Charting the course towards the 2035 emissions reduction target: Canada’s high level description

Introduction

Canada is facing more frequent and severe weather events that impact the daily lives of Canadians – damaging homes, increasing grocery prices, affecting health, and raising insurance costs. Building a cleaner economy is not only an environmental imperative but also an economic opportunity to create good jobs and save money for Canadian families.

Canada is committed and determined to achieve net-zero emissions by 2050 and contribute to global efforts to limit global temperature increase to well below 2° C above pre-industrial levels and pursue efforts to limit it to 1.5° C. To that effect, the Government of Canada is pleased to submit its 2035 nationally determined contribution (NDC) under the Paris Agreement. Canada’s 2035 NDC is to reduce emissions by 45-50% below 2005 levels by 2035, building on the 2030 target of 40-45% below 2005 levels.

Canada’s commitment to net-zero by 2050 is codified in law through the Canadian Net-Zero Emissions Accountability Act (the Act). The Act requires the Government of Canada to set five-year national emissions reduction targets, ten years in advance, to keep Canada on track to achieving net-zero emissions by 2050. The 2035 target is a key milestone in Canada’s path to net-zero emissions by 2050 and will guide the next decade of climate action in Canada.

Since 2015, Canada has implemented economy-wide climate plans that have successfully reduced national emissions while strengthening the economy, with the most recent being the 2030 Emissions Reduction Plan (2030 ERP). Through these plans, Canada has put forward market-based measures, regulations, investment tax credits, and funding programs to support emissions reduction. The results of these actions are clear and Canada’s climate plan is working. Through these measures, Canada has successfully bent the emissions curve, has decoupled economic growth from emissions and is tracking towards significant emissions reductions by 2030. In 2015, Canada was trending to exceed 2005 emissions levels by 9% in 2030. Today, Canada is on track to achieve a 34% reduction below 2005 levels by 2030. These positive outcomes lay the foundation for Canada to achieve its 2035 target and net-zero emissions by 2050.

Looking ahead, Canada remains determined to continue implementing existing policies and sustaining leadership efforts to spur international action and cooperation. The Government will be exploring new ways to further reduce emissions, aiming to position Canada as a global leader in the clean economy of the 21st century, pursue reconciliation with Indigenous Peoples, and collaborate with all levels of government and international partners.

2035 target: a milestone to Canada’s net-zero objective

When setting emissions targets, the Canadian Net-Zero Emissions Accountability Act requires that the Government of Canada considers the best scientific information available, Canada’s international commitments related to climate change, Indigenous Knowledge, and advice from Canada’s Net-Zero Advisory Body. In addition to the legislative requirements, the Government of Canada also performed significant quantitative and qualitative analysis to inform the target, including economic modelling. Additional detail on how the Government of Canada met each of these requirements, along with economic modelling, is included in the Annex.

Per the Act, the Government of Canada provided provinces and territories, Indigenous Peoples, the Net-Zero Advisory Body and interested Canadians with the opportunity to make a submission to the 2035 target-setting process. The written submissions received from provinces, territories, Indigenous partners and the NZAB are available on the Open Government Registry.

The 2035 target was carefully chosen to advance Canada’s transition to net-zero while also reflecting a range of considerations related to international competitiveness, affordability, economic security and wellbeing for Canadians. Careful calibration of Canada’s pace to net-zero taking into account a changing North American landscape, Canada’s unique circumstances and resource-based economy, and evolving regional dynamics is critical to the sustainability of Canada’s approach. Canada's economy is characterized by a small population covering a large geographic area and supported by a significant level of exports – 35 percent of Canada’s export goods come from emissions-intensive and trade-exposed sectors. Reducing emissions while maintaining a strong economy is vital to a successful and sustainable shift to a net-zero future that leaves no Canadians behind.

Building on progress to date

The strategies and measures the Government of Canada has put in place are successfully bending Canada’s emissions trajectory and have set a solid foundation for meeting Canada’s 2030 and 2050 targets.

Since 2015, the Government of Canada has put in place over 140 measures across the country^{Footnote 1} , has committed over $160 billion to build Canada’s clean economy and reduce emissions^{Footnote 2}, and has invested significant additional resources to protect the environment, improve the health of Canadians, and conserve nature. Through climate plans put in place since 2016, including most recently the 2030 ERP, Canada is already implementing many measures that will contribute to emissions reductions in 2030, 2035 and beyond.

