experts are participating in the activities of the Intergovernmental Panel on Climate Change (IPCC), including the preparation of Assessment Reports, and Canada hosted the plenary session of the IPCC in Montreal in September 2017. Canada is also a member of the Arctic Council and participates actively in the scientific assessments undertaken through its working groups.

As mentioned above, a Canadian Centre for Climate Services is currently being established which will improve dissemination of climate data and scenarios from the Government of Canada.

Education, training, and public awareness

Across Canada, all levels of government and numerous non-governmental organizations have undertaken a range of activities to broaden public awareness of climate change and encourage collective action. The 2017 Generation Energy dialogue utilized polls, surveys, and citizen dialogues to engage over 380,000 people in an inclusive discussion on Canada’s low-carbon energy future.

Canada also views public engagement as an essential aspect of developing climate change policy, and public input was instrumental in shaping the Pan-Canadian Framework in 2016.

The subject of climate change is integrated into the primary and secondary school curriculum in Canada, and many nongovernmental organizations exist to assist educators to access diverse resources and align teaching activities with the required curriculum. Most Canadian universities offer environmental programs, and several offer courses in climate science and research. Academia and government scientists have also partnered to collaborate on climate change research.

Federal, provincial and territorial governments frequently make use of the web and social media as a platform to deliver relevant information about climate change programs and initiatives. Training programs offered by non-governmental organizations, educational institutions, government agencies and specialist groups also help organizations meet their business or educational objectives and also contribute to Canada’s climate change goals. Similarly, numerous organizations in Canada act as climate change resource or information centres for Canadians, governments and businesses. The Canadian Centre for Climate Services will help improve dissemination of climate data and information through an online climate information portal.

Canada also engages in a number of collaborative international initiatives that involve sharing experiences, best-practices and working towards common climate change goals.