Climate change/greenhouse gas: appearance before the Standing Committee (December 2, 2020)

Canada’s 2030 GHG Emissions Reduction Target

Q. Does the Government of Canada plan to bring forward a more ambitious 2030 target to COP26? If so, how will you engage on the new target?

• The Government is committed to meeting and exceeding Canada’s 2030 GHG emissions reduction target of 30% below 2005 level, and establishing a plan to achieve a prosperous net zero emissions future by 2050.
• The Government of Canada intends to bring forward an updated Nationally Determined Contribution (NDC) by COP 26 in November 2021.
• Meeting and exceeding our 2030 target will be hard but Canada has made tremendous progress since 2015 with projected emissions trending downwards. Based on Canada’s December 2019 projections, Canada’s greenhouse gas emissions in 2030 are expected to be 227 million tonnes lower than projected prior to the adoption and implementation of Canada’s climate plan.
• To ensure progress continues, the Government will be strengthening some existing measures, and implementing new ones. Some of these measures were identified through Ministerial Mandate Letters as well as the recent Speech from the Throne such as investments in building retrofits, renewable energy generation and storage, and zero-emission buses and charging infrastructure, and planting over 2 billion trees over ten years.
• The Government intends to bring forward a plan of enhanced federal climate action by the end of the year, with measures which will allow Canada to exceed its current 2030 target.
• The Government of Canada will also seek advice from experts and Canadians to set Canada on a path to net-zero emissions by 2050. This will include broad engagement with Canadians on pathways to achieve a prosperous net-zero emissions future.

Q. How can the Government of Canada meet and exceed the Paris Agreement targets when the 4th Biennial Report shows a 77Mt gap?

• Canada’s Fourth Biennial Report on Climate Change demonstrates that the government has made strong progress in implementing Canada’s national climate plan, the Pan-Canadian Framework. Emissions are on a downward trajectory for the first time in Canada’s history.
• However, we recognize that more action will be needed to meet Canada’s current target, go further consistent with what the science tells us is needed.
• Recognizing that more reductions are needed, in December 2019, the Government of Canada announced a commitment to strengthen existing and introduce new greenhouse gas reducing measures to exceed Canada’s 2030 emissions reduction goal and begin work so that Canada can achieve net-zero emissions by 2050.
• The Government has since announced investments in building retrofits, renewable energy generation and storage, and zero-emission buses and charging infrastructure through the Canada Infrastructure Bank. In addition, the Governments of Canada and Ontario recently announced investments of $295M each in the Ford Motor Company to produce battery-electric vehicles in Canada.
• Other new measures announced as part of COVID-19 recovery include the Emissions Reductions Fund, which will provide primarily repayable contributions to conventional and offshore oil and gas firms to support their investments to reduce greenhouse gas emissions, and a commitment of $1.72 billion to clean up orphan and/or inactive oil and gas wells in British Columbia, Alberta, and Saskatchewan.
• These measures, and more to come, will ensure Canada is on a path to deeper emission reductions in a manner that is sensitive to the needs of the country, grows the economy in a sustainable and resilient way, and makes life more affordable for Canadians.
• We are hopeful that provincial and territorial measures advance as well.
• Provinces and territories have a key role to play.

Q. What has been achieved since the adoption of the Pan-Canadian Framework on Clean Growth and Climate Change?

• Since 2016, the Government of Canada has been working with provinces, territories, and Indigenous peoples to implement the Pan-Canadian Framework on Clean Growth and Climate Change. Significant progress has been achieved. As a result, Canada’s greenhouse gas emissions in 2030 are expected to be 227 million tonnes lower than projected prior to the adoption and implementation of Canada’s climate plan.
• Key progress includes:
  • Putting a price on carbon pollution across Canada;
  • Regulating methane emissions in the oil and gas sector, which will reduce carbon pollution by about 16.5 million tonnes in 2030;
  • Accelerating the phase-out of coal-fired electricity generation by 2030, as part of our efforts to have 90 per cent of electricity from non-emitting sources, and supporting workers and communities transition to a low-carbon economy;
  • Developing “net-zero energy ready” building codes to be adopted by 2030 for new buildings;
  • Increasing the stringency of emissions standards for light- and heavy-duty vehicles, and taking steps to improve efficiency and support fuel switching in the rail, aviation, marine and off-road sectors;
  • Adopting a Climate Lens to ensure that future climate impacts are considered and addressed in federally funded infrastructure projects; and,
  • Establishing a new Canadian Centre for Climate Services, giving Canadians better access to climate science and information.

