2023 Progress Report on the 2030 Emissions Reduction Plan: Part II

Chapter 5: Canada’s emissions reporting

This chapter provides an overview of Canada’s recent emissions reporting, including Canada’s reporting submitted under its international commitments with respect to climate change and summaries of Canada’s most recent official GHG emissions inventory and Canada’s most recent published GHG emissions projections. This chapter also provides an overview of Canada’s approach to continuous improvement in its emissions inventory and projections modelling.

5.1 International reporting commitments

Reporting is an essential component of the UNFCCC to ensure consistent, transparent, comparable, accurate and complete information is available that will in turn support thorough review and assessment of the implementation of the Convention and monitor progress toward meeting the goals of the Convention. As a signatory to the UNFCCC, Canada has committed to a number of reporting requirements, including annual submission of a national inventory report (NIR), preparation of national communications (NC) every four years and biennial reports (BR) every two years, as well as submission of an adaptation communication, nationally determined contributions (NDC) and a long-term strategy (LTS). Canada prepares these reports in accordance with adopted guidelines.

Canada’s first NIR was published in 1992 and has been published annually since 1996, with the most recent submission in April 2023 (for a summary of the most recent NIR, see below).

Canada submitted its First National Communication in 1994 and its First Biennial Report in December 2013. In December 2022, Canada submitted its Eighth National Communication and Fifth Biennial Report (NC8/BR5) to the UNFCCC. This was the final BR submission. As committed to through the Paris Agreement, Canada will submit its first biennial transparency report (BTR) in 2024. The NC8/BR5 provided updated emissions projections and reported on Canada’s 2020 emissions target. For more information, see the full version of Canada’s NC8/BR5.

Canada submitted its first adaptation communication in July 2021, and also reported on adaptation in the NC8/BR5.

Under the Paris Agreement, Canada is required to outline and communicate post-2020 climate actions through an NDC. Canada’s first NDC, on 2030, was submitted in October 2016, with a revised NDC submitted in May 2017, reflecting developments since the previous submission. An enhanced NDC was submitted in July 2021, increasing Canada’s 2030 GHG emissions reduction target from 30% below 2005 levels to 40% to 45% below 2005 levels. NDCs are submitted every five years to the UNFCCC. The Paris Agreement requires that successive NDCs represent a progression compared to the previous NDC and reflect its highest possible ambition. Canada’s next NDC, outlining a 2035 target, is due in 2025.

Under the Paris Agreement, Canada committed to formulating and communicating a long-term low-greenhouse-gas-emission development strategy. Canada submitted Canada’s Mid-Century Long-Term Low-Greenhouse Gas Development Strategy to the UNFCCC in 2016. In October 2022, Canada submitted Exploring Approaches for Canada’s Transition to Net-Zero Emissions to the UNFCCC, showing illustrative approaches to 2050 based on modelled scenarios. For more information, see the full version of Canada’s LTS (PDF).

In addition to UNFCCC reporting, Canada reports on progress toward the 2030 GHG emissions reductions target as part of Sustainable Development Goals (SDG) reporting. In July 2023, Canada presented its second Voluntary National Review at the United Nations High-Level Political Forum on Sustainable Development. The review highlights Canada's progress, lessons learned and challenges in implementing the 2030 Agenda for Sustainable Development at home and abroad since Canada's first Voluntary National Review in 2018. For more information, see the full version of Canada’s second Voluntary National Review.

5.2 Canada’s greenhouse gas inventory

Canada’s most recent NIR was submitted to the UNFCCC in April 2023.1 The report covers GHG emissions from the Canadian economy from January 1, 1990 to December 31, 2021.

For more detailed information about Canada’s greenhouse gas emissions, see the full version of Canada’s NIR.

5.3 Canada’s GHG emissions projections

ECCC updates Canada’s GHG emissions projections annually, reflecting the latest historical data and up-to-date future economic and energy market assumptions. As such, projections fluctuate over time because of changes in the historical data and assumptions. In years that coincide with a biennial report submission to the UNFCCC, Canada’s projections are published as part of that report. In alternate years, Canada publishes projections in a standalone report.

Canada’s most recent projections report, Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2023, published in December 2023, presents Canada’s GHG and air pollutant emissions projections to 2035.2 There are challenges associated with attributing emissions reductions to individual policies, largely due to the interaction between the various policies in the climate plan. As such, projections by measure are not available.

Projections presented in the report were developed based on a combination of two modelling approaches—a “bottom-up” approach (represented by the “Reference Case” and “Additional Measures” scenarios), and a backcasting approach, which represents an illustrative scenario which is based on all policies and measures included in the Additional Measures scenario and is calibrated to achieve the 2030 target of 40% below 2005 levels. The results from the backcasting scenario should not be construed as signaling policy intentions, but rather as an illustration of what the modelling framework suggests are economically efficient opportunities to reach pre-determined emissions reductions.

5.3.1 Reference case scenario

Projections in the Reference Case include federal, provincial, and territorial policies and measures that were in place as of August 2023 and assume no further government action. They also include the accounting contribution from the Land Use, Land Use Change and Forestry (LULUCF) sector.

To be included in the Reference Case, policies and measures must:

Where program funding is set to end, the projections assume that the impacts of these programs, other than those embodied in consumer behaviour, cease when the approved funding terminates.

The list of policies and measures modelled in the Reference Case scenario can be found in Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2023.

5.3.2 Additional measures scenario

The Additional Measures scenario includes all federal, provincial, and territorial policies and measures from the Reference Case as well as those that have been announced but have not yet been fully implemented. This scenario also includes the accounting contribution from the LULUCF sector, with the addition of the impact of the purchase of credits under the Western Climate Initiative, Nature-Based Climate Solutions and Agriculture Measures.

Where program funding is set to end, the projections assume that the impacts of these programs, other than those embodied in consumer behaviour, cease when the funding terminates.

Every effort is made to be as complete as possible in what is included in the model; however, the additional measures scenario does not include all announced measures. Measures that have not been sufficiently developed to support their inclusion in the model are not reflected in the additional measures results. Measures not included can include those where there were important decisions yet to be confirmed that would impact the emissions reductions associated with the measure. Measures that are being considered or are under development by the provinces and territories are only included if these measures have been identified by the jurisdiction for inclusion in the model, with sufficient detail to be included.

The 2023 projections do not include the proposed oil and gas sector emissions cap or post-2027 heavy-duty vehicles regulations, either in the Reference Case or Additional Measures scenarios.

The list of policies and measures modelled in the Additional Measures scenario can be found in Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2023.

The bottom-up projections referenced in the ERP Progress Report are from the Additional Measures scenario, as it best represents progress to Canada’s 2030 target and captures most of the impact of Canada’s climate policies.

The report also provides:

5.3.3 Projections results

Under the Additional Measures scenario, emissions in 2030 decline to 467 Mt, including contributions from LULUCF, Nature-Based Climate Solutions (NBCS) and Agricultural Measures and credits purchased under the Western Climate Initiative (WCI), or 36% below 2005 levels. This is 24 Mt below the 2030 projections from the “With Additional Measures” (WAM) projections released in Canada’s Eighth National Communication and Fifth Biennial Report to the United Nations Framework Convention on Climate Change (NC8/BR5). Other notable results from the Additional Measures scenario include:

Table 5-1 provides a breakdown of the projected trends in GHG emissions by economic sector.

Table 5-1: GHG emissions by economic sector (Mt CO2 eq)
Sector Historical Projected –
reference case
Projected –
additional measures
2005 2010 2015 2021 2026 2030 2035 Change 2005 to 2030 2026 2030 2035 Change 2005 to 2030
Oil and Gas 168 179 203 189 177 162 158 -6 158 128 123 -41
Electricity 118 95 79 52 38 20 13 -97 39 20 6 -97
Transportation 157 166 163 150 156 144 138 -12 155 137 116 -20
Heavy Industry 89 76 81 77 79 77 78 -12 74 63 62 -26
Buildings 85 82 85 87 80 75 73 -10 74 69 66 -16
Agriculture 64 59 65 69 67 67 67 3 66 63 63 -1
Waste and Others 52 46 47 47 46 46 47 -7 39 32 33 -20
Subtotal 732 702 723 670 642 592 574 -140 604 512 468 -220
WCI Credits n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. -4 -1 0 -1
LULUCF Accounting Contribution n.a. 10 2 -33 -27 -32 -32 n.a. -27 -32 -32 -32
NBCS and Agriculture Measures n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. -13 -13 -13
Total 732 712 725 637 615 560 541 -172 573 467 423 -265

n.a. – not available

Canadian historical GHG emissions per capita have been declining by an average of 1.6% per year over the 2005 to 2021 period. Emissions intensity is expected to decrease by 2.9% per year between 2021 and 2030 in the Reference Case, and by 4.5% per year in the Additional Measures scenario.

For more detailed information about Canada’s greenhouse gas emissions projections, including results from the backcasting scenario, please see the full version of Canada’s emissions projections report.

5.4 Recent projections modelling changes

Emissions projections are updated each year to account for new measures, to address changing conditions in the domestic and global economy, and to incorporate the updated historical emissions from the most recent NIR, including the changes that result from methodological improvements to the NIR.

Historical emissions are one of the central inputs to the emissions projections. Changes to historical emissions will in turn result in changes to emissions projections. Recalculations of inventory estimates often result as a part of continuous inventory improvement activities, including refinements of methods; correction of errors; updates to activity data; inclusion of categories previously not estimated; or compliance with recommendations arising from reviews conducted under the UNFCCC. ECCC continuously consults and works with scientists and experts to improve inventory quality, including those in federal, provincial, and territorial agencies, industry, research institutions, and consultants. Improved understanding and refined or more comprehensive data are used to develop and adopt more accurate methods. The implementation of methodological improvements leads to the recalculations of previous estimates to maintain a consistent trend in emissions and removals.

The 2022 edition of the GHG inventory included recalculations that resulted in changes to previously reported emissions/removals for all IPCC sectors (Energy; Industrial Processes and Product Use [IPPU]; Agriculture; Land Use, Land-Use Change and Forestry [LULUCF]; and Waste) and Energy subsectors (Stationary Combustion, Transport and Fugitive Sources) and for all applicable years in the time series (1990 to 2019). These revisions were largely due to improved estimation methodologies as well as updated energy data. The revisions that resulted in the most significant changes for the year 2019 were in Fugitive (+12.4 Mt), Agriculture (-5.8 Mt) and Stationary Combustion (+3.0 Mt). See the 2022 NIR for greater detail on the inventory improvements made for the 2022 NIR.

The 2023 edition of the GHG inventory incorporated methodological improvements in the estimations of waste landfills, and on-road and off-road transport emissions, among others. A new source was also included—post-meter fugitive emissions—which includes leaks from residential and commercial natural gas appliances, natural gas-fueled vehicles, and at power plants and industrial facilities that consume natural gas. Overall, the recalculations resulted in ‑9 Mt in 2005 and ‑14 Mt in 2020. See the 2023 NIR for greater detail on the inventory improvements for the 2023 NIR.

In addition to impacts from NIR revisions, emissions projections are also impacted by changes in socio‑economic conditions, including changes in forecasts for GDP and population growth, changes in energy production forecasts, updates to account for new measures, and updates to revise policy assumptions about previously included measures.

For the December 2022 projections, the main drivers of change from the projections that were released in March 2022 as part of the 2030 ERP, were:

For the 2023 projections, the main drivers of change from the December 2022 projections were:

For more information about changes in Canada’s greenhouse gas emissions projections, please see the full version of Canada’s emissions projections report.

5.5 Continuous improvement

Continuous improvement is a foundational element of Canada’s approach to climate action, to ensure Canada’s inventory estimates and emissions projections are based on the best available science and data, that Canada’s climate plan is responsive and evolving as new opportunities arise, and for course correction in the implementation of federal programs, policies, and regulations. Significant improvements are anticipated in future inventory estimates, notably for managed forest land, for which a summary is provided below. See the NIR for more on planned improvements.

For emissions projections, ECCC convened an expert-led process to provide independent advice on ensuring a robust and reliable modelling regime that maximizes transparency and addresses the inherent uncertainties in all modelling processes. A summary of the modelling review outcomes is provided below. See the Emissions Projections Report for more on the independent modelling review action plan.

5.5.1 Land Use, Land-Use Change and Forestry: An update on emissions accounting

The LULUCF sector is used to report GHG emissions and removals between the atmosphere and managed lands. The sector includes Forest Land, Cropland, Grassland, Wetlands, Settlements, Other Land, as well as harvested wood products (HWP). Compared to other sectors, LULUCF is unique in that both human activities and natural events and processes (e.g., wildfire, insect infestations) affect its GHG emissions and removals. Natural forest disturbances, in particular wildfires, can cause very large GHG fluctuations from year to year. Canada’s NIR distinguishes the GHG emissions and removals in the managed forest due to human activities from those resulting from natural disturbances. To focus reporting on human impacts, Canada removes the impact of natural disturbances when calculating progress toward national emissions reduction targets.

Management actions and natural disturbances occurring over decades can have very long-term impacts on forest GHG emissions and removals. Canada, like many other countries and in line with UNFCCC approved methodologies, applies specific accounting approaches to determine how recent changes in human activity in the LULUCF sector are contributing to national emissions reduction targets. Canada currently uses reference level accounting (comparison to a business-as-usual baseline) for managed forest land and associated HWP and simple net-net (comparison to a base year) accounting for the rest of the LULUCF categories. In light of recent changes to the European Union’s (EU) LULUCF accounting framework, recommendations from a recent Commissioner of the CESD audit report, and input received from environmental groups, Natural Resources Canada (NRCan) and ECCC are conducting a review of Canada’s LULUCF emissions accounting approach, with specific focus on managed forest and HWP accounting. The Government of Canada will launch a targeted engagement by 2024 as part of this review to ensure Canada’s approach remains consistent with international best practice and represents a scientifically credible approach to tracking progress in emissions reductions.

As stated in the 2030 ERP, the Government of Canada is committed to ensuring thorough estimates and understanding of how Canada’s forests can help address climate change. Canada develops its forest-related GHG inventory estimates and emission and accounting projections using scientific and internationally recognized methodology, in accordance with the UNFCCC and guidelines of the IPCC.

5.5.2 Independent modelling review

Canada’s 2030 ERP included the following commitment:

To both maximize transparency and address the inherent uncertainties in all modelling processes, ECCC will convene an expert-led process to provide independent advice in time for the 2023 Progress Report, ensuring a robust and reliable modelling regime to inform the basis of future ERPs.

ECCC held a two-phase process to fulfill this commitment. In Phase 1, ECCC commissioned Dr. Paul Boothe and his associates Mike Beale and Chris Frankel to lead an initial consultation process seeking input on objectives, scope, and key milestones for a formal consultation process which took place between October and November 2022. From the recommendations put forward in the resulting report, ECCC developed a modelling improvement action plan. The action plan contains both measures to be implemented by the end of 2023 as well as longer-term improvements.

In Phase 2, ECCC commissioned Mike Beale to facilitate a second round of expanded consultation, which took place in April and May 2023, on the proposed action plan and the report produced following the first phase. This consultation process informed the final report and final version of the action plan.

Phase 1 consultations highlighted that consulted experts generally hold the view that ECCC’s current modelling framework is strong and that there is broad support and enthusiasm for an external review to advise on further enhancement. In addition, discussions highlighted:

Collectively, experts indicated that these themes were fundamental to the credibility and accountability of the modelling that underpins the government’s climate policy measures.

Following the consultation phase, Dr. Boothe and colleagues identified the following themes to be explored in Phase 2:

Feedback from Phase 2 interviews indicated that while ECCC’s modelling team is recognized as leaders in the field and the suite of models is generally well regarded, there are concerns about the transparency and age of ENERGY2020. The draft action plan from Phase 1 was seen as ambitious, but interviewees mentioned that improvements are needed in terms of speed and depth of the proposed approach. Interviewees also called for greater transparency in underlying assumptions and impacts of individual policies to enable external modellers to replicate ECCC’s results. Interviewees suggested using more sensitivity analyses and probabilistic analyses to address uncertainties. There was broad interest in a workshop on net-zero modelling. Additionally, interviewees unanimously support establishing a Canadian version of the Stanford Energy Modelling Forum (EMF). The EMF was established at Stanford in 1976 to bring together leading experts and decision makers from government, industry, universities, and other research organizations to study important energy and environmental issues. For each study, the Forum organizes a working group to develop the study design, analyze and compare each model’s results and discuss key conclusions. The EMF seeks to improve the use of energy and environmental policy models for making important corporate and government decisions by:

Net-zero modelling workshop

In September 2023, ECCC held the Net-Zero Modelling Workshop recommended in the Phase 2 report. The workshop included roughly 70 participants including academics and government officials from the United States, Europe, and Canada. The discussions focused on:

The discussions were fruitful and led to the following key takeaways:

A more detailed description of ECCC’s Action plan, including actions taken to date and actions to be taken in the future, is provided in Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2023.

Chapter 6: Implementation update tables

This chapter provides a measure-by-measure update on all the federal strategies and measures under the 2030 ERP, including new measures developed since its release in March 2022, as well as key cooperative agreements and measures with provinces and territories, as identified in the 2030 ERP.

The 2030 ERP is organized around economic sectors, as well as categories for economy-wide measures that cut across sectors, nature-based solutions, which looks to opportunities for emissions reductions from nature, and greening government measures. Enabling measures are also included. Definitions of the sectors are included in the annex.

Measures are organized by sector based on their “best fit”, but can often impact other sectors, directly or indirectly. Organization by sector is done to support review and consideration of sectors and measures—the inclusion of a measure in one sector should not be viewed as indicating that it has no relevance or linkage to another sector. Sectors are linked and interdependent, with actions taken in one sector often having spillover effects for another sector. For example, actions taken to decarbonize Canada’s electricity sector will enable low-carbon electrification in other sectors.

Unique identifiers have been added to support effective tracking of measures over time, recognizing that program names can change. Measures have been organized into main measures and sub‑measures and include:

Only measures with activities are included when counting the number of measures.

The use of main measures and sub-measures is to reflect the relationships between the measures, and should not be considered an indication of importance—sub-measures include major initiatives.

Definitions for implementation status are provided below and examples in Figure 6-1.

Implementation status definitions

Under development (initial planning): seeking authorities; early planning, research, and analysis activities underway.

Initiated (authorized development): required authorities have been secured; drafting, program design, and initial consultations ramping up.

Ongoing (active implementation): inviting & reviewing applications; distributing funding; proceeding through legislative or regulatory approval processes.

Adopted (finalized and in effect): strategy, policy, code or plan is in place; legislation has received royal assent; regulations are published in CG II.

Concluded (no longer in effect): operations have ceased; funds fully allocated, substantially distributed and no further funding planned; measure has been repealed and/or replaced.

In addition to the above, initiatives can also be marked as “under exploration”. These initiatives would only enter the implementation process after being evaluated and receiving a commitment to proceed.

Figure 6-1: Implementation status assessment grid with examples

Figure 6-1 (See long description below)
Long description for Figure 6-1
Implementation status: High-level definitions
  • Under Development – Initial Planning: Seeking authorities; early planning, research and analysis activities are underway
  • Initiated – Authorized development: Required authorities have been secured; drafting program design, and initial consultations are underway
  • Ongoing – Active implementation: Inviting & reviewing applications; distributing funding; proceeding through legislative of regulatory approval processes
  • Adopted – Finalized and in effect: Policy, strategy, plan or code is approved; legislation or regulation is in force
  • Concluded – No longer in effect: Operations have ceased; no further funding; measure has been repealed or replaced
Examples
  • Legislation or Regulations
    • Under Development: Seeking authorities; initial analysis and research underway to inform drafting
    • Initiated: Policy authorities secured; consultation, drafting, revisions underway
    • Ongoing: Bill passed 2nd reading; draft regulations published in CG I
    • Adopted: Legislation received royal assent; regulations published in CG II
    • Concluded: Regulation or legislation repealed and no longer in effect
  • Policies, Plans, Strategies, Codes
    • Under Development: Seeking authorities; early research and analysis
    • Initiated: Policy authorities secured; drafting and consultations underway
    • Adopted: Final approvals in place and currently in effect
    • Concluded: Has been repealed and/or replaced; no longer in effect
  • Programs, Grants & Contributions
    • Under Development: Seeking authorities; research and early design activities
    • Initiated: Policy and funding authorities secured; program G&C launched
    • Ongoing: Applications being reviewed; funding being distributed; operations ongoing
    • Concluded: Funding fully allocated; operations ceased; program has ended and/or been replaced
  • Task Forces, Advisory Committees
    • Under Development: Seeking authorities; research and planning underway
    • Initiated: Relevant authorities secured; members being recruited and confirmed
    • Ongoing: Meetings scheduled; work underway (e.g., consultations, research, report drafting)
    • Concluded: Mandate fulfilled; operations ceased; final report published; no further meetings
About the implementation update tables

Implementation updates are presented in two separate tables, organized by sector. The first table provides an update on the federal measures and strategies included in the implementation annex of the 2030 ERP, as well as any additional federal 2030 ERP climate measures that have been announced since the release of the ERP. The second table provides an update on the cooperative agreements and measures with provincial and territorial governments described in the 2030 ERP.

Table 6-1: Federal measures and strategies

Economy-wide
Measure Description Status and implementation update

ECW-01
Price on carbon pollution

The Government of Canada’s approach to pricing carbon pollution gives provinces and territories the flexibility to implement the type of system that makes sense for their circumstances as long as they align with minimum national stringency requirements (“federal benchmark”).
The federal “backstop” carbon pricing system consists of the federal fuel charge and the federal Output‑Based Pricing System (OBPS) for industrial facilities and applies in jurisdictions that requested it or whose systems do not meet the benchmark.
Lead departments: ECCC, FIN

Ongoing
Carbon pricing has been in place across Canada since 2019 through a mix of federal, provincial and territorial pricing systems aligned with the minimum federal benchmark requirements. In August 2021, more rigorous benchmark criteria for 2023–2030 were established following engagement with provinces, territories, and Indigenous leaders.
The minimum carbon pollution price in 2023 is $65 per tonne of CO2 eq, rising by $15 per year to $170 in 2030.
As of July 1, 2023, the federal fuel charge applies in AB, SK, MB, ON, NB, NS, PE, NL, NU, and YT, and the federal OBPS applies in MB, PE, NU and YT. BC continues to have a provincial carbon price in place and is implementing a provincial OBPS starting in 2024. NT is continuing with its carbon price, QC is continuing with its linked cap-and-trade system with California, and provincial OBPS continues to apply in AB, SK, ON, NB, and NL. NS is transitioning away from its cap‑and‑trade system by developing and implementing a new provincial OBPS effective starting in 2023.
An interim review of carbon pricing in Canada and the federal benchmark, including a second independent expert assessment, has been launched by the Government for completion by 2026, working with provinces, territories, and Indigenous Peoples.

ECW-01.1
Guarantee the future price of carbon pollution

To enhance long-term certainty, the Government of Canada will explore measures that help guarantee the future price of carbon pollution.
Lead departments: ECCC, FIN

Ongoing
The Government of Canada is supporting enhanced carbon price certainty in a number of ways. The carbon pollution price trajectory is set out to 2030, currently $65 and increasing by $15 per year to $170 in 2030. The updated minimum national stringency requirements (“federal benchmark”) for carbon pollution pricing systems in Canada (2023–2030) require carbon markets to maintain a strong price signal in line with the minimum national carbon pollution price across all covered emissions. The Government of Canada is also reinforcing the investment signals created by Canada’s carbon pollution pricing systems with other tools, such as carbon contracts for difference.
As announced in the 2023 Fall Economic Statement, the Canada Growth Fund will be the principal federal entity issuing carbon contracts for difference. The Canada Growth Fund will allocate, on a priority basis, up to $7B of its current $15B in capital to issue all forms of contracts for difference and offtake agreements. Carbon contracts for difference will backstop the future price of carbon and provide predictability to businesses in order to de-risk important emission-reducing projects.

ECW-01.2
Climate Action Incentive (CAI) payments
Part of the return of federal carbon pollution proceeds

All direct proceeds from the federal carbon pricing system remain in the jurisdiction where they were collected. Provinces and territories that have their own carbon pricing systems use the proceeds as they see fit, including by supporting families to take further action to cut pollution in a practical and affordable way.
In the provinces where the federal price on carbon pollution is in effect, the Government of Canada uses 90% of fuel charge proceeds to directly support individuals and families through CAI payments. The other 10% is used to support small businesses and Indigenous partners (see ECW-01.3 through ECW-01.6b for more details).
Lead departments: FIN, CRA

Ongoing
In 2023-24, AB, SK, MB, ON, NB, NS, PE, and NL households are receiving CAI payments.
The government began delivering CAI payments to Canadians on a quarterly basis starting in July 2022. This approach returns fuel charge proceeds to households on a more regular basis, with 8 out of 10 households getting more money back than they pay. Low-and middle-income households in these jurisdictions benefit the most. As the carbon pollution price increases, these payments will also increase. This maintains affordability, as well as a robust price on carbon pollution and incentive to reduce emissions. Residents in small and rural communities who receive CAI payments are eligible for a 20% supplement on their payments to reflect limited access to clean transportation options.

ECW-01.3
Fuel Charge Proceeds Return Program (FCPRP)
Part of the return of federal carbon pollution proceeds

The FCPRP supports the return of federal fuel charge proceeds of over $2.5B as direct payments to eligible small- and medium-sized enterprises (SMEs), specifically those in emissions-intensive and trade-exposed sectors. The program will be available in jurisdictions where the federal fuel charge applies.
Lead department: ECCC

Ongoing
The first round of programming will target small- and medium-sized enterprises in AB, MB, ON, and SK. Total fuel charge proceeds to be returned (by jurisdiction) under the first round of the FCPRP:

  • AB: $718.2M
  • MB: $143.9M
  • ON: $1.336B
  • SK: $300.6M

The Expression of Interest phase for the FCPRP closed on December 16, 2022. Applicants found eligible as part of the Expression of Interest stage will be invited to submit a Formal Proposal.
Further information on the return of proceeds to SMEs in NB, NL, NS, and PE will be available in due course.

ECW-01.4
Returning 1% of net fuel charge proceeds to Indigenous Governments
Part of the return of federal carbon pollution proceeds

This initiative is part of the federal government’s approach to returning fuel charge proceeds that have been collected under the Greenhouse Gas Pollution Pricing Act.
In 2020, it was announced the federal government would return 1% of federal fuel charge proceeds to Indigenous governments through a co‑developed approach in jurisdictions where federal fuel charge programming is in effect.
Lead department: ECCC

Ongoing
ECCC is advancing a distinctions-based approach, with a focus on identifying flexible transfer payment mechanisms to return proceeds collected as of 2020-21 to First Nations and Métis in ON, MB, SK, and AB; as of July 1, 2023, to First Nations in NB, NS and PE; and as of July 1, 2023, to First Nations and Inuit in NL. ECCC is providing grant funding to support engagement with key partners on this initiative.

ECW-01.5
Return of fuel charge proceeds to farmers
Part of the return of federal carbon pollution proceeds

This initiative is part of the federal government’s approach to returning fuel charge proceeds that have been collected under the Greenhouse Gas Pollution Pricing Act.
Proceeds relating specifically to the use of natural gas and propane by farmers are returned directly to farmers via a refundable tax credit.
Lead departments: FIN, CRA

Ongoing
The refundable tax credit is available to farming businesses that operate in certain backstop provinces, starting for the 2021-22 fuel charge year.

ECW-01.6
Output-Based Pricing System (OBPS) Proceeds Fund*
Part of the return of federal carbon pollution proceeds

The OBPS Proceeds Fund returns collected proceeds to the jurisdiction of origin under the federal OBPS through the Decarbonization Incentive Program (DIP) and Future Electricity Fund (FEF).
Lead department: ECCC

See below for stream-specific updates.

ECW-01.6a
Output-Based Pricing System (OBPS) Proceeds Fund: Decarbonization Incentive Program (DIP)
Part of the return of federal carbon pollution proceeds

DIP is a merit-based program to support clean tech projects to reduce GHG emissions in heavy industry.
Lead department: ECCC

Ongoing
Launched in February 2022, the stream was temporarily closed for program improvements on May 29, 2023. The program intake was re-launched on August 8, 2023, and closed on October 12, 2023. Funding decisions are expected in early 2024.
As of October 24, 2023, there were 20 agreements executed.

ECW-01.6b
Output-Based Pricing System (OBPS) Proceeds Fund: Future Electricity Fund (FEF)
Part of the return of federal carbon pollution proceeds

FEF is administered via bilateral agreements with backstop provinces to support clean electricity projects. Backstop provinces are those jurisdictions where the federal pricing system applies in whole or in part.
Lead department: ECCC

Ongoing
Launched in February 2022, there are ongoing conversations with implicated provinces.
As of October 24, 2023, approximately $198M of pollution pricing proceeds were approved for projects in SK and approximately $20M approved for projects in NB through agreements to support clean energy projects, energy efficient technologies, and other initiatives.

ECW-02
Canada’s Greenhouse Gas (GHG) Offset Credit System

Canada’s GHG Offset Credit System encourages municipalities, Indigenous communities, foresters, farmers, and other project developers to undertake innovative projects that reduce GHG emissions. The System does so by allowing project proponents to generate federal offset credits if they implement projects meeting requirements in the Regulations and the applicable federal offset protocol. These credits can be sold and used for compliance by facilities covered in the federal OBPS or sold and used by others looking to meet voluntary climate targets.
Lead department: ECCC

Ongoing
The Canadian Greenhouse Gas Offset Credit System Regulations were published in Canada Gazette, Part II on June 8, 2022.
ECCC is continuing to develop offset protocols, which set out the requirements for particular offset project types, on an ongoing basis. Status of federal offset protocols to date:

  • Final Landfill Methane Recovery and Destruction protocol published in June 2022;
  • Final Reducing GHG Emissions from Refrigeration Systems protocol published in February 2023;
  • Draft Improved Forest Management on Private Land protocol published for public comment in June 2023 with publication of the final protocol targeted for late 2023; and,
  • Draft Livestock Feed Management protocol targeting publication in late fall 2023 for public comment.