These measures not only reduce emissions, but can reduce the long-term economic, environmental and social costs of climate inaction. In recent years, Canadians have seen firsthand the devastating impact of wildfires, floods, drought and melting permafrost on communities across the country. Insured losses related to severe weather in Canada now routinely exceed $3 billion annually, with 2024 setting a record with insured losses reaching $8.5 billion^{Footnote 3}. The economic impacts of rising global temperatures are expected to continue to increase, with estimates suggesting that economic losses will rise to roughly 6% of Canada’s GDP by the end of the century^{Footnote 4}. Canada is implementing the National Adaptation Strategy to increase the resiliency of households and communities, but sustained action to reduce emissions is required as part of the global effort to reduce the magnitude of climate impacts.

Efforts to date have demonstrated that emissions reductions and economic growth can be achieved together. In Canada, domestic investment in clean energy technology research and development has increased over the past five years. Exports of environmental and clean technology products reached $20.9 billion in 2022^{Footnote 5} - a 2.3% increase from 2021. Investing in a net-zero economy is also creating good, well-paying jobs. According to labour market data from 2022, there were over 327,000 jobs in the environmental and clean technology products sector in 2021, up 10.4% from 2020^{Footnote 6}. The development of a net-zero economy will continue to create economic opportunities for Canada. The International Energy Agency (IEA) World Energy Outlook notes that global investment in clean energy projects is increasing at an unprecedented rate - already almost double investments in new oil, gas and coal supply. To reach net-zero emissions by 2050, the IEA predicts that clean energy investment will need to increase to around USD 4.5 trillion per year in 2030^{Footnote 7}. The Royal Bank of Canada estimates that building a net-zero emissions economy would create between 235,000 and 400,000 new jobs in Canada by the end of the decade alone^{Footnote 8}. Other benefits of climate action include improved household energy security, reduced impacts on biodiversity, better air quality, improved physical and mental health outcomes, and when adaptation actions are added, more resilient infrastructure, communities and households.

Canada’s emissions are now consistently below 2005 levels and tracking towards significant emissions reductions by 2030. In 2022, Canada’s economic sector GHG emissions, excluding Land Use, Land-Use Change and Forestry (LULUCF), were 708 megatonnes of carbon dioxide equivalent (Mt), down from 761 Mt in 2005. The LULUCF accounting contribution added an additional 12 Mt in 2022, largely due to a drought on the Canadian prairies in 2021 that in turn led to a temporary sharp increase in emissions from Canada's croplands in 2022. In most years, the LULUCF accounting contribution is a net credit (sink) – reducing Canada’s overall emissions –rather than a net debit (source).

In 2024, the Government of Canada published its First Biennial Transparency Report (BTR) under the Paris Agreement, providing updated emissions projections, extending out to 2040 for the first time. Based on data from Canada's most recent National Inventory Report (NIR) and projections in the BTR, Canada’s emissions peaked in 2007 and have declined since and are projected to continue to do so. This is a significant accomplishment given that projections in 2015 indicated that that peak would be temporary^{Footnote 1}. According to the BTR, Canada's emissions are projected to be 502 Mt in 2030, or 34% below 2005 levels. In 2015, annual emissions were projected to reach 815 Mt in 2030, significantly higher than currently projected^{Footnote 1}.

The historical emissions results for 2022, which included a notable emissions increase due to a climate related event (drought), further highlights the imperative to take climate action as well as the risk that a changing climate can in turn lead to higher emissions. Despite this, Canada continues to reduce emissions and is on track to exceed the previous climate target of 30% below 2005 levels by 2030 (Figure 1), while recognizing that additional efforts will be required to achieve Canada's 2030 and 2035 targets.

Canada is also successfully decoupling its emissions from GDP growth, primarily through energy efficiency improvements, decarbonization of the electricity grid and structural shifts in its economy. As a result, the emissions intensity for the entire economy (GHGs per GDP) has declined by 30% since 2005^{Footnote 1}.

Moving forward, the 2035 target will serve as the next significant milestone after 2030 to guide climate action in Canada. That being said, measures developed in the shorter-to-medium term will need to take into consideration that Canada’s ultimate objective is to achieve net-zero emissions by 2050. It will be increasingly important that Canada focuses on putting in place strong foundations and establishing the critical conditions for sustainable and long-term success over the coming decades.