Q. The September 2020 Speech from the Throne indicates that the Government will immediately bring forward a plan to exceed Canada’s 2030 target. When will the Government release this plan?

• The Government of Canada is working hard to bring forward a plan as soon as possible.
• This plan would build on the more than 50 measures under the Pan-Canadian Framework, and the important progress achieved to date. The Government remains committed to fully implementing the PCF.
• New and ambitious actions highlighted in the recent Speech from the Throne include:
  • Continuing the Government’s policy of putting a price on carbon pollution, while putting that money back in the pockets of Canadians;
  • Helping to deliver more public transit and active transportation infrastructure;
  • Making ZEVs more affordable and investing in more charging stations across the country;
  • Making Canada the most competitive jurisdiction in the world for clean technology by launching a new fund to attract investments in making zero-emissions products and cut the corporate tax rate in half for these companies to create jobs;
  • Leveraging Canada’s competitive advantage (e.g., mineral resources) to develop domestic ZEV and battery sector;
  • Moving forward with the Clean Power Fund, including investments in the Atlantic loop, renewables and next generation clean technology solutions.

Q. Canada and the world continue to address the impacts of COVID-19. Why is the Government focusing on climate change?

• The Government of Canada is working closely with local, provincial, territorial, and international partners to minimize the health, economic, and social impacts of COVID-19 in Canada and around the world.
• While health and safety of Canadians remains our top priority, there is an opportunity to apply the lessons learned from the pandemic and build back better, working toward a greener economic recovery that will create jobs and build a sustainable future for Canadians.
• Global consumers and investors are demanding and rewarding climate action, and there is increasing global demand for low carbon goods and services.
• Climate action will be a cornerstone of our plan to support and create a million jobs across the country.

The Canadian economy currently faces important challenges in light of the COVID-19 pandemic situation. With this in mind, our existing climate change measures, and more to come, will help put Canada on a path to deeper emission reductions in a manner that is sensitive to the needs of the country, grows the economy, and makes life more affordable.

Many countries (e.g., European Union, New Zealand, United Kingdom) have already announced substantial green recovery investments to decrease GHG emissions, create jobs and support clean growth, nature and environmental protection. Canada must step up our efforts or we run the risk of becoming uncompetitive in a low-carbon global economy and net zero emissions future.

Federal / Provincial / Territorial Relations

Q. How does the government work with provinces and territories to ensure the federation is heading in the same direction when developing and implementing actions?

• Under our constitution, jurisdiction for environmental protection, including climate change, is shared between the federal, provincial and territorial (FPT) governments.
• The PCF is the first climate plan in Canada’s history to include individual and joint commitments by federal, provincial and territorial governments. It builds on the considerable leadership and actions taken individually and collectively by Canada’s provinces and territories.
• The federal government continues to work closely with provincial and territorial governments to implement more than 50 concrete measures under the PCF.
• As well, several governance and reporting mechanisms exist to ensure ongoing collaboration across federal, provincial and territorial governments to track progress in implementing measures under the PCF and to identify opportunities for further action.
• The Canadian Council of Ministers of the Environment (CCME) is the primary FPT ministerial coordinating body established to facilitate cooperation on environmental issues of mutual interest, including climate change.
• The CCME along with eight other FPT Ministerial tables have committed to reporting on progress on the status of implementation of PCF actions within their portfolio (including energy, infrastructure, transport, forestry, agriculture, innovation, emergency management and finance). Three annual synthesis reports on FPT progress in implementing the PCF have been delivered to First Ministers and published since 2016.

Indigenous Relations

Q. How do climate actions take into account the needs of Indigenous communities? On reserve? North of 60? Remote communities?