ECCC is continuing to develop the following additional protocols:

  • Direct Air Carbon Dioxide Capture and Sequestration;
  • Enhanced Soil Organic Carbon; and,
  • Avoidance of Manure Methane Emissions through Anaerobic Digestion and Other Treatments.

ECCC will initiate the development of a protocol on Improved Forest Management on Public Land in 2024.
ECCC published a GHG Offset Toolkit designed to provide Indigenous Peoples with information and resources related to carbon markets and developing offset projects. It is currently available in English, French, Ojibwe, Mi’kmaq, and Woods Cree.

ECW-03
Clean Fuel Regulations

Require liquid fuel (gasoline and diesel) suppliers to gradually reduce the lifecycle carbon intensity of the fuels they supply for use in Canada.
Lead department: ECCC

Adopted
The Clean Fuel Regulationswere published in Canada Gazette, Part II on July 6, 2022.

ECW-04
Clean Fuels Fund

The Clean Fuels Fund de-risks the capital investment for building new or retrofitting or expanding existing clean fuel production facilities. This measure was launched in 2021.
Lead department: NRCan

Ongoing
Contribution Agreement negotiations are ongoing with several Contribution Agreements already signed under the clean fuel production capacity stream. Information about signed agreements is available online.
The Clean Fuels Fund contributes to the Government’s 2030 target to increase Canada’s clean fuel production capacity by 10% over 2021 levels.

ECW-05
Low Carbon Economy Fund (LCEF)*

The LCEF leverages investments in projects that generate clean growth and reduce GHG emissions, helping Canada to meet or exceed its commitments under the Paris Agreement.
As of 2023, LCEF consists of 4 funding envelopes:

  • Leadership Fund;
  • Challenge Fund;
  • Indigenous Leadership Fund; and,
  • Implementation Readiness Fund.

Lead Department: ECCC

Originally launched by Budget 2017 with $2B, the recapitalization of the LCEF was announced in the 2030 ERP and Budget 2022 to leverage further climate actions from provinces and territories, municipalities, universities, colleges, schools, hospitals, businesses, not-for-profit organizations, and Indigenous communities and organizations.
The recapitalized LCEF renewed the Leadership and Challenge funds, and introduced two new streams, the Indigenous Leadership Fund and the Implementation Readiness Fund.
See below for stream-specific updates.

ECW-05.1
Leadership Fund
Part of the Low Carbon Economy Fund (LCEF)

The LCEF Leadership Fund provides funding to provinces and territories to help them deliver on commitments to reduce emissions in support of Canada’s emissions reduction targets.
Lead department: ECCC

Ongoing
The Leadership Fund launched in 2017 and has provided support toward 52 projects led by provinces and territories that adopted the Pan-Canadian Framework.
Through the recapitalized Leadership Fund, ECCC has continued discussions with all provinces and territories on projects to access their notional allocation. As well, additional allocations are available to target transition off home heating oil for low-income households.
As of October 24, 2023, four provincial projects have been approved under the recapitalized Leadership Fund, with more under review. The first of these agreements is anticipated to be signed in the fall of 2023.

ECW-05.2
Challenge Fund
Part of the Low Carbon Economy Fund (LCEF)

The LCEF Challenge Fund provides funding to a wide range of recipients to implement projects that deploy proven, low-carbon technologies resulting in material GHG emissions reductions across sectors, focusing on its cost-effectiveness objective to maximize GHG emissions reductions.
Lead department: ECCC

Ongoing
The original Challenge Fund had two streams: Champions and Partnerships. As of October 24, 2023, the Challenge Fund has supported a total of 97 projects: 61 for Champions; and 36 for Partnerships.
Champions and Partnerships have been consolidated under the recapitalized Challenge Fund.
As of October 24, 2023, there were 73 projects with agreements in place, with ongoing negotiations for projects approved under the second intake of Champions stream.
The first intake of the recapitalized Challenge Fund launched on November 7, 2023.

ECW-05.3
Indigenous Leadership Fund (ILF)
Part of the Low Carbon Economy Fund (LCEF)

The LCEF ILF provides funding for renewable energy, energy efficiency and low-carbon heating projects led by Indigenous governments, communities and organizations.
Recognizing the unique rights, interests, and circumstances of First Nations, Inuit, Métis, and unaffiliated Indigenous governments, communities, and organizations, the ILF uses a distinctions-based approach to deliver funding to support projects.
Lead department: ECCC

Ongoing
The LCEF ILF program was developed in collaboration with First Nations representatives, Inuit organizations, and Métis governments. The program launched in November 2023.
As of October 30, 2023, up to $73.9M will be available for First Nations-led projects through a continuous intake process that will be open until March 31, 2027. The Métis and Inuit funding is being delivered over six years, starting from 2023, using a directed intake process.

ECW-05.4
Implementation Readiness Fund (IRF)
Part of the Low Carbon Economy Fund (LCEF)

The LCEF IRF 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.
Lead department: ECCC

Ongoing
Projects funded through the program will focus on developing and enhancing human and/or institutional resources through activities that facilitate the deployment of GHG emissions reduction technology.
As of October 24, 2023, IRF is in discussion with organizations that meet the criteria for funding and expects to receive formal proposals for funding in fall 2023.

ECW-06
Hydrogen Strategy

Call to action that lays out an ambitious framework to position hydrogen as a key contributor to Canada’s climate objectives and positions Canada as a global leader on clean renewable fuels.
Lead department: NRCan

Ongoing
The updated Hydrogen Strategy (Progress Report), to be published in early 2024, will include results of progress on strategy implementation since 2020, including reporting on:

  • Over $1B in government (federal and provincial) funding provided/dedicated across hydrogen value chain through 13 programs;
  • The Clean Hydrogen Investment Tax Credit announced, estimated to provide $17.7B in support to hydrogen production projects by 2035; and,
  • Major federal and provincial policy updates and key industry developments in hydrogen production and end use.

ECW-07
Clean Hydrogen Investment Tax Credit

In the 2022 Fall Economic Statement, the Government of Canada announced a refundable investment tax credit for investments made in clean hydrogen production based on the lifecycle carbon intensity of hydrogen. Following consultation with stakeholders, Budget 2023 announced key design details of this measure. The 2023 Fall Economic Statement provided final design details of the investment tax credit.
Lead department: FIN

Under Development
The legislation will need to receive royal assent before taxpayers can claim the tax credit. Once legislated, the investment tax credit will be retroactively available to eligible property acquired and available for use on or after March 28, 2023. The government is targeting to introduce legislation in Parliament in early 2024.

ECW-08
Border Carbon Adjustments (BCAs)

The Government of Canada is exploring whether BCAs would complement domestic carbon pricing to support greater levels of ambition and mitigation of carbon leakage risks.
Generally, BCAs apply import charges and potentially export rebates to account for differences between countries in carbon costs incurred in producing emissions-intensive and trade-exposed goods. Such a policy can support ambitious carbon pollution pricing by leveling the playing field between domestic producers and their international competitors.
Lead departments: FIN, ECCC, GAC

Under Exploration
The Government of Canada continues to explore BCAs as a potential policy tool that could complement domestic carbon pollution pricing.

ECW-09
Canada Infrastructure Bank (CIB)*

The CIB is a Crown corporation that operates at arm’s length from the government and is governed by a Board of Directors. Within its $35B funding envelope, the CIB will be responsible for investing at least $25B to support projects in the areas of Green Infrastructure, Clean Power, and Public Transit.
Lead department: INFC

The CIB is required to produce an annual report that provides information on how it has met objectives and achieved outcomes. The latest CIB report is available online (PDF).
See below for stream-specific updates.

ECW-09.1
Clean Power priority investment area
Part of Canada Infrastructure Bank (CIB)

The CIB invests in clean power projects such as interprovincial interties, renewables, district energy systems, and energy storage to achieve GHG reductions.
Lead department: INFC

Ongoing
As of September 2023, the CIB has made 8 investment commitments with a total capital expenditure of $5.7B, of which CIB is providing at total of $2.7B.
Project examples include:

ECW-09.2
Green Infrastructure priority investment area
Part of Canada Infrastructure Bank (CIB)

The CIB invests in green infrastructure to support Canada’s clean growth economy in areas such as energy efficiency retrofits, water and wastewater management, and projects that contribute to the transition to a low-carbon future.
Lead department: INFC

Ongoing
As of September 2023, the CIB has made 18 investment commitments with a total capital expenditure of $3.8B, of which CIB is providing at total of $1.7B.
Project examples include:

ECW-09.3
Public Transit priority investment area
Part of Canada Infrastructure Bank (CIB)

The CIB invests in public transit infrastructure projects to provide citizens with cleaner and faster commutes and reduce GHG emissions.
Lead department: INFC

Ongoing
As of September 2023, the CIB has made 12 investment commitments with a total capital expenditure of $12B, of which CIB is providing a total of $3.2B.
Project examples include:

ECW-10
Indigenous Climate Leadership

Consistent with the Paris Agreement’s call to respect, promote and consider Indigenous rights when taking action on climate change, the Government of Canada is committed to renewed nation-to-nation, Inuit–Crown and government-to-government relationships with First Nations, Inuit, and Métis, based on the recognition of rights, respect, cooperation and partnership. The Government of Canada also supports the United Nations Declaration on the Rights of Indigenous Peoples and acknowledges that Indigenous Knowledge systems and ways of doing must be a cornerstone of Canadian climate policy.
Lead departments: CIRNAC, ECCC

Ongoing
Since late 2022, the Government of Canada has been working in partnership with over 30 national and regional First Nations, Inuit, and Métis governments and representative organizations to shape the Indigenous Climate Leadership Agenda. Across Canada, a distinctions- and regional-based engagement process is underway. Indigenous governments and representative organizations are leading engagement with rightsholders, citizens, and communities to help shape local, regional, and national approaches to Indigenous Climate Leadership. This engagement will culminate in 2024-25 with recommendations that will inform Canada’s long-term partnership with Indigenous Peoples on climate. Meaningfully supporting Indigenous Climate Leadership means working to advance next steps on issues such as: land-based and rights-based approaches to climate change; mechanisms to establish federal support for Indigenous-led climate strategies; the mobilization of Indigenous Knowledge systems in national climate initiatives; and options and pathways to transfer authorities and resources to Indigenous Peoples.

ECW-11
Regional Energy and Resource Tables (Regional Tables)
Referred to as Regional Strategic Initiatives in the 2030 ERP

The Regional Tables is a collaborative initiative that brings the federal government together with individual provinces and territories, in collaboration with Indigenous partners—and with the input of key stakeholders—to advance the top economic priorities in the energy and resource sectors in each of Canada’s regions.
The objective of the tables is to accelerate regional growth opportunities and energy systems transformation that will drive economic prosperity and the creation of sustainable jobs in a low-carbon future.
Lead department: NRCan

Ongoing
Nine tables have been formally established (BC, MB, NL, NB, NS, PE, NT, YT, and ON), with each progressing at its own pace.
On June 27, 2023, the Government of Canada and the Government of British Columbia released the Framework for Collaboration on the Path to Net-Zero. This Framework sets out six opportunity areas that have the potential to significantly contribute to building or expanding BC’s competitive advantage, as well as actions to advance them.

ECW-12
Plan to Reduce Methane Emissions

A plan to reduce methane emissions across the broader economy, including through regulations that reduce methane emissions from oil and gas (see OIG‑02 in Table 6‑1), and landfills (see WST‑06 in Table 6‑1).
Lead department: ECCC

Ongoing
In September 2022, the Government of Canada published Faster and Further: Canada’s Methane Strategy (PDF), which sets out the measures Canada will take to reduce domestic methane emissions by more than 35% by 2030, compared to 2020 levels.
The methane strategy outlines how Canada will:

  • Implement measures across sectors of the economy, including oil and gas, to reduce the largest sources of methane emissions;
  • Strengthen the clean technology sector and provide tools to industry to achieve cost-effective methane emissions reductions while creating good-paying jobs;
  • Advance scientific knowledge and technical capacity to improve methane detection, measurement, and reporting;
  • Meet international climate targets under the Paris Agreement and Global Methane Pledge; and,
  • Solidify its global leadership and provide funding, tools, and best practices for other countries to achieve emissions reductions.
  • As part of the strategy, Canada recently released draft methane regulations for consultation that aim to reduce methane emissions from the oil and gas sector by at least 75% below 2012 levels by 2030.

ECW-13
Indigenous Natural Resource Partnerships (INRP) Program
Part of the Canadian Critical Minerals Strategy (HVI-06)

Increase the economic participation of Indigenous communities and organizations in the development of natural resource projects that support the transition to a clean energy future. The INRP program has $80M in contributions funding over five years, with at least $25M dedicated for Indigenous communities’ capacity building to engage in critical mineral projects and to support Indigenous-led projects along the critical minerals value chain.
Lead department: NRCan

Ongoing
Launch Date: November 2022 (due to high demand, program is on pause as of May 22, 2023, and not accepting applications. Applications may re-open at a future date.)
As of September 2023, 23 contribution agreements have been signed, totalling $29.4M for projects spanning several natural resource sectors, including many with a net-zero element. Of these, nine projects ($7.5M) focus explicitly on reducing emissions through their support of renewable energy development, climate action plans, and participation in alternative energy sources (e.g., biomass, hydrogen) that comprise Canada’s clean energy mix.

ECW-14
Canada’s Carbon Management Strategy
Referred to as Carbon Capture, Utilization, and Storage (CCUS) Strategy in the 2030 ERP

Establish a vision and plan to accelerate the carbon management industry in Canada so that it can realize its GHG reduction and commercial potential.
Lead department: NRCan

Ongoing
The Carbon Management Strategy, published on September 27, 2023, sets out Canada’s vision and key priorities for the development of a globally competitive carbon management sector that contributes to climate and economic objectives, including reaching net zero by 2050 and growing a robust domestic sector that supports inclusive, high-value employment and a more sustainable economy.
Recognizing the need for durable carbon removal across a range of sectors to complement deep emissions reductions, and guided by Canada’s Carbon Management Strategy, the Government of Canada commits to exploring the potential to expand efforts to support innovation and deployment of negative emissions technologies. These innovative technologies, also referred to as carbon dioxide removal, are being developed and implemented around the world, including in Canada. For example, Canadian companies are leading development of innovative solutions for direct air carbon capture and storage (DACCS) and bioenergy with carbon capture and storage (BECCS). The Government is implementing supports to build on Canada’s early leadership in this area, including through the CCUS Investment Tax Credit, Canada’s GHG Offset Credit System, and direct support for technology RD&D.

ECW-15
Investment Tax Credit for Carbon Capture, Utilization, and Storage (CCUS)

Budget 2021 proposed the introduction of an investment tax credit for capital invested in CCUS projects, with the goal of reducing emissions by at least 15 Mt annually.
Budget 2022 announced specific design details of the CCUS Investment Tax Credit, and further enhancements were announced in Budget 2023.
Lead department: FIN

Initiated
In August 2022, an initial consultation on draft legislation was launched, which included details on design features.
In August 2023, a full package of legislative proposals was released for consultation. This consultation closed on September 8, 2023.
Enacting legislation was tabled in Parliament on November 30, 2023, in Bill C-59. The legislation and regulations will need to receive royal assent before taxpayers can claim the tax credit. Once legislated, the tax credit will be retroactively available to businesses that have incurred eligible CCUS expenses, starting in 2022.

ECW-16
Canada Growth Fund

The Canada Growth Fund was capitalized with $15B to help attract private capital to build Canada’s clean economy by using investment instruments that absorb certain risks in order to encourage private investment in low carbon projects, technologies, businesses, and supply chains.
Lead department: FIN

Ongoing
The Canada Growth Fund commenced operations in summer 2023 and announced its first investment in October 2023—a $90M investment in a geothermal energy company, Calgary’s Eavor Technologies Inc., helping to support good jobs for Albertans and secure a Canadian future for a company at the leading edge of the global clean economy.
In the 2023 Fall Economic Statement, the Government announced that the Canada Growth Fund will be the principal federal entity issuing carbon contracts for difference. The Canada Growth Fund will allocate, on a priority basis, up to $7B of its current $15B in capital to issue all forms of contracts for difference and offtake agreements.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Buildings
Measure Description Status and implementation update

BDG-01
Develop net-zero energy ready model building code and code for retrofits by 2022

Development of increasingly stringent, performance-based model building codes, including to introduce net-zero energy-ready model codes for new construction and the code for alterations to existing buildings.
Lead departments: NRC, NRCan

Adopted
The 2020 edition of the NationalEnergy Code of Canada for Buildings and of the National Building Code were published in March 2022, including energy performance tiers to provide a framework for achieving higher levels of energy efficiency in buildings and houses.

BDG-02
Develop national model code requirements for alterations to existing buildings with a focus on energy efficiency and requirements for GHG emissions for new buildings

Development of new provisions for national model codes that support increased energy efficiency when alterations are made to existing buildings. Development of new provisions for new construction that address GHG emissions associated with building operations.
Lead departments: NRC, NRCan

Initiated
The NRC is leading work to develop new requirements to address energy efficient alterations to existing buildings and houses and GHG emissions from new buildings and houses, for potential inclusion in the 2025 editions of the National Model Codes. NRCan is supporting this work.

BDG-03
Green Construction through Wood (GCWood) program

Provides non-repayable contributions of up to 50% of a project’s eligible costs (up to a total of $1.4M) for demonstration projects with high growth potential that target low-carbon, wood-based systems and technologies and advanced building bio-products.
Provides non-repayable contributions for eligible costs of Accelerating Construction Transformation projects, including building capacity, advancing wood education and supporting building codes and standards.
Lead department: NRCan

Ongoing
The GCWood program was renewed in Budget 2023 for another $38M over three years.
The program absorbed technology transfer, education, and domestic market research activities pertaining to non-traditional products previously supported under the Expanding Market Opportunities (EMO) Domestic Program. The program has also broadened its scope for eligible projects under demonstration projects to include schematic design, innovation building solutions for wood construction (including prefabrication, retrofit, and design for disassembly and adaptability) and bio-based wood products (e.g., wood-fibre insulation, wood cladding, etc.) to encourage the increased use of wood as a low-carbon building material. Funding opportunities for demonstration projects opened in August 2023.
To date the program has supported:

  • 16 mass timber demonstration projects, including 4 tall wood buildings, 10 low-rise non-residential buildings and 2 timber bridges;
  • Adoption of wood curricula at 11 Canadian post-secondary institutions;
  • Nearly 50 wood education modules or courses for post-secondary schools; and,
  • Critical research that led to the inclusion of encapsulated mass timber building up to 12 storeys in the 2020 edition of the National Building Code of Canada.

The program has also published a State of Mass Timber in Canada report and an interactive mass timber projects map that is updated regularly.

BDG-04
Canada Greener Homes Initiative*

A multi-stream initiative to fight climate change, create new energy advisor jobs across Canada, and help homeowners save money.
Lead department: NRCan

 

See below for stream-specific updates.

BDG-04.1
Canada Greener Homes Grant
Part of the Canada Greener Homes Initiative

Funding to help homeowners make their homes more energy-efficient, create new jobs across Canada for energy advisors, grow domestic green supply chains, and fight climate change.
Lead department: NRCan

Ongoing
As of November 14, 2023, over 465,000 grant applications have been received through the national portal and by co-delivery partners in ON, QC, and NS. Over $444M in grant payments have been issued to homeowners in total.
The program ensures Indigenous participation through continuous intake of applications for community-scale home retrofit projects. As of November 21, 2023, 53 applications have been received, and 27 Indigenous contribution agreements have been signed valued at $19.6M.
Also as of November 21, 2023, the Recruitment, Training and Mentorship campaign has a total of 18 agreements (4 completed, 14 ongoing) valued at $9.7M. These contribution agreements support the recruitment, training, and mentoring of new energy advisors (EAs) and the upskilling of existing EAs, with a focus on under-served areas (e.g., remote and rural communities). Since program launch, the number of EAs in Canada has doubled.

BDG-04.2
Canada Greener Homes Loan
Part of the Canada Greener Homes Initiative

This program helps homeowners complete deep home retrofits through interest-free loans worth up to $40,000 that are repayable over 10 years.
Lead department: CMHC

Ongoing
As of August 2023, CMHC has received more than 38,000 loan applications across Canada with an average eligible loan amount approaching $24,000. Projects funded and/or launched:

  • 12,170 loans worth $234M fully funded as of August 2023; and,
  • 19,520 loans worth $69M partially funded as of August 2023.

CMHC is planning to undertake an outcomes analysis, beginning early 2024.
Expected to have fully funded loans representing approximately $325M in total federal funding.

BDG-04.3
Canada Greener Affordable Housing (CGAH)
Part of the Canada Greener Homes Initiative

This program offers low-interest repayable and forgivable loans to help affordable housing providers complete deep energy retrofits on residential rental buildings. It also provides contributions for completing the pre-retrofit activities needed to plan, prepare, and apply for the retrofit funding.
Lead department: CMHC

Ongoing
CGAH includes a mix of contributions ($19.5M), forgivable loans ($500M) and repayable loans (up to $600M) to community housing providers.
CGAH pre-retrofit and retrofit programs launched on June 1, 2023. Pre-retrofit funding received 248 applications totaling $34.2M in requested funding. Applications were assessed and legal agreements were issued in early September. Applicants not selected were notified. Additional information on call‑out windows is available online.
CGAH’s retrofit window for year 1 remains open and applications are being accepted on a continuous basis until the available funding has been fully committed. To date, retrofit funding received 10 applications—8 were considered ineligible/incomplete, and 2 applications are under assessment with requested funding totaling $14.8M.

BDG-04.4
Oil to Heat Pump Affordability (OHPA) Program
Part of the Canada Greener Homes Initiative

The OHPA Program supports low- to median-income Canadian homeowners’ transition away from oil heating to electric cold climate air source heat pumps.
Funding of up to $10,000 per eligible household is available, with up to an additional $5,000 to match provincial and territorial contributions via co‑delivery arrangements.
This program will help homeowners save thousands of dollars on heating bills every year and reduce GHG emissions associated with the combustion of heating oil.
Lead department: NRCan

Ongoing
The OHPA Program is a new incentive, launched March 31, 2023, with funding available over 4 years (2023-24–2026-27).
Co-delivery agreements are in place with NL, NS and PE, allowing homeowners in these provinces to seamlessly access federal and provincial grant funding through a single provincial window.
As of November 21, 2023, over 12,794 applications have been received, including 1,241 applications through the national portal, and 11,553 in co-delivery jurisdictions: 2,337 applications were received in NS, 8,000 in PE, and 1,216 in NL.

BDG-05
Green and Inclusive Community Buildings (GICB)

Funding to support green and accessible retrofits, repairs or upgrades to existing public community buildings and construction of new publicly accessible community buildings that serve high-needs communities across Canada. At least 10% of funding for this program reserved for Indigenous projects and recipients.
Lead department: INFC

Ongoing
All intakes for the program have closed and applications are currently under assessment.
Since the launch of the program in April 2021, close to 2,000 applications, seeking over $14B in funding were submitted to INFC. As of November 2023, more than 110 community infrastructure projects have been announced with funding of over $650M, including small, medium, and large retrofits and new community buildings.
Projects announced under the program include retrofits of community centres, cultural, and recreational facilities to improve energy efficiency, accessibility, and safety, and the construction of new inclusive, accessible, net-zero carbon facilities, including Indigenous educational and long-term care facilities.

BDG-06
Energy Efficient Buildings Research, Development & Demonstration (EEB RD&D) Program

Inform the development of national building energy codes for both new and existing net-zero energy-ready buildings through provincial/territorial collaborations, R&D, and real-world demonstration projects in all Canadian climate zones.
Lead department: NRCan

Ongoing
$42.3M to fund projects that will accelerate the development and adoption of net-zero energy-ready codes and cleaner technologies to promote highly energy-efficient building design and construction practices; provide cost-effective building solutions; and validate their applications with real-world demonstrations. As of 2022-23, the program has supported 20 high-efficiency demonstration projects.

BDG-07
National Housing Strategy (NHS)

The Strategy provides funding to help reduce homelessness and improve the affordability, availability, and quality of housing for Canadians in need.
Lead department: CMHC

Ongoing
Since its implementation, the NHS has created or committed 100,000 new housing units and over 120,000 housing units have been repaired or committed.
The new Housing Accelerator Fund was launched in July 2023 to reduce systemic barriers to housing and promote a rapid increase in housing supply, including affordable, accessible, and climate-compatible housing.

BDG-08
National Infrastructure Assessment

Establish an advisory body to lead a regular National Infrastructure Assessment.
Lead department: INFC

Initiated
Work is ongoing to establish a Minister’s advisory body, the Canadian Infrastructure Council, to carry out the Assessment, and provide impartial, expert and evidence-based advice on infrastructure challenges and opportunities for all orders of government.

BDG-09
Canada Green Buildings Strategy

Working with partners, the strategy will build off existing initiatives and set out new policy, programs, incentives, and standards needed to drive a massive retrofit of the existing building stock, while helping to ensure newly constructed buildings support a net-zero future.
Lead department: NRCan

Under development
Through 2022 and 2023, NRCan has been working closely with key stakeholders and federal partners to develop the Canada Green Buildings Strategy, with a view to achieving net zero and enhancing climate resiliency. The Strategy will take into account new actions being developed at the federal level and by provincial and territorial partners, industry and the private sector.
In the summer of 2022, NRCan released the Canada Green Buildings Strategy Discussion Paper (PDF) and launched a public engagement process which concluded in early 2023.
In summer 2023, NRCan published key learnings from this engagement with a What We Heard report (PDF) and a Summary of Engagement with Indigenous Partners (PDF).
See below for additional updates on specific sub‑components of the Strategy.

BDG-09.1
Low Carbon Building Materials Innovation Hub
Part of the Canada Green Buildings Strategy

Drives further research, building code reform, and demonstration activities, all promoting the use of lower carbon construction materials (e.g., wood, steel, cement, etc.) in the built environment.
Lead department: NRCan

Under development
The Low Carbon Buildings Material Innovation Hub is in the planning and development phase.

BDG-09.2
Transition off fossil fuels for heating systems
Part of the Canada Green Buildings Strategy

Exploring regulatory standards and an incentive framework to support the transition off fossil fuels for heating systems.
Lead department: NRCan

Initiated
The Government of Canada continues to explore options to develop regulatory standards and an incentive framework to support the transition off fossil fuels for heating systems.
Throughout 2022, NRCan worked to develop the evidence base to support the transition off fossil fuels via studies and surveys on economic, energy, and emissions impacts; heat pump manufacturing and supply chains; and Canadians’ knowledge, attitudes, and decisions on home heating.
From 2022 to the present, there has been ongoing collaboration with provinces and territories to build workforce capacity for the installation of heat pumps.
In November 2022, the Oil to Heat Pump Affordability Program was announced as part of the Canada Greener Homes Initiative to support low- to median-income households transition from heating oil to high-efficiency heat pumps. More details on the program are provided under measure BDG-04.4.

BDG-09.3
EnerGuide home labeling
Part of the Canada Green Buildings Strategy

Developing a nationally coordinated approach to increase home labelling for energy performance and climate resilience.
Lead department: NRCan

Under development
The Toward Net-Zero (TNZ) Homes and Communities program was launched in September 2022 with the aim to, in part, support projects that facilitate the use of innovative home energy labelling tools and methods to reduce residential GHG emissions through retrofits. The TNZ program received 27 labelling-related proposals, of which 8 were selected. Total funding of approximately $2.7M over 3 years.
In April 2023, NRCan launched a Home Labelling Working Group with federal, provincial, territorial and municipal representatives to support the development and implementation of home energy efficiency and climate resilience information labelling across Canada.

BDG-09.4
Codes Acceleration Fund (CAF)
Part of the Canada Green Buildings Strategy
Referred to as the Net Zero Building Code Acceleration Fund in the 2030 ERP

Will help build capacity and support market preparedness to help accelerate the adoption and implementation of the higher performance tiers of the 2020 national model energy codes, or other high-performance codes, and promote higher rates of compliance with adopted codes. Funding will also help pave the way for new code requirements to drive energy efficient alterations to existing buildings retrofits and net-zero emission construction.
Lead department: NRCan

Ongoing
The CAF was launched in January 2023. The first Call for Proposals closed in April 2023.
Most provinces and territories have committed to adopting the base tier of the 2020 national model energy codes by 2024.

BDG-09.5
Climate resilience of the built environment
Part of the Canada Green Buildings Strategy

Developing an approach to increasing the climate resilience of the built environment.
Lead department: NRCan

Under development
NRCan’s work to develop the Canada Green Buildings Strategy includes a focus on enhancing climate resilience in the built environment. See above for details on progress toward the Strategy.
In September 2023, the call for proposals process for the Climate Change Adaptation Program closed. The Program will offer up to $15M in funding for projects that will facilitate the development, sharing, and application of knowledge, tools, and practices for communities, decision-makers, and natural resource-sector businesses in taking adaptation-informed decisions and developing and implementing adaptation actions.