Achieving 2035 and building foundations for 2050

Canada’s existing measures are already driving emissions reductions now and into the future. These foundational measures will help Canada put in place the essential conditions needed to meet its 2035 and 2050 targets. The following section provides more detail on the key conditions for success, which include:

1. domestic actions: optimizing and building on Canada’s existing suite of domestic measures
2. international actions: pursuing international collaboration and leadership to drive global ambition on climate action
3. areas of exploration: exploring new opportunities to reduce emissions both domestically and internationally

1. Domestic actions

Over the past decade, since signing on to the Paris Agreement, Canada has made important progress tapping into most short-term and cost-effective measures aimed at specific emissions sources. In submitting this NDC, the Government is looking at the next decade of climate action as an opportunity to calibrate Canada’s mitigation approach to changing circumstances. Strengthening and optimizing these foundational measures to reduce emissions is a key condition of success for meeting our 2035 and 2050 targets. Success will also require strategic consideration of the policy ecosystem at home and abroad to ensure it is conducive to long-term decarbonization and ongoing economic prosperity.

Carbon markets

Canada’s carbon pricing system is a key part of our national strategy to combat climate change, reducing emissions while fostering innovation and economic resilience. Since 2019, Canada has put in place the building blocks of a robust approach to carbon pricing that factors the cost of carbon pollution into the economy, while spurring the development of new and innovative technologies and services. A clear and predictable price on carbon pollution sends a powerful signal to industries and investors to allocate capital towards economic opportunities that align with our climate objectives. Canada’s approach to carbon pricing gives provinces and territories the flexibility to design their own pricing systems as long as they align with minimum national stringency standards; otherwise the federal ‘backstop’ carbon pricing system applies. The federal system is composed of two parts: a fuel charge on fossil fuels like gasoline and natural gas, and a performance-based emissions trading system for industries, known as the Output-Based Pricing System (OBPS). The minimum price was set at $80 per tonne CO2 eq in 2024 and is currently scheduled to rise by $15 per year to $170 in 2030 – creating certainty for private sector investment and decision-making. The federal carbon pricing system is complemented by the Greenhouse Gas Offset Credit System Regulations (GHG Offset Regulations). The GHG Offset Regulations allow municipalities, Indigenous communities, foresters, farmers and other project developers to generate offset credits that can be sold and used for compliance by facilities covered in the federal Output-Based Pricing System, the Clean Electricity Regulations, or by others who are looking to meet voluntary climate commitments.

Currently, most industry in Canada is covered by provincial and territorial carbon markets, with the federal OBPS in place in Manitoba, Prince Edward Island, Nunavut and Yukon. The federal fuel charge applies in all jurisdictions aside from British Columbia, Quebec and Northwest Territories.

Moving forward, the Government of Canada will continue to work to ensure carbon pricing systems continue to provide long-term certainty and send impactful decarbonization signals for innovation and investment.

Foundational regulations

Through key regulatory measures, Canada is reducing GHG emissions while ensuring economic prosperity, and driving innovation in emissions-intensive sectors of the economy. Through core regulations, Canada is supporting transformative actions in the transportation sector. For instance, the Clean Fuel Regulations are lowering the carbon intensity of liquid fuels used in Canada. The Electric Vehicle Availability Standard will help increase vehicle choices for Canadians and meet annual zero-emission vehicle sales targets, with the goal of gradually switching to a 100 percent zero-emission future. This is reducing air pollution on our streets and protecting a healthy environment for all.

Canada has one of the cleanest electricity mixes in the world – over 80% of electricity generated is non-emitting. However, Canada is driving towards an even cleaner electricity grid through the Clean Electricity Regulations, while maintaining reliability and affordability for customers. In 2016, Canada became the first country in the world to introduce regulations on coal-fired powerplants and announced a phase-out of coal-fired electricity by 2030. In June 2024, Alberta phased out coal-fired electricity more than five years ahead of schedule. Through Clean Electricity Regulations, Canada will eliminate more than 12 million tonnes (Mt) of greenhouse gases by 2030 and nearly 100 Mt by 2050.