• Together, Budgets 2016 and 2017 committed $425M over 12 years across 11 programs to support Indigenous peoples’ adaptation and mitigation actions.
• Federal departments responsible for delivering PCF programs engage directly with Indigenous peoples. These dialogues help identify the specific needs and concerns of Indigenous peoples, including those who live in the North, in other remote communities, or on reserve.
• The federal government also has partnerships with Indigenous peoples through three senior-level, distinctions-based bilateral tables on clean growth and climate change.
• These partnerships have meant that, since the launch of the PCF, First Nations, Inuit and Métis partners have, on an ongoing basis, made recommendations to the government and identified ways for federal policy and programming to better support Indigenous peoples and their climate priorities.
• Significantly, some federal programs and policies have already been modified to better meet the needs of Indigenous peoples. Examples include:
  • Under the federal carbon pricing backstop, fuel charge relief for aviation fuels in the territories.
  • NRCan introduced modifications to its Clean Energy for Rural and Remote Communities program to better support capacity building at the local level.
• While there have been some broad successes under the PCF, Indigenous peoples have emphasized that more must be done to respond to their unique needs and promote self-determination.
• The Government is committed to continuing to work in partnership with Indigenous peoples to address their unique circumstances and empower them with the tools they need to respond to the changing climate.

Q. Are Indigenous peoples co-developing Canada’s climate actions and targets?

• The federal government is committed to working with Indigenous peoples to tackle climate change and embrace clean growth. The senior-level, distinctions-based bilateral tables with the Assembly of First Nations, Inuit Tapiriit Kanatami and Métis National Council will continue to inform the federal government’s climate actions that affect Indigenous communities and which responds to the unique needs and circumstances of Indigenous peoples.
• Internationally, Canada is proud to have championed the launch of the Local Communities and Indigenous peoples Platform, and its governing body, the Facilitative Working Group (FWG), under the UNFCCC. The Platform provides an opportunity to enhance the rightful voices of Indigenous peoples in international climate change discussions and to bring Parties and Indigenous peoples together to share knowledge and exchange views to inform the work of the UNFCCC more broadly.
• The Government of Canada looks forward to its continued close cooperation with First Nations, Métis Nation, and Inuit representatives in international climate change negotiations, including at the upcoming 26th Conference of Parties.

Low Carbon Economy Fund

Q. What is the Low Carbon Economy Fund?

There are two parts to the Low Carbon Economy Fund:

1. The Low Carbon Economy Leadership Fund provides up to $1.4 billion to provinces and territories to deliver on their commitments to reduce carbon pollution and contribute to meeting Canada’s 2030 climate target.
2. An additional approximately $500 million is available through the Low Carbon Economy Challenge. This portion of funding was open to all provinces and territories, municipalities, Indigenous communities and organizations, businesses and not-for-profit organizations. Projects leverage Canadian innovation across the country to reduce emissions and generate clean growth.

Q. What were the opportunities to apply for funding under the LCEF Challenge?

• Champions stream: with approximately $450 million available, this stream provides funding to eligible applicants including provinces and territories, municipalities, Indigenous communities and organizations, businesses and not-for-profit organizations. The deadline for submitting formal proposals was September 28, 2018.
• Partnerships stream: with up to $50 million available, this stream provides funding through two separate opportunities:
  • First intake: Approximately $40 million for projects led by Indigenous communities and organizations, small and medium-sized businesses, not-for-profit organizations, and small municipalities. The deadline for submitting proposals was March 8, 2019.
  • Second intake: Approximately $10 million for small and medium-sized businesses in Canada with up to 499 employees. The deadline for submitting proposals was November 15, 2019.

Q. How will projects funded through the Low Carbon Economy Fund benefit Canadians?

• Canadians will benefit in multiple ways. For example, the Low Carbon Economy Fund is supporting energy efficiency projects in provinces and territories across Canada. Energy efficiency projects will help Canadians and businesses save money by lowering energy bills. Efficient buildings are also healthier and more comfortable to live and work in. Additionally, support is available to industries to put in place clean technologies that will help them be more efficient and innovative, creating jobs and savings across Canada.

Leadership Fund

Q. How are projects selected for the Leadership Fund?

• Following the launch of the Low Carbon Economy Fund in June 2017, provinces and territories proposed project ideas under the Low Carbon Economy Leadership Fund.
• The federal government worked with each province and territory to develop these ideas and agree on the best ones to fund.
• Projects had to meet four minimum requirements:
  • Emissions reductions must be material (measurable and verifiable);
  • Emissions reductions must be in addition to existing or planned actions;
  • Emissions reductions must contribute towards Canada’s 2030 climate target;
  • Projects must be as cost-effective as possible

The Challenge

Q. What are the primary benefits expected to be achieved through the Low Carbon Economy Challenge?

• The Low Carbon Economy Challenge will help reduce carbon pollution, save money, reduce emissions, create jobs, and drive economic growth.

Q. How can Indigenous peoples benefit from the Low Carbon Economy Challenge?

Indigenous communities and organizations were able to apply directly for funding through the Champions stream of the Low Carbon Economy Challenge, for example to support projects that reduce reliance on diesel and deploy energy efficient technologies in homes and businesses. Additionally, Indigenous communities and organizations were eligible applicants for funding through the first intake of the Partnerships stream of the Low Carbon Economy Challenge. Indigenous-owned small and medium-sized businesses were eligible applicants under the second Partnerships stream intake.

Q. What projects are eligible for funding through the Low Carbon Economy Challenge?

• Eligible sectors under the Low Carbon Economy Challenge include: building retrofits, industrial energy efficiency, fuel switching and process changes; forestry; agriculture; waste; transportation retrofits; and energy production for own-use.

Q. Were provinces that did not adopt the Pan-Canadian Framework eligible to apply for funding from the Low Carbon Economy Challenge?

• Yes, all provinces and territories, as well as municipalities, Indigenous communities and organizations, businesses, not-for-profit organizations, universities, schools and hospitals located in those provinces were eligible to apply for funding under the Champions stream.

Q. Were applicants able to apply to multiple parts or streams of the Low Carbon Economy Fund?

• Provided they meet eligibility criteria, applicants that already received funding from the Leadership Fund were able to submit a proposal for a separate project under one of the Challenge streams, but no individual project can be funded by more than one part or stream of the Low Carbon Economy Fund.

Champions

Q. How were projects selected under the Challenge Champions stream?

• Potential applicants were invited to submit an Expression of Interest to Environment and Climate Change Canada (ECCC). Expressions of Interest were reviewed and applicants with the most promising project proposals that also met the eligibility criteria were invited to submit a formal proposal. Successful applicants include those that prioritized low-cost domestic greenhouse gas reductions while also encouraging other benefits that contribute to clean growth such as saving energy and creating jobs.

  Criteria for assessing proposals included:

  • Greenhouse gas emissions reduced in 2030 per dollar of LCEF funding;
  • Cumulative greenhouse gas emissions reduced per dollar of LCEF funding;
  • Project feasibility and risk;
  • Other benefits that contribute to clean growth and a clean environment

  Emissions reductions must also:

  • Be material (measurable and verifiable);
  • Be in addition to existing actions;
  • Contribute towards Canada’s 2030 climate target;
  • Be as cost-effective as possible

Q. How much is the Government of Canada contributing to individual projects under the Champions stream?

• The maximum federal contribution to any project funded through the Champions stream of the Low Carbon Economy Challenge is $50 million.
• Additionally, the maximum percentage of total project costs the federal government can contribute towards an LCEF Champions project varies depending on the ultimate recipient of the funding. The maximum federal share for specific recipients is as follows:
  1. 25% for businesses,
  2. 40% for municipalities,
  3. 40% for not-for-profit organizations,
  4. 50% for provincial governments,
  5. 75% for territorial governments, and
  6. 75% for Indigenous communities and organizations.

Partnerships

Q. How were projects selected under the Challenge Partnerships stream?

• Potential applicants for the Partnerships stream were invited to submit an application to Environment and Climate Change Canada that outlines the project proposal and provides detailed information related to anticipated costs and estimated greenhouse gas emission reductions. If a proponent applied to the Champions stream and also wanted to be considered through the Partnerships stream, they were required to submit their application again for the Partnerships stream.
• Applications were assessed by Government of Canada officials. Successful projects were selected based largely on their ability to reduce greenhouse gas emissions. The evaluation will also consider a project’s potential contribution to clean growth, energy savings, and job creation.
• Canadian small and medium-sized businesses with one to 499 employees were able to apply for funding through the second intake of the Partnerships stream focused on SMEs. This funding opportunity was available to businesses in all provinces and territories.

Q. How much is the Government of Canada going to contribute to individual projects under the Challenge Partnerships stream?

• First intake: Approximately $40 million for Indigenous communities and organizations, small and medium businesses, not-for-profit organizations, and small municipalities.
  • A minimum of $500,000 to a maximum of $10 million in LCEF funding per project.
• Small and medium business intake: Approximately $10 million for small and medium businesses in Canada with up to 499 employees:
  • A minimum of $20,000 to a maximum of $250,000 in LCEF funding per project or portfolio of projects.

• Additionally, the maximum percentage of total project costs the federal government can contribute towards a project varies depending on the ultimate recipient of the funding.

  The maximum federal share for specific recipients is as follows:

  • 25% for small and medium sized businesses (under 500 employees),
  • 40% for small municipalities (under 100,000 residents),
  • 40% for not-for-profit organizations, and
  • 75% for Indigenous communities and organizations

Future opportunities

Q. Will there be future intakes and funding opportunities under the Low Carbon Economy Fund?

• The Government of Canada is considering options for further climate action, including programming options.
• Future intakes under the Low Carbon Economy Fund are a possibility being considered as part of overall planning to support Canada delivering on greenhouse gas emissions reductions commitments.

The Low Carbon Economy Fund (LCEF) leverages investment in projects that generate clean growth and reduce greenhouse gas emissions, helping Canada to meet or exceed its commitments under the Paris Agreement.

• Leadership Fund
  Continuous intake since June 2017
  Funding envelope: Up to $1.4 billion
  Recipients: Provinces and territories that have adopted the Pan-Canadian Framework on Clean Growth and Climate Change (PCF). Saskatchewan did not join the PCF. The agreement with Ontario was terminated in fall 2018.
  Projects: Energy efficiency; innovation/access to clean technologies; carbon storage in forests and soils
  Status: Funding Agreements signed, majority of funding allocated, projects underway

• The Challenge
  Projects include: reducing consumption of natural gas, switching to the use of biofuels, increasing energy efficiency in buildings, reducing methane emissions from waste, and reducing industrial process emissions

• Champions Stream
  Intake closed as of September 28, 2018
  Funding envelope: Approximately $450 million
  Recipients: Provinces and territories, municipalities, Indigenous communities and organizations, businesses, not-for-profit organizations
  Status: Majority of Funding Agreements signed, many projects underway

• Partnerships Stream – 1st Intake
  Intake closed as of March 8, 2019
  Funding envelope: Up to $40 million
  Recipients: Small and medium-sized businesses, not-for-profit organizations, Indigenous communities and organizations, small municipalities
  Status: Finalizing Funding Agreements

• Partnerships Stream – 2nd Intake (Small Business)
  Intake closed as of November 15, 2019
  Funding envelope: Up to $10 million
  Recipients: Small business in Canada (less than 100 employees)
  Status: Finalizing Funding Agreements

• Ontario Energy Savings Rebate Program (ESR)
  Intakes closed as of July 24, 2019 and September 17, 2019
  Funding envelope: Up to around $228 million (sourced from Ontario’s Leadership notional allocation with remaining funds after Ontario was reimbursed for eligible expenses under the agreement terminated in fall 2018)
  Recipients: Retail businesses incorporated in Canada with a brick and mortar presence in Ontario
  Projects: Providing rebates on energy efficiency products
  Status: 169 agreements with retailers currently providing rebates in Ontario.

Note: The Energy Savings Rebate envelope does not include funding allocated to the City of Brampton’s Electric Bus Demonstration and Integration Trial (around $8 million), and Forests Ontario’s 50 Million Trees program (up to $15 million). Funding for these projects was also sourced from Ontario’s notional Leadership allocation.