BDG-09.6
Deep Retrofit Accelerator Initiative (DRAI)
Part of the Canada Green Buildings Strategy
Referred to as the Retrofit Accelerator Initiative in the 2030 ERP

Will help to transform Canada’s deep retrofit market by increasing capacity for project development and implementation activities across the country. Funding to accelerator organizations and other stakeholders will help to identify and aggregate deep retrofit projects and guide building owners in the development of their projects. The initiative will also support other capacity-building activities, such as the development of tools, resources, and standardized approaches.
Lead department: NRCan

Ongoing
The DRAI was launched in February 2023. The first Call for Proposals closed in April 2023.
Other efforts focused on the development of tools and resources to support the implementation of deep retrofit projects.

BDG-10
Greener Neighbourhoods Pilot Program (GNPP)

Focusing on clusters of low-rise housing, the GNPP seeks to pilot the Dutch Energiesprong model in the Canadian market.
Lead department: NRCan

Ongoing
The $35.5M GNPP aims to pilot the Dutch Energiesprong model of aggregated deep energy retrofits in up to six community housing neighbourhoods across Canada. By aggregating similar homes and buildings in an entire neighbourhood, the Energiesprong model creates mass demand for deep energy retrofits, which allows leveraging of new retrofit approaches, such as the use of prefabricated exterior panels, to reduce on-site labour time and overall project costs while reducing the energy-use intensity and emissions from each building.
The GNPP includes two funding calls. The first call is supporting Market Development Teams (MDTs), also known as retrofit accelerators. These organizations will convene and coordinate supply- and demand-side actors to identify opportunities for aggregated deep energy retrofit projects, find solutions to regional gaps and barriers, and drive market transformation in their regions. This call closed in April 2023, with 16 proposals received; from these, up to six MDTs will be selected to receive up to $1M each.
The second call, closed on September 14, 2023, will provide up to $10M per project to fund demonstrations of whole-building deep energy retrofits in up to six community housing neighbourhoods. Eligible projects must each include at least 100 homes or housing units and target reductions of at least 50% in energy consumption and 80% in GHG emissions.

BDG-11
Centre of Excellence in Construction Life Cycle Assessment (CECLA)
Referred to as Establishment of a Centre of Excellence to support a decarbonized and climate‑resilient construction sector in the 2030 ERP

A newly developed CECLA at the NRC’s Construction Research Centre will help guide RD&D support for low-carbon innovation in the construction industry.
Lead department: NRC

Initiated
Beginning in 2024, the Low Carbon Built Environment Challenge program will implement a CECLA to provide ongoing technical support to TBS, NRCan, INFC, and other federal departments to develop and promulgate low-carbon emissions procurement requirements and help to provide the industry with certainty needed for investment in low-carbon emissions technology.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Electricity
Measure Description Status and implementation update

ELE-01
Phase out of conventional coal-fired power plants by 2030

Amend existing coal-fired electricity regulations to accelerate the phase out of traditional coal-fired electricity by 2030.
Lead department: ECCC

Adopted
Regulations are in place.
Unabated coal-fired electricity to cease as of January 1, 2030.
As of fall 2023, 20 coal-fired electricity units are still operating.

ELE-02
Regulatory performance standards for new natural gas units and converted coal-to-gas units

Set performance standards for natural gas-fired electricity generation.
Lead department: ECCC

Adopted
Regulations are in place.
Performance standards for new natural gas units and converted coal-to-gas units are in place to ensure efficient technology is used.

ELE-03
Emerging Renewable Power Program (ERPP)

Support deployment of emerging renewables not yet established commercially in Canada, such as geothermal, tidal and offshore wind.
Lead department: NRCan

Ongoing
Implementation of the $200M ERPP is ongoing with projects being monitored. $178M has been committed to six projects in AB, BC, SK and NS. Initiatives include bi-facial solar, geothermal, and in-stream tidal projects.
Since April 2022, the Tu Deh-Kah geothermal project in BC, led by the Deh Tai Corporation, the economic development corporation of Fort Nelson First Nation, has surpassed a critical milestone with the completion of well tests in late 2022. Construction work is expected to begin by 2024 with a target operations date by 2026.

ELE-04
Smart Renewables and Electrification Pathways Program (SREPs)

Investments in smart renewable energy and electrical grid modernization projects.
Lead department: NRCan

Ongoing
SREPs has allocated all Budget 2021 and 2022 funding ($1.56B over eight years) to approved smart renewable electricity deployment and grid modernization projects.
SREPs has approved 72 deployment projects and 50 capacity building projects, enabling approximately 2,700 MW of new renewable energy capacity and supporting energy storage and grid modernization to better prepare the grid for a transition to a net-zero electricity system. These projects are expected to create over 34,000 job-years and annual GHG emissions reductions of 3.1 Mt CO2 eq. Over half of all projects have meaningful Indigenous ownership, representing over $800M in program contributions.
NRCan continues to sign contribution agreements and provide funding for approved projects. Announced projects are available online.
NRCan received nearly $3B in Budget 2023, including to recapitalize SREPs, to support regional priorities and Indigenous-led projects, and add transmission projects to the program’s eligibility.

ELE-05
Wah-ila-toos: Reducing diesel in Indigenous, rural and remote communities*
Referred to as Off-diesel in rural, remote and Indigenous communities “Off-diesel Hub” in the 2030 ERP

To ensure that rural, remote, and Indigenous communities that currently rely on diesel have the opportunity to be powered by clean, reliable energy by 2030.
Includes the Indigenous Off-Diesel Initiative (IODI), Clean Energy for Rural and Remote Communities (CERRC) and Northern Responsible Energy Approach for Community Heat and Electricity (REACHE).
Lead departments: NRCan, CIRNAC

April 2022: Establishment of Wah‑ila‑toos administrative unit to support the implementation and coordination of the streamlined approach, engagement pathways, and the development of a long-term strategy.
October 2022: A centralized single-window approach has been implemented, which consolidates intake for CERRC, Northern REACHE, and IODI. Since then, the programs have received over 450 funding requests and new proposals arrive on a daily basis.
December 2022: A distinctions-based Indigenous Council was established to support Wah‑ila‑toos by providing guidance and advice on programs and policy development. The Indigenous Council will also direct an engagement process and develop recommendations on a long-term strategy for the clean energy transition. Along with the Indigenous Council, the Governing Board was established to include a mix of federal officials and Indigenous Council members that will review and endorse projects, along with strategic policy direction. Since CERRC, Northern REACHE, and IODI were launched in 2018, 253 projects have been approved totalling $272M in funding. This includes 28 projects totalling $40M in funding since the Governing Board was launched.
February 6, 2023: The interdepartmental initiative was gifted the name Wah‑ila‑toos following a sacred name gifting ceremony held by Grandmothers and Elders. The name Wah‑ila‑toos represents our collective responsibility to uphold our good relations with each other.

ELE-05.1
Indigenous Off‑Diesel Initiative (IODI)
Part of Wah‑ila‑toos

A clean energy training program that supports Indigenous-led climate solutions in remote Indigenous communities that currently use diesel or fossil fuels for heat and power.
IODI supports a cohort of participants (called Energy Champions) in their journey from training through to project planning and development.
Lead departments: NRCan, CIRNAC

Ongoing
As of October 2022, the second cohort of the IODI launched and 10 Energy Champions were selected. The Energy Champions will receive up to $1.52M to lead engagement, clean energy planning, and project development within their communities. The IODI team continues to support the first cohort of 14 Energy Champions.

ELE-05.2
Clean Energy for Rural and Remote Communities (CERRC)
Part of Wah‑ila‑toos

Support projects that reduce reliance on diesel and other fossil fuels in Canada’s Indigenous, rural, and remote communities.
Lead department: NRCan

Ongoing
From March 31, 2022, to September 30, 2023, 20 contribution agreements and 13 grants have been signed in addition to the 114 agreements signed since the program launched in 2018. These projects are helping demonstrate and deploy community-led renewable energy projects, encouraging energy efficiency, and building skills and capacity.
Projects included the St. Mary’s River Energy Project, supported by $4.3M in funding from CERRC, which was successfully completed in early 2023. The project refurbished an existing 240 kW hydro system with new generating components and a modern control system and installed a 250 kW solar photovoltaic plant and 500 kW lithium-ion battery storage integrated into the existing diesel grid at Mary’s Harbour, NL. The project has demonstrated improved technical readiness of an integrated diesel microgrid including hydro, solar and battery components and is expected to reduce diesel consumption by 30%.

ELE-05.3
Northern Responsible Energy Approach for Community Heat and Electricity (REACHE)
Part of Wah‑ila‑toos

Funding for implementing renewable energy projects in off-grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power.
Lead department: CIRNAC

Ongoing
From April 2022 to September 2023, the Northern REACHE program has supported a total of 78 projects with an investment of $26.2M. This includes renewable energy projects (e.g., solar panel installations, wind studies, etc.) and capacity building initiatives including workshops, skills development and mentorship/networking programs.
Additionally, Northern REACHE supported the feasibility and planning stages of 11 northern hydroelectricity and grid-interconnection projects with an investment of $23.2M.

ELE-06
Indigenous Clean Energy Program

Investments, starting in 2021-22, through the Strategic Partnerships Initiative (SPI) to build capacity for local, economically sustainable clean energy projects in First Nations, Inuit, and Métis communities and support economic development opportunities.
Lead department: ISC

Ongoing
Five Indigenous Clean Energy Initiatives have been provided SPI funding in BC, AB, SK, QC, and Atlantic Canada. A sixth Initiative, within MB, has been approved to use SPI’s Terms & Conditions to develop a Clean Energy Initiative.
Indigenous Clean Energy (ICE) continues to provide advisory, outreach, and technical support in advancing Indigenous Clean Energy initiatives across the country.

ELE-07
Smart Grids Program

Program to promote the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada.
Funding for utility-led projects to reduce GHG emissions, better utilize existing electricity assets, and foster innovation and clean jobs.
Lead department: NRCan

Ongoing
NRCan completed delivery of the $100M Smart Grid Program. The program funded 22 projects, including $6.1M to NS Power and $6.2M to the NB Power Corporation to develop, deploy and pilot solutions to integrate distributed energy resources, such as rooftop and community-scale solar installations and battery storage, into the grid and to engage with communities on energy consumption and energy asset ownership.
The Government of Canada committed an additional $45.6M over three years for the renewal of the smart demonstration stream under the Energy Innovation Program (see ENB-02 in Table 6-1) to accelerate the development of smart grids and address barriers to adoption.

ELE-08
Strategic Interties Predevelopment Program (SIPP)

Funding for studies to help build new interprovincial electricity transmission infrastructure projects with the support from the Canada Infrastructure Bank.
Lead department: NRCan

Ongoing
As of August 2023, SIPP has signed three contribution agreements to support pre-development transmissions projects in Atlantic Canada and committed $15M in funding.

ELE-09
Small Modular Reactor (SMR) Action Plan implementation

Canada’s SMR Action Plan, released in 2020, is Canada's plan for the development, demonstration and deployment of SMRs for multiple applications at home and abroad. As one of the 27 federal actions under the plan, the Government of Canada committed to convene senior leadership. Members of the Leadership Table include senior representatives from the federal government, interested provincial and territorial governments, Indigenous communities, utilities, industry, and non-governmental organizations.
Lead department: NRCan

Ongoing
Since April 2022, the Deputy Minister of NRCan has held three SMR Leadership Table Meetings to discuss nuclear energy developments.
Following the inaugural meeting in April 2022, NRCan committed to issuing a publicly available SMR Action Plan progress update (PDF) to capture the voice of the Leadership Table, highlight discussions from the meeting, and outline future actions to support the development and deployment of SMRs in Canada. The second progress update will be published in fall 2023.
Nuclear energy has experienced significant momentum both domestically and internationally over the last few years. To recognize this shift and reflect the importance of integrated planning involving all nuclear technologies—both small and large reactors—the scope of the Leadership Table has been broadened and now operates under the new name of the Nuclear Energy Leadership Table.

ELE-10
Clean Electricity Regulations

Set performance standards for emitting electricity generating units to support net-zero electricity by 2035 target.
Lead department: ECCC

Ongoing
The draft regulations were published in the Canada Gazette, Part I on August 19, 2023, for formal comment. The final regulations are targeted for publication in 2024.

ELE-11
Electricity Predevelopment Program (EPP)

Support predevelopment work of large clean electricity projects, in collaboration with provinces.
Lead department: NRCan

Ongoing
As of September 2023, five applications have been received and are at various stages of the project review and approval process.

ELE-12
Canada Electricity Advisory Council
Referred to as the Pan-Canadian Grid Council in the 2030 ERP

External advice to the Government of Canada to promote clean electricity infrastructure investments.
Lead department: NRCan

Initiated
Budget 2022 allocated $2.4M for the establishment of a Pan-Canadian Grid Council, which would provide external advice in support of national and regional electricity planning.
The Minister of Energy and Natural Resources engaged with provincial and territorial counterparts in summer 2022 to solicit input on the concept of the Electricity Council for consideration during its development. Departmental officials subsequently followed up with PT counterparts in bilateral engagements to solicit additional feedback.
In May 2023, the Minister of Energy and Natural Resources announced the establishment of the Canada Electricity Advisory Council and its mandate. The Council was established as an independent, electricity-sector focused, expert advisory body to provide advice to the Minister of Energy and Natural Resources to accelerate investment, and promote sustainable, affordable, and reliable electricity systems.
The Canada Electricity Advisory Council commenced its work in May 2023 and aims to submit its advice to the Minister in a report in spring 2024 to support and enable the transition of Canada’s electricity systems towards the net-zero objectives.

ELE-13
Atlantic Loop initiative

To help connect regions with clean power, the Government of Canada will lead engagement across Atlantic Canada to shape a clear path forward for the Atlantic Loop initiative.
Lead department: NRCan

Ongoing
The Governments of Canada, New Brunswick, and Nova Scotia will advance two tracks of collaborative work to support the phase out of coal-fired electricity generation by 2030 and work towards net-zero electricity by 2035 and a net-zero economy by 2050.
Under the first track of work, provincial and federal governments will identify the necessary investments to support the phase out of coal‑fired electricity by 2030, and the transition to clean energy. The Point Lepreau–Salisbury–Onslow Transmission Line connecting NS and NB was identified as a near-term 2030 priority.
A second phase of work will advance areas of critical importance and cooperation on the path to net-zero electricity by 2035, which will include further exploring regional transmission and energy exchange opportunities in partnership with neighboring utilities, in QC, NL, and PE.

ELE-14
Clean Electricity Investment Tax Credit

Budget 2023 proposed to introduce a 15% refundable investment tax credit for: eligible investments in certain non-emitting electricity generation systems; abated natural gas-fired electricity generation; stationary electricity storage systems; and equipment for the transmission of electricity between provinces and territories. Both new projects and the refurbishment of existing facilities will be eligible. Both taxable and non-taxable entities, such as Crown corporations and publicly owned utilities, corporations owned by Indigenous communities, and pension funds, would be eligible for the proposed investment tax credit.
Lead department: FIN

Under Development
Budget 2023 announced the Government’s intention to introduce a Clean Electricity Investment Tax Credit. FIN is developing the design and implementation details of the tax credit.
FIN will be engaging with provinces, territories, and other relevant parties to develop the design and implementation details of the Clean Electricity Investment Tax Credit.
The government is targeting to introduce legislation in Parliament in fall 2024. Enacting legislation and regulations will need to receive royal assent before the tax credit could be claimed.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Heavy industry
Measure Description Status and implementation update

HVI-01
Hydrofluorocarbon (HFC) Regulations

The HFC Regulations work to support the phase down of consumption of HFCs and prohibits the import and manufacturing of products containing or designed to contain HFCs.
Lead department: ECCC

Adopted
Regulations are in place.

HVI-02
Clean Growth Program (GCP)

Launched in 2017-18, the first‑of‑its‑kind CGP invested in clean technology RD&D in the Canadian energy, mining, and forestry sectors. It covered five areas of focus: reducing GHG and air-polluting emissions; minimizing landscape disturbances and improving waste management; producing and using advanced materials and bioproducts; producing and using energy efficiently; and, reducing water use and impacts on aquatic ecosystems. The program aimed to advance emerging clean technologies toward commercial readiness, reduce environmental impacts, enhance competitiveness, and create jobs.
Lead department: NRCan

Concluded
Provided $155M to co-fund 43 clean technology RD&D projects with provinces and territories in three Canadian sectors: energy, mining, and forestry.
As of 2022-23, CGP projects demonstrated advances in RD&D, with more than half of the projects advancing one or more technological readiness levels (69%), surpassing the program target of 50%. Projects filed 410 patents or licenses, informed the development of 11 codes or standards, and shared early discoveries and knowledge through production of 93 peer reviewed articles, technical reports, and other publications.
In 2022-23, CGP projects have already achieved their 2027 environmental performance targets achieving annual reductions of 0.35 Mt of CO2 eq in GHG emissions (2027 target: 0.3–0.7 Mt per year), 24,600,000 m3 in water use (2027 target: 100,000–2,000,000 m3 per year), and 91,000 tonnes of waste (2027 target: 20,000–30,000 tonnes per year).
CGP projects had resulted in over 1,003 direct and indirect job-years of employment, including 465 direct jobs. Proponents were successful in leveraging funds by an average of $3 in contributor funds for every $1 of NRCan funding exceeding the target ratio of 1:1.

HVI-03
Strategic Innovation Fund – Net Zero Accelerator (SIF‑NZA)

Invests in projects to support Canada’s largest industrial GHG emitting sectors to reduce emissions, help position key industrial sectors to be successful in the net-zero global economy of 2050, and assist in establishing Canada as a clean technology leader capitalizing on new growth opportunities, including a domestic battery ecosystem.
Lead department: ISED

Ongoing
Since its launch in 2021, the NZA initiative has executed a number of contribution agreements in many sectors, including fuel cells, batteries, nuclear, steel, and EV manufacturing. These projects will help Canadian industries adapt to the green economy, support the development of Canadian clean technology, and secure GHG reductions that contribute to Canada’s climate objectives.
The NZA also launched a Call-to-Action for large-emitters in March 2022 to identify and select large, ambitious, and innovative proposals that substantially reduce near-term GHG emissions while positioning Canada’s industry to be competitive in a global low-carbon economy. Through this Call-to-Action, NZA has identified several promising large-scale decarbonization projects, most of which are currently in the due-diligence stage of the project. These projects would support Canada in meeting its emissions reduction goal for 2030. 
As part of efforts to reduce emissions from existing facilities, SIF is supporting key projects that will accelerate the net-zero transition of Canada’s steel sector and reduce GHG intensity of steel products. The program has secured projects with Algoma Steel and ArcelorMittal Dofasco to upgrade their steel manufacturing facilities by electrifying production processes and improving product quality. Through these SIF-funded projects, the companies have also committed to a combined GHG emission reduction potential of 6 Mt in 2030.

HVI-04
Cutting corporate taxes for manufacturers and producers of zero-emissions technologies

The Government of Canada announced in Budget 2021 that it would reduce the general corporate and small business income tax rates by half for businesses that manufacture and produce zero-emission technologies.
Lead department: FIN

Ongoing
Budget 2022 announced an expansion of eligible activities, which has been enacted.
Budget 2023 proposed a three-year extension to this measure and a further expansion of eligible activities.
Draft legislation to implement these Budget 2023 proposals was publicly released for comment in August 2023.

HVI-05
Net-Zero Challenge (NZC)

Supports businesses operating in Canada to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050.
Lead department: ECCC

Ongoing
Since the program launched in August 2022, over 140 Canadian businesses have joined.
Recruitment, outreach, and engagement are ongoing.
TBS announced the requirement for successful bidders on federal procurement contracts over $25M to participate in the NZC or a similar initiative or standard.
The program has also committed to expanding eligibility to local governments and public entities, to encourage them to commit to net zero.

HVI-06
Enhancing Canada’s supply of critical minerals

Create a Critical Minerals Centre of Excellence to lead the development and coordination of Canada’s policies and programs on critical minerals, in collaboration with industry, provincial, territorial, Indigenous, non‑governmental, international partners, and other government departments.
Lead departments: NRCan, NRC

Ongoing
The Critical Minerals Centre of Excellence has been established at NRCan.
The Canadian Critical Minerals Strategy was launched on December 9, 2022.
Implementation is underway for each initiative under the Strategy; specific details for each can be found below.

HVI-06.1
Critical Minerals Geoscience and Data (CMGD) Initiative
Part of the Canadian Critical Minerals Strategy

$79.2M over 4 years to accelerate public geoscience for critical minerals. The program provides funding to advance the availability of valuable data and insights on the location, quality, and economic feasibility of critical minerals resources.
Lead department: NRCan

Ongoing
Launch Date: Spring 2023 (Active)
February 2023: Internal Geoscience Projects announced a call for proposals that eventually provided 23 projects with funding for four years totaling $9.4M.
June 2023: Project proposal submissions are open for up to $500,000 per project for provinces and territories. The CMGD anticipates allocating $1M in funding towards this PT engagement initiative. These projects are designed to establish a critical mineral resource knowledge base, study and explore critical mineral systems on new and emerging sources, and prospectively model critical minerals incorporating advanced analytics and ESG principles.
Summer 2023:

  • Indigenous engagement: Correspondence with 15 Indigenous organizations in support of CMGD fieldwork in BC, MB, ON, NB, and NS.
  • Communications and conferences: 10 presentations and sessions at key events.

Publications: 4 published and 1 under review, including:

HVI-06.2
Critical Minerals Research, Development and Demonstration (CMRDD) Program
Part of the Canadian Critical Minerals Strategy

The program aims to provide funding to critical mineral projects to improve the feasibility of producing or commercializing their novel technologies and innovative process designs and support the enhanced environmental and social performance of their production methods.
Lead departments: NRCan, NRC

Ongoing
Launch Date: Summer 2023 (Active)
March 2023: Wave 1: $47.7M via Budget 2021. Six projects announced at Prospectors and Developers Association of Canada in March 2023, representing a total investment of over $14M.
June 2023: Wave 2: $144.4M via Budget 2022. NRCan hosted a 2-day workshop (June 20-21, 2023) in Ottawa, with over 150 participants from industry, academia, associations, and government.
July 18, 2023: The application intake for the $40M contribution program for pilot plants and demonstration projects that will help develop critical minerals value chains launched July 18, 2023, and will remain open until September 29, 2023. The program will consider projects between April 1, 2024, to March 31, 2027. Wave 2 of the program has expanded its list of eligible critical minerals to all 31 identified in Canada’s critical minerals strategy, but will continue to prioritize certain critical minerals from that list to align itself closely with ISED’s Strategic Innovation Fund program. Wave 2 has also expanded its priority value chains to include advance manufacturing and information and communication technologies in addition to the electric vehicles value chain included in Wave 1.

HVI-06.3
Critical minerals target, Strategic Innovation Fund (SIF)
Part of the Canadian Critical Minerals Strategy

Increase the supply of responsibly sourced critical minerals and support the development of domestic and global value chains for the green and digital economy. $1.5B in funding is projected for critical mineral projects from 2023-24 to 2029-30.
Lead department: ISED

Ongoing
Launch Date: Summer 2023 (Active)
July 14, 2023: A Critical Minerals Investment Framework to guide project assessment and prioritization was developed and guidance was released by ISED.
July 2023: two supported projects ($249M)

  • $27M to E3 Lithium for a lithium extraction project from brines.
  • $222M to Rio Tinto Fer et Titane (RTFT) to increase production of critical minerals as well as the decarbonization of operations (up to 70% reduction of GHG emissions of RTFT’s titanium dioxide, steel and metal powders business).

HVI-06.4
Critical mineral concierge service
Part of the Canadian Critical Minerals Strategy

$21.5M to support the Critical Minerals Centre of Excellence (CMCE) to develop federal policies and programs on critical minerals and to assist project developers in navigating regulatory processes and federal support measures.
Lead department: NRCan

Ongoing
Launch Date: December 2022 (Active)
Winter 2023: Support for critical mineral developers: Since December, the CMCE received over 300 requests from industry partners for information or assistance navigating federal support measures for mineral projects. Over 30 proposals were referred to other federal partners for potential funding opportunities.
The CMCE has developed a number of tools and mechanisms to facilitate funding opportunities with other federal partners, including the use of software tools as well as creating internal committees to explore co-investment.

HVI-06.5
Global partnerships
Part of the Canadian Critical Minerals Strategy

Support Canada’s international commitments and engagements in critical minerals related to geoscience, R&D, trade and investment attraction, and transparency and sustainability initiatives.
Lead department: NRCan

Ongoing
Launch Date: Spring 2023 (Active)
March 2023: Launch of Canada–UK Critical Minerals Supply Chain Dialogue at Prospectors and Developers Association of Canada (PDAC)
May 2022: UK innovation mission to Canada.
June 2022: Canada’s High Commission in the UK organized a research and innovation mission to the UK, which included discussions on critical minerals.
May 2023: MOU signed with South Korea to enhance bilateral collaboration on critical minerals supply chains.
Summer 2023: Under an MOU between the Geological Survey of Canada (GSC) and the Korea Institute of Geoscience and Mineral Resources (KIGAM), four new geoscience projects in critical minerals are under way (as of July 20, 2023).

HVI-06.6
Northern regulatory affairs
Part of the Canadian Critical Minerals Strategy

$40M to advance Canada’s northern and territorial critical minerals agenda by supporting regulatory dialogue, regional studies, land-use planning, impact assessments and Indigenous consultation.
The program aims to reduce uncertainty and risk associated with incomplete or unsupported elements of northern regulatory systems, increase confidence and efficiencies, and further support meaningful Indigenous participation in northern resource management processes.
Lead department: CIRNAC

Ongoing
Launch Date: Spring 2023 (Active)
Regulatory Dialogues ($3.78M over 7 years): Establish and maintain Regulatory Dialogue forums in the YT, NT, and NU.
Regional Studies ($14.60M over 7 years): Conduct regional studies (or regional cumulative effects studies) in high critical mineral potential regions in the territories.
Land Use Planning ($10.11M over 7 years): Provide financial support for currently unfunded Indigenous governments and organizations to participate in land-use-planning processes.
Impact Assessment and Crown Consultation ($11.52M over 7 years): Provide financial support to Indigenous governments and organizations to ensure comprehensive and meaningful participation in all phases of impact assessment processes; conduct a review (diagnostic and options paper) to improve Crown consultation in northern resource management.

HVI-06.7
Critical Mineral Infrastructure Fund (CMIF)
Part of the Canadian Critical Minerals Strategy

The CMIF will support clean energy and transportation infrastructure projects necessary to develop and expand Canada’s critical mineral production.
Lead department: NRCan

Initiated
Announced in March 2023, the CMIF will provide $1.5B via Budget 2022 (over 7 years starting in 2023-24) to support clean energy and transportation infrastructure projects necessary to develop and expand Canada’s critical mineral production.
The call for proposals for the fund was launched on November 20, 2023.

HVI-07
Green Industrial Facilities and Manufacturing Program (GIFMP)
Referred to as Industrial Energy Management System in the 2030 ERP

The GIFMP helps industrial facilities realize energy savings and related cost savings, which contributes to improving competitiveness and sustainability. These savings will support Canada in its efforts to reduce energy consumption and associated GHG emissions.
Lead department: NRCan

Ongoing
The GIFMP launched in February 2023.
An initial Call for Proposals for the Energy Efficiency Solutions Track (Track 1) targeting provinces, territories, utilities, and other organizations closed in March 2023.
A Call for Proposals for the Industrial Facility Track (Track 2) closed in July 2023.

HVI-08
Buy Clean Strategy

The Government has committed to introducing a new Buy Clean Strategy to support and prioritize the use of made‑in‑Canada low‑carbon products in Canadian infrastructure projects.
Lead departments: NRCan, INFC, PSPC

Under Development
Through 2022 and 2023, NRCan, INFC, and PSPC have been working with federal partners, including TBS’ Centre for Greening Government, ISED, NRC, and ECCC, to develop a Buy Clean Strategy. In late summer 2022, departments held a series of engagement sessions with stakeholders.

Oil and gas
Measure Description Status and implementation update

OIG-01
Emissions Reduction Fund (ERF)*

Funding to support capital investments, clean technology deployment, and RD&D to reduce methane and other GHG emissions reductions from onshore and offshore oil and gas operations.
The fund has three streams:

  • Onshore Deployment;
  • Offshore Deployment; and,
  • Offshore RD&D.

Lead department: NRCan

 

Program funding ended in fiscal year 2022‑23.
All projects will be complete by March 31, 2024.
See below for stream-specific updates.

OIG-01.1
Emissions Reduction Fund: Onshore Deployment

The Onshore Deployment Program was a $675M investment supporting the deployment of clean technologies and infrastructure to reduce or eliminate methane emissions from upstream and midstream oil and gas operations.
Lead department: NRCan

Ongoing
The program committed $254M by program close in March 2023. As of fall 2023, $180M has been dispersed to proponents. Projects will be completed by March 31, 2024.

OIG-01.2
Emissions Reduction Fund: Offshore Deployment

The Offshore Deployment Program was a $42M investment supporting capital projects designed to either reduce offshore GHGs or improve the environmental performance of offshore oil spill monitoring, detection and response activities.
Lead department: NRCan

Concluded
All funding under the Offshore Deployment Program was allocated as of March 2023.

OIG-01.3
Emissions Reduction Fund: Offshore RD&D Program

The Offshore RD&D Program was a $33M investment supporting RD&D projects that advance solutions to decarbonize NL’s offshore industry. It was delivered by NRCan in collaboration with Energy Research & Innovation Newfoundland & Labrador.
Lead department: NRCan

Concluded
The Offshore RD&D Program funded 18 applied RD&D projects that will help to reduce emissions in the offshore oil and gas sector. Projects were successfully completed by March 2023.