Incentives

While it is true that clean technologies can come with higher upfront costs, they also offer a range of long-term benefits including cost savings for families and businesses and bringing down emissions. To encourage their adoption, Canada has implemented a range of incentives to help businesses and households benefit from technologies that are more energy-efficient and environmentally friendly. These include initiatives to make zero-emission vehicles more affordable, such as the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program and the accelerated capital cost allowance for businesses that purchase zero-emission vehicles. In addition, the Incentives for Zero-Emission Vehicles (iZEV) Program, which ran from 2019 to early 2025, supported the purchase of over 546,000 vehicles and helped Canada reach a new ZEV market share of 11.7% in 2023^{Footnote 9}. The Canada Greener Homes Initiative, which provides grants and loans to homeowners for energy-efficient upgrades, has also been successful. As of January 2025, over 360,000 households have received a grant and completed home energy retrofits, resulting in greenhouse gas emissions reductions equivalent to taking 215,670 cars off the road^{Footnote 10}. Canada is also supporting agricultural and agri-food producers to adopt clean technologies and practices through the Agricultural Clean Technology program, the Agricultural Climate Solutions program, the Sustainable Canadian Agricultural Partnership (Sustainable CAP), and Canada’s Greenhouse Gas Offset Credit System. Further, the Sustainable CAP introduced the Resilient Agricultural Landscape Program, a $250-million cost-shared program delivered by the provinces and territories to help producers conserve and enhance the resiliency of agricultural landscapes.

Canada is also implementing an array of federal programs and services to support clean technology research, development and demonstration, and de-risking investment in clean technology deployment to guide decarbonization across industries. Examples include the Canada Growth Fund, the Strategic Innovation Fund – Net Zero Accelerator, the Energy Innovation Program and the Low Carbon Economy Fund. Additionally, the suite of Clean Economy Investment Tax Credits, representing $94 billion in federal incentives by 2035, support businesses in seizing the economic opportunities associated with a net-zero future. The tax credits support investments in, among other things, clean hydrogen production, carbon capture utilization and storage (CCUS) including direct air capture (DAC), clean technology manufacturing, non-emitting electricity generation, and critical mineral extraction and processing.

Financial sector actions

Achieving net-zero by 2050 will require investments between $125 billion and $140 billion in Canada each year^{Footnote 11}. The Government of Canada cannot do it alone, and the transition to net-zero will require substantial public and private sector investment and expertise. The financial sector, including banks, institutional investors, venture capital firms, and others, have considerable influence over Canada's path to a green economy. Their investment decisions directly shape the pace and scale of the clean technology transformation, job creation, skills development and innovation. Canada has advanced efforts to support the development of a sustainable finance ecosystem that will mobilize capital and accelerate the transition to a cleaner, greener economy. In 2023, Canada launched its Green Bond program, and has since issued three green bonds, investing $11 billion towards projects that support environmental objectives. In 2024, the Government of Canada announced a plan to deliver Made-in-Canada sustainable investment guidelines to help investors, lenders, and other stakeholders navigating the path to net-zero by identifying “green” and “transition” activities. Additionally, the Government of Canada also announced that it proposes to amend the Canada Business Corporation Act to mandate climate-related financial disclosures by large, federally incorporated private companies. Moving forward, the Government of Canada will continue to work to ensure investment decisions are informed by climate data and account for climate-related risks.

Along with other G20 countries, Canada is committed to phasing out inefficient fossil fuel subsidies. In July 2023, Canada became the first country to develop a comprehensive framework towards phasing out inefficient fossil fuel subsidies. Canada also committed to develop a plan to phase out domestic public financing of the fossil fuel sector.

Support for workers and communities

Building a cleaner, stronger and more resilient economy means investing in Canadians. It means supporting workers and communities that are contributing to Canada’s economy in every sector. The shift to a low-carbon economy carries a myriad of benefits, supporting good-paying jobs for Canadians for generations to come. Ensuring Canadians have the necessary tools and supports to thrive in a net-zero economy will be essential as Canada works towards its 2035 target. The Government of Canada is demonstrating global leadership and has taken important steps to support workers and communities as they adapt to the evolving net-zero economy. This includes the adoption of the Canadian Sustainable Jobs Act (2024), that will support the creation of sustainable jobs, support industries and communities in every region across Canada, and help the workforce gain the necessary skills, training, and tools to fill these new job opportunities. Canada has committed investments of over $99 million in the Sustainable Jobs Training Fund (SJTF) and $55 million in the Community Workforce Development Program to support workers and communities gain new skills and prepare for the low-carbon economy. Moving forward, the Government of Canada will focus on preparing the workforce to supply the green skills that are already in high demand and prepare for the jobs of the future, while seizing immediate economic opportunities from growing net-zero-ready industries (e.g., batteries, electric vehicles, clean electricity).

