Yes. Canada’s current NDC is that it intends to achieve an economy-wide target to reduce its greenhouse gas emissions by 30% below 2005 levels by 2030.

On April 22, 2021, during the Leaders Summit on Climate organized in the lead-up to COP26 to be held in Glasgow in November 2021, Canada announced that it would enhance its NDC by 40-45% below 2005 levels, by 2030.

Key national policy instruments include the Vancouver Declaration on Clean Growth and Climate Change, the Pan-Canadian Framework on Clean Growth and Climate Change (Pan-Canadian Framework), the Federal Adaptation Policy Framework, and the Government of Canada’s Clean Fuel Standard, a regulatory framework to be phased in over the next several years that will address all fossil fuels used in Canada. 

In December 2020, Canada announced its strengthened climate plan ‘A Healthy Environment and a Healthy Economy (Strengthened Climate Plan) which builds on the Pan-Canadian Framework and is aimed at exceeding Canada’s 2030 Paris Agreement emissions reduction target and establishing the roadmap to net-zero by 2050. The new climate plan remains at a high level for the time being, but its cornerstone is to increase the price of carbon to C$170 per tonne by 2030 (set at $40 in 2021).

Yes. The Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations made under the Canadian Environmental Protection Act, 1999 (CEPA) imposes a limit of 420 tonnes of CO2 for each gigawatt-hour of electricity produced from coal per year. Further to recent amendments to these regulations, all new and existing coal-fired electricity units must comply with this performance standard after the earlier of 50 years of operation or by 2030 as a way of phasing out conventional coal.

In addition to this, the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity under CEPA establish a regime for limiting CO2 emissions resulting from the generation of electricity by means of thermal energy from the combustion of natural gas.

It should be noted that certain provinces have also undertaken significant measures.  For example, Ontario and Manitoba have retired all coal-fired power plants.

Canadian national climate change legislation includes the Canadian Environmental Protection Act, 1999 and regulations, the Energy Efficiency Act and regulations, and the Greenhouse Gas Pollution Pricing Act.

In November 2020, the federal government introduced Bill C-12, the Canadian Net-Zero Emissions Accountability Act, which proposes to legally bind the government to achieve net-zero emissions by 2050, establish a series of interim emissions reduction targets at 5-year milestones toward that goal and require the Minister of Finance to report annually on key measures that the federal government has taken to manage climate-related financial risks and opportunities.

Participation in cap-and-trade programs varies across the Canadian provinces. The province of Quebec is engaged in a cap-and-trade program with the State of California under the Western Climate Initiative (WCI) framework. The province of Nova Scotia has also adopted a cap-and-trade system that permits trading within the province only. At the federal level, the Output-Based Pricing System implemented pursuant to the Greenhouse Gas Pollution Pricing Act and which applies in Canadian provinces which are not considered to have equivalent sufficient stringer systems in place, includes a trading component for surplus credit.

Pursuant to the Pan-Canadian Framework and the Greenhouse Gas Pollution Pricing Act, which fix benchmarks on carbon pollution pricing, the provinces were granted the flexibility to adopt their own policies to meet emissions-reducing targets, either through the imposition of carbon pricing or a cap-and-trade system, as long as they meet the minimum federal pricing and emissions reduction targets. Provinces that did not implement a carbon tax or cap-and-trade system, or that did not meet the federal pricing and emissions reduction minimums, were subject to a federal government fuel charge ‘backstop’ system implemented pursuant to the Greenhouse Gas Pollution Pricing Act.

This legislation was challenged by several provinces in the Courts on the basis that it represented an unconstitutional federal incursion into provincial jurisdiction and was upheld by the Supreme Court of Canada in March 2021.

British Columbia, the Northwest Territories, Nova Scotia, Prince Edward Island and Newfoundland have their own version of the fuel charge and Québec has implemented a cap-and-trade program as an alternative. The federal fuel charge applies in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick Nunavut and Yukon.