OIG-02
Oil and gas methane regulations

Current federal regulations require the oil and gas sector to reduce methane emissions by 40–45% below 2012 levels by 2025. The Government has committed to develop measures to further reduce methane emissions from the oil and gas sector by at least 75% of 2012 levels by 2030.
Lead department: ECCC

Ongoing
Proposed regulatory framework released November 2022. A September 2023 update to the framework outlined the proposed path forward to exceed the 75% target.
Canada recently released draft methane regulations for consultation that aim to reduce methane emissions from the oil and gas sector by at least 75% below 2012 levels by 2030.The final regulations are targeted for publication in 2024.

OIG-03
Oil and gas emissions cap

Cap oil and gas sector emissions and ensure that the sector makes an ambitious and achievable contribution to meeting the country’s 2030 climate goals. Reduce emissions at a pace and scale needed to align with the achievement of net-zero emissions by 2050, with five-year targets to stay on track.
Lead departments: ECCC, NRCan

Initiated
Since the discussion paper on options to cap and reduce GHG emissions from the oil and gas sector was published in July 2022, ECCC and NRCan have engaged provinces and stakeholders and have received extensive information to guide the design of the cap. The Government received over 150 written submissions from stakeholders and over 25,000 submissions from the general public as part of email campaigns. Close to 100 multilateral and bilateral meetings and information webinars were held. Input received included submissions from provinces and territories, Indigenous partners, industry, environmental non-governmental organizations, academics, and members of the public. The Government of Canada is publishing a regulatory framework for a cap on emissions from the production of oil and gas in fall 2023.

OIG-04
Phasing out inefficient fossil fuel subsidies

In 2009, G20 leaders committed to “rationalize and phase out over the medium-term inefficient fossil fuel subsidies.” At the North American Leaders’ Summit on June 29, 2016, Canada agreed to implement this commitment by 2025.
As directed in the mandate letters for the Ministers of Environment and Climate Change and Finance, Canada subsequently committed to an accelerated timeline to eliminate inefficient fossil fuel subsidies by 2023, and to develop a plan to phase out public financing of the fossil fuel sector, including by federal Crown corporations.
Lead departments: ECCC, FIN, NRCan

Adopted
On July 24, 2023, the Government of Canada released the Inefficient Fossil Fuel Subsidies Government of Canada – Self‑Review Assessment Framework and the Inefficient Fossil Fuel Subsidies Guidelines. The Assessment Framework is the tool that determines which tax and non-tax measures constitute an inefficient fossil fuel subsidy. Fossil fuel subsidies are considered inefficient unless they meet one or more of six specific criteria.
The Guidelines, which have been in effect since their release, direct federal departments and agencies to align all future government supports with the Assessment Framework. The Guidelines can be updated at any point to better reflect new policy developments and enable increased stringency, and may be formally reviewed periodically.
As part of its work on inefficient fossil fuel subsidies, FIN, with the support of ECCC, will develop a self-review report, which will form the basis upon which an international expert review panel will assess Canada (i.e., the peer review process). This report will be made public once the peer review is finalized.
Canada is also committed to develop a plan to phase out public financing of the fossil fuel sector. The Government’s work will identify current public financing by 2024 and announce by fall 2024 the implementation plan to phase out public financing of the fossil fuel sector.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Transportation
Measure Description Status and implementation update

TRN-01
Light‑Duty On‑Road Vehicle Emission Regulations

Align pre-2026 regulations to more stringent U.S. standards.
Amendments to ensure post-2025 regulations are aligned with U.S. regulations.
Lead department: ECCC

Ongoing
Proposed regulations for pre-2026 model years were published in the Canada Gazette, Part I, on December 31, 2022, for public comment.
Ongoing stakeholder consultations are being conducted.
Pre-2026 final amendments are expected to be published by the end of 2023.
Post-2026 draft regulations are expected to be published in 2024, following the U.S. Final Rule publication.

TRN-02
Regulated light‑duty zero‑emission vehicle (ZEV) sales targets

Requirements for at least 20% of all new light-duty vehicles offered for sale be ZEVs by 2026, at least 60% by 2030, and 100% by 2035.
Lead department: ECCC

Ongoing
Proposed regulations were published in the Canada Gazette, Part I, on December 31, 2022, for public comment.
Ongoing stakeholder consultations are being conducted.
Final regulations are expected to be published by the end of 2023.

TRN-03
Incentives for Zero-Emission Vehicles (iZEV) Program

The iZEV Program helps make new light-duty ZEVs more affordable by offering point-of-sale incentives to individuals and businesses, supporting adoption of ZEVs across Canada.
Lead department: TC

Ongoing
The iZEV Program has incentivized the purchase of over 300,000 ZEVs since its launch in May 2019.

TRN-04
Heavy-duty on‑road vehicle emission regulations

Amendments to ensure post-2025 regulations are aligned with the most stringent standards in North America.
Lead department: ECCC

Under Development
Proposed amendments to increase stringency of air-pollutant and GHG-emission standards for heavy-duty vehicles in alignment with the U.S. EPA are targeted for publication in the Canada Gazette, Part I after the finalization of zero-emission vehicle requirements (see TRN‑05.1).

TRN-05
Strategy to reduce emissions from medium- and heavy-duty vehicles (MHDVs)

An integrated strategy that aims for 35% of total MHDV sales to be ZEVs by 2030.
Lead department: TC

Ongoing
Strategy has been launched, including new programs and new funding, such as:

More details on each of these programs can be found below.
Lastly, the Government of Canada is engaging with many stakeholders, including industry, non-governmental organizations, and provinces and territories, to share best practices, exchange information, and identify solutions for cleaner freight transportation, including through various working groups and via the newly launched Zero-emission Vehicles Council.

TRN-05.1
Medium- and heavy-duty zero‑emission vehicles (ZEV) sales regulations
Part of the Strategy to reduce emissions from medium- and heavy-duty vehicles (MHDVs)

Requirements for 100% MHDV sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that would vary for different vehicle categories based on feasibility, and explore interim targets for the mid-2020s.
Lead department: ECCC

Under development
Proposed regulatory framework for establishing zero-emission requirements for medium- and heavy-duty vehicles targeted for fall 2023.
Publication in Canada Gazette, Part I is targeted for 2024. The final regulations are targeted for publication in 2025.

TRN-05.2
Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program
Part of the Strategy to reduce emissions from medium- and heavy-duty vehicles (MHDVs)

The iMHZEV Program helps make medium- and heavy-duty zero-emission vehicles more affordable by offering point-of-sale incentives for Canadian organizations and businesses who buy or lease an eligible MHZEV. There are many different makes and models of eligible zero-emission vehicles for purchase or lease with incentives of up to $200,000 per vehicle.
Lead department: TC

Ongoing
As of October 31, 2023, iMHZEV has received 1,276 incentive requests (1,276 medium- and heavy-duty zero-emissions vehicles) for a value of $34.85M.

TRN-05.3
Zero Emission Trucking Program (ZETP)
Part of the Strategy to reduce emissions from medium- and heavy-duty vehicles (MHDVs)
Referred to as Hydrogen Trucking Demonstration Projects in the 2030 ERP

Address barriers to zero-emission trucking commercialization through deployments, supporting provincial and territorial readiness, and directed research.
Lead department: TC

Ongoing
Issued a call for proposals to support readiness for medium- and heavy-duty zero-emission vehicles across the provinces and territories. Over $1.3M in contribution funding was approved to gather data on zero-emission truck performance, development of training materials, and provincial planning to support the safe deployment of zero-emission trucking technologies.
Issued a $1.5M Trucking Testbed contract to deploy heavy-duty zero-emission trucks into Canadian commercial freight haul operations to demonstrate the technology in Canadian conditions, gather data, and increase hands on experience with the technology.
Funded research on Battery Technologies for Electric Long-Haul Trucking, emerging aerodynamic trailer technologies, and Canadian trucking route datasets.
Partnered with Industry to host three Zero-Emission Trucking Workshops, attended by nearly 300 participants from the federal, provincial and territorial governments, industry, and academia, to share information and guide future program activities.

TRN-06
Zero Emission Vehicle Infrastructure Program (ZEVIP)

The ZEVIP supports building electric vehicle (EV) chargers and hydrogen refuelling stations across Canada.
Lead department: NRCan

Ongoing
Budget 2022 recapitalized the ZEVIP with an additional $400M, extending the program to 2027. Budget 2022 also announced that the CIB will invest $500M in large-scale charging and refueling infrastructure.
As of June 2023, 42,592 electric chargers and 16 hydrogen refuelling stations have been selected for funding under ZEVIP. Of those selected for funding, 6,697 of the EV chargers are installed and open.
Launched the continuous intake pilot for Indigenous streams of ZEVIP and Awareness programs on April 20, 2023.
New Request for Proposals to be launched in spring 2024.
CIB announced its first project on April 26, 2023, with FLO to build 2,000 public EV fast‑chargers at 400 locations across Canada.

TRN-07
Green Freight Assessment Program (GFAP)

The GFAP was launched in 2018 to help companies make data-driven investment decisions to reduce their emissions and fuel costs.
Lead department: NRCan

Concluded
Between 2018 and 2022, the GFAP invested $3.4M to address financial and awareness barriers faced by freight companies. The program was sunset in March 2022. The following were some of its key results:

  • Number of assessment projects: 34
  • Number of trucks assessed: 5,874
  • Number of retrofit projects: 11
  • Number of fuel-switching projects: 7
  • Number of retrofits completed: 2,826
  • Drivers trained: 578
  • Number of NG trucks funded: 20

The program has been recapitalized to create the Green Freight Program under the integrated strategy to reduce emissions from medium- and heavy-duty vehicles (see measure TRN-08).

TRN-08
Green Freight Program (GFP)

The GFP was launched to help fleets reduce their fuel consumption and GHG emissions from on-road freight through fleet energy assessments, fleet retrofits, engine repowers, best-practice implementation and the purchase of low-carbon vehicles.
The program provides funding through two streams: Stream 1 offers grant funding to Canadian fleet operators to undertake third-party energy assessments, and to implement retrofits that would result in lower GHG emissions. Stream 2 provides contribution funding for projects that repower existing medium- and heavy-duty fleets (e.g., to fully or partially switch the fuel used by a truck to a lower carbon alternative) and helps offset the incremental cost of the purchase of a new truck that is fueled by lower carbon alternatives (e.g., biodiesel, renewable natural gas).
Lead department: NRCan

Ongoing
Stream 1 was launched December 12, 2022, and is accepting applications through open intake until March 31, 2027. For Fleet Energy Assessments, the program will provide up to 50% per company, to a maximum of $40,000. For Truck/Trailer Equipment Retrofits, the program has established a list of eligible technologies and will provide up to 50% per device. The maximum amount payable for eligible activities under Stream 1 is $250,000 per applicant.
Stream 2 launched on August 18, 2023, and will be accepting applications for funding until November 16, 2023. The program will contribute up to 50% of the total project costs up to a maximum of $5M per project.
Another call for applications is targeted for winter 2024.

TRN-09
Clean Transportation RD&D Program*

Advances multi-modal research, development and testing of clean technology solutions for Canada’s transportation system.
Lead department: TC

See below for stream-specific updates.

TRN-09.1
Clean Transportation RD&D Program – Marine

Advances research, development and testing of clean technology solutions for Canada’s marine transportation system.
Lead department: TC

Ongoing
Advancing projects, awarded under the third call for proposals, demonstrating battery-electric and low carbon propulsion technologies for Canada’s marine sector such as:

  • Demonstration of Low-Carbon Hydrogen-Derived Renewable Diesel (HDRD) Fuel for Commercial Tugboat Fleets Operating (Seaspan);
  • Design and deployment of a Battery Electric Tugboat for Canada (Robert Allan);
  • Cruise Vessel Fuel Cell Marine Safety Assessment (Capilano Marine Design);
  • Deployment of biodiesel B100 on laker vessel (Canada Steamship Lines); and,
  • Development and testing of a Functional Solar Cell for Fishing vessel (Rayleigh Solar tech).

TRN-09.2
Clean Transportation RD&D Program – Rail

Advances research, development and testing of clean technology solutions for Canada’s rail transportation system.
Lead department: TC

Ongoing
Advancing projects, awarded under the third call for proposals, demonstrating battery-electric and low carbon propulsion technologies for Canada’s rail sector such as:

  • Developing technical specifications/ standards for battery electric and hydrogen fuel cell rail propulsion systems (CSA Group);
  • Conducting a quantitative risk assessment on the use of hydrogen in rail operations (Canadian Nuclear Laboratories);
  • Testing biodiesel (B100) to validate performance and emissions profile (Southern Railway of BC);
  • Conducting a techno-economic analysis of fuel cell and battery retrofits for rail propulsion systems (University of British Columbia); and,
  • Conducting a feasibility study on replacing diesel-powered auxiliary demands with hydrogen fuel cell power (Ballard Power Systems).

TRN-09.3
Clean Transportation RD&D Program – Aviation

Advances research, development and testing of clean technology solutions for Canada’s aviation transportation system.
Lead department: TC

Ongoing
Advancing projects, awarded under the third call for proposals, demonstrating novel technologies and supply chain operating practices for Canada’s aviation sector such as:

  • Demonstration of a new real-time calibration technology to improve the measurement standard for aviation emission regulations (University of Alberta);
  • Integrating regionally produced SAF into the new Fraser River Marine Jet Fuel Facility to supply Vancouver’s YVR International Airport (Waterfall Advisors Group Ltd.); and,
  • Development and evaluation of next-generation aircraft technology concepts for reducing CO2 emissions from aviation (University of Toronto Institute for Aerospace Studies).

TRN-10
Decarbonization of the rail sector – Memorandum of Understanding (MOU)

MOU with the Railway Association of Canada to reduce locomotive emissions.
Lead department: TC

Adopted
TC and the Railway Association of Canada renewed the MOU in fall 2023, to establish a framework to collaborate to reduce rail sector emissions. The MOU includes ambitious yet attainable goals for reducing Class 1 railway emissions by 2030, increasing clean fuel usage in the existing locomotive fleet, and accelerating the retrofitting and upgrading of locomotives to advance net-zero technology.

TRN-11
Permanent public transit funding*

Support the expansion of large urban transit systems, the electrification of public transit fleets, active transportation infrastructure and transit solutions for rural communities while establishing the federal government’s permanent commitment to transit funding.
Lead department: INFC

Through the Permanent Public Transit Program (PPTP), announced in February 2021, the Government of Canada is providing significant funding under the Zero Emission Transit Fund (ZETF), the Active Transportation Fund (ATF) and the Rural Transit Solutions Fund (RTSF). These programs, which represent well over $2B in funding are active now with ongoing intakes and approvals that will see hundreds of projects built in the near-term across the country. The second phase of permanent funding begins in 2026-27 and will see tens of billions in funding to support public transit and active transportation infrastructure in communities across the country.
This transit funding builds on the $20.1B in transit funding provided through the Investing in Canada Infrastructure Programs, the $3.4B provided through the Public Transit Infrastructure Fund, transit’s eligibility under the $2.4B annual Canada Community-Building Fund, and financing available through the CIB. These investments support a cleaner environment, healthy lifestyles, and improved mobility of Canadians by investing in public transit solutions in communities and building new and expanded networks of pathways, bike lanes, trails, and pedestrian bridges. Investments in public transit are part of the development of complete, inclusive, and transit-oriented communities.
See below for stream-specific updates.

TRN-11.1
Rural Transit Solutions Fund (RTSF)
Part of permanent public transit funding

The RTSF addresses unique mobility challenges in rural, remote, and Indigenous communities by supporting planning and deployment of locally tailored mobility solutions, including support to assess the viability of new approaches to mobility.
Lead department: INFC

Ongoing
As of November 2023, INFC has announced funding for more than a dozen projects under the purview of the RTSF, committing a total of more than $5M.

TRN-11.2
Zero Emission Transit Fund (ZETF)
Part of permanent public transit funding

The ZETF aims to advance the Government of Canada’s commitment to help procure zero emission public transit and school buses across Canada.
Lead department: INFC

Ongoing
As of November 2023, 15 projects have been announced under the ZETF, representing a cumulative contribution of $1.3B.

TRN-11.3
Active Transportation Fund (ATF)
Part of permanent public transit funding

The ATF aims to expand and enhance active transportation networks in communities of all types and sizes, while also supporting the National Active Transportation Strategy.
Lead department: INFC

Ongoing
As of November 2023, the ATF has approved and announced more than 180 projects with a total program contribution of more than $100M.

TRN-12
Collaboration at the International Maritime Organization (IMO)

Address emissions from maritime shipping by developing new international standards and recommended practices for marine vessels, and development and implementation of new Canadian regulations.
Lead department: TC

Under Development
The IMO’s short-term measures to improve the carbon intensity of shipping entered into force on January 1, 2023.
Work continues on developing an approach to reduce GHGs from the domestic trading fleet based on the IMO’s short-term measures.
Canada participated in and actively supported negotiations at the IMO, during which a new 2023 GHG Strategy was approved, with enhanced GHG reduction targets (net-zero GHG emissions by or around 2050, with indicative checkpoints in 2030 and 2040), as well as new guidelines for marine-fuel-life-cycle assessment. It also agreed to develop, by 2025, mid-term measures to deliver on the new targets, including a fuel-GHG-intensity standard and a GHG-pollution-pricing- mechanism.

TRN-13
Collaboration with aviation sector through Canada’s Aviation Climate Action Plan
Referred to as Canada’s Action Plan to Reduce GHG Emissions from Aviation in the 2030 ERP

This government-industry initiative identifies key ongoing and planned initiatives to reduce GHGs on a path to net-zero emissions by 2050. The plan also includes an ambitious aspirational sustainable aviation fuels (SAF) use target of 10% by 2030.
Lead department: TC

Ongoing
Canada’s Aviation Climate Action Plan was published in September 2022. (PDF)
TC is working with other government departments and the private sector to implement the new 2022–2030 Aviation Climate Action Plan.
Through a new Sustainable Aviation Task Force, TC has brought together federal departments, provincial and territorial governments, the private sector, academia, and non-governmental organizations to oversee the implementation of the plan and produce an update by 2025. This will include the identification of interim GHG reduction targets and the development of a SAF Blueprint, which will identify how to create a SAF market in Canada capable of meeting the 2030 target. The updated plan will also focus on driving down emissions from the entire aviation ecosystem, including airport operations.

TRN-14
Supporting Decarbonization at the International Civil Aviation Organization (ICAO)/Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

Development and maintenance of international standards and recommended practices to reduce emissions, and domestic implementation. The CORSIA is a way to manage emissions from the international aviation industry and is one way the ICAO is working toward net-zero emissions.
Lead department: TC

Adopted
At the 41st Assembly (fall 2022), ICAO member states (including Canada) agreed to a long-term aspirational goal (LTAG) for international aviation of net zero by 2050.
Canada continues to lead technical work with ICAO to support emissions reductions from international aviation, including through maintenance of the CORSIA Standards and Recommended Practices.
Canada will further advance decarbonization of international aviation through ongoing discussions at ICAO on the development of a Global Framework for Aviation Cleaner Energies.

TRN-15
Off‑road zero‑emissions equipment regulations

Set zero-emissions standards for air pollutants from small off-road engines such as lawnmowers, trimmers, and generator sets.
Lead department: ECCC

Initiated
Exploring options for zero-emission off-road equipment.

TRN-16
Green Shipping Corridor Program (GSCP)

The GSCP aims to advance the Government of Canada’s commitment to facilitate the establishment of green shipping corridors in support of accelerating marine sector decarbonization.
Lead department: TC

Ongoing
Budget 2023 announced $165.4M for TC starting in 2023-24 to establish the GSCP. TC engaged with marine stakeholders over summer 2023 and launched the program on December 1, 2023.
The program consists of:

  • The Clean Ports stream, which will primarily provide funding to support the adoption of clean technology and infrastructure at ports and terminals; and
  • The Clean Vessel Demonstration stream, which will primarily provide funding to study, test and pilot clean fuel propulsion systems for shipping vessels.

A call for proposals opened in December 2023.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Agriculture
Measure Description Status and implementation update

AGR-01
Agricultural Climate Solutions (ACS) program*
Part of the Natural Climate Solutions Fund

ACS is a multi-stream program that will help to develop and implement farming practices to tackle climate change. By developing, evaluating, adopting, and surveying agricultural technologies and practices, ACS is focused on sequestering carbon, reducing GHG emissions and delivering environmental benefits.
Lead department: AAFC

See below for stream-specific updates.

AGR-01.1
Agricultural Climate Solutions: Living Labs Stream
Part of the Natural Climate Solutions Fund

Provides funding for the co-development, testing, adoption, dissemination, and monitoring of technologies and practices, including beneficial management practices (BMPs), that sequester carbon and/or mitigate GHG emissions.
Lead department: AAFC

Ongoing
Since inception, the program has approved 14 projects spanning all provinces and establishing a Canada-wide network of living labs to co-develop, test and monitor BMPs and technologies in a real-life context on Canadian farms. As of the end of July 2023, the program has committed a total of $55.4M in funding, with $10.83M in funds distributed.
As of March 31, 2023, living labs began work to develop or improve 79 different BMPs: 45 BMPs are intended to increase carbon sequestration and 34 BMPs are intended to reduce GHG emissions. Over 300 producers are participating in the Living Labs projects. The Living Labs have held over 80 knowledge transfer events to increase producer participation and adoption of BMPs that are developed or improved under the projects, through field demonstrations, outreach and peer-to-peer learning events. About 9,000 producer attendees participated in these events.

AGR-01.2
Agricultural Climate Solutions: On‑Farm Climate Action Fund
Part of the Natural Climate Solutions Fund

The On‑Farm Climate Action Fund awards funding to recipient organizations nationwide to help producers adopt and implement immediate on-farm beneficial management practices (BMPs) with the greatest potential to store carbon and reduce GHG emissions.
Lead department: AAFC

Ongoing
As of the end of July 2023, the program has approved 13 projects, committing a total of $194.8M. $124.8M from these funds have been distributed.
As of March 31, 2023, recipients have reported supporting over 4,300 producers to implement BMPs, resulting in approximately 1.3M ha of land under improved management practices including soil testing, agronomic services and/or rotational grazing plans. Recipients have also reported supporting the training over 1,000 professionals such as agronomists and held many peer-to-peer learning and on-farm demonstration events, with over 14,000 producer attendees.
The program received funding through Budget 2022 to top up successful existing projects and extend the program to 2028. Budget 2023 proposed an additional $34.1M to further support producers in Eastern Canada (ON, QC, NB, NS, PE, and NL) to adopt nitrogen management BMPs to optimize fertilizer use and contribute to the achievement of Canada’s 2030 economy-wide and fertilizer emissions targets.

AGR-02
Agricultural Clean Technology Program

Provides funding for research, innovation and adoption of clean technology that will support a low carbon economy and drive sustainable growth in the agriculture sector.
Lead department: AAFC

Ongoing
The program supports the adoption and development of clean technologies that reduce GHG emissions. As of the end of July 2023, the program has approved 366 projects and committed a total of $140.1M. $79.2M from these funds have been distributed as of August 2023.
The program is supporting the work of the recently announced $12M Agricultural Methane Reduction Challenge to advance innovation solutions that contribute to the reduction of enteric methane emissions from the cattle sector.

AGR-02.1
Agricultural Clean Technology Program: Adoption Stream

The Adoption Stream supports the purchase and installation of commercially available clean technology or equipment upgrades that will reduce GHG emissions.
Lead department: AAFC

Ongoing
As of March 31, 2023, a total of 154 agricultural clean technologies have been adopted. The 109 adoption projects completed to date have reduced GHG emissions by an estimated 14,147 t CO2 eq per year and reduced energy use, including electricity by 1,969 MWh, diesel by 1.04M litres and propane by 1.5M litres.

AGR-02.2
Agricultural Clean Technology Program: Research and Innovation Stream

The Research and Innovation Stream supports pre-market innovation, including research, development, demonstration and commercialization activities, to develop transformative clean technologies and enable the expansion of current technologies in three priority areas: Green energy and energy efficiency; Precision agriculture; and Bioeconomy.
Lead department: AAFC

Ongoing
As of March 31, 2023, a cumulative total of 44 agricultural clean technologies have been developed, assessed, or demonstrated. The stream has also resulted in 76 knowledge transfer events and obtained intellectual property protection for 17 technologies. The program has received an additional $330M in funds as proposed in the 2030 ERP and Budget 2022.

AGR-03a
Canadian Agricultural Partnership (CAP)

Funding provided to strengthen the agriculture, agri-food and agri‑based products sector, helping to promote continued innovation, growth and prosperity.
Launched in 2018, CAP was a five-year $3B FPT investment which included $1B in federal-only programing and $2B for programming that was cost-shared 60:40 by the federal, provincial, and territorial governments to support region-specific agriculture programs and services that focused on six priority areas tailored to meet regional needs.
Lead department: AAFC

Concluded
Under the Partnership, cost-shared on-farm environmental stewardship programs were delivered by provinces and territories to support Environmental Farm Plans and adoption of beneficial management practices (BMPs) which had multiple environmental benefits, including soil and water conservation, reductions in emissions and emission intensity, and climate resilience.
For the first three years of the framework:

  • 19,687 environmental risk assessments (e.g., Environmental Farm Plans or equivalent) were developed or updated by the sector; and,
  • 18,076 on-farm and 46 agri-food processor BMPs projects were completed.

In the first three years, $272,633,092 was funded by the federal, provincial and territorial governments under the Environmental Sustainability and Climate Change priority area. The CAP ended March 31, 2023.

AGR-03b
Sustainable Canadian Agricultural Partnership (Sustainable CAP)

Funding provided to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri-food and agri-based products sector.
Launched in April 2023, Sustainable CAP is a five-year $3.5B investment that includes $1B for federal programming and $2.5B for programming that is cost-shared 60:40 by the federal, provincial and territorial governments to focus on five priority areas, including the Climate Change and Environment priority area which specifically addresses climate change and advancing environmental sustainability. This includes the Resilient Agriculture Landscapes Program (RALP).
Lead department: AAFC

Ongoing
The Sustainable CAP was launched on April 1, 2023. Under the Sustainable CAP, parties agreed to a cumulative emissions reduction target of 3–5 Mt by supporting the adoption of practices and technologies that will support climate change adaptation and mitigation, including reducing GHG emissions and improving carbon sequestration.
The provinces and territories have started to receive, assess, and approve applications from recipients. The performance results along with other results information, will be reported for year 1, covering the period from April 1, 2023, to March 31, 2024, will be available in the fall of 2024.
To support the new climate change and environment priority area, the AgriScience Program made changes to program parameters, requiring a 30% mandatory minimum investment in activities that focus primarily on this priority area with a 15% carve out for GHG reduction or carbon sequestration.

AGR-03.1
Resilient Agricultural Landscapes Program (RALP)
Part of the Sustainable Canadian Agricultural Partnership

The RALP is an FPT cost-shared program that supports on-farm adoption using an ecological goods and services program approach and has been designed and delivered by provinces and territories in collaboration with AAFC in order to reflect local conditions and regional needs. The RALP supports producers to conserve and enhance the resiliency of agricultural landscapes by accelerating the adoption of on-farm land-use and management practices such as restoring and maintaining grasslands, wetlands, agroforestry, riparian areas and other regionally relevant practices.
Lead department: AAFC

Under Development
The RALP was launched on April 1, 2023, as a new program under the Sustainable Canadian Agricultural Partnership. Most jurisdictions, including YT, BC, AB, SK, MB, QC, NS, NL, and PE have launched their RALP and have started to receive, assess, and approve applications from proponents. The remaining provinces and territories will be aiming to launch their RALP within the 2023-24 fiscal year.
Year 1 performance results covering the period from April 1, 2023, to March 31, 2024, will be available in the fall of 2024, with subsequent annual results to follow.

AGR-04
Fertilizer emission reduction target

Under Canada’s strengthened climate plan, the Government of Canada committed to setting a national fertilizer-emission-reduction target of 30% below 2020 levels by 2030 and to work with fertilizer manufacturers, farmers, provinces, and territories to develop an approach to meet it.
Lead department: AAFC

Initiated
Official consultations through Simplesurvey for the Fertilizer Target were held from April 2022 to August 31, 2022. Technical workshops were then held in fall 2022. The Government of Canada received over two thousand responses during the consultation period, and published a What We Heard report summarizing the feedback received throughout the engagement process on March 22, 2023. A Fertilizer Working Group was launched in March 2023, as part of the Sustainable Agriculture Strategy Advisory Committee, with a term running until May 2024, with a possibility of extension. This Working Group is comprised of representatives from government, academia, and the sector who will provide expert advice on the development of the federal government’s strategy to reduce emissions from fertilizers by 30% below 2020 levels by 2030.

AGR-05
Sustainable agriculture and agri-food innovation for a net-zero economy
Referred to as Transformative science for a sustainable sector in the 2030 ERP

Investment in transformative science for a sustainable sector in an uncertain climate and net-zero economy for 2050. Funding will support fundamental and applied research supporting a path to net-zero emissions, knowledge transfer, and developing metrics.
Lead departments: NSERC, SSHRC

Ongoing
The Sustainable Agriculture Research initiative was launched on March 20, 2023. The deadline for applications was November 8, 2023.
105 applications for preparatory funding to facilitate partnerships and build multidisciplinary and multi-sectoral collaborations were received by the granting agencies which announced 53 awards totalling approximately $1.75M in June 2023.
The SSHRC Network on Sustainable Agriculture in a Net-Zero Economy funding opportunity was launched on May 10, 2023, and the application deadline was October 20, 2023. Network proposals received include between 33 and 81 co-applicants, partners, and collaborators.