Collaboration with provinces, territories and municipalities

Achieving Canada’s climate targets requires strong collaboration between federal, provincial and territorial governments and municipalities. Climate change and environmental issues are a shared jurisdiction between federal, provincial and territorial, and municipal governments in Canada. In addition, provinces and territories are at the front lines of climate programming. Each region plays a critical role in shaping policies and implementing initiatives that directly impact emissions reductions, affordability and competitiveness. Given the country’s diverse geographic, economic, and social contexts, provinces, territories and municipalities must tailor their approaches to address unique local challenges and opportunities.

The Government of Canada has already implemented several key initiatives to support provincial and territorial efforts. This includes a flexible approach to carbon pollution pricing which allows provinces and territories to design their own carbon pricing systems as long as they align with minimum national stringency requirements (“federal benchmark”). The Government of Canada also regularly engages with provinces and territories through Federal–Provincial–Territorial (FPT) ministerial tables to address topics of mutual interest, such as exploring carbon management and developing indicators for climate adaptation and resilience. The Government of Canada also works with third-party organizations, such as the Federation of Canadian Municipalities, to support municipalities to create resilient, net-zero communities, particularly through the Green Municipal Fund. Moving forward, the Government of Canada will continue to collaborate with other levels of government, including Indigenous Peoples (outlined in the next section) to meet our climate goals.

Canada was also a founding member of the Coalition for High Ambition Multilevel Partnership (CHAMP) for Climate Action launched at COP28 which aims to increase cooperation between countries and subnational governments to limit global temperature rise. 

Indigenous Climate Leadership

Indigenous Peoples in Canada are key leaders, partners and drivers of climate action, at local, regional, national, and international levels. The stewardship of First Nations, Inuit, and Métis communities, waters, and lands, the exercise of constitutionally protected Aboriginal and Treaty Rights, and the participation in co-management regimes for natural resources and major infrastructure projects all position Indigenous Peoples as indispensable contributors to climate policy and action. Indigenous governments and communities know where the most urgent and effective action should be taken in their jurisdictions and First Nations, Inuit and Métis organizations, regions, and governments have developed climate change strategies and action plans to lay out priorities. These strategies seek to predict, monitor and address adverse climate impacts; provide scalable Indigenous-led climate solutions; and plan localized mitigation efforts. Importantly, these strategies prove that Indigenous priorities broadly align with federal climate priorities, including adaptation planning, environmental and biodiversity stewardship, emergency preparedness, clean energy transition, air quality and food security. To support Indigenous climate priorities, since 2022, the Government of Canada has invested $29.6 million to work in partnership with over 50 national and regional First Nations, Inuit, and Métis governments and representative organizations to jointly work toward building regional and national climate capacity and progressively vest resources for climate action in the hands of First Nations, Inuit and Métis. Moving forward, the Government of Canada will continue to address barriers to Indigenous climate action and explore options to streamline the delivery of climate funding to Indigenous partners to support Indigenous climate leadership. Canada is also committed to minimizing the adverse impacts on Indigenous communities from essential net-zero industrial projects, notably from mining and clean electricity.

Connections to Adaptation and Biodiversity

Canada is also taking strong action to increase the resiliency of society at large including communities, Indigenous peoples, households, and infrastructure. Canada’s first National Adaptation Strategy (NAS) was released in 2023 and establishes a whole-of-society framework to build climate resilience in Canada, with goals, objectives and targets in five priority areas to focus efforts: disaster resilience, health and wellbeing, nature and biodiversity, infrastructure, and economy and workers. The Government of Canada Adaptation Action Plan is the federal government’s contribution to implementing the NAS and will be complemented by action plans with provinces and territories, as well as Indigenous-led action. The NAS promotes accountability through work with partners on reporting and a monitoring and evaluation framework, a critical component of Canada’s adaptation policy process that provides the information necessary to learn what is working and adjust the course of action. The first NAS progress report will be published in 2026. Chapters 3 and 4 of Canada’s BTR double as Canada’s second Adaptation Communication under the Paris Agreement, demonstrating Canada’s ongoing commitment to transparency and ambition on adaptation and providing greater detail on the goals, policies, and plans being implemented to reduce the risk of climate impacts.

Canada recognizes the interconnectedness of climate change, biodiversity loss, and pollution, and is taking a holistic approach to address these challenges simultaneously. By leveraging the power of ecosystems, such as wetlands, grasslands, coastlines and forests, initiatives like the Nature Smart Climate Solutions Fund and Indigenous Guardians program help tackle climate change while advancing resilience and biodiversity goals. Additionally, in 2024, Canada released the 2030 Nature Strategy, which aims to align climate and biodiversity efforts under international agreements, such as the UNFCCC and the Convention on Biological Diversity and minimize the impacts of climate action on biodiversity.

