To support the release of Canada's Intended Nationally Determined Contribution (INDC), the Government of Canada has announced its intention to introduce new regulations under its responsible sector-by-sector regulatory approach. These regulations would reduce greenhouse gas (GHG) emissions and complement actions already taken on two of Canada's largest sources of emissions — transportation and coal-fired electricity.
Oil-and-Gas Sector Regulations to Address the Potent GHG Methane
Methane is a GHG 25 times more potent than carbon dioxide and regulating it would lead to substantial GHG reductions and reduce volatile organic compounds (VOCs), which contribute to the formation of smog.
The Government intends to develop regulations to reduce emissions of the potent GHG methane from the oil-and-gas sector.
Because of the integration of the Canadian and American energy sectors, action in this area would be aligned with recently proposed actions in the United States to ensure Canadian companies remain competitive within the North American marketplace.
Electricity Sector Regulations to Reduce GHGs from Natural Gas-Fired Electricity
The electricity sector is Canada's fourth-largest source of GHG emissions, accounting for 12% of total Canadian emissions. Canada's existing coal-fired electricity regulations will encourage a shift to natural gas and other sources of electricity generation.
Building on existing GHG regulations for coal-fired electricity, the Government intends to develop regulations for natural gas-fired electricity generation. Taking action in this sector would ensure that new natural gas-fired electricity generation is efficient while guiding future growth and investment in the electricity sector.
Canada boasts one of the cleanest electricity systems in the world, with almost 80% of our electricity supply emitting no GHGs. GHG regulations for natural gas-fired electricity, paired with the coal-fired regulations, will further strengthen Canada's position as a world leader in clean-electricity generation.
Manufacturing Sector Regulations to Reduce Emissions from the Production of Chemicals and Nitrogen-Fertilizers
The production of chemicals and nitrogen-fertilizers are two of the largest sources of emissions from the manufacturing sector. Taking action on these sectors would broaden the scope of Canada's sector-by-sector approach to reduce GHG emissions while increasing regulatory certainty and guiding future growth and investment in this important industry.
Building on action already taken in the transportation and electricity sectors, the Government intends to develop regulations to reduce GHG emissions from the production of chemicals and nitrogen-fertilizers.
Investing in Innovative Technologies
Canada is a leader in clean-energy technologies and has made multiple investments to promote innovation and achieve long-term emissions reductions in key sectors. For example, emerging technologies and federal regulatory action have limited emissions in the transportation sector, despite growth in vehicle fleets. Similarly, emissions continue to fall in the electricity sector as a result of phasing out coal, switching to natural gas and growth in non-emitting electricity generation. To build on this success, Canada will focus climate-related investments in innovative technologies to drive further improvements in environmental performance in the oil sands and other growing sectors.
Building on a Record of Action
These actions are the latest steps in the Government's responsible sector-by-sector approach to reduce GHG emissions while keeping Canada's economy strong.
Last year, the Government announced:
- Final regulations establishing more stringent standards for cars and light trucks of model-year 2017 and beyond,
- its intention to regulate hydrofluorocarbons (HFCs), which are among the most potent and fastest-growing GHGs in the world; and,
- its intention to regulate GHG emissions from post-2018 model-year on-road heavy-duty vehicles.