AGR-06
Sustainable Agriculture Strategy
Referred to as the Green Agricultural Plan for Canada in the 2030 ERP

Establish a long-term vision and approach to agri-environmental issues in order to advance the sustainability, competitiveness, and vitality of the sector.
Lead department: AAFC

Under Development
Broad stakeholder engagement ran from December 12, 2022 to March 31, 2023, including the release of a discussion paper.
Sustainable Agriculture Strategy Advisory Committee established December 2022.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Waste
Measure Description Status and implementation update

WST-01
Food Waste Reduction Challenge

A five-year challenge to incentivize developing and deploying innovative new solutions to reduce food waste across the supply chain.
Lead department: AAFC

Ongoing
Innovative business models stream: 10 finalists submitted applications for the grand prize in May 2023. These applications are under review, with announcements of two grand prize winners expected in winter 2023‑24.
Innovative technologies stream: Six finalists are in the final stage. The deadline to submit applications for the grand prize was December 5, 2023. Announcements of 2 grand prize winners are expected in spring 2024.

WST-02
Zero plastic waste

Comprehensive approach towards Canada’s goal of zero plastic waste by 2030 that includes investing in research through Canada’s Plastics Science Agenda, innovation through Canadian Plastics Innovation Challenges, support to industry-led plastic waste reduction initiatives, community action to prevent, reduce, and remove plastic pollution, and the implementation of the Canada‑wide Action Plan on Zero Plastic Waste.
Lead department: ECCC

Ongoing
Seven federal organizations (ECCC, CIRNAC, DFO, HC, NRC, STC, and TC) received funding in Budget 2022 to work in five priority areas: expanding knowledge on plastics in the environment and the economy; developing and implementing management measures; supporting innovation and market transformation; preventing and reducing plastic pollution; and, reducing plastic waste from federal operations.
Work continues with provincial and territorial partners through the Canadian Council of Ministers of the Environment to implement the Canada-wide Action Plan on Zero Plastic Waste, including developing guidance for more consistent plastic product recycling programs. GHG emissions reductions are expected as some virgin resins are replaced by the recycled plastics from these programs in packaging (see WST-03 below).

WST-03
Minimum recycled content regulations for certain plastic manufactured items

Government of Canada’s commitment to develop new regulations that will set minimum recycled content requirements and establish rules for recyclability and compostability labelling for certain single-use plastic products and packaging.
Lead department: ECCC

Ongoing
Public consultations on a regulatory framework paper were held in April/May 2023.

WST-04
Single-use Plastics Prohibition Regulations (SUPPR)

The Government of Canada introduced SUPPR to phase out six categories of harmful single‑use plastic items that have readily available alternatives.
Lead department: ECCC

Adopted
Published in Canada Gazette, Part II on June 20, 2022.
Businesses across the country have stepped up and successfully transitioned to sustainable alternatives. This has already led to significant reductions in plastic pollution.

WST-05
International legally binding agreement on plastic pollution

The Government of Canada will continue to play a leadership role on plastic pollution internationally, particularly in the development of a new international legally binding agreement on plastic pollution.
Lead department: ECCC

Ongoing
In November/December 2022 and May/June 2023, Canada participated in the first two sessions of the Intergovernmental Negotiating Committee (INC) to develop an international legally binding instrument on plastic pollution with the goal of completing negotiation by the end of 2024. Canada is demonstrating leadership by providing $4M to UNEP in 2023 to support inclusive, equitable, and transparent negotiations and is an inaugural member of the High Ambition Coalition to End Plastic Pollution—a group of 60 governments striving for an ambitious instrument to end plastic pollution by 2040. Canada will also host the fourth negotiation session (INC-4) in Ottawa in April 2024.

WST-06
New regulations on reducing methane emissions from landfills

Government of Canada commitment in the strengthened climate plan to develop new federal regulations to increase number of landfills that take action to reduce methane emissions.
Lead department: ECCC

Initiated
Proposed regulatory framework was released in April 2023.
Draft regulations are under development and will be published in Canada Gazette, Part I for public comment by winter 2024.

Nature-based solutions
Measure Description Status and implementation update

NBS-01
Natural Climate Solutions Fund (NCSF)*

With an investment of $5.469B over 10 years, this horizontal initiative led by NRCan includes three separate, but related, programs:

  • ECCC’s Nature Smart Climate Solutions Fund;
  • NRCan’s 2 Billion Trees program; and,
  • AAFC’s Agricultural Climate Solutions Program.

The Nature Based Climate Solutions Advisory Committee provides advice on the delivery of the NCSF.
Lead departments: NRCan, ECCC, AAFC

 

For program-specific updates, please see the associated sub-measures:

  • Nature Smart Climate Solutions Fund (NBS‑01.1);
  • 2 Billion Trees program (NBS-01.2);
  • Nature Based Climate Solutions Advisory Committee (NBS-01.3); and,
  • Agricultural Climate Solutions Program (AGR‑01).

NBS-01.1
Nature Smart Climate Solutions Fund (NSCSF)
Part of the Natural Climate Solutions Fund

Provides funding for projects that conserve, restore, and enhance forests, wetlands, peatlands, and grasslands to store and capture carbon.
Lead department: ECCC

Ongoing
Additional funding of $780M invested, for a total of $1.4B in funds to deliver emissions reductions from nature-based climate solutions.
$191.9M has been allocated so far for projects that will conserve over 40,000 hectares of carbon-rich ecosystems such as grasslands, forests, wetlands, and peatlands. This funding will also support the restoration of over 20,000 hectares of wetlands, peatlands, and grasslands. In addition, several projects to support the implementation of natural-climate-solution policies and programs have advanced. Examples include: the review of wetland policies across Canada to determine opportunities to reduce wetland loss through policy changes; the integration of climate mitigation from land use and reclamation into a provincial mining regulatory system; and implementation of new types of municipal bylaws related to the preservation of carbon-rich habitats. Additional funding intakes are planned for 2023.

NBS-01.1a
Indigenous-led Natural Climate Solutions Initiative
Part of the Nature Smart Climate Solutions Fund and the Natural Climate Solutions Fund

Within the NSCSF, up to $76.9M has been set aside for Indigenous-led Natural Climate Solutions, to provide targeted support to Indigenous Nations, communities and organizations to engage as leaders in natural climate solutions. This funding further supports the Government of Canada’s commitment to Reconciliation.
Lead department: ECCC

Ongoing
In December 2022, $5.8M in funding was announced for 14 Indigenous-led initiatives, as part of the Indigenous-led Natural Climate Solutions initiative. This includes the initiative of the Cree Nation of Chisasibi in northern QC, where they are training Indigenous land users on best practices for nature-smart climate solutions to complete restoration and enhancement of coastal ecosystems.

NBS-01.2
2 Billion Trees Program (2BT)
Part of the Natural Climate Solutions Fund

Provides funding to support tree-planting efforts by provinces, territories, third party organizations and Indigenous partners to support the Government of Canada’ commitment to plant 2 billion trees across the country.
Lead department: NRCan

Ongoing
Since the 2 Billion Trees Program was launched in 2021, the Government of Canada has supported the planting of over 110 million trees, including 54 million trees planted through ECCC’s Low Carbon Economy Fund (LCEF).
In total, the 179 2BT-funded projects planted over 220 species at more than 2,900 sites. In addition, 76 communities have been directly supported and 1 in 5 projects funded by 2BT were Indigenous led.
In summer 2023, NRCan announced that it would deliver $500M in funding for Indigenous-led projects using a distinctions-based approach. The 2BT program has notionally allocated funding for First Nations, Inuit, Métis and unaffiliated or cross-distinctions groups.

NBS-01.3
Nature-Based Climate Solutions Advisory Committee

Provides expert advice to NRCan, ECCC, and AAFC on Natural Climate Solution Fund’s delivery of programs to ensure the achievement of maximum emissions reductions, while also delivering biodiversity and human well-being co-benefits.
Lead department: NRCan-led Secretariat

Ongoing
New co-chairs appointed in January 2023 and five members’ terms expired in June 2023.
Potential areas of work for the group include input into ECCC’s human wellbeing reporting framework, and opportunities to provide advice on the role of NRCan’s 2 Billion Trees program in the context of historical wildfires in 2023.

NBS-02
Indigenous Protected and Conserved Areas (IPCAs)

Lands, waters, and ice where Indigenous leadership is a defining attribute in the decisions and actions that protect and conserve an area. These projects help to improve connectivity, advance Indigenous-led conservation and reconciliation, and have co‑benefits for at-risk species and carbon storage.
Lead departments: ECCC, CIRNAC, PC, DFO

Ongoing
Inclusive reporting of protected and conserved areas in Canada continues to improve/increase. Over 60 Indigenous-led conservation projects have been funded since 2019, including 34 Indigenous-led Target 1 Challenge projects for the planning and establishment of protected and conserved areas across Canada, including IPCAs.

NBS-03
25 by 25 and 30 by 30

The Government of Canada is committed to conserving 25% of Canada’s lands and 25% of its oceans by 2025 and 30% of each by 2030.
Lead departments: ECCC, DFO

Ongoing
As of the end of 2022, 13.6% of Canada’s terrestrial and inland water area is conserved and 14.7% of Canada’s oceans are conserved.
Inclusive reporting of protected and conserved areas in Canada continues to improve/increase. For example, local government protected and conserved areas reported to Canadian Protected and Conserved Areas Database (CPCAD) increased by three areas in 2020, 29 in 2021 and 45 in 2022. Since the pan-Canadian definition for Other Effective area-based Conservation Measures (OECMs) was finalized in 2019, pan-Canadian reporting on OECM continues to increase. As of the end of 2022, Canada’s conservation network includes 210 terrestrial OECMs with 90,953 km2 of area (0.91% of terrestrial Canada) and 59 marine OECMs with 318,517 km2 of area (5.54% of marine Canada).
As of the end of 2022, all 19 Biosphere Reserves in Canada have received financial investments to qualify areas as OECMs, increasing protected and conserved areas reported to CPCAD.

NBS-04
Natural Infrastructure Fund

Supports projects that use natural or hybrid approaches to protect the natural environment, support healthy and resilient communities, contribute to economic growth, and improve access to nature for Canadians.
Lead department: INFC

Ongoing
Intake for the Small Projects Stream was launched in July 2022, and closed in Fall 2022 with more than 550 applications received. Applications are currently under review.
Up until November 2023, 5 projects have been announced with a federal contribution of $46M. These projects include increasing the tree canopy in downtown Winnipeg, supporting the restoration of coastal ecosystems and reduction of coastal erosion in Halifax, preventing flooding and improving water quality in Vancouver, and revitalizing green spaces such as parks and urban forests in Saskatoon.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Greening government
Measure Description Status and implementation update

GRG-01
Greening Government Strategy updated targets and policies

Outlines how the Government of Canada will transition to net-zero carbon and climate-resilient operations, and reduce environmental impacts on waste, water, and biodiversity.
Targets:

  • New federal buildings are net-zero emissions and major building retrofits require a GHG reduction life-cycle cost analysis to determine the optimal GHG savings using a shadow carbon price of $300 per tonne;
  • Reduce embodied carbon of structural materials in construction projects by 30% starting in 2025;
  • By 2030, 75% of domestic office floor space (new leases and lease renewals) will be in net-zero carbon climate‑resilient buildings;
  • Leverage the Government of Canada’s purchasing power to motivate suppliers of goods and services that have a high environmental impact to address GHG emissions reduction, sustainable plastics and broader environmental benefits; and,
  • Ensure 100% of light duty fleet is zero-emission by 2030.

Lead department: TBS

Ongoing
The Government of Canada continues its efforts at reducing its scope 1 and 2 emissions from real property and conventional fleet operations. In 2022-23, these emissions were 39.8% below 2005-06 levels.
The Government is on track to meet its short-term net-zero carbon emissions targets for real property and its conventional fleet.
The proportion of green vehicles (hybrid-electric or zero-emission) in the Government of Canada’s light-duty conventional fleet continues to grow. In 2022-23, 14% of the light-duty conventional fleet was green vehicles.
In 2022-23, TBS strengthened the Policy on Green Procurement by completing 2 new standards:

  • The Standard on Embodied Carbon in Construction requires service providers to disclose and reduce the carbon footprint related to major government construction projects, starting with a 10% reduction for ready-mix concrete compared to the regional average, and is an important step towards implementing a Buy Clean approach in federal government procurement of structural construction materials for internal operations; and,
  • The Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets ensures that the process for procurements over $25M induces suppliers to measure and disclose their GHG emissions and adopt a science-based target to reduce GHG emissions.

A full update on greening government progress is available online.

GRG-02
Federal Low-Carbon Fuel Procurement Program (LCFPP)

Supports the purchase and use of low-carbon intensity liquid fuels by federal departments for the operations of their air and marine fleets.
Lead department: TBS

Ongoing
The LCFPP was established in 2022 and accepted its first fuel deliveries in the summer of 2023. Three standing offers for the procurement of marine low-carbon fuels have been established with the Canadian Coast Guard in BC and several procurements are currently in progress for marine and aviation low-carbon fuel deliveries for the Coast Guard, the Royal Canadian Navy and the Royal Canadian Air Force in jurisdictions across Canada.

GRG-03
Federal Clean Electricity Fund

PSPC is implementing, on behalf of the Government of Canada, a procurement strategy to provide clean electricity to the federal community in order to address the Greening Government Strategy’s commitment to use 100% clean electricity by 2025 at the latest.
Lead department: PSPC

Ongoing
Contract awarded in AB with Electricity Retailer to supply approximately 250,000 MWh of electricity annually from new renewable clean electricity infrastructure. The contract is for 23 years, with the new infrastructure expected to be operational by 2025.
An agreement was signed in SK with SaskPower (Crown corporation) to supply approximately 87,000 MWh of electricity annually from new renewable clean electricity infrastructure. 25% of the annual consumption is currently operational, with the remaining 75% expected to be operational by 2024.
An agreement was signed with the Province of Nova Scotia to supply federal facilities with approximately 200,000 MWh of clean electricity through its Green Choice Program (GCP) procurement. NS, through its Independent Procurement Administrator, is issuing a competitive Request for Proposals for new, clean renewable electricity infrastructure in Q4 of 2023. The GCP will help NS reach its objective of generating 80% of its electricity from renewable energy projects, and phase out the use of coal by 2030.
Contract awarded with Indigenous Business to supply 6,400 Renewable Energy Certificates (RECs) annually for 20 years from new renewable clean electricity infrastructure.
Request for Proposals for National Renewable Energy Certificates closed on September 26, 2023.

Enabling measures
Measure Description Status and implementation update

ENB-01
Clean Growth Hub

A whole-of-government focal point for clean technology. The Hub helps clean tech innovators and adopters navigate the federal system of funding and services while enhancing coordination on federal clean tech programs.
Lead departments: NRCan, ISED

Ongoing
The Clean Growth Hub is fulfilling three key functions: 1) help clean technology stakeholders identify and navigate federal programs and services most relevant to their needs; 2) improve federal clean technology program coordination; and 3) strengthen federal capacity to track clean technology outcomes.
The Hub is focused on delivering on its mandates as the federal clean technology focal point, specifically helping stakeholders navigate the available federal programs and supports across 18 departments and agencies that help advance clean technology innovation and adoption.
The Hub has supported over 2,750 clients since implementation through its single-window service, including by proactively engaging clean tech companies that are poised to be leaders in the clean technology sector. The Hub also maintains ongoing relationships with provincial and regional partners to exchange information and facilitate collaboration on clean technology.

ENB-02
Energy Innovation Program (EIP)

The EIP has core funding of $116M per year to advance clean energy technologies that will help Canada meet its climate-change targets, while supporting the transition to a low-carbon economy. It funds RD&D projects, and other related scientific activities that advance clean energy technologies in priority areas including energy efficiency, electrification, transportation, cleaner fuels, and reduction of GHG and methane emissions.
Additionally, the EIP received targeted time-limited funding to advance key priority areas: Budget 2023 provided $45.6M over 3 years for dedicated smart grid RD&D; and Budget 2021 provided $319M for CCUS RD&D (see ENB-02.1 below).
The EIP target is to reduce 4.25 Mt CO2 eq per year by 2030.
Lead department: NRCan

Ongoing
In 2023, the EIP launched an On-Road Transportation Call for Proposals for RD&D related to zero/low-emission on-road medium- and heavy-duty vehicles. The program also selected projects to receive up to $53M for RD&D in industrial fuel switching, clean fuels production, and hydrogen codes and standards for hard-to-abate segments of industry. It also funded the Canadian Emissions Reduction Innovation Network (CERIN) with Alberta Innovates, to accelerate the development, validation, and deployment of technologies that reduce methane emissions in the Canadian upstream oil and gas sector, and invested in methane detection R&D in federal laboratories (approximately $10M over 5 years).
In 2022-23, EIP-funded projects made advances in RD&D, with proponents filing for 49 patents or other intellectual property, influencing 56 codes and standards, and producing 136 scientific publications, technical reports, tools, and other knowledge products. EIP projects also leveraged federal investments at a ratio of 2:1, supported 1,191 direct and indirect job-years of employment, and are on track to meet 2030 GHG reduction targets, achieving 2.6 Mt of direct GHG reductions in 2022-23.

ENB-02.1
EIP Carbon Capture, Utilization, and Storage (CCUS) Stream
Part of the Energy Innovation Program

Supports RD&D to improve the commercial viability of CCUS technologies.
Budget 2021 invested $319M over seven years to fund RD&D related to CCUS.
Lead department: NRCan

Ongoing
The EIP CCUS Stream launched two external funding calls:

  • The CCUS Front End Engineering Design (FEED) funding call, which was open to studies for CCUS, including carbon dioxide removal technologies, applied to existing facilities and new industrial facilities. The call has signed up to $50M in funding agreements.
  • An $81.5M funding call for CCUS RD&D projects to reduce the cost and increase the performance of innovative early-stage CCUS technologies. The call includes three focus areas: Capture; Storage and Transportation; and Utilization. The first two streams opened in 2022-23, while the third is scheduled to open in fall 2023.

NRCan also invested in critical applied CCUS research in federal laboratories and research centres. Between 2021 and 2023, 89 intramural RD&D CCUS projects were completed at federal labs to support the commercialization of CCUS. In 2023, strategic planning for the next five years was completed, with 52 new CCUS projects selected and initiated in federal laboratories.

ENB-03
Federal support to Sustainable Development Technology Canada (SDTC)

To support start-ups and to scale up companies to enable pre-commercial clean technologies to successfully demonstrate feasibility and enable early commercialization efforts.
Lead department: ISED

Ongoing
SDTC continues to identify and support transformative Canadian companies that develop and deploy globally competitive clean technology solutions that address environmental challenges related to climate change, clean air, clean water, and clean soil. In 2022-23, SDTC invested $134M in 115 new projects from across Canada. This included 46 start-up and scale-up projects and 69 firms through SDTC’s Seed Fund. SDTC also continues to work with its regional and federal partners to strengthen and support the Canadian cleantech ecosystem.

ENB-04
Just Transition for Canadian Coal Power Workers and Communities: Task Force

The Task Force was asked to report on how to make the transition away from coal-fired electricity a fair one for Canadian coal workers and communities.
Lead department: ECCC

Concluded
The Task Force completed its mandate in 2019 when it provided two reports to the Government of Canada.

ENB-05
Sustainable Jobs legislation (Bill C‑50) and comprehensive action
Referred to as Just Transition legislation and comprehensive action in the 2030 ERP

Support the future and livelihood of workers and their communities in the shift to a low‑carbon economy.
Lead departments: NRCan, ESDC

Ongoing
In February 2023, the Government of Canada released an interim Sustainable Jobs Plan for 2023–2025, which outlined the government’s approach to building a more prosperous low-carbon future for all Canadians. This plan outlined 10 concrete actions, including the commitment to introduce sustainable jobs legislation.
On June 15, 2023, the Government of Canada delivered on this legislative commitment by introducing Bill C-50, the Canadian Sustainable Jobs Act, which aims to facilitate and promote the creation of sustainable jobs and support workers and communities in Canada as the world advances toward a net-zero future. The bill puts workers and communities at the centre of federal policy and decision making by establishing a framework for accountability, a governance structure, and engagement mechanisms to guide effective federal action.
Building on existing investments to advance a sustainable economy and support Canadian workers and communities, the 2022 Fall Economic Statement earmarked $250M over five years, starting in 2023‑24, to help Canadian workers thrive in a changing global economy. Specific measures included support for: 1) the Sustainable Jobs Training Centre (now labeled the Sustainable Jobs Training Fund); 2) a new sustainable jobs stream under the Union Training and Innovation Program; and, 3) the Sustainable Jobs Secretariat and the Sustainable Jobs Planning Council.

ENB-06
Green Bonds

Support investments that pursue environmental objectives benefitting all Canadians, which could include projects that support climate mitigation, adaptation, biodiversity and conservation, and pollution prevention and control.
Lead departments: FIN, ECCC

Ongoing
Consistent with the Green Bonds Framework, in 2023, the Government of Canada released an allocation report for its inaugural green bond. The first impact report will be published in fiscal year 2023-24.

ENB-07
Climate Action and Awareness Fund (CAAF)*

To support projects that help build capacity and raise awareness in an effort to reduce Canada’s GHG emissions.
The CAAF has three main priorities:

  • Support youth awareness and community-based climate action;
  • Support climate research at Canadian think tanks and in academia; and,
  • Advance climate change science and technology.

Lead department: ECCC

Under the CAAF, funding was provided in 2021-22 and 2022-23 for projects under the following pillars:

  • Community-based climate action;
  • Climate research at Canadian think tanks and in academia; and,
  • Climate change science and technology.

Applicants have been notified of funding decisions by the program, and approved projects are ongoing.
See below for stream-specific updates.

ENB-07.1
Community-based climate action
Part of the Climate Action and Awareness Fund (CAAF)

The CAAF Community-based climate action stream provides funding to support projects that provide knowledge, tools and/or skills that lead to or engage communities in climate action.
Lead department: ECCC

Ongoing
Second intake closed winter 2022: 10 projects (approximately $3.7M) were approved.
One additional CAAF intake of $12.5M was launched on October 4, 2023, to support projects that will increase environmental literacy of young Canadians as part of the long-term solutions to tackle climate change. Of this funding, $2.5M is dedicated to fund Indigenous-led initiatives to enhance environmental literacy that can build capacity to deal with the triple threat of climate change, biodiversity loss, and pollution.

ENB-07.2
Climate research at Canadian think tanks and in academia
Part of the Climate Action and Awareness Fund (CAAF)

The CAAF Climate research at Canadian think tanks and in academia stream provides funding to support projects focused on identifying, accelerating, and evaluating climate mitigation solutions and strategies that will contribute to achieving net-zero GHG emissions in Canada.
Lead department: ECCC

Ongoing
Call for proposals closed summer 2022: 16 projects (approximately $10M) were approved.

ENB-07.3
Climate science and technology
Part of the Climate Action and Awareness Fund (CAAF)

The CAAF Climate science and technology stream provides funding for advancing climate change science and technology projects that strengthen Canada’s science capacity to identify, accelerate, and evaluate mitigation actions towards achieving net-zero GHG emissions by 2050 in Canada.
Lead department: ECCC

Ongoing
Closed spring 2021: 24 projects (approximately $58.4M) were approved.

ENB-08
Investment Tax Credit for Clean Technology Manufacturing

Budget 2023 proposed to introduce a refundable tax credit equal to 30% of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals. The 2023 Fall Economic Statement provided additional details on the delivery timeline.
Lead department: FIN

Under Development
FIN is developing specific design details for the tax credit. The 2023 Fall Economic Statement announced that draft legislation will be released for public comment and consultations before the end of fall 2023. The legislation and regulations will need to receive royal assent before businesses can claim the tax credit.

ENB-09
Clean Technology Investment Tax Credit

In the 2022 Fall Economic Statement, the Government proposed to introduce a 30% refundable investment tax credit for business investments in certain electricity generation equipment, stationary electricity storage, low-carbon heating, and non-road zero-emission vehicles and related charging and refuelling infrastructure. Budget 2023 further proposed to expand eligibility to include certain geothermal energy equipment.
Lead department: FIN

Initiated
The 2022 Fall Economic Statement and Budget 2023 announced design details of the Clean Technology Investment Tax Credit.
In August 2023, a package of legislative proposals was released for consultation. This consultation closed on September 8.
Enacting legislation was tabled in Parliament on November 30, 2023, in Bill C-59. Once legislated, the tax credit will be retroactively available to businesses that have incurred eligible expenses, as of March 28, 2023.

ENB-10
Clean Technology Data Strategy (CTDS)

Established in 2017, the CTDS is a joint initiative, led by NRCan, ISED, and the Clean Growth Hub, that supports the collection of data and regular reporting on clean technology activity.
Lead departments: NRCan, ISED

Ongoing
Relevant departments continue to collaborate on providing the latest information to measure the economic, environmental and social contributions of the clean technology industry in Canada.

ENB-11
Clean Technology and Climate Innovation Strategy

In the 2030 ERP, the Government committed to strengthening federal coordination on clean technology and climate innovation with a particular focus on innovation support, investment in deployment, regulatory signals, tax incentives, and procurement.
Lead departments: ECCC, NRCan, ISED

Ongoing
Building on existing progress, relevant departments continue to work towards strengthening federal coordination on clean technology and climate innovation by comprehensively mapping federal clean technology measures and identifying strategic opportunities for additional action to enhance alignment.

* Main measures without activities, with all activities captured within the sub-measures; not included when counting measures.

Table 6-2: Cooperative agreements and measures

The cooperative agreements table is comprised of those measures that were identified by provinces and territories as key cooperative agreements in their submissions during the development of the 2030 ERP. These submissions can be found in Annex 1 of the 2030 ERP. There is a wide variety in the types of measures captured as “cooperative agreements and measures”—this includes formal agreements and memoranda of understanding, policy frameworks and partnerships, cooperation in international fora, and funding supports to achieve shared climate objectives with provincial and territorial governments. For funding supports, this can include federal initiatives that occur in a jurisdiction as well as federal initiatives where provinces and territories have a role in receiving and/or distributing funding. Note that the PT list in the description is to identify which provinces and territories participate in the cooperative agreement or measure. In a number of cases, all provinces and territories are eligible to apply for funding, and negotiations for participation may be ongoing, but only where there is confirmed participation, such as through a publicly announced agreement, is the province or territory listed. Participating jurisdictions can change over time.

Economy-wide
Measure Description Status and Implementation update

COA-01
Price on carbon pollution – provincial and territorial systems

The Government of Canada’s approach to pricing carbon pollution gives provinces and territories the flexibility to implement the type of system that makes sense for their circumstances as long as they align with minimum national stringency requirements (“federal benchmark”).
The federal “backstop” carbon pricing system consists of the federal fuel charge and/or the federal Output‑Based Pricing System for industrial facilities and applies in jurisdictions who requested it or whose systems do not meet the benchmark.
PTs: All

Ongoing
See measure ECW‑01 in Table 6-1.

COA-02
Return of proceeds from the federal carbon pricing system

All direct proceeds from the federal carbon pricing system remain in the jurisdiction where they were collected. Provinces and territories that have their own carbon pricing systems use the proceeds as they see fit.
In the provinces where the federal price on carbon pollution is in effect, the Government of Canada uses 90% of fuel charge proceeds to directly support individuals and families through Climate Action Incentive payments. The other 10% is used to support small businesses and Indigenous partners.
Proceeds collected through the federal Output-Based Pricing System (OBPS) will be returned to provinces and territories that have requested it via direct transfer. Proceeds collected from all other jurisdictions where the federal OBPS has been applied will be returned through the OBPS Proceeds Fund, which was launched in February 2022.
PTs: AB, SK, MB, ON, NB, NS, PE, NL, YK, NU

Ongoing
See measures ECW‑01.2, ECW‑01.3, ECW‑01.4, ECW-01.5, ECW-01.6a and ECW‑01.6b in Table 6-1.

COA-03
Climate Action Incentive Fund (CAIF)

In 2019‑20 and 2020‑21, the Government of Canada returned a portion of the 2019‑20 federal fuel charge proceeds through federal programming, including CAIF. Proceeds were used to provide support to schools as well as small- and medium‑sized businesses through CAIF in provinces and territories that did not meet federal stringency requirements.
PTs: SK, MB, ON, NB

Concluded
A new program, the Fuel Charge Proceeds Return Program, is being implemented to return a portion of fuel charge proceeds to small- and medium‑sized enterprises in emissions‑intensive, trade‑exposed sectors, including a portion of the proceeds collected in 2019‑20 that were not returned through CAIF.

COA-04
List of Recognized Offset Programs and Protocols for the Federal Output-Based Pricing System (OBPS)

Provincial or territorial offset programs and offset protocols that meet the specific eligibility criteria outlined in the OBPS Regulations are specified on the List of Recognized Offset Programs and Protocols for the Federal OBPS, if the province or territory agrees to let their credits be used as recognized units. Offset credits generated under recognized protocols can be sold and used for compliance by facilities covered in the federal OBPS.
The list currently includes two programs: the British Columbia Greenhouse Gas Emission Offset System and the Alberta Emission Offset System.
PTs: BC, AB

Ongoing
The British Columbia Greenhouse Gas Emission Offset System and the Alberta Emission Offset System have been recognized offset programs since August 2020. Currently five recognized offset protocols from AB are eligible to generate offset credit that may be remitted as recognized units, subject to credit-specific criteria in the federal OBPS Regulations.
For the 2021 compliance period, 30,000 tonnes of AB emission offset credits were remitted as recognized units for compensation under the federal OBPS.