2. International actions

Canada recognizes the importance of international cooperation to meet its climate targets. Canada’s economy relies heavily on natural resources, with emissions-intensive sectors driving an important share of exports, with up to 40% of Canada’s GHGs are being driven by foreign demand^{Footnote 12}. There is also significant global demand for Canada’s natural resources to support the energy transition, which highlights the importance of reducing emissions without compromising Canada’s ability to supply critical resources. Achieving a similar level of emissions reductions as international peers, including other G7 countries, without triggering a loss of international competitiveness, capital flight, and risk of carbon leakage will require close collaboration with international partners to ensure we are in lock-step in the transition to a low-carbon economy.

3. Areas of exploration

Canada acknowledges there are significant benefits in a net-zero emissions economy. Transforming Canada’s economy needs to be informed by a robust body of research from academics in a variety of disciplines, including physical and social sciences, as well as insights from Indigenous Knowledge Systems. Areas of exploration to support these efforts may include expanding clean energy, building capacity for Canadians to prosper throughout the transition, creating accountability for GHG emissions, and preserving nature’s capacity to stabilize the climate. These transformations are not unique to Canada and are indicative of broader changes that are necessary on a global scale.

Canada will also explore new and promising areas that have strong potential and align with a net-zero future, such as international and domestic offset credits that are robust and represent verifiable, additional and permanent GHG reductions and carbon removals. Internationally Transferred Mitigation Outcomes (ITMOs) under the Paris Agreement allow for higher global ambition and other countries are planning to use ITMOs to meet their climate targets. ITMOs facilitate the transfer of emission reductions between nations, potentially enabling a cost-effective and flexible approach that could help Canada achieve its targets while supporting sustainable development abroad and strengthening international co-operation. Canada will continue to explore the transfer and use of ITMOs and other options that can generate incentives for further emission reductions.

Emerging science highlights the importance of carbon dioxide removal (CDR) technologies in achieving net-zero, however, their use carries potential risks that must be carefully managed. Canada has already taken steps in this area through the development of its Carbon Management Strategy, which outlines Canada’s priorities for carbon management including key initiatives for advancing CDR technologies. Going forward, Canada will continue to explore the potential for CDR to contribute to emissions reductions while ensuring that it does not discourage other critical mitigation actions. As part of its continued commitment to supporting Canadian businesses and industry to take advantage of the economic opportunities that come with building a clean economy, the Government of Canada has communicated its intention to engage with a broad range of partners and stakeholders to examine the role that technologies that permanently remove carbon dioxide can play in this transition. This will support ongoing work to assess the feasibility of different carbon dioxide removal approaches in Canada and explore the benefits and challenges associated with them, including how to most effectively leverage their economic potential.

Canada will work with international partners to align ambition and explore tools to level the playing field as all countries decarbonize. Several countries are exploring trade-related instruments, such as border carbon adjustments and emissions standards, to support continued fairness and competitiveness in a net-zero world and mitigate the carbon leakage and competitiveness risks associated with unilateral mitigation policies. Canada will continue to engage like-minded partners and explore potential measures to continue to mitigate carbon leakage risks.

The high-level transformations and key areas outlined above will serve as a foundation for the development of Canada’s 2035 ERP, due in December 2029 as outlined in the Act. These areas will guide the Government of Canada in examining and implementing the necessary measures to achieve its 2035 climate target. Canada aims to ensure a robust and effective strategy that supports both environmental sustainability and economic prosperity on the path to a net-zero future.

Canada’s support for international cooperation

Since ratifying the Paris Agreement, advanced economies, including Canada, have led the way with absolute, economy-wide emissions reduction targets covering all greenhouse gases. Canada will continue to demonstrate leadership and cooperation towards global efforts that will help get countries on 1.5 degree-aligned pathways. Examples include Canada’s role co-leading the Powering Past Coal Alliance, which strives for the rapid phase-out of unabated coal power worldwide, and its membership in the Global Methane Pledge, which aims to reduce global methane emissions by at least 30% from 2020 levels by 2030. Canada is also a founding partner of the Climate and Clean Air Coalition, which works to reduce emissions of short-lived climate pollutants (SLCPs) that cause significant near-term climate change.

