Minister Wilkinson Releases Canada’s Carbon Management Strategy

News release

September 27, 2023 Paris, France Natural Resources Canada

In the global shift to net zero by 2050, carbon management technologies are increasingly becoming an essential tool to support the decarbonization and competitiveness of Canada’s economy, including the cement industry, chemical production, and iron and steel, which together account for over 10 percent of Canada’s emissions.

Independent experts from the International Energy Agency (IEA) to the Intergovernmental Panel on Climate Change (IPCC) have recognized the important role that carbon management technologies will play in the global energy transition. The IPCC has stated that the deployment of carbon management technology must scale up rapidly by 2050 in order to avert the worst impacts of climate change. Similarly, the IEA released its new Net Zero by 2050 Roadmap yesterday, which shows that carbon management technologies, alongside hydrogen and sustainable bioenergy, are a critical part of how we achieve net-zero emissions and that rapid progress is needed by 2030.

In this context, today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, released Canada’s Carbon Management Strategy at the International Energy Agency in Paris, France. The strategy articulates the role of carbon management in Canada’s path to a prosperous net-zero economy and the federal actions that are being taken to support the development and deployment of world-class carbon management technologies in Canada. The Strategy specifically outlines five key priority areas for the Government of Canada to promote a competitive and robust carbon management industry:

● accelerating innovation and research, development and demonstration (RD&D);

● advancing predictable policies and regulations, including Canada’s economy-wide carbon pricing system;

● attracting investment and trade opportunities;

● scaling up projects and infrastructure to meet the evolving capacity needs of the carbon management sector; and

● building partnerships and growing inclusive workforces.

In a globally competitive sector, with an estimated 570 carbon management projects in operation or development, Canada has already established itself as a first mover and leader in the global carbon management sector, with five of the world’s first large-scale projects, cutting-edge innovators and start-ups, early investments in RD&D, deep technical expertise, a robust policy and regulatory environment at federal and provincial levels, and active international collaboration.

The Strategy released today articulates the steps that the Government of Canada has taken in this area and key next steps to capitalize on the progress that has been made to date.

This Strategy builds on more than a year of significant engagement led by the Government of Canada with a diverse range of groups, including provincial and territorial governments, Indigenous organizations, industry, technology innovators and adopters, infrastructure stakeholders, academia, environmental non-governmental organizations, the finance community and other interested Canadians, with the goal of reflecting the various opportunities that carbon management technologies offer across regions and industrial sectors.

The Government of Canada recognizes that the broad suite of carbon management technologies used to mitigate climate change are not a silver bullet but rather represent an essential tool within a broad suite of measures to reduce emissions — including significantly scaling power from renewables, nuclear, hydrogen and biofuels alongside measures to enhance energy efficiency and electrify transportation, industrial processes and building heating. The Government of Canada continues to actively pursue many avenues to reduce emissions across regions and sectors while unlocking low-carbon economies opportunities on the path to net zero by 2050.

Quotes

“Carbon management technologies are an important part of how Canada can decarbonize its heavy industries and ensure they can compete and succeed in the global race to net zero by 2050. The International Energy Agency, the IPCC and other experts have been clear about the need for countries to rapidly develop and deploy carbon management technologies, and Canada is leading the way. Today’s release of Canada’s Carbon Management Strategy is an important step in the Government of Canada’s efforts to cement Canada as a global leader in the advancement of carbon management technologies.”

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

“Carbon management is critical to achieve global net-zero emissions. The scale-up needed to be aligned with the IEA’s Net Zero by 2050 Roadmap represents a massive undertaking, and policy support and co-ordination are therefore crucial. Today, I commend Canada for its Carbon Management Strategy, which will help drive investment to reduce emissions while creating good sustainable jobs.”

Fatih Birol
Executive Director, International Energy Agency

“To get to net zero, both the IEA and the IPCC have made it clear that carbon management technologies will play an important role. Fortunately, Canada is already leading the way on the development and deployment of these technologies with leading examples in industry and centres of excellence based here in Canada.”

The Honourable Steven Guilbeault
Minister of Environment and Climate Change

“Canada’s cement industry has been steadfast in its commitment to tackle climate change and reach net zero by 2050. We applaud the government for releasing Canada’s Carbon Management Strategy, linking together government policy and programs to support decarbonization while ensuring competitiveness. Together with the federal government, we have collaborated on the Roadmap to Net-Zero Carbon Concrete by 2050, and we look forward to leveraging the actions detailed in this strategy to make this Roadmap a reality.”

Adam Auer
President and CEO, Cement Association of Canada

“With the introduction of the Carbon Management Strategy, the Government of Canada has underscored its dedication to deploying game-changing net-zero technologies. Through continued collaboration, our industry stands ready to support the development and deployment of carbon management solutions — ensuring that Canada remains at the forefront of sustainable steel production.”

Catherine Cobden
President and CEO, Canadian Steel Producers Association

Quick facts

Carbon management refers to a range of approaches to capture carbon dioxide (CO₂) from point sources or the atmosphere to be durably stored or transformed into goods.
Point-source CO₂ capture is a leading option for deep emissions reductions from heavy industrial sectors with long-lived infrastructure, such as cement, iron and steel, and chemicals (e.g., fertilizer), which together account for over 10 percent of Canada’s emissions.
The Government of Canada committed to developing and introducing a carbon management strategy in the 2030 Emissions Reductions Plan’s “Next Steps for Clean Air and a Strong Economy.” Today’s announcement delivers on this commitment.
With a focus on technology-based approaches, Canada’s Carbon Management Strategy identifies five pathways where carbon management is expected to play a critical role in many sectors to help achieve Canada’s 2030 climate targets and enable a prosperous net-zero economy by 2050: 1. Decarbonizing Heavy Industry; 2. Low-Carbon Hydrogen Production; 3. Low-Carbon Dispatchable Power; 4. CO₂-Based Industries; and 5. Carbon Removal.
The Government of Canada is supporting carbon management projects like Heidelberg Material’s $1.36-billion, carbon-capture–enabled cement plant in Edmonton, Alberta, which will create sustainable jobs while reducing emissions in line with Canada’s Roadmap to Net-Zero Concrete by 2050.
The Strategy announced today complements $319 million in funding under the Energy Innovation Program (EIP) for research, development and demonstrations (RD&D) to advance the commercial viability of carbon management technologies.
Under the EIP, the government is investing in nine front-end engineering and design (FEED) studies for “near-shovel-ready,” large-scale carbon management facilities and will soon support RD&D for capture technologies with a potential investment of up to $50 million.

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Contacts

Natural Resources Canada
Media Relations
343-292-6100
NRCan.media.RNCan@canada.ca

Carolyn Svonkin
Press Secretary
Office of the Minister of Energy and Natural Resources
343-597-1725
Carolyn.Svonkin@nrcan-rncan.gc.ca

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Date modified:: 2023-09-27