COA-05
Low Carbon Economy Fund (LCEF)

The LCEF supports projects that help to reduce Canada’s GHG emissions, generate clean growth, build resilient communities, and create good jobs for Canadians. The fund is an important part of Canada’s clean growth and climate action plans, including the Pan‑Canadian Framework and the 2030 ERP.
The LCEF has four streams: the Leadership Fund; the Challenge Fund; the Indigenous Leadership Fund; and the Implementation Readiness Fund. The Leadership Fund includes the $250M Home Heating Oil Transition funding envelope.
PTs: All

Ongoing
See measures ECW‑05, ECW-05.1, ECW‑05.2, ECW-05.3 and ECW‑05.4 in Table 6-1.

COA-06
Federal Policy on the Use of International Carbon Credits
Referred to as Article 6 negotiations in the 2030 ERP

Under the Glasgow Climate Pact at COP26 in 2021, Parties reached agreement on outstanding aspects of the Paris Rulebook, including rules on international voluntary cooperative approaches under Article 6. Along with further guidance and procedures adopted at COP27 in 2022, these Article 6 rules will ensure environmental integrity, transparency, and robust accounting for the international trading of carbon credits.
PTs: All

Under Development
Provinces and territories make important contributions towards Canada’s international engagement on climate change and were engaged in the Article 6 negotiations. Following Canada’s strong advocacy of robust international rules for internationally transferred mitigation outcomes (ITMOs) to ensure environmental integrity, transparency, and the avoidance of double counting at COP26 and COP27, efforts are ongoing to develop a federal policy on authorization and use of ITMOs in the Canadian context.

COA-07
Pan‑Canadian Framework on Clean Growth and Climate Change (PCF)

Endorsed in 2016, the PCF was Canada’s first-ever national climate plan, developed with the provinces and territories and in consultation with Indigenous Peoples.
PTs: BC, AB, MB, ON, QC, NB, NS, PE, NL, YT, NT, NU

Adopted
PCF implementation is ongoing. A report on 2020 actions was released in 2022.

COA-08
Federal–Provincial–Territorial (FPT) ministerial tables

There are a number of FPT ministerial tables of relevance to climate change and climate mitigation, including the Canadian Council of Ministers of the Environment (CCME), the Canadian Council of Forest Ministers (CCFM), the Ministers responsible for Conservation, Wildlife, and Biodiversity (CWB), the Canadian Council of Ministers of Aquaculture and Fisheries, and the Energy and Mines Ministers' Conference (EMMC). The CCME is the primary minister-led intergovernmental forum for collective action on environmental issues of national and international concern, with other tables also contributing to important sector-specific issues (e.g., energy, forests, agriculture, biodiversity, fisheries).
PTs: All

Ongoing
Most Ministerial tables meet on an annual basis and have working-level committees that meet on a regular basis to address specific issues.
The Council of Ministers of the CCME met in August 2022 and July 2023 to continue ongoing conversations on climate change. The CCME’s various committees and working groups meet on an ongoing basis.
The CCFM endorsed the Renewed Forest Bioeconomy Framework in fall 2022 to help maximize the forest sector’s contribution to the transition to net zero.
The EMMC is an annual gathering of FPT ministers responsible for energy and mining portfolios. The EMMC met in July 2022 and September 2023 to discuss priorities in the context of a global transition to net-zero emissions.

COA-09
Strategic Innovation Fund (SIF)

SIF provides transformative investments in all sectors of the economy to help Canada prosper in a global, knowledge-based economy.
SIF’s Net Zero Accelerator (NZA) initiative will provide up to $8B to support large‑scale investments in key industrial sectors across the country to ensure that Canada remains competitive in a net-zero economy and reduces GHG emissions. SIF-NZA supports investments that are aligned with provincial and territorial decarbonization priorities and considers regional environmental, industrial and economic needs. For additional information on SIF‑NZA, see measure HVI‑03 in Table 6-1.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL

Ongoing
As of September 2023, $8.2B of SIF funding has been allocated to 117 projects. Budget 2023 announced that SIF will focus on clean technologies, critical minerals, and industrial transformation projects as its investment priorities.

COA-10
Investing in Canada Infrastructure Program

The Investing in Canada Infrastructure Program delivers infrastructure investments across several streams, including the Green Infrastructure stream.
PTs: All

Ongoing
To help deliver funding, the Government of Canada has negotiated and signed Integrated Bilateral Agreements with the 13 provinces and territories.
The provincial intake for the Program closed on March 31, 2023. Territories have until March 31, 2025, to submit their projects.

COA-11
Green Infrastructure Fund

The Green Infrastructure Fund supported environmental infrastructure projects that promote reduced GHG emissions, cleaner air, cleaner water, and cleaner land. By providing up to 50% federal funding on a cost-shared basis, the fund leveraged additional investments from other partners, including provinces and territories.
PTs: BC, MB, ON, QC, PE, YT

Concluded
The Green Infrastructure Fund started in 2009‑10. All funding available under this program has been committed. An evaluation of the Green Infrastructure Fund is available online.

COA-12
Green Infrastructure priority investment area
Part of Canada Infrastructure Bank (CIB)

The CIB works with provinces and territories to develop the next generation of green infrastructure.
PTs: All

Ongoing
See measure ECW‑09.2 in Table 6-1.
More information on CIB’s partnerships is available online.

Buildings
Measure Description Implementation update

COA-13
Canada Greener Homes Grant Program
Part of the Canada Greener Homes Initiative

Homeowners in all provinces and territories are eligible to receive $125 to $5,000 towards the costs of energy‑efficient retrofits including insulation, windows and doors, heat pumps, and solar photovoltaic systems.
In some provinces, NRCan co-delivers the program with provincial partners, including Enbridge Gas’s Home Efficiency Rebate Plus (HER+) program in ON, the Government of Québec’s Rénoclimat program, and Efficiency Nova Scotia’s Home Energy Assessment (HEA) program.
Homeowners in northern and off-grid communities are eligible for additional insulation measures as well as an additional 30% for some retrofits.
PTs: All

Ongoing
See measure BDG‑04.1 in Table 6-1.

COA-14
Canada Greener Homes Loan Program
Part of the Canada Greener Homes Initiative

Homeowners in all provinces and territories can receive $5,000 to $40,000 of interest-free financing in addition to the Canada Greener Homes Grant to help complete more major retrofits recommended by an energy advisor.
PTs: All

Ongoing
See measure BDG‑04.2 in Table 6-1.

COA-15
Oil to Heat Pump Affordability (OHPA) Program
Part of the Canada Greener Homes Initiative

The OHPA Program helps homeowners who are currently heating their homes with oil to transition to electric cold climate air source heat pumps. Low- and median-income homeowners can receive an upfront payment of up to $10,000, with up to an additional $5,000 to match provincial and territorial contributions via co-delivery arrangements.
In some provinces, NRCan co-delivers the program with provincial partners, including Efficiency Nova Scotia, the Government of Newfoundland and Labrador, and the Government of Prince Edward Island’s Free Heat Pump Program.
PTs: All

Ongoing
See measure BDG‑04.4 in Table 6-1.

COA-16
PACE Maritimes

The Federation of Canadian Municipalities and the Government of Canada provided $14M of funding through the Green Municipal Fund for PACE Maritimes, a financing program to help homeowners make energy efficiency retrofits in Charlottetown and Stratford, PE and in Wolfville, NS.
PTs: NS, PE

Ongoing
From the launch of the program in July 2021 until January 2023, the Switch PEI programs:

  • Involved over 1,200 participants;
  • Completed over 400 projects, with another 150 in progress;
  • Invested a total of $8.5M in energy efficiency projects; and,
  • Reduced GHG emissions from the properties involved by over 40% on average.

As of September 2022, Switch Wolfville had completed 35 projects resulting in a reduction of 268.67 t CO2 eq.

Electricity
Measure Description Status and Implementation update

COA-17
Smart Renewables and Electrification Pathways Program (SREPs)

Proponents are eligible to apply for up to $25M to support the construction of renewable energy and grid modernization projects. All provinces and territories are eligible to apply for funding.
PTs: BC, AB, SK, ON, QC, NB, NS

Ongoing
See measure ELE-04 in Table 6-1.
More information on announced projects is available online.

COA-18
Clean Power Roadmap for Atlantic Canada

In 2019, the Government of Canada, with the Atlantic provincial governments and their respective utilities, formed the Atlantic Clean Power Committee. The Government of Québec and Québec Hydro participated as observers. The Committee developed a roadmap for how jurisdictions can work together over the coming decades to achieve a clean power future for the region.
PTs: QC, NB, NS, PE, NL

Ongoing
The work of the Atlantic Clean Power Committee has concluded with the publication of the final report in March 2022. The roadmap continues to provide direction for current and future work.

COA-19
Atlantic Loop initiative

The federal government is committed to advancing interprovincial connections in Atlantic Canada—and is currently negotiating with provinces and utilities to identify a clear path to deliver the first phase of the project by 2030.
PTs: QC, NB, NS, PE, NL

Ongoing
See measure ELE-13 in Table 6-1.

COA-20
Wataynikaneyap Power Project

In 2019, Wataynikaneyap Power and the Government of Canada signed agreements that formalized $1.6B to support the Northern Ontario Grid Connection Project. The Government of Ontario is supporting the construction of the project through a loan of up to $1.34B for its construction costs.
PTs: ON

Ongoing
The first of two phases—a 300 km, 230 kV line from Dinorwic to Pickle Lake, ON―was completed in August 2022. The entire line is expected to be fully operational by late 2024.

Oil and gas
Measure Description Implementation update

COA-21
Offshore Emissions Reduction Fund (ERF)

The Offshore ERF is a federal initiative that operated in NL, comprised of two components: the Offshore Deployment Program; and, the Offshore RD&D Program, which was delivered by NRCan in collaboration with Energy Research & Innovation Newfoundland & Labrador.
PT: NL

Concluded
See measures OIG-01.2 and OIG-01.3 in Table 6-1.
The initiative concluded in March 2023.

COA-22
Equivalency agreements respecting the release of methane from the oil and gas sector

In October 2020, the Government of Canada signed equivalency agreements on methane emissions from the oil and gas sector with the Governments of Alberta, British Columbia and Saskatchewan.
PTs: BC, AB, SK

Adopted
The equivalency agreement with AB will be in effect for five years, until 2025. AB’s second annual progress report, for the 2021 reporting year, was published in April 2023 and shows that methane emissions from the oil and gas sector decreased by about 44% between 2014 and 2021.
The equivalency agreement with BC will be in effect for five years, until 2025. On its oil and gas sector methane emission reductions, BC has signalled that it is on track to achieve its 2025 target of a 45% reduction below 2014 levels. Progress is also reported through the Climate Change Accountability Report, which BC releases annually.
The equivalency agreement with SK will be in effect for up to five years, until the end of 2024. SK estimates that oil and gas methane emissions have been reduced by over 60% from 2015 levels.
ECCC remains open to requests from interested jurisdictions for equivalency agreements in future.

COA-23
Canada–British Columbia MOU on the Electrification of the Natural Gas Sector

In 2019, the Government of Canada and the Government of British Columbia signed an MOU agreeing to take joint actions to advance the electrification of natural gas facilities.
PT: BC

Adopted
The MOU will be in effect for five years, until 2024. Electrification remains a key pathway to decarbonize industrial emissions and new clean growth opportunities.

Transportation
Measure Description Implementation update

COA-24
Zero Emission Vehicle Infrastructure Program (ZEVIP)

ZEVIP provides funding towards the deployment of electric vehicle chargers and hydrogen refuelling stations across Canada.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL, YT, NT

Ongoing
See measure TRN-06 in Table 6-1.

COA-25
British Columbia Specified Purpose Agreement for Investment in Public Charging Infrastructure

BC and NRCan have a Specified Purpose Agreement. Its purpose is to provide financial assistance from the Governments of Canada and British Columbia to projects that promote the deployment of electric vehicle (EV) charging stations in BC.
ZEVIP is responsible for delivering $16M of BC funds for the deployment of EV chargers in BC through a Special Purpose Account.
Through this agreement, the CleanBC Go Electric public charger program provides up to 25% of the cost of construction, up to a maximum of $25,000 per fast-charging station. Upon successful approval through ZEVIP, EV fast‑charger projects located in BC are automatically eligible for the provincial top-up funding. Participants in ZEVIP receive up to 50% of total project costs, up to a maximum of $100,000 per charger (Indigenous businesses and communities can receive up to $150,000).
PT: BC

Ongoing
The agreement has been in place since 2017 and expires March 31, 2029. There will be no claims paid for incurred eligible expenditures provided after March 31, 2027.
As of November 2023, 57 EV infrastructure deployment projects in BC have qualified to receive funding through this mechanism, totaling over $14M in provincial funds.

COA-26
Active Transportation Fund (ATF)

The ATF is a federal initiative that will provide $400M over five years to support a modal shift away from cars and toward active transportation, in support of Canada’s National Active Transportation Strategy. The ATF will invest in projects that build new and expanded networks of pathways, bike lanes, trails and pedestrian bridges, in addition to supporting active transportation planning and stakeholder engagement activities. Provinces and territories are eligible to apply for funding.
PTs: All PTs eligible to apply

Ongoing
See measure TRN-11.3 in Table 6-1.

COA-27
Efficient Trucking Program

Applicants are eligible to receive a rebate of 50% on fuel‑saving devices and technologies for heavy‑duty vehicles that can result in GHG reductions. The Efficient Trucking Program was launched in 2019. The Government of Canada invested $5.9M through the Low Carbon Economy Fund, and the Government of Manitoba contributed an additional $5.9M.
PT: MB

Ongoing
In May 2023, the Government of Canada announced an investment of an additional $3.6M to support a new intake of applications. The Government of Manitoba also provided $3.3M and MB’s trucking sector contributed $6.6M.

COA-28
Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (EVAFIDI)

EVAFIDI provided funding to organizations to establish infrastructure to help Canadians make the switch to low- or zero‑emissions vehicles, including: a coast‑to‑coast network of E fast‑chargers along core routes and highways; natural gas refuelling sites along key freight corridors; and hydrogen refuelling sites in major cities.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL

Concluded
EVAFIDI ended in 2022. The program is no longer launching Requests for Proposals. The program surpassed its target of 1,000 chargers.

COA-29
Public Transit Infrastructure Fund (PTIF)

The PTIF is providing over $2.9B of short‑term funding to help accelerate municipal investments to support the rehabilitation of transit systems, new capital projects, and planning and studies for future transit expansion to foster long‑term transit plans. Canada signed Bilateral Agreements with provinces and territories to deliver the PTIF.
PTs: All PTs eligible to apply

Concluded
Since the program began in 2016‑17, more than 1,100 projects with a federal contribution of over $2.9B and total value of over $6B have been approved.
More than 98% of approved projects have already been completed, including public transit and active transportation projects. No additional project proposals are being accepted under this program. INFC continues to work with jurisdictions to flow final payments under this fund.

COA-30
National Trade Corridors Fund (NTCF)

The NTCF funds transportation infrastructure projects, including projects that help the transportation system to withstand the effects of climate change and better adapt to new technologies and innovations. $4.6B of funding will be spread out over 11 years, ending in March 2028.
Provincial and territorial governments are eligible to apply for funding. The NTCF has funded projects in all provinces and territories.
PTs: All

Ongoing
Budget 2022 provided the NTCF with an additional $450M over five years, bringing the total NTCF envelope to $4.6B. A call for proposals for projects that will strengthen digital infrastructure to enhance the efficiency and reliability of transportation supply chains closed in April 2023.

Agriculture
Measure Description Status and Implementation update

COA-31
Agricultural Climate Solutions (ACS)
Part of the Natural Climate Solutions Fund

ACS is a multi‑stream program that will help to develop and implement farming practices to tackle climate change.
The Living Labs program provides funding for the co-development, testing, adoption, dissemination, and monitoring of technologies and practices, including beneficial management practices (BMPs), that sequester carbon and/or mitigate GHG emissions. This 10‑year program was announced in 2021 and builds on the success of the Living Laboratories Initiative (2018–2023).
The On-Farm Climate Action Fund awards funding to recipient organizations nationwide to help producers adopt and implement immediate on-farm BMPs with the greatest potential to store carbon and reduce GHG emissions.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL

Ongoing
See measures AGR-01.1 and AGR‑01.2 in Table 6-1.

COA-32
Canadian Agricultural Partnership (CAP)

The CAP was a $3B five‑year (2018–2023) investment by federal, provincial, and territorial governments to strengthen and grow Canada’s agriculture and agri‑food sector.
Programs tailored to meet regional needs were cost-shared, with the federal government contributing 60% of costs and the provincial/territorial government contributing 40%. Programs were developed and delivered by the provinces and territories. The programs’ parameters and priorities were jointly defined by federal, provincial, and territorial governments.
PTs: All

Concluded
See measure AGR-03a in Table 6-1.

COA-33
Sustainable Canadian Agricultural Partnership (Sustainable
CAP)

Referred to as the Next Policy Framework in the 2030 ERP

The Sustainable CAP is a $3.5B five‑year (2023–2028) investment by federal, provincial, and territorial governments to strengthen and grow Canada’s agriculture and agri‑food sector.
The Sustainable CAP is investing $2.5B to support region‑specific agriculture programs and services. These programs are cost-shared, with the federal government contributing 60% of costs and the provincial/territorial government contributing 40%. Programs are developed and delivered by the provinces and territories. The programs’ parameters and priorities are jointly defined by federal, provincial, and territorial governments.
PTs: All

Ongoing
See measure AGR-03b in Table 6-1.

COA-34
Sustainable Agriculture Strategy (SAS)
Referred to as the Green Agricultural Plan in the 2030 ERP

The SAS will establish a long‑term plan to bring together action on priority environment and climate issues in the agriculture sector and help set a shared direction for collective action to improve environmental performance and enhanced resilience to climate change.
The SAS was initially introduced in the 2030 ERP as the Green Agricultural Plan.
PTs: All

Initiated
See measure AGR-06 in Table 6-1.

Nature-based solutions
Measure Description Status and Implementation update

COA-35
Nature Smart Climate Solutions Fund (NSCSF)
Part of the Natural Climate Solutions Fund

The NSCSF seeks to reduce GHG emissions by supporting projects that conserve, restore and enhance forests, wetlands, peatlands, and grasslands to store and capture carbon. Provinces and territories are eligible to apply for funding.
PTs: All

Ongoing
See measure NBS-01.1 in Table 6-1.

COA-36
2 Billion Trees Program
Part of the Natural Climate Solutions Fund

The 2 Billion Trees program has committed to funding provinces and territories to support planting approximately one billion trees, out of the two billion goal, by 2031. In order to advance this work, the federal government is signing Agreements in Principle (AiPs) with provinces and territories.
PTs: BC, AB, MB, NS, PE, YT, NT

Ongoing
See measure NBS-01.2 in Table 6-1.
As of September 2023, seven AiPs have been signed, followed by funding agreements. Negotiations of additional AiPs and funding agreements are ongoing.

COA-37
Canada Nature Fund – Spaces stream

The Spaces stream of the Canada Nature Fund provides resources that enable partners to drive progress toward Canada’s biodiversity commitments. This stream currently consists of two core components: the Pathway to Canada Target 1 Challenge, which supports the creation of protected areas on provincial, territorial, municipal, and Indigenous lands; and the Natural Heritage Conservation Program, which supports the creation of protected areas on private lands.
The Canada Nature Fund supports Canada’s goal of conserving 25% of Canada’s lands, inland waters, and oceans by 2025, and working toward 30% of each by 2030. For additional information, see measure NBS-03 in Table 6-1.
PTs: All

Ongoing
The Spaces stream of the Canada Nature Fund is ongoing until 2026, as part of Budget 2021’s historic investment of $2.3B in Canada’s Enhanced Nature Legacy program. In December 2022, Canada announced an investment of up to $90M over three years to extend the Natural Heritage Conservation Program.

COA-38
Tripartite Framework Agreement on Nature Conservation
Referred to as the BC–Canada Nature Agreement in the 2030 ERP

Canada, BC, and the BC First Nations Leadership Council developed a tripartite nature agreement to value Indigenous leadership in conservation and to collaboratively achieve ambitious and sustained action on the conservation, protection, restoration, recovery, and enhancement of the province’s diverse ecosystems, including old growth forests and other habitats, and to support species at risk protection and recovery.
The agreement is a governance framework to recognize First Nations leadership in ecosystem stewardship and to improve alignment and coordination of actions and funding for positive conservation outcomes. It is aligned with BC’s priorities such as: biodiversity and ecosystem health; Together for Wildlife; modernized Land Use Planning; the Collaborative Indigenous Stewardship Framework; conserving 30% of lands and water by 2030; watershed security; and, climate change resilience.
PT: BC

Adopted
The agreement was signed on November 3, 2023. Canada is committed to working with BC and the First Nations Leadership Council to begin implementation of the agreement by the end of 2023.

COA-39
National Forest Carbon Monitoring, Reporting and Accounting System (NFCMARS)

The NFCMARS is Canada’s forest carbon reporting system. Its purpose is to estimate forest carbon stocks, changes in carbon stocks, and emissions of non‑CO2 GHGs in Canada’s managed forests. Provincial and territorial forestry agencies are involved as partners.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL, YT, NT

Ongoing
Federal, provincial, and territorial partners work together on an ongoing basis to determine the annual forest sector contributions to Canada’s National Inventory Report and to improve carbon accounting methodologies.
The new Forest Systems Information and Technology Enhancement (ForSITE) program, part of the Budget 2023 “Investing in Canada’s Forest Economy”, is an investment in core operations to improve Canadian Forest Service capacity on national forest monitoring data and reporting to improve information on forest carbon and forest health, support Canada’s reputation and actions for sustainability, and facilitate market access for forest products.

COA-40
Fisheries and Aquaculture Clean Technology Adoption Program (FACTAP)

FACTAP is a national contribution program that is investing $35M over seven years (2017–2024) to assist Canada’s fisheries and aquaculture industries in improving their environmental performance.
Applicants must provide a letter of support from the lead provincial agency/ministry where the project is to take place.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, NL

Ongoing
Applications for projects that will be completed by March 31, 2024, were accepted until July 31, 2023.

COA-41
Clean Fuel Regulations – Legislative recognition of compliance with land-use and biodiversity criteria
Referred to as federal recognition of sustainable forestry practices in the 2030 ERP

Legislative recognition (LR) serves as a mechanism to demonstrate compliance with the Land Use and Biodiversity (LUB) Criteria for feedstock harvested to be used in the creation of compliance credits under the Clean Fuel Regulations (CFR). National and subnational jurisdictions have the option to submit an application, identifying any legislation they enforce that achieves the same outcomes as one or more of the LUB criteria. A public list of jurisdictions and the LR granted and associated LUB criteria will be published on the CFR website.
PTs: All

Initiated
As of May 30, 2023, all provinces and territories have been provided with a draft template that can be used to start their LR application. ECCC has met with provinces and territories regarding applications for legislative recognition.

Enabling measures
Measure Description Status and Implementation update

COA-42
Climate Action Fund (CAF)

In 2018‑19 and 2019‑20, the CAF leveraged $5.3M in funding to support 44 climate action projects. The objective of the program was to raise awareness of climate change and to build capacity in order to increase climate actions that contribute to Canada’s clean growth and climate change plans (the Pan‑Canadian Framework and Canada’s strengthened climate plan).
In September 2020, contributions from the existing CAF were redirected to create the Climate Action and Awareness Fund (see COA-43 below).
PTs: All

Concluded
All projects supported by the CAF were completed as of March 31, 2022. Details on announced projects are available online.

COA-43
Climate Action and Awareness Fund (CAAF)

The CAAF supports youth climate awareness and community-based climate action, funds climate research at Canadian think tanks and in academia, and advances climate change science and technology.
PTs: All

Ongoing
See measure ENB-07 in Table 6-1.

COA-44
Buyers for Climate Action
Referred to as the Coalition of Green Buyers in the 2030 ERP

Buyers for Climate Action is a coalition of large green buyers who purchase a significant volume of goods and services in procurement categories with high environmental impact. In 2021, the coalition was established to help drive the transition to a green, net‑zero carbon economy by collaborating on green procurement. Members include: the Government of Canada, the Government of British Columbia, the Government of Québec, the City of Vancouver, the City of Toronto, and the City of Montréal.
PTs: BC, QC

Ongoing
The coalition is funded through the Greening Government Fund and work is ongoing to share best practices on greening procurement related to greener buildings and construction, fleet and IT.

COA-45
BC Centre for Innovation and Clean Energy (CICE)

The CICE offers funding programs targeted at low‑carbon innovations. CICE was established in 2021 with the help of $105M raised through public/private member partnerships and grants including the Government of British Columbia, Shell Canada and the Government of Canada ($35M through the Energy Innovation Program).
For additional information on the Energy Innovation Program, see measure ENB‑02 in Table 6-1.
PT: BC

Ongoing
In June 2023, the CICE announced $5.2M in funding for projects in battery and energy storage, low-carbon fuels, and low-carbon hydrogen. The CICE also accepted proposals focused on Forestry Residue Management in summer 2023.

COA-46
Canada–Yukon Funding Agreement

In Budget 2021, the Government of Canada committed to investing $25M to support YT’s climate mitigation and adaptation priorities. The investment was delivered as a one-time grant, providing the Government of Yukon autonomy in determining specific projects and measures. Projects are aligned with the broader objectives of the Arctic and Northern Policy Framework and federal climate policy including Canada’s strengthened climate plan.
PT: YT

Concluded
The grant funding was transferred to the Government of Yukon in a lump sum in March 2022. YT allocated the funding to five clean-energy projects and four climate-change-adaptation projects.
YT directed funding to climate-change initiatives that directly support the goals of the territory’s Our Clean Future climate strategy, through building technical capacity, infrastructure, and renewable energy supply. Project funding is in place up to 2024‑25. Projects include: Atlin Hydro expansion project; a flood forecasting, mapping and resiliency program; a Kluane Wind Power project; medium- and heavy‑duty electric vehicle pilots; investment in food security infrastructure; hazard identification, emergency planning and incidence response; permafrost and geohazard monitoring; energy efficiency retrofit programming; and transition of off‑grid Government of Yukon buildings to renewable electricity.

Adaptation is outside the scope of the 2030 ERP Progress Report; however, implementation updates on select measures are included here. A number of adaptation measures were identified by provincial and territorial governments as key agreements and measures, recognizing the strong linkages between adaptation and climate mitigation actions. Reporting on adaptation is addressed comprehensively through other reporting mechanisms. For example, the Government of Canada Adaptation Action Plan (GOCAAP) outlines the federal government’s policy and program framework and provides a comprehensive inventory of all federal programs on climate change adaptation, including the examples reported in the table below.

Adaptation
Measure Description Status and Implementation update

COA-47
National Adaptation Strategy (NAS)

Canada’s first National Adaptation Strategy was released in June 2023.
PTs: All

Ongoing
In November 2022, the Government of Canada released the Government of Canada Adaptation Action Plan (GOCAAP). This document outlines how the Government of Canada is contributing to achieving the goals, objectives, and targets laid out in the NAS.
Implementation of the Strategy will include federal-provincial and federal-territorial action plans.
More details on the status of implementation are available online.

COA-48
Disaster Mitigation and Adaptation Fund (DMAF)

The DMAF invests in structural and natural infrastructure projects to increase the resilience of communities that are impacted by natural disasters triggered by climate change. All provinces and territories are eligible to apply for funding.
PTs: All PTs eligible to apply

Ongoing
Applications for new projects were accepted from January to July 2023 and are under review.

COA-49
Arctic and Northern Policy Framework (ANPF)

The ANPF sets out a long-term, strategic vision that will guide the Government of Canada’s activities and investments in the Arctic to 2030 and beyond, and align arctic policy objectives with the priorities of Indigenous Peoples and Arctic and Northern residents.
PTs: MB, QC, NL, YT, NT, NU

Ongoing
Published in 2019, the framework provides direction for current and future work. More details on the ANPF are available online

COA-50
Climate Services Organizations

Canada has five climate services organizations that provide access to information and services to help Canadians increase their resilience to climate change.
PTs: BC, AB, SK, MB, QC, NB, NS, PE, NL

Ongoing
For more on the regional climate services organizations, see: the Canadian Centre for Climate Services; the Pacific Climate Impacts Consortium; ClimateWest; Ouranos; and, CLIMAtlantic.

COA-51
Building Regional Adaptation Capacity and Expertise (BRACE)

The BRACE program invested in training, knowledge-exchange activities and practical action to increase climate change adaptation actions. From 2017 to 2022, 20 projects were co-funded by the Government of Canada and provincial governments, non‑governmental organizations, academic institutions, and professional associations.
PTs: BC, AB, SK, MB, ON, QC, NB, NS, PE, NL

Concluded
The BRACE program concluded in 2022.
More information on the status of federal climate change adaptation programs is available online.

COA-52
Municipalities for Climate Innovation Program (MCIP)

MCIP was a five-year $75M program delivered by the Federation of Canadian Municipalities and funded by the Government of Canada. From 2017 to 2022, MCIP helped more than 600 municipalities by providing funding, training and sharing information with the aim of encouraging municipalities to better prepare for and adapt to the new realities of climate change. 
PTs: All PTs eligible to apply

Concluded
MCIP concluded in 2022.

Chapter 7: Provinces and territories

This chapter provides an overview of each province and territory, including the economic and emissions profile, emissions reduction targets and climate plans, recent action, and what is next. The chapter opens with a summary of provinces and territories “at a glance”.

Figure 7-1: GHG emissions in each province and territory, 2005, 2021 and (projected) 2030

Figure 7-1 (See long description below)
Long description for Figure 7-1

This graphic is a bar chart displaying the GHG emissions (Mt CO2 eq) in each province and territory at three different time points: 2005, 2021, and (projected) 2030.