The provision of climate finance to developing countries, many of whom disproportionately bear the impacts of climate change despite contributing fewer emissions, is also essential for Canada to contribute to emission reductions beyond its borders. For this reason, Canada is investing up to 60% of its $5.3 billion International Climate Finance envelope (2021-2026) into support for mitigation actions in developing countries, supporting clean transitions amongst many of the most emissions-intensive economies today.

Canada also remains committed to implementing the mitigation outcomes of the Global Stocktake (GST), agreed at COP28. The first GST affirmed that the international community has made significant progress towards the temperature goal of the Paris Agreement but also recognized that the world is not on track to limit warming to 1.5°C and that the window to achieve this goal is closing. The decision provided benchmarks and guidance for countries to consider in the next round of NDCs due in 2025, including calls to action for the global energy transition. In 2024, the G7 took the first steps to reaffirm and build on these commitments. This includes working towards the tripling of global renewable capacity and doubling of energy efficiency improvements, transitioning away from fossil fuels in energy systems, achieving a fully decarbonized power system in 2035, accelerating the decarbonization of industrial sectors, and working towards a 35% global reduction of methane emissions in 2035. Canada has already made critical strides in high-impact areas that are important for our collective goals under the GST.

Annex: 2035 target legislative requirements and engagement 

Legislative requirements

The following section outlines how the Government of Canada met the legislative requirements of the Canadian Net-Zero Emissions Accountability Act (the Act) when setting the 2035 emissions reduction target. The Act requires that the Government of Canada considers the best scientific information available, Canada’s international commitments related to climate change, Indigenous Knowledge, and advice from the Net-Zero Advisory Body. In addition to the legislative requirements, the Government of Canada also performed quantitative and qualitative analysis to inform the target, including economic modelling. 

Best available science 

In assessing the best available science to inform the target, the Government of Canada considered peer-reviewed research, major international and domestic assessment and synthesis documents, and scientific observations and data, including Canada’s GHG inventory.  The findings included that limiting global warming to below 1.5°C will significantly reduce the risks, adverse impacts, and related losses and damages from climate change. To keep 1.5°C within reach, global CO2 emissions need to be halved by 2030 and reach net-zero around 2050. The transition to net-zero will require deep emissions cuts across all sectors this decade, and a shift towards low-carbon energy and improved efficiency. Analysis also showed that, while carbon dioxide removal (CDR) will be needed to counterbalance remaining hard-to-abate GHG emissions within Canada to achieve net-zero emissions domestically, as well as to address overshoot of global temperature goals, clarity on the feasibility of these approaches is needed to avoid overdependence and to reduce the risk that they will delay emission reductions through direct mitigation efforts. A holistic approach to decarbonization can maximize co-benefits while mitigating adverse impacts. The Government acknowledges that science is evergreen and will work to improve the process to consider best available science in the future, including the consideration of Indigenous Science. 

Indigenous Knowledge 

The process to consider Indigenous Knowledge in setting Canada’s 2035 emissions reduction target aimed to build on and respect the longstanding relationships between Canada and Indigenous Peoples on climate change, while advancing reconciliation and supporting Indigenous Peoples’ self-determined climate priorities and action. First, a framework for Indigenous Knowledge was established on how to ethically and equitably engage with and reflect Indigenous Knowledge Systems in the establishment of the target. This framework included four categories which focused: on values and rights; equity and socio-economic considerations; impacts and lived experiences of climate change; and actions to mitigate climate change. Three engagement processes were then launched, including: an invitation to provide written or oral submissions; an extensive review of self-determined climate plans and recommendations; and distinctions-based regional engagement sessions with First Nations, Inuit and Métis communities and organizations. Based on the outcomes of these engagement processes, the Government of Canada synthesized six core recommendations on how to ethically and equitably consider Indigenous Knowledge when setting Canada’s 2035 target. Recommendations included:

• Indigenous Knowledge and Western Science should be woven together and given equal standing and validity in decision-making when setting the 2035 target. 
• The target’s scope should consider the growth and consumption paradigm shifts needed to restore balance between human and natural systems. 
• The target’s ambition should consider a proportionate mitigation response to the rapid increase of climate disruptions and disasters observed and experienced by First Nations, Inuit and Métis. 
• The target’s ambition should reflect safeguarding the well-being of at least seven future generations. 
• The target’s scope and ambition should consider the responsibility to take care of all living beings. 
• The target’s ambition should account for the irreplaceable loss and damage of Indigenous lands, livelihoods, and the erosion of rights and title caused by unabated emissions. 

International commitments 

In setting the 2035 target, Canada reviewed its international climate commitments. The review highlighted the many opportunities available to Canada as an active participant and leader in international climate change mitigation, as well as its obligations under both binding and voluntary agreements, fora and initiatives. Achieving real progress towards these commitments demonstrates Canada’s dedication to action, transparency and collaboration, to promoting inclusive global climate action, and to strengthening partnerships and global cooperation. Shared commitments taken by Canada and other countries can also serve to build a more level trading and economic playing field which directly benefits Canadians. Underpinning these commitments is a recognition of Canada’s global responsibility and capacity for climate leadership, including as one of the top fifteen global emitters and a G20 country.   

Advice from the Net-Zero Advisory Body 

The independent Net-Zero Advisory Body (NZAB), an expert advisory panel, works to recommend pathways for Canada to reach its net-zero by 2050 target. In Fall 2023, the Minister requested the NZAB’s qualitative advice for setting the 2035 target, such as key considerations the Government should take into account when setting the target, as well as the assumptions, rationale, and level of effort that would be needed should the NZAB choose to recommend a specific 2035 target. Ultimately, the NZAB provided their advice, Climate’s Bottom Line: Carbon Budgeting and Canada’s 2035 Target, and recommended that the Government of Canada adopt a Canadian carbon budget, an emissions reduction target of 50-55% below 2005 levels for 2035, and address Canada’s existing emissions. The NZAB notes that its recommendation of 50-55% below 2005 levels would require greater ambition not just from the federal government, but also from provinces, territories, municipalities, and the private sector. Per the Act, the Government of Canada is required to publicly respond to the NZAB’s advice; the response is forthcoming and will be published in 2025.

Economic modelling 

Canada leveraged economic modelling analysis to provide a better understanding of the level of effort Canada would need to deploy to reach the 2035 target. Using energy-economy models helps to understand how much incremental policy effort would be required to achieve a target given Canada’s current economic structure, as well as ensuing socio-economic impacts. Economic modelling was just one line of analysis that informed the setting of the 2035 target. 

Engagement on the 2035 target 

Per the Act, the Government of Canada provided provinces and territories, Indigenous Peoples, the Net-Zero Advisory Body and interested Canadians with the opportunity to make a submission to the 2035 target-setting process, summarized below. 

Provinces and territories 

The Minister of Environment and Climate Change sent letters to Ministers of the provinces and territories in early 2024, inviting them to make a submission to the 2035 target-setting exercise, and providing an opportunity for provinces and territories to highlight any considerations they may have related to setting the target.  A number of provinces and territories provided submissions. These submissions emphasized a variety of target-setting priorities, including the need to ensure economic security and affordability alongside enhanced ambition.

Indigenous Peoples 

The Minister of Environment and Climate Change Canada and senior officials sent letters in early 2024 inviting written or oral submissions from First Nations, Inuit and Métis governments and representative organizations. Partners were invited to consider a variety of topics in their submission, such as Indigenous Knowledge, including distinctions-based Knowledges and Science; fairness, equity, intersectionality, and gender-based considerations; and legal instruments upholding Indigenous rights, such as the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). The Government also hosted virtual and in-person sessions to provide opportunities for First Nations, Inuit and Métis governments and representative organizations and individuals, including Elders, Knowledge-Holders, Land Users, Leadership Representatives and Youth. Eight written submissions were received, as well as numerous oral submissions through the distinctions-based, regionally focused engagement sessions. Some of the key messages from this engagement process include taking a holistic view of how Western Science and Indigenous Knowledge systems identify and address the root causes of climate change, including the imbalance of human and natural systems, and supporting deeper transformation of social, political, and economic systems and structures, as well as minimizing socio-economic impacts of measures on Indigenous Peoples.

Interested Canadians 

Canada also sought input from interested Canadians: around 11,000 participants shared their views via an online portal, which included over 23,000 comments, and the Government received around 100 written submissions from stakeholders and Canadians. The results highlighted the polarization of views on climate change in Canada, with the majority of respondents (about 2/3) supporting increased action and a minority strongly opposed. In general, written submissions from stakeholders expressed views that Canada was not on track to achieve its 2030 target and called for the implementation of all announced measures, enhanced policy certainty and coherence, and a target that is ambitious, aligned with net-zero, fair, and realistic. 

Additional information

• Engagement on Canada’s 2035 Emissions Reduction Target - Open Government Registry
• Canada’s 2035 Nationally Determined Contribution