There is no national legislative scheme in Canada that regulates or subsidizes CCS, although temporary exemptions from the coal-fired electricity generation performance standard described above may be granted to units that function as CCS systems under the Regulations Amending the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations.

The development of a comprehensive carbon capture, use and storage strategy is identified as a proposed measure in the federal government’s Strengthened Climate Plan.

The regulation of CCS occurs at the provincial level. The province of Alberta, for example, has its own Carbon Capture and Storage Funding Act regulations.

Canada’s Emerging Renewable Power Program provides up to $200 million in investments in emerging technologies to expand commercially viable renewable energy resources available to provinces and territories working to reduce GHG emissions from their electricity sectors. Through this program, the federal government has provided support for solar, geothermal, and marine renewable energy projects.

The Canada Infrastructure Bank has committed to invest $2.5 billion in clean power projects over the next 3 years.

The Pan-Canadian Framework and Build Smart: Canada’s Building Strategy set out the shared goals of both levels of government in Canada regarding energy efficiency in the building sector. These include the implementation of increasingly stringent model building codes and the adoption of ‘net-zero energy ready’ (or entirely energy efficient) model building codes by 2030. The government of Canada is supporting the research, development, and demonstrations of net-zero energy-ready technologies and practices to reduce the cost of high-performance buildings.

While the Canadian provinces have jurisdiction over building codes, the National Building Code of Canada and the National Energy Code of Canada for Buildings serve as model building codes which the provinces may adapt or adopt in full. These model codes include energy-efficiency performance requirements for single-family homes and small buildings, and high-rise towers and warehouses. Canadian provinces and territories have introduced various initiatives to make buildings more energy-efficient, including modifications to their building codes.

Canada’s Strengthened Climate Plan includes several initiatives and investments relating to energy efficiency in the building sector, including grants to help homeowners to improve energy efficiency in their homes and investments for green and inclusive community buildings.

Federal regulations impose increasingly stringent emissions standards on new heavy-duty and light (i.e. passenger) vehicles.

On December 19, 2020, the federal government published the proposed Clean Fuel Regulations to implement the Clean Fuel Standard, which would require liquid fossil fuel suppliers to gradually reduce the carbon intensity of the fuels used in Canada over time, which represents a decrease of approximately 13% in carbon intensity below 2016 levels. The Regulations also establish a credit market to give suppliers flexibility in meeting their annual reduction requirements. A final version of the proposed Regulations is expected to be published in late 2021.

The Strengthened Climate Plan includes an investment of $1.5 billion in a Low-carbon and Zero-emissions Fuels Fund to increase the production and use of low-carbon fuels (e.g., hydrogen, biocrude, renewable natural gas and diesel, cellulosic ethanol).

In accordance with the strategy for reducing transportation emissions set out in the Pan-Canadian Framework, the federal government has established its Zero-Emission Vehicle Infrastructure Program. Through this program, the government is devoting $130 million over five years (2019-2024) to deploy a network of zero-emission vehicle charging and refueling stations in localized areas. It will also support projects for electric vehicle and/or hydrogen infrastructure for corporate fleets, last-mile delivery fleets, and mass transit.

In addition, through its Electric Vehicle and Alternative Fuel Infrastructure Initiative, the federal government is investing $96.4 million in repayable contributions to support the construction of a coast-to-coast electric vehicle fast-charging network, natural gas stations along key freight corridors, and stations for hydrogen fuel cell electric vehicles in metropolitan centers. Several million dollars are also available to support next-generation charging technologies and the development of binational codes and standards for low-carbon vehicles and infrastructure in collaboration with the United States.

Measures are also in place at the provincial level to encourage the electrification of the transportation sector.

Under the Output-Based Pricing System component of the federal carbon pricing system imposed under the Greenhouse Gas Pollution Pricing Act and its provincial equivalents, large industrial emitters which are subject to the system are required to pay a carbon price if the emissions at their facilities exceed a set level. 

Pursuant to the Pan-Canadian Framework, the federal government has committed to reducing methane emissions by 40-45% by 2025. It has introduced new regulations under CEPA, the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector), which are set to come into force in stages on January 1, 2020, and in 2023.

Canada’s Strengthened Climate Plan includes significant funds and initiatives to support the decarbonization of the industrial sector, including the Strategic Innovation Fund - Net Zero Accelerator with funding of $3 billion over five years to rapidly expedite decarbonization projects with large emitters, scale-up clean technology and accelerate Canada’s industrial transformation across all sectors. The $750 million Emissions Reduction Fund provides repayable funding to eligible onshore and offshore oil and gas companies to help accelerate the reduction in methane emissions, with up to 50 percent loan forgiveness if companies achieve certain emission reductions. The government will also set new targets for reducing methane emissions by 2030 and 2035 and phase out certain fossil fuel subsidies by 2025.

Pursuant to the Pan-Canadian Framework, the federal government is working with the provinces, territories, and landowners to support efforts to enhance carbon stored in Canadian forests, wetlands, and agricultural soils. The Government of Canada has also committed to support the increased use of wood in the construction of buildings and to reduce emissions from the agricultural sector by encouraging sustainable land management practices such as ‘zero-till’ farming.

Canadian government is engaged in the Agricultural Clean Technology program, which is a $25-million, three-year investment over 2018-2021 to support research, development and adoption of clean technologies to help reduce GHG emissions through investments in and promotion of precision agriculture and agri-based bioproducts. Canada’s Agricultural Greenhouse Gases Program also provides up to $2 million in supports over 2018-2021 for projects that will create technologies, practices, and processes that can be adopted by farmers to mitigate GHG emissions.

Canada’s Strengthened Climate Plan includes measures to support the agricultural industry and farmers in the adoption of clean technologies and will set a national emission reduction target of 30% below 2020 levels from fertilizers.

The Pan-Canadian Framework sets out actions on which the federal and provincial governments will work collaboratively to increase the amount of electricity generated from renewable and low-emitting sources and to modernize electricity systems.

As noted above, the federal government’s recent amendments to the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations (2012) under CEPA will accelerate the phasing-out of conventional coal-fired electricity units to 2030. The regulations set stringent performance standards for new coal-fired electricity generation units and those that have reached the end of their useful life.

Canada’s Strengthened Climate Plan recognizes that by 2050, Canada will need to produce up to two to three times as much clean power as it does right now and includes initiatives to accelerate the generation of clean sources of energy.

Various provinces and territories have already taken action to move from traditional coal-fired generation to clean electricity: Ontario and Manitoba have phased out their use of coal, Alberta has plans to phase out coal-fired electricity by 2030, Nova Scotia has created a regulatory framework to transition from coal to clean electricity generation, and Saskatchewan uses a coal-fired generating unit with carbon capture technology that captures 90% of emissions.

Canadian financial institutions are engaged in measures that can contribute to the reduction of GHG emissions of their customers. These include offering environmental products and services to clients relating to the transition toward a low-carbon economy, such as energy saver loan and mortgage products and solar panel financing, as well as the offering of low-carbon lending and environmental, social, and governance (ESG) products.

Canadian financial institutions are also taking steps to support a low carbon economy through sustainable finance. 40 of the largest Canadian investors are now signatories of the UN Principles for Responsible Investment, which involve a commitment to incorporate ESG issues into investment analysis and decision-making processes. Canada’s largest banks are funding the Institute for Sustainable Finance to align mainstream financial markets with Canada’s transition to a lower-carbon economy. Certain Canadian financial institutions have also signed onto the UNEP Principles for Responsible Banking, which involves a commitment to work with clients and customers to encourage sustainable practices. Over 35 Canadian organizations are now also official supporters of the Task Force for Climate-related Financial Disclosure.

Several large Canadian companies including big banks, pensions and insurance companies have made 2050 net-zero commitments and commitments to reducing carbon exposure in their investment portfolios and issued green bonds in support of clean energy projects. The Bank of Canada has also joined the Network of Central Banks and Supervisors for Greening the Financial System, which promotes best practices in climate risk management for the financial sector and conducts analytical work on green finance.

There are a number of recent climate change lawsuits and challenges in Canada. The provinces of Alberta, Saskatchewan and Ontario challenged the constitutionality of the federal Greenhouse Gas Pollution Pricing Act and the ability of the federal government to impose a price on carbon across Canadian provincial jurisdictions. The Act was upheld in its entirety by the Supreme Court of Canada in March 2021.

In 2019, in ENvironnement JEUnesse v. Attorney General of Canada, the Quebec Superior Court dismissed a motion to certify a class action on behalf of all young Quebecers aged 35 and under claiming that the Canadian government’s failure to set a target for reducing greenhouse-gas-emissions to avoid climate change impacts was a violation of Charter rights. The Court found that there was insufficient justification for the age limits of the chosen class.

In October 2020, in La Rose et al. v. Her Majesty the Queen, the Federal Court of Canada dismissed a claim on a motion to strike in which 15 children and youth from across Canada sued the federal Crown, alleging that greenhouse-gas emissions violated their Charter rights and breached the Crown’s obligations under the public trust doctrine, which has not been recognized in Canadian law. The Court found that the Charter claims were not justiciable (though the public trust claim could be) and that the claims disclosed no reasonable cause of action.

In November 2020, in Misdzi Yikh v. Canada, an Indigenous group claimed that they experienced significant impacts on their territories caused by warming and expect to experience negative health effects due to climate change and alleged that the Canadian government's approach to climate change had violated their constitutional and human rights. The plaintiffs further asserted that Canada's historical treatment of Indigenous leaders and ongoing racial discrimination exacerbate the psychological and social trauma caused by climate change.  The Federal Court struck the claim on the basis that it was not justiciable and did not disclose a cause of action.

In November 2020, in Mathur, et al. v. Her Majesty the Queen in Right of Ontario, a judge of the Ontario Superior Court of Justice denied a motion brought by the Attorney General of Ontario to strike a court application brought by seven Ontario youth between the ages of 12 and 24 which challenged the validity and constitutionality of a weakened emissions reduction target adopted by the Government of Ontario.  The youth alleged that the target was insufficient to effectively combat climate change, such that it violated the rights of Ontario’s youth to life, liberty, security and equality. In a procedural victory for the applicants, the court ruled that it was not plain and obvious that the application did not disclose a reasonable cause of action nor that it had no reasonable prospect of success.  The case may therefore proceed, and the applicants in the unprecedented case in Canada face an uphill battle to obtain the relief they seek.

Several of the decisions described above are currently being appealed. The lower court decisions demonstrate the challenges plaintiffs face in Canada in shifting climate policy from the legislative sphere to the judicial.

An important part of the Pan-Canadian Framework is Canada’s $2 billion Low Carbon Economy Fund, which comprises the Low Carbon Economy Leadership Fund and the Low Carbon Economy Challenge. The fund provides federal government funding to support the provinces in their commitment to reduce GHG emissions and to invest in innovative projects working to reduce emissions and generate clean growth.

The federal government released its Hydrogen Strategy for Canada in December 2020. The development of low-carbon hydrogen is a strategic priority for Canada over the next 30 years and a critical part of its path towards achieving the goal of net-zero carbon emissions by 2050. The Strategy’s short-term goal (between now and 2025) is to lay the foundation for the hydrogen economy by focusing on the development of new hydrogen supply and distribution infrastructure and supporting emerging hydrogen applications. Between 2025 and 2030, the Strategy’s focus shifts to stimulating growth and diversification of the hydrogen sector. The long-term goal of the Strategy (between 2030 and 2050) is market expansion. 

Additional measures and funding are expected as the federal government irons out the details of its Strengthened Climate Plan and Canada looks to set itself on the path to net-zero emissions by 2050.