Long description Figure 7-1: GHG emissions in each province and territory, 2005, 2021 and (projected) 2030
*Projections for Québec include purchased credits under the Western Climate Initiative.
Province/territory 2005 (Mt CO2 eq) 2021 (Mt CO2 eq) 2030 (projected) (Mt CO2 eq)
BC 64 59.4 50
AB 237 256.1 180
SK 71 67.1 44
MB 21 20.7 17
ON 204 150.6 134
QC* 86 77.5 59
NB 20 11.9 7
NS 23 14.6 9
PEI 2 1.6 1
NL 10 8.3 7
YT 1 0.7 1
NT 2 1.3 2
NU 1 0.6 1

Figure 7-2: Population by province/territory, 20231

Figure 7-2 (See long description below)
Long description for Figure 7-2

This graphic is a bar chart displaying the population of each province and territory as of 2023.

Long description Figure 7-2: Population by province/territory, 2023
Province/territory Population
BC 5,519,013
AB 4,695,290
SK 1,209,107
MB 1,454,902
ON 15,608,369
QC 8,874,683
NB 834,691
NS 1,058,694
PE 173,787
NL 538,605
YT 44,975
NT 44,972
NU 40,673
BC 5,519,013
AB 4,695,290

Figure 7-3: GDP by province/territory, 20223

Figure 7-3 (See long description below)
Long description for Figure 7-3

This graphic is a bar chart displaying the gross domestic product (GDP) of each province and territory as of 2022 in billions of chained (2017) dollars.

Long description Figure 7-3: GDP by province/territory, 2022
Province/territory GDP (2022) [chained (2017) dollars (x 1,000,000)]
BC 299,250.40
AB 331,488.80
SK 76,672.90
MB 68,483.20
ON 839,497.40
QC 428,252.20
NB 34,329.70
NS 43,188.40
PE 7,109.90
NL 29,690.10
YT 3,297.60
NT 4,253.70
NU 3,741.40

Figure 7-4: GHG emissions per capita by jurisdiction, 20211, 4

Figure 7-4 (See long description below)
Long description for Figure 7-4

This graphic is a bar chart displaying the GHG emissions per capita by province, territory, and nationally as of 2021. The measurement is megatonnes of carbon dioxide equivalent (Mt CO2 eq).

Long description Figure 7-4: GHG emissions per capita by jurisdiction, 2021
Jurisdiction GHG emissions per capita (Mt CO2 eq)
CA 17.44
BC 11.28
AB 57.56
SK 57.41
MB 14.82
ON 10.08
QC 9.01
NB 14.92
NS 14.50
PE 9.93
NL 15.78
YT 15.08
NT 28.84
NU 15.56

Figure 7-5: GHG emissions by jurisdiction and economic sector, 20214

Figure 7-5 (See long description below)
Long description for Figure 7-5

This graphic is a stacked bar chart, up to 100%, displaying the percentage share of GHG emissions by economic sector for each province, territory, and nationally as of 2021.

Long description Figure 7-5: GHG emissions by jurisdiction and economic sector, 2021
Sector CA BC AB SK MB ON QC NB NS PE NL YT NT NU
Oil and Gas 28% 21% 57% 25% 4% 5% 3% 26% 0% 0% 17% 0% 5% -
Electricity 22% 1% 9% 23% 0% 2% 0% 24% 42% 0% 8% 7% - -
Transport 13% 36% 9% 14% 30% 31% 38% 26% 34% 41% 42% 55% 47% 55%
Heavy Industry 11% 9% 7% 6% 6% 18% 23% 5% 2% 1% 13% 21% 29% 13%
Buildings 10% 15% 8% 6% 14% 25% 12% 8% 13% 18% 9% 7% 10% 2%
Agriculture** 8% 5% 8% 24% 35% 8% 11% 4% 3% 24% 1% 1% - -
Waste 3% 3% 2% 2% 6% 4% 6% 4% 3% 6% 7% 5% 3% 5%
Coal Production 3% 4% 0% 0% - - - - 0% - - - - -
Light Manufacturing, Construction and Forest Resources 0% 6% 1% 1% 5% 6% 7% 4% 3% 11% 4% 5% 0% 0%
Not specified* - - - - - - - - - - - - 7% 25%

* Data on emissions from Electricity and Construction for Northwest Territories and Nunavut were not specified in the National Inventory Report (NIR) to respect confidentiality.

** This figure is based on the IPCC definition of the agriculture sector which only covers non-energy GHG emissions related to the production of crops and livestock. Emissions related to cropland, which has contributed to net removals in the land sector in recent years, is accounted for in the LULUCF sector.

Figure 7-6: Electricity generation* by jurisdiction and source, 20215

Figure 7-6 (See long description below)
Long description for Figure 7-6

This graphic is a stacked bar chart, up to 100% displaying the percentage share of electricity generations by generation* type for each province, territory, and nationally, as of 2021. The electricity generation types are as follows: hydro, nuclear, wind, solar, biomass, natural gas, petroleum, coal, and other.

Long description Figure 7-6: Electricity generation* by jurisdiction and source, 2021
*This chart represents electricity generation only. Some jurisdictions are significant importers/exporters of electricity. See individual jurisdiction profiles for further details.
Generation CA BC AB SK MB ON QC NB NS PE NL YT NT NU
Hydro 60.4% 88.7% 2.8% 12.0% 96.0% 24.1% 93.9% 22.8% 8.5% - 96.7% 87.2% 36.8% -
Nuclear 13.9% - - - - 57.1% - 38.3% - - - - - -
Wind 5.5% 2.5% 8.0% 3.1% 3.3% 7.6% 5.1% 6.6% 13.9% 96.8% 0.4% - 2.4% -
Solar 0.8% 0.1% 1.6% 0.3% 0.2% 2.3% - - 0.4% 2.1% - 1.6% 0.3% 0.5%
Biomass 1.6% 5.7% 2.4% - 0.3% 1.0% 0.7% 5.1% 1.9% 0.6% 0.1% - - -
Natural Gas 11.8% 2.1% 61.6% 45.2% 0.1% 7.7% 0.1% 6.5% 18.3% - 0.6% 3.7% 13.9% -
Petroleum 0.9% 0.9% 1.8% - 0.1% 0.1% 0.3% 8.2% 6.2% 0.5% 2.1% 7.6% 46.7% 99.5%
Coal 5.1% - 21.4% 38.7% - - - 12.5% 50.9% - - - - -
Other 0.1% - 0.3% 0.7% - 0.1% - - - - - - - -

7.1 British Columbia

Provincial profile

Figure 7-7: British Columbia emissions by economic sector, 20214

Figure 7-7 (See long description below)
Long description for Figure 7-7

This graphic is a pie chart displaying the breakdown of British Columbia's GHG emissions in 2021 by economic sector.

Long description Figure 7-7: British Columbia emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 36%
Oil and Gas 21%
Buildings 15%
Heavy Industry 9%
Light Manufacturing, Construction and Forest Resources 6%
Agriculture 5%
Coal Production 4%
Waste 3%
Electricity 1%

Climate plan and emissions reduction targets

British Columbia’s Climate Change Accountability Act came into force in November 2007, setting legislated targets and reporting requirements. British Columbia released its CleanBC climate plan in 2018 and its CleanBC Roadmap to 2030 (PDF) in October 2021, setting out a strengthened plan to meet the province’s legislated climate action targets.

British Columbia has committed to a series of emissions reductions targets, most of which are legislated targets:

To help meet these targets, the province also established 2030 emission reduction targets for four sectors, with 2007 as the baseline: transportation (27% to 32%); industry (38% to 43%); oil and gas (33% to 38%); and, buildings and communities (59% to 64%). These serve as guideposts to inform policy development, assess progress, and provide further transparency.

The CleanBC Roadmap to 2030 states the intention to reach net zero by 2050 and that British Columbia’s commitment to a net-zero future will be backed by legislation.

Highlights of recent mitigation action

As part of the CleanBC Roadmap to 2030, the province committed to increasing the 2030 carbon-intensity reduction target for diesel and gasoline fuel pools from 20% to 30% under British Columbia’s Low Carbon Fuel Standard (LCFS). Effective as of January 1, 2023, amendments to British Columbia’s Renewable and Low Carbon Fuel Requirements Regulation now require fuel suppliers to reduce the average carbon intensity of transportation fuels supplied in the province to reach an overall reduction of 30% by 2030, relative to 2010 levels. In addition, the province intends to modernize the legislation governing the LCFS in January 2024, including expanding the scope to include jet fuel and changing the low carbon fuel requirements beyond the current purview of transportation fuel use to all fuel use. The LCFS is among the largest contributors to the CleanBC emissions reduction goals.

The CleanBC Industry Fund supports the development, trial and deployment of projects that reduce greenhouse gas emissions from large industrial operations. The Fund has supported innovative projects since 2019 and underwent a transition in 2023 to align with the new British Columbia output‑based pricing system. A relaunch of this fund is planned for spring 2024.

British Columbia’s Budget 2023 (PDF) included $100 million to support more active transportation investments, $85 million to increase emergency management capacity in the province and to provide new investments in disaster risk assessment, preparedness, and mitigation, and $44 million to continue to support British Columbia’s transition to a zero-emission economy.

In the spotlight: B.C. Centre for Innovation and Clean Energy

In partnership with Canada, British Columbia has established the B.C. Centre for Innovation and Clean Energy (CICE), which operates as an independent, not-for-profit corporation dedicated to scaling B.C.’s most impactful decarbonization solutions—from Canada to the world. The CICE is funded by British Columbia, the Government of Canada, and Shell. CICE provides early-stage funding to accelerate commercialization and leads non-dilutive investment of clean energy innovation areas where the lack of traditional revenue metrics is a common barrier. Working closely with industry, investors, government, academia, and Indigenous rights holders to de-risk adoption of clean energy innovation, CICE is advancing the world toward a net-zero economy that draws on B.C.’s advantages, attracts investments, and creates high-paying green jobs. As of August 2023, CICE has funded $12.8 million in B.C.-based clean energy projects totaling $58.3 million.

What is next

As part of Budget 2023, British Columbia announced that starting April 1, 2023, its carbon price would increase to $65 per tonne of CO2 eq emissions, rising by $15 per tonne each year until it reaches $170 per tonne in 2030.The province also announced its intention to transition from the CleanBC Program for Industry (CPI) to a made-in-B.C. OBPS for large industrial emitters, which will take effect on April 1, 2024. B.C.’s OBPS stringency is influenced by product-specific performance standards and is informed by CleanBC Industrial Incentive Program (CIIP) data, as well as the ability to use offsets units for compliance. Participation will be mandatory for producers of certain regulated industrial products under the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA) that emit above 10 kt CO2 eq per year.

In March 2023, British Columbia announced a new Energy Action Framework to ensure that oil and gas sector projects fit within the province’s climate commitments and create new opportunities for people in clean energy and technology. Under the framework, British Columbia will require all new proposed LNG projects in or entering B.C.’s Environmental Assessment process to pass an emissions test with a credible plan to be net zero by 2030 and is planning a regulatory cap on emissions from the oil and gas sector. In addition, British Columbia will be developing and implementing a Climate-Aligned Energy Framework, with an overall goal of maximizing production of clean energy for use at home and for export.

British Columbia is leading Canada in uptake of new zero-emission vehicle sales. According to the province’s Zero-Emission Vehicle Annual Report for 2022, 18.1% of new vehicles purchased in 2022 were zero-emission vehicles. As part of the CleanBC Roadmap to 2030, British Columbia plans to have all new cars sold be zero-emission by 2035. To make that transition easier for residents, the province plans to invest $26 million in 250 new public, light-duty, fast-charging stations, adding to the more than 3,800 public charging stations already in the province.

7.2 Alberta

Provincial profile

Figure 7-8: Alberta emissions by economic sector, 20214

Figure 7-8 (See long description below)
Long description for Figure 7-8

This graphic is a pie chart displaying the breakdown of Alberta's GHG emissions in 2021 by economic sector.

Long description Figure 7-8: Alberta emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Oil and Gas 57%
Transport 9%
Electricity 9%
Buildings 8%
Agriculture 8%
Heavy Industry 7%
Waste 2%
Light Manufacturing, Construction and Forest Resources 1%
Coal Production 0%

Climate plan and emissions reduction targets

Alberta released its Emissions Reduction and Energy Development Plan in April 2023, outlining the province’s next steps to address climate change. The plan outlines actions, opportunities, and new commitments to reduce emissions and maintain energy security through collaboration and partnerships; clean technology and innovation; and, finance and policy frameworks. It confirms Alberta’s intention to achieve a carbon neutral economy by 2050.

Alberta’s Renewable Electricity Act outlines Alberta’s commitment to increasing the amount of green energy produced in the province, including a legislated target of 30% renewable electricity by 2030.

Alberta was the first regional government in North America to commit to a methane emissions reduction target for the oil and gas sector. Alberta’s Methane Emission Reduction Regulation targets a 45% reduction of methane levels from oil and gas operations by 2025.

Highlights of recent mitigation action

Alberta’s Technology Innovation and Emissions Reduction (TIER) regulatory system was amended, effective January 1, 2023, for the 2023 to 2030 period. Amendments include: increasing the carbon price to align with the federal minimum national price; tightening emission reduction benchmarks, including in the oil sands sector; and, reducing the opt in threshold to enable more industry to voluntarily be regulated.

Through Budget 2023 (PDF), Alberta invested $800 million in TIER funding over the next three years to support a suite of programs to reduce emissions, support technology development, and create jobs and investment opportunities across all sectors. This funding includes continued investments in programs delivered by partners, including Emissions Reduction Alberta, Alberta Innovates and the Municipal Climate Change Action Centre. An additional $387 million over five years is being reserved in the TIER Fund for investments in future CCUS projects.

Other recent actions include: $50 million in funding to establish the Hydrogen Centre of Excellence; $41 million in funding to support the expanded mandate of the Alberta Energy Regulator in the implementation of a regulatory framework for geothermal and critical minerals; and, the adoption of new national building and energy codes (PDF)for energy efficiency as the minimum province-wide standard.

In the spotlight: Technology Innovation and Emissions Reduction

The TIER system came into effect on January 1, 2020. TIER is an industrial carbon pricing and emissions trading system that automatically applies to any facility that has emitted 100,000 tonnes or more of COeq GHGs in 2016, or any subsequent year. Smaller facilities can voluntarily opt-in to TIER. Sectors subject to TIER include oil and gas, oil sands mining, electricity, forestry, chemicals (including hydrogen production), fertilizers, minerals, food processing and waste. Regulated facilities can make investments to reduce emissions on site, can comply using credits (carbon offsets, emission performance credits or sequestration tonnes) or pay into the TIER fund at the established carbon price. Alberta’s current carbon price is $65 per tonne (as of January 1, 2023), and it will rise by $15 annually until it reaches $170 per tonne in 2030. TIER funds are invested into technology and innovation programs and projects to drive emissions reductions and increase Alberta’s resilience.

What is next

CCUS is central to Alberta’s efforts to reduce emissions. To enable more CCUS projects and help meet the growing demand for carbon storage, Alberta is issuing carbon sequestration exploration agreements through a competitive process. Proposals for 25 CCUS hubs approved in 2022 are moving to the evaluation stage. These hubs could facilitate decarbonization plans for the oil sands and for industries that include power, clean hydrogen, petrochemicals, upgrading and refining, cement, steel, fertilizer, biodiesel production and gas processing.

Alberta will investigate a framework for a voluntary credit market in Alberta for activities or sectors, including objectives that support Article 6 of the Paris Agreement and the Carbon Offsetting and Reduction Scheme for International Aviation. Alberta also intends to explore partnerships in emissions trading and market linkages with other provinces and jurisdictions, such as British Columbia, to support CCUS and liquid natural gas.

7.3 Saskatchewan

Provincial profile

Figure 7-9: Saskatchewan emissions by economic sector, 20214

Figure 7-9 (See long description below)
Long description for Figure 7-9

This graphic is a pie chart displaying the breakdown of Saskatchewan's GHG emissions in 2021 by economic sector.

Long description Figure 7-9: Saskatchewan emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Oil and Gas 25%
Agriculture 24%
Electricity 23%
Transport 14%
Heavy Industry 6%
Buildings 6%
Waste 2%
Light Manufacturing, Construction and Forest Resources 1%
Coal Production 0%

Climate plan and emissions reduction targets

Saskatchewan released its Prairie Resilience: A Made-in-Saskatchewan Climate Change Strategy in December 2017. The strategy takes a system-wide approach and includes more than 40 commitments designed to make Saskatchewan more resilient to the effects of a changing climate. 

Saskatchewan’s Methane Action Plan (2019) includes regulations to reduce GHG emissions from venting and flaring in Saskatchewan’s upstream oil and gas sector by 4.5 Mt per year by 2025.

Saskatchewan has identified the need to secure an affordable reliable power supply while continuing to reduce GHG emissions within realistic timelines. SaskPower has committed to a 50% reduction in electricity GHG emissions below 2005 levels by 2030 and increasing renewable electricity generation capacity by as much as 50% by 2030. SaskPower’s May 2023 affordability plan calls for a net-zero electrical grid by 2050, to be achieved with a combination of renewable and nuclear generation.

Highlights of recent mitigation action

Saskatchewan’s Oil and Gas Emissions Management Regulations (OGEMR) have succeeded in reducing methane emissions from the upstream oil and gas sector by 64%, or 7.0 Mt CO2 eq, from 2015 levels.

Saskatchewan has committed to maintaining an energy mix of reliable baseload power including utilizing natural gas plants until their end-of-life date, wind, solar, as well as working towards establishing small modular reactors.

Saskatchewan has strengthened and expanded its Output‑Based Performance Standards (OBPS) to include electricity generation and natural gas transmission pipeline sectors, as of January 1, 2023. Proceeds from the OPBS will flow into a technology fund which will provide funding for emissions reduction projects undertaken by regulated emitters.

Saskatchewan’s Critical Minerals Strategy aims to boost production of minerals necessary for the energy transition, helping to alleviate raw material bottlenecks and accelerate the world’s transition to sustainable energy.

The historic adoption of sustainable farming practices and increased yields by Saskatchewan’s farmers has changed the emissions and removals in agricultural soils. From 2017 to 2021, the estimated net flux of CO2 exchanged between agricultural soils and the atmosphere resulted in average net removals of 15.75 Mt of carbon, offsetting 95.7% of emissions produced by the agricultural sector.

In the spotlight: Climate resilience reporting

Saskatchewan released its Climate Resilience Measurement Framework (PDF) in November 2018 and reports annually through a climate resilience report. The framework is a collaboration among 14 ministry branches and agencies, and tracks progress on 25 measures across five key areas of focus: natural systems, physical infrastructure, economic sustainability, community preparedness and human well-being. Measures include renewable energy generation capacity, total GHG emissions from the electricity sector, emissions intensity of Saskatchewan’s economy and total GHG emissions produced in association with oil. The first resilience report was released in April 2019, presenting baselines and targets for these measures. The 2023 report continued with reporting on the status and trends for 22 of the 25 measures. Twenty measures in the 2023 report were classified as good, and two measures were classified as fair. There were no measures with a poor status.

What is next

Saskatchewan has identified nuclear power as a possible energy generation option in the province. SaskPower made its technology selection in 2022 and are now in the site selection phase, with the goal of narrowing down options for a potential site based on information collected through studies and engagement activities with communities, stakeholders and Indigenous partners. A decision on site selection will be made in 2024, with the decision on whether or not to build a small modular reactor by 2029.

Saskatchewan’s technology fund will provide financing for industrial emitters to help reduce its GHG emissions. The fund will begin accepting project proposals in September 2023, with funding decisions made in 2024.

7.4 Manitoba

Provincial profile

Figure 7-10: Manitoba emissions by economic sector, 20214

Figure 7-10 (See long description below)
Long description for Figure 7-10

This graphic is a pie chart displaying the breakdown of Manitoba's GHG emissions in 2021 by economic sector.

Long description Figure 7-10: Manitoba emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Agriculture 35%
Transport 30%
Buildings 14%
Heavy Industry 6%
Waste 6%
Light Manufacturing, Construction and Forest Resources 5%
Oil and Gas 4%
Electricity 0%

Climate plan and emissions reduction targets

Manitoba established its Made-in-Manitoba Climate and Green Plan (PDF) in 2017, which builds on four pillars: climate, jobs, water, and nature. Keystones for climate change pillar include clean energy, sector emissions reductions, and adaptation.

Manitoba’s Climate and Green Plan Implementation Act, 2018, requires the Minister of Conservation and Climate to establish GHG emissions reduction goals for the 2018 to 2022 period and for every five-year period after that. Manitoba has committed to reducing cumulative GHG emissions by 1 Mt over the 2018 to 2022 period. In 2023, Manitoba introduced its second five-year carbon savings account (CSA) target of at least 5.6 Mt for the period of 2023 to 2027. Specific climate targets will be set for 2030 and 2050.

Highlights of recent mitigation action

The Conservation and Climate Fund supports projects in Manitoba that incorporate actions to combat and adapt to climate change and protect the environment. The 2023 provincial budget committed to continue funding innovative projects that work to help protect the environment in 2023–24.

In 2022–23, Manitoba invested $8.7 million to continue supporting recycling, composting and waste diversion initiatives across the province through the Waste Reduction and Recycling Support program. This program helps divert more than 188,250 tonnes of waste from Manitoba landfills annually.

The Growing Outcomes in Watersheds program in Manitoba supports emissions reduction and sequestration. The program will help producers with the establishment of projects that improve on-farm water management, enhance sustainable agricultural production, improve biodiversity and habitat, and carbon sequestration and storage. The program helps producers and ranchers with projects such as restoring wetlands, planting windbreaks, and balancing drainage with water retention.

In the spotlight: Efficient Trucking Program

Manitoba’s Efficient Trucking Program (ETP) was launched in 2019 and supports clean technology adoption in the transportation sector by providing incentives for specific technologies and devices to improve fuel efficiency and reduce GHG emissions. Hundreds of trucks and trailers have received fuel-saving/emissions reduction retrofits, and are cost-shared by Manitoba and Canada, through the Low Carbon Economy Fund. Launched initially as a three-year program, Manitoba’s 2023 budget set out new funding to continue to build on the success of the ETP. Manitoba is also working closely with transportation stakeholders and will be advancing developments to assist in a green transition.

What is next

In the coming years, Manitoba will coordinate efforts across government to implement measures to meet net-zero targets by 2050. In addition, the province will continue to:

7.5 Ontario

Provincial profile

Figure 7-11: Ontario emissions by economic sector, 20214

Figure 7-11 (See long description below)
Long description for Figure 7-11

This graphic is a pie chart displaying the breakdown of Ontario's GHG emissions in 2021 by economic sector.

Long description Figure 7-11: Ontario emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 31%
Buildings 25%
Heavy Industry 18%
Agriculture 8%
Light Manufacturing, Construction and Forest Resources 6%
Oil and Gas 5%
Waste 4%
Electricity 2%

Climate plan and emissions reduction targets

Ontario’s climate plan, Preserving and Protecting Our Environment for Future Generations: A Made-In-Ontario Environment Plan (2018) (PDF), commits to an emissions reduction target of 30% below 2005 levels by 2030. The plan focuses on understanding the impacts of climate change; updating policies and building partnerships to improve climate resilience; implementing emission performance standards for large emitters; encouraging investments in clean technology and green infrastructure; improving energy efficiency in homes and buildings; and, increasing access to clean and affordable energy.

In April 2022, Ontario released its Ontario Emissions Scenario (PDF), which outlines the province’s approach to meeting its 2030 emissions reduction target of reducing GHG emissions 30% below 2005 levels using modelling information. Ontario’s new forecast predicts it will hit its 2030 target by reducing emissions by an additional 12 Mt (to 143.7 Mt) from current projected levels (155.7 Mt). The majority of these reductions are attributed to Ontario’s Emissions Performance Standards and gas renewable content, and supporting industrial coal phase out.

Highlights of recent mitigation action

In April 2022, the provincial government released Ontario’s Low-Carbon Hydrogen Strategy, which positions Ontario as a clean manufacturing hub that is ready to support new investments in clean steel production, electric vehicles, and the batteries that power them. The strategy includes eight specific actions to enable production and expand the low-carbon hydrogen economy. These actions are expected to help increase the amount of annual provincial production capacity of low-carbon hydrogen eight-fold and support the nascent market to meet its potential:

In September 2022, the provincial government increased funding for energy efficiency programs by $342 million, bringing total funding to more than $1 billion over the current 2021 to 2024 framework period. This increased funding also supported the launch of Peak Perks, a smart thermostat program where homeowners and small businesses may enroll and receive $75 for permitting their smart thermostat to be adjusted on peak demand days for up to three hours, up to 10 times a year. In July 2023, the provincial government launched a public and stakeholder consultation, including targeted outreach to Indigenous communities in Ontario on the scoping of future energy efficiency and conservation frameworks.

In March 2023, Ontario launched a voluntary Clean Energy Credit (CEC) registry that provides businesses with a tool to meet their environmental and sustainability goals and demonstrate that their electricity has been sourced from clean resources. Proceeds from the sale of CECs will fund the construction of clean electricity projects in Ontario through a newly created Future Clean Electricity Fund. This fund will help build Ontario’s clean energy advantage as the province competes for and attracts new investments in electric vehicle and battery manufacturing, clean steel, and other sectors. The fund will also reduce the cost of electricity for ratepayers by funding future system costs.

Other electrification and energy planning initiatives in Ontario include the launch of the Electrification and Energy Transition Panel in 2022 that will provide advice on integrated energy planning, growing energy demand, the adoption of emerging clean technologies and fuel switching in the context of growing energy demand and electrification in late 2023. The Panel’s work is supported by the province’s first study on cost-effective pathways to emissions reductions in the energy sector, which is also expected to be completed in late 2023.

In the spotlight: Powering Ontario’s Growth

In July 2023, Ontario released its Powering Ontario’s Growth plan, outlining the actions the province is taking to meet the increasing demand for electricity driven by strong economic growth and electrification through the 2030s and 2040s. This plan outlines planned actions to meet the clean energy needs for Ontario’s future, including: building the first large-scale nuclear reactor in Canada in 30 years at the Bruce Nuclear Site; expanding Ontario’s grid-scale small modular reactor program from one to four at the Darlington Nuclear Site; launching a procurement for clean energy resources such as wind, solar, biomass, hydroelectric and batteries in 2025-26 for an operational date of 2029‑30; and, identifying and planning to address transmission bottlenecks in the provincial grid, while advancing energy efficiency. The plan also sets the stage for the province’s first integrated energy plan that contemplates how the province will begin planning for the energy transition in a more holistic manner, considering the province’s needs and aligning system planning between natural gas and electricity to improve outcomes and minimize costs.

What is next

Ontario will continue to implement its Emissions Performance Standards program and finalize an approach to use the proceeds to reduce large industrial emissions while keeping businesses competitive.

Ontario has committed to a number of initiatives to transition towards clean energy, including:

In its recent budget, Ontario also committed to attracting investments that support reduced emissions in the steel sector, investing in public transportation, and further developing the province’s competitive advantage in electric vehicles and batteries through investments in facilities and operations.

7.6 Québec

Provincial profile

Figure 7-12: Québec emissions by economic sector, 20214

Figure 7-12 (See long description below)
Long description for Figure 7-12

This graphic is a pie chart displaying the breakdown of Quebec's GHG emissions in 2021 by economic sector.

Long description Figure 7-12: Québec emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 38%
Heavy Industry 23%
Buildings 12%
Agriculture 11%
Light Manufacturing, Construction and Forest Resources 7%
Waste 6%
Oil and Gas 3%
Electricity 0%

Climate plan and emissions reduction targets

In 2020, Québec released its 2030 Plan for a Green Economy. This plan provides an electrification and climate change policy framework for the province. The plan reiterated Québec’s previous commitment to achieving its emissions reduction target of 37.5% below 1990 levels by 2030. It also refers to Québec’s ambition to achieve net-zero emissions by 2050. On May 19, 2023, Québec released its third Implementation Plan, for the period from 2023 to 2028.

Other key targets included in Québec’s plan are:

Québec adopted a target of 80% to 95% below 1990 levels by 2050 as a member of the Compact of States and Regions and a signatory to the Subnational Global Climate Leadership Memorandum of Understanding.

Highlights of recent mitigation action

Mitigation measures for transportation, industry decarbonization, and buildings sectors remain Québec’s top three priorities, alongside new measures and investment across the climate portfolio.

Announced measures in the transportation sector include an increase of the target for light electric vehicles, from 1.6 million to 2 million by 2030, $82.5 million to enhance the Écocamionnage program for the electrification of heavy-duty vehicle fleets, as well as a $68 million increase in the financial assistance program for the development of active transportation in urban areas.

In the industrial sector, main investments include $175 million for the new industrial component of the Bioénergies program to finance energy conversion projects to bioenergy for large industrial emitters, $254.9 million for a new call for projects under the GHG Challenge program, and $280.3 million for various off-grid partial conversion projects and community renewable energy projects.

In the buildings sector, new investments include $214.5 million to launch a new waste heat recovery program and $129.3 million for a new commercial/institutional component of the Chauffez vert program. The province is also working on the implementation of an energy performance reporting and rating system for buildings.

Québec made adjustments to its cap-and-trade system for carbon pollution pricing to increase the stringency of the system’s free allocation approach. Adjustments included a new mechanism whereby a portion of the emission units making up the free allocation issued will be consigned, sold at auction, and the resulting proceeds set aside on behalf of the emitter to contribute to the climate transition through GHG emission reduction projects and research and development in this field.

In the spotlight: 2023–2028 Implementation Plan

With the 2023–2028 Implementation Plan, the Québec government is ramping up its investments to $9 billion, an increase of $1.4 billion above the previous implementation plan. The planned actions and budgets are estimated to lead to GHG reductions representing 60% of the work required to reach the 2030 target, as opposed to 51% of the work needed when the 2022–2027 Implementation Plan was launched. The plan also sets out measures currently in development to further boost progress in a range from 69% to 73%.

What is next

Québec has announced the intention to formalize its net zero by 2050 target through the process provided for under Québec’s Environment Quality Act.

Québec’s most recent implementation plan identifies a series of planned initiatives to support an accelerated climate transition, including a number of significant investments in early-stage technology such as bioenergy and low-carbon hydrogen, breakthrough technologies related to aluminum production, and carbon capture, utilization and sequestration. Québec’s climate planning approach also supports the regular review and adjustment of the implementation plan, including modifying actions in progress, enhancing financing, and adding new activities.

7.7 New Brunswick

Provincial profile

Figure 7-13: New Brunswick emissions by economic sector, 20214

Figure 7-13 (See long description below)
Long description for Figure 7-13

This graphic is a pie chart displaying the breakdown of New Brunswick’s GHG emissions in 2021 by economic sector.

Long description Figure 7-13: New Brunswick emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Oil and Gas 26%
Transport 26%
Electricity 24%
Buildings 8%
Heavy Industry 5%
Agriculture 4%
Waste 4%
Light Manufacturing, Construction and Forest Resources 4%

Climate plan and emissions reduction targets

In September 2022, New Brunswick released its 2022–2027 Climate Change Action Plan: Our Pathway Towards Decarbonization and Climate Resilience (PDF).

New Brunswick’s emissions reduction targets were brought into law in 2018 by the Climate Change Act:

In its 2022–2027 Climate Change Action Plan, New Brunswick committed to achieving net-zero emissions by 2050.

Highlights of recent mitigation action

New Brunswick’s 2022–2027 Climate Change Action Plan includes 30 new actions across three pillars: government leadership and accountability, reducing greenhouse gas emissions and preparing for climate change. The plan builds upon progress made in implementing New Brunswick’s 2017–2022 Climate Change Action Plan: Transitioning to a Low-Carbon Economy—as of July 2022, 76% of the plan’s actions were considered complete. New Brunswick released its first progress report on the implementation of the 2022–2027 climate plan in fall 2023.

In November 2022, the Government of New Brunswick and NB Power announced a total investment of $70 million to launch the Enhanced Energy Savings Program. The program helps lower- and middle‑income homeowners transition away from electric baseboards and home heating oil by offering free heat pumps and upgraded insulation.

New Brunswick introduced the Plug-In NB Electric Vehicle Rebate Program in July 2021. The program provides rebates of up to $5,000 towards the purchase of electric vehicles and up to $750 towards the installation of charging stations. Registrations of fully electric vehicles in New Brunswick more than doubled from 2021 to 2022. The province is also investing $10.6 million in projects to decarbonize the Transport Sector through the Climate Change Fund in 2023–24.

New Brunswick continues to implement a provincial output‑based pricing system (OBPS) for large industrial emitters; adjustments to its OBPS came into effect on January 1, 2023, to align with federal requirements for all carbon pollution pricing systems.

In November 2022, an amendment to the New Brunswick Electricity Act came into effect that includes electricity efficiency targets, dedicated funding under the Energy Efficiency Fund, and specific reporting requirements for NB Power.

In 2023–24, New Brunswick’s Environmental Trust Fund invested over $2 million into projects that address climate change mitigation, adaptation, and education. The fund provides support to community-based initiatives that align with the following priority areas: protecting the environment, increasing environmental awareness, managing waste, addressing climate change, and building sustainable communities.

In August 2023, NB Power released its 2023 Integrated Resource Plan (IRP): Pathways to a Net-Zero Electricity System. The IRP represents the long-term plan for New Brunswick’s energy supply and demand, showing 16 different pathways for achieving a net-zero electricity system by 2035.

In the spotlight: New Brunswick’s Climate Change Fund

The Climate Change Fund was established under New Brunswick’s Climate Change Act in 2018. Projects from across all sectors of the economy are awarded funding to help reduce GHG emissions, increase resilience to the impacts of climate change, and foster educational opportunities for the province’s young people. Recent projects have included energy efficiency retrofits, climate-smart agriculture, and greening government fleets. Seventy-three projects have been approved (PDF)for the fiscal year 2023–24 with committed funding of $47 million.

What is next

An extensive list of actions is available in the 2022–2027 Climate Change Action Plan. Some examples include:

7.8 Nova Scotia

Provincial profile

Figure 7-14: Nova Scotia emissions by economic sector, 20214

Figure 7-14 (See long description below)
Long description for Figure 7-14

This graphic is a pie chart displaying the breakdown of Nova Scotia's GHG emissions in 2021 by economic sector.

Long description Figure 7-14: Nova Scotia emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Electricity 42%
Transport 34%
Buildings 13%
Agriculture 3%
Waste 3%
Light Manufacturing, Construction and Forest Resources 3%
Heavy Industry 2%
Coal Production 0%
Oil and Gas 0%

Climate plan and emissions reduction targets

In November 2021, Nova Scotia passed the Environmental Goals and Climate Change Reduction Act, committing to reduce GHG emissions to at least 53% below 2005 levels by 2030, and to achieve net-zero emissions by 2050. The Act outlines a number of other goals related to climate-change mitigation and emissions reduction, including to have 80% of electricity in the province supplied by renewable energy by 2030, to phase out coal-fired electricity generation by 2030, and to decrease GHG emissions across government-owned buildings by 75% by 2035.

Nova Scotia’s climate plan, Our Climate, Our Future: Nova Scotia’s Climate Change Plan for Clean Growth (PDF), released in December 2022, also includes a new pledge to achieve a 90% reduction in GHG emissions from the electricity sector by 2035 and reduce home heating oil use by at least 20% by 2030.

Highlights of recent mitigation action

The 2021 Environmental Goals and Climate Change Reduction Act legislated 28 goals to achieve sustainable prosperity in Nova Scotia. In July 2023, Nova Scotia released its first annual progress report on the implementation of the Environmental Goals and Climate Change Reduction Act and the Our Climate, Our Future climate change plan, highlighting progress toward the province’s goals.

Since the introduction of the Environmental Goals and Climate Change Reduction Act, Nova Scotia has invested more than $223 million to move forward on the legislated goals and actions within Nova Scotia’s climate change plan, including:

In March 2023, the Governments of Canada and Nova Scotia launched the Regional Assessment of Offshore Wind Development in Nova Scotia. The Committee will engage Indigenous partners, federal and provincial authorities, non-government organizations and the public.

In the spotlight: $140 million for off-heating oil programming

In 2022, Nova Scotia invested $140 million in two programs to help low- and middle-income Nova Scotians move away from home heating oil faster. Low-income households can now apply to the HomeWarming program for free heat pumps and any electrical panel upgrades needed to install them. Households that have already received energy efficiency upgrades through this program can apply again for this new support. All Nova Scotians can receive support for a variety of energy efficiency upgrades through the Home Energy Assessment program. It is the first step to accessing rebates or loans through the Canada Greener Homes Initiative. The new funding will provide extra support for middle-income households to get rebates when they install energy efficient heating systems and other upgrades that reduce their reliance on heating oil. When combined with federal investments from the Low Carbon Economy Fund and the Canada Greener Homes Initiative, these provincial programs will help about 13,500 low-income households and about 30,000 middle-income households reduce their greenhouse gas emissions and energy bills.

What is next

Nova Scotia has appointed a panel with a broad range of expertise—Mi’kmaw and African Nova Scotian history, law, environmental racism, policy and community engagement, and health and environmental sciences—to lead work on its legislated commitment to address environmental racism. Their work will support the government’s commitment to ensure every person in the province has equitable access to a healthy, safe and sustainable environment, as well as equal protection from environmental harm and the impacts of climate change.

Nova Scotia established a provincial output‑based pricing system for industrial emitters that replaced its cap-and-trade system, effective January 1, 2023. The cap-and-trade program will officially be wound down by the end of 2023.

A new protected areas strategy will be released by the end of 2023. This will help to meet the goal to protect at least 20% of Nova Scotia’s total land and water mass by 2030 and minimize climate impacts by protecting natural areas.

To support more communities in reducing their GHG emissions, Nova Scotia is: developing a new community solar program; providing more support to communities to increase their capacity to plan and implement GHG mitigation projects; and developing programs to expand access to net-zero emissions housing, including affordable housing.

Work is ongoing to support the modernization of the environmental assessment process in Nova Scotia to ensure that new industrial projects are aligned with the province’s vision for sustainable prosperity, which includes plans for supporting emissions reduction targets.

7.9 Prince Edward Island

Provincial profile

Figure 7-15: Prince Edward Island emissions by economic sector, 20214

Figure 7-15 (See long description below)
Long description for Figure 7-15

This graphic is a pie chart displaying the breakdown of Prince Edward Island's GHG emissions in 2021 by economic sector.

Long description Figure 7-15: Prince Edward Island emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 41%
Agriculture 24%
Buildings 18%
Light Manufacturing, Construction and Forest Resources 11%
Waste 6%
Heavy Industry 1%
Electricity 0%
Oil and Gas 0%

Climate plan and emissions reduction targets

On December 2, 2020, Prince Edward Island passed the Net Zero Carbon Act (PDF). The Act sets out emissions targets for 2030 and 2040:

The Act requires yearly reporting (PDF) on the province’s GHG emissions, climate change risks, and progress made towards targets.

In February 2022, Prince Edward Island released its 2040 Net Zero Framework. This economy‑wide framework provides a roadmap to reach Prince Edward Island’s 2040 net-zero target while contributing to national targets and priorities. The framework focuses on six pillars: transportation; buildings; agriculture; carbon sequestration; clean industry and waste; and leadership and engagement. Each pillar has a sector-based target for 2030 and 2040 and is supported by specific goals and priorities.

Highlights of recent mitigation action

Prince Edward Island has introduced initiatives across all sectors to help achieve its net-zero target. In the Buildings Sector, electrification and efficiency programs are seeing significant emissions reductions despite housing starts and population growth. Since 2019, over 2,000 residential solar rebate applications have been approved, representing over $75 million in installation costs.

Prince Edward Island is actively supporting the decarbonization of its Transport Sector. Introduced in 2021, the Universal Electric Vehicle Incentive provides rebates of up to $5,000 to Islanders who purchase new or used battery electric vehicles or up to $2,500 for plug-in hybrid vehicles, as well as $750 towards charging costs. The 2023–24 Capital Budget also included $3.5 million to install 16 new fast charging stations across the Island. Also, 25% of the island’s school bus fleet is now electric.

Increasing carbon sequestration is a pillar of Prince Edward Island’s 2040 Net Zero Framework. The province has committed to increasing its tree production by 30% to 1.3 million trees a year. In June 2023, Prince Edward Island announced $1 million in provincial funding through the 2 Billion Trees program to expand the J. Frank Gaudet Tree Nursery and work with community partners and landowners on tree planting.

In the spotlight: Income qualified programs

Prince Edward Island has developed a suite of free programs focusing on electrification and efficiency for income-qualified island residents to address climate action and energy poverty. These programs include free heat pumps, free insulation, and free electric hot water heaters. Since the programs’ inception in 2021, over 7,000 free heat pumps have been installed with a further 7,000 predicted by the end of the 2023–24 fiscal year.

What is next

Prince Edward Island released its Building Resilience Climate Adaptation Plan in late 2022. The plan provides a concrete roadmap for the province to better prepare for the future while lessening climate change’s impacts on Island residents. Building resilience while achieving net zero—meaning adopting strategies that can reduce GHG emissions and Prince Edward Island’s vulnerability to climate change at the same time—is a key aspect of the plan.

In its 2040 Net Zero Framework, Prince Edward Island committed to developing and implementing consecutive five-year action plans that will include specific actions and initiatives to achieve its ambitious targets. Some of the planned actions that are highlighted in the framework include:

7.10 Newfoundland and Labrador

Provincial profile

Figure 7-16: Newfoundland and Labrador emissions by economic sector, 20214

Figure 7-16 (See long description below)
Long description for Figure 7-16

This graphic is a pie chart displaying the breakdown of Newfoundland and Labrador's GHG emissions in 2021 by economic sector.

Long description Figure 7-16: Newfoundland and Labrador emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 42%
Oil and Gas 17%
Heavy Industry 13%
Buildings 9%
Electricity 8%
Waste 7%
Light Manufacturing, Construction and Forest Resources 4%
Agriculture 1%

Climate plan and emissions reduction targets

Newfoundland and Labrador is implementing its 2019 to 2024 climate plan, The Way Forward on Climate Change (PDF), including a provincial emissions reduction target of 30% below 2005 levels by 2030. The plan contains 45 commitments requiring action in every sector of the economy. As of December 2021, 30 of the 45 commitments were completed. A new plan is being developed for the 2025 to 2030 period.

On June 5, 2020, Newfoundland and Labrador committed to achieving net-zero GHG emissions by 2050. The province appointed a Net Zero Advisory Council in 2021. The Council is to provide advice on foundational actions to achieve net zero by 2050.

Highlights of recent mitigation action

Several new investments were announced in Newfoundland and Labrador’s 2023 Budget:

Total expenditures for GHG reduction initiatives between 2023–24 and 2026–27 are currently projected at over $160 million.

Effective January 1, 2023, amendments to Newfoundland and Labrador’s Management of Greenhouse Regulations were implemented to adjust its output‑based pricing system for large industrial emitters to align with federal requirements for putting an effective price on carbon pollution. System-wide GHG reduction targets have been achieved in each year of implementation to date (2019 to 2022).

In March 2023, the federal and provincial governments launched a Regional Assessment of Offshore Wind Development. The assessment will inform future federal impact assessments and decisions for offshore wind projects. In May 2023, the federal government introduced amendments to the federal Atlantic Accord Implementation Act to establish a new regulatory regime for renewable energy projects in the offshore area. This includes the exploitation, storage, transmission, and related research and assessment of renewable resources. Parallel provincial legislation will be tabled in the near term.

In June 2023, the federal government invested up to $86 million from its Clean Fuels Fund and Strategic Innovation Fund to finalize the transition of the North Atlantic Refinery to a new renewable diesel and low-carbon aviation fuel facility from used plant-based oils and animal fats.

In August 2023, the provincial government approved four bidders to proceed to the regulatory process for future onshore wind developments. A fifth developer is proceeding with a project on private land. This follows the 2022 removal of a moratorium on wind development and an increase in wind power for the province’s first hydrogen energy developments.

In October 2023, the province announced a new $6 million Carbon Capture, Utilization Storage Innovation Challenge. Total expenditures are projected to be at least $12 million. The application process is ongoing.

In the spotlight: Newfoundland and Labrador’s New Green Transition Fund

The Green Transition Fund will provide support to projects for businesses, organizations, post‑secondary institutions and industry associations, as well as other collaborative efforts to assist with the province’s transition to a green economy. As part of the restructuring of its agreement with the Provincial Government in May 2022 to restart the West White Rose project, project partners committed $100 million to establish a Green Transition Fund. The annual payment begins at $6 million in 2023 and increases to $12 million in 2033 and 2034. Contributions may be used to support continued, expanded or new operations in the province that have a special focus on raising awareness, conducting commercial research and development, developing new markets, and other initiatives supporting the green economy.

What is next

Newfoundland and Labrador is working on implementing the actions funded through its most recent budget, including those funded through cost-shared agreements with ECCC and NRCan.

7.11 Yukon

Territorial profile

Figure 7-17: Yukon emissions by economic sector, 20214

Figure 7-17 (See long description below)
Long description for Figure 7-17

This graphic is a pie chart displaying the breakdown of Yukon's GHG emissions in 2021 by economic sector.

Long description Figure 7-17: Yukon emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 55%
Heavy Industry 21%
Electricity 7%
Buildings 7%
Waste 5%
Light Manufacturing, Construction and Forest Resources 5%
Agriculture 1%
Oil and Gas 0%

Climate plan and emissions reduction targets

Building on Our Clean Future: A Yukon strategy for climate change, energy and a green economy (2020), Yukon’s Clean Energy Act (PDF) passed in November 2022, with emissions reduction targets of net zero by 2050, and 45% emissions reduction below 2010 levels by 2030, not including mining sector emissions.

Other targets include: 93% of on-grid electricity coming from renewable sources by 2030, with an aspirational target of 97%; reducing diesel use for off-grid electricity generation by 30% below 2010 levels by 2030; providing 50% of heating needs with renewable energy by 2030; reducing road transportation emissions by 30% below 2010 levels by 2030; and, reducing emissions from Government of Yukon buildings by 30% below 2010 levels by 2030.

The Government of Yukon is working to revise the Clean Energy Act to include a mining intensity target of a 45% reduction in emissions by 2035.

Highlights of recent mitigation action

In its 2023-24 Budget, tabled on March 2, 2023, the Government of Yukon prioritized investments to make life more affordable, strengthen Yukon’s health and social systems, move forward on reconciliation, grow a strong economy, and build a green future. Yukon earmarked nearly $60 million for climate change initiatives in 2023-24, including:

$36.5 million has been allocated for the construction of energy projects, including wind, solar, and grid-scale battery storage in both on-grid and off-grid communities through the Arctic Energy Fund. The Government of Yukon has allocated $50 million to support the Atlin Hydroelectric Expansion Project, a run-of-river project that would provide reliable winter capacity reducing the need for four rental diesel generators.

Yukon has adopted the federal carbon pollution pricing system, implementing a carbon pollution price of $20 per tonne starting on July 1, 2019. On April 1, 2023, the federal price on carbon pollution increased to $65 per tonne and will rise by $15 per tonne on April 1 of each year until it reaches $170 in 2030. Yukon has put in place a carbon rebate program which returns all revenue generated from the federal carbon levy to Yukoner individuals, businesses, First Nations governments, municipal governments, and licensed placer- and quartz-mining operations.

In the spotlight: Haeckel Hill Wind Project

Our Clean Future, Yukon committed to setting a minimum regulatory requirement for the Yukon Energy Corporation (YEC) to generate an average of at least 93% of electricity from renewable sources on the main grid, with an ideal of reaching 97%. YEC’s ten-year renewable electricity plan proposes key projects and partnerships needed by 2030 to address the policies and actions contained in Our Clean Future. Among these is sourcing renewable electricity from the Haeckel Hill wind project, which will see four one-megawatt wind turbines begin producing electricity in the fall of 2023. This is enough to power 650 Yukon homes. The project is owned and operated by Eagle Hill Energy Limited Partnership, a wholly owned subsidiary of the Chu Niikwan Limited partnership, the business arm of the Kwanlin Dün First Nation. The federal government is providing approximately $26 million for the wind project—$8 million through Clean Energy for Rural and Remote Communities, approximately $13 million through the Arctic Energy Fund, and close to $5 million through the Canadian Northern Economic Development Agency. The Yukon Development Corporation is providing $485,000. The Eagle Hill Energy Limited Partnership is contributing over $2 million.

What is next

Under Our Clean Future, Yukon has committed to reduce the lifecycle carbon intensity of transportation fuels, which account for half of the territory’s GHG emissions. Near-term priorities include preparing industry for the distribution and use of renewable fuels; the longer-term goal is to shift to zero-emissions transportation.

Yukon has identified several emission-reducing technologies for further research and to determine which would be most applicable for the territory. These include options for electrifying medium- and heavy-duty vehicles, small modular reactors, hydrogen technologies, and technology to increase renewable energy supply.

Yukon is committed to continuing to work with Indigenous governments to plan, develop, and permit renewable energy projects. In the fall of 2023, the Government of Yukon will participate in a series of energy conferences hosted by the Council of Yukon First Nations and is working towards the development of a framework for Indigenous participation in the renewable energy economy.

7.12 Northwest Territories

Territorial profile

Figure 7-18: Northwest Territories emissions by economic sector, 20214

Figure 7-18 (See long description below)
Long description for Figure 7-18

This graphic is a pie chart displaying the breakdown of the Northwest Territories' GHG emissions in 2021 by economic sector.

Long description Figure 7-18: Northwest Territories emissions by economic sector, 2021
Economic sector Percentage of total GHG emissions
Transport 47%
Heavy Industry 29%
Buildings 10%
Not specified 7%
Oil and Gas 5%
Waste 3%
Light Manufacturing and Forest Resources 0%

Note: Data on emissions from Electricity and Construction were suppressed in the NIR to respect confidentiality.

Climate plan and emissions reduction targets

On May 1, 2018, the Government of the Northwest Territories (GNWT) released the Climate Change Strategic Framework. The framework provides the Northwest Territories’ overarching goal to reduce GHG emissions by 30% below 2005 levels by 2030. This goal is primarily addressed through the 2030 Energy Strategy (PDF).

Four of the 2030 Energy Strategy’s six strategic objectives also act as sectoral targets:

As of 2021, the Northwest Territories has reduced its GHG emissions by 25% since 2005, with the coronavirus pandemic and a slowdown of resource development activity being the main factors driving emissions down in recent years. Based on recent modeling commissioned by the territory, and conducted by Navius Research, the Northwest Territories is on track to achieve its target of reducing emissions by 30% below 2005 levels by 2030. An anticipated reduction in mining activity in the late 2020s is one factor that will contribute to the realization of this target.

Highlights of recent mitigation action

Since the launch of the Climate Change Strategic Framework and 2030 Energy Strategy, the GNWT and its partners have invested approximately $165 million in actions and initiatives to improve energy systems, stabilize energy costs, and reduce territorial GHG emissions.

Programs and services from the Arctic Energy Alliance are central to achieving the Northwest Territories’ GHG emissions reductions targets by providing rebates and incentives to help residents improve energy efficiency in buildings, adopt electric vehicles, and support communities’ energy planning efforts. During the 2022-23 fiscal year, 2,656 rebates and incentives provided through the Arctic Energy Alliance resulted in the reduction of 1.1 kilotonnes of CO2 eq and 1,400 megawatt-hours of electricity use in the Northwest Territories. The GNWT is also administering the GHG Grant Program to support community governments, businesses, and organizations to develop larger projects that reduce energy costs and GHG emissions. Many of these projects consist of switching from fossil fuel heating to biomass and reducing energy costs while decreasing GHG emissions from the Northwest Territories’ building stock. The GNWT’s Capital Asset Retrofit Fund has been leading the way in deploying biomass heat in government buildings since 2007, reducing GHG emissions by 16.2 kilotonnes of CO2 eq and decreasing costs by $4.1 million in 2021-22.

In the spotlight: Inuvik Wind Project

With up to $30 million committed by the federal government under the Investing in Canada Infrastructure Program, GNWT is building a 3.5-megawatt wind turbine associated with a battery storage system in Inuvik. A key initiative under the 2030 Energy Strategy, the Inuvik Wind Project is expected to reduce diesel consumption in Northwest Territories’ largest off-grid community by approximately 30% or 3 million litres of diesel per year. When commissioned, this project is expected to lower the cost of electricity in the community, and is estimated to reduce GHG emissions by 6,000 tonnes of COeq.

What is next

Beyond 2030, recent modeling shows that the Northwest Territories’ emissions are sensitive to future developments in the mining sector. Emissions are expected to decrease very slowly without significant capital investments. These investments are needed in the Northwest Territories’ energy system, the transportation system, and community buildings and housing. These investments could cost several billion dollars according to GNWT estimates. However, these investments will also enable new economic opportunities and help grow and diversify a Northwest Territories economy powered by clean energy. A new generation of mines focused on critical minerals could also help with Canada’s transition to net‑zero emissions in the future.

The GNWT is advancing several projects to decrease diesel dependency in remote communities in years to come. These include extending hydroelectricity transmission lines to the communities of Fort Providence, Kakisa, and Whatì. The GNWT also plans to develop a network of fast-charging stations for electric vehicles in its hydro communities, including a corridor to connect these communities to Alberta.

In 2023, the GNWT initiated the five‑year review of the Climate Change Strategic Framework and 2030 Energy Strategy to hear from partners, stakeholders, Indigenous governments, and the public on the Northwest Territories’ energy future. The discussion was supported by the findings of a study looking at the technological requirements and economic implications of achieving more ambitious climate targets, including a net‑zero target by 2050.

In the longer term, the Taltson Hydro Expansion Project aims to increase the Northwest Territories’ hydro resources, connect the territory’s two hydro grids, and provide clean power to develop the resource extraction industry—thus supporting a low-carbon economy in the Northwest Territories.

Central to climate action in the Northwest Territories is the work of the Northwest Territories Climate Change Council and the Northwest Territories Climate Youth Advisory Group. The Council provides a forum for sharing information, collaboration, and engagement between non-elected staff of Indigenous governments and Indigenous organizations, representatives of Northwest Territories communities, and the GNWT, with input from external partners. The Youth Advisory Group was initiated in 2023, as an initial priority of the Northwest Territories Climate Change Council, reflecting the importance they place on youth perspectives to inform decision-making.

7.13 Nunavut

Territorial profile

Figure 7-19: Nunavut emissions by economic sector, 20214

Figure 7-19 (See long description below)
Long description for Figure 7-19

This graphic is a pie chart displaying the breakdown of Nunavut's GHG emissions in 2021 by economic sector.

Long description Figure 7-19: Nunavut emissions by economic sector, 2021
Note: Data on emissions from Electricity and Construction were suppressed in the NIR to respect confidentiality.
Economic sector Percentage of total GHG emissions
Transport 55%
Not specified 25%
Heavy Industry 13%
Waste 5%
Buildings 2%
Light Manufacturing 0%

Climate plan and emissions reduction targets

Nunavut’s climate change plan, Upagiaqtavut: Setting the Course – Climate Change Impacts and Adaptation in Nunavut, was released in 2011 with an emphasis on adaptation. Upagiaqtavut prioritizes government action in four areas:

Nunavut has undertaken efforts to improve the energy efficiency of its government and government-funded buildings. With federal support, it is also championing the development of clean energy projects, such as the Kivalliq Hydro-Fibre Link between Manitoba and south-eastern Nunavut, and community solar energy projects, to cut reliance on diesel to generate electricity.

Highlights of recent mitigation action

Nunavut’s 2023-24 Budget included a number of climate-specific budget items. The budget included proposed amendments to the Income Tax Act to introduce a new refundable tax credit that will use carbon tax dollars to provide a direct cash payment to Nunavummiut every three months to help offset higher fuel costs. The Nunavut Carbon Credit will replace the Nunavut Carbon Rebate program. Also planned for 2023 is a one-time Homeowner Fuel Rebate, to help Nunavut homeowners manage higher heating costs. Nunavut also committed to continue investing in programs such as the Renewable Energy Homeowners Grant Program and to work with builders to develop energy-efficient housing plans and designs.

Nunavut is administering two renewable energy support programs, the Renewable Energy Homeowners Grant Program and the Renewable Energy Cabin Grant Program, to assist owners to install renewable energy systems at their homes or cabins. Nunavut is also partnering with Qulliq Energy Corporation and Nunavut Housing Corporation to deliver an energy conservation awareness campaign.

In the spotlight: Renewable Energy by the Qulliq Energy Corporation

Nunavut’s Qulliq Energy Corporation (QEC) has introduced a slate of policies and programs to support the development of renewable energy in the territory, reduce its dependency on diesel fuel, and cut GHG emissions. QEC’s Net Metering Program allows residential customers with their own renewable energy-generating systems to integrate surplus power into the corporation’s grid in return for energy credits. The Commercial Institutional Power Producer program works with existing commercial and institutional customers to enable them to sell electricity to QEC from larger renewable energy installations such as solar panels on arenas, schools, or businesses. QEC is also developing an Independent Power Producer program, which will allow independent producers to sell electricity from larger renewable energy projects like wind farms and larger solar panel installations.

What is next

Nunavut is implementing a government-wide climate change risk and resiliency assessment to advance the understanding of the short- and long-term risks associated with climate change in Nunavut and enable the territorial government to prioritize and compare climate risks for resiliency planning.

An important priority for Nunavut is to increase membership in the Nunavut Youth Climate Change Committee and support youth voices on climate change. The committee aims to provide a youth perspective and input to Nunavut climate change programs, policies, and activities, and give youth an opportunity to become engaged climate change leaders.

References

Chapter 5

1 Environment and Climate Change Canada. 2023. National Inventory Report 1990-2021: Greenhouse Gas Sources and Sinks in Canada. Ottawa.

2 Environment and Climate Change Canada. 2023. Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2023. Ottawa.

Chapter 7

1 Statistics Canada. Table 17-10-0009-01 Population estimates, quarterly. Released September 29, 2023.

2 Statistics Canada. 2023. (table). Census Profile. 2021 Census of Population. Statistics Canada Catalogue no. 98-316-X2021001. Ottawa. Released March 29, 2023.

3 Statistics Canada. Table 36-10-0402-01 Gross domestic product (GDP) at basic prices, by industry, provinces and territories, chained (2017) dollars (x 1,000,000). Released November 8, 2023.; Statistics Canada. Table 36-10-0400-01 Gross domestic product (GDP) at basic prices, by industry, provinces and territories, percentage share. Released November 8, 2023.

4 Environment and Climate Change Canada. 2023. National Inventory Report 1990-2021: Greenhouse Gas Sources and Sinks in Canada. Ottawa.

5 Natural Resources Canada. 2023. (pdf). Energy Fact Book 2023-2024. Ottawa. 62-63.

6 Canada Energy Regulator. 2023. (webpage). Provincial and Territorial Energy Profiles. Updated August 23, 2023.

Page details

Date modified: