It is a plan that relies heavily on deep cuts in the electricity, oil and gas and transport sectors. In an effort to reduce emissions by 40 to 45 percent below 2005 levels by 2030, the federal government has announced about $ 9.1 billion in new investment that will, among other things, boost zero-emission incentives ( ZEV) will sweeten tax breaks for fossil fuel companies that adopt CCUS technology and work to make Canada’s electricity grid cleaner. Speaking at an event in Vancouver, Prime Minister Justin Trinto described the report as “the boldest and most concrete step by the government to date. It is ambitious and it is possible. “ The report, entitled Emission Reduction Plan 2030: Canada’s Next Steps to Clean Air and Strong Economy, says the current carbon pricing regime will remain the cornerstone of the federal climate plan. The price of coal is set to rise sharply from its current level of $ 50 per tonne emissions to $ 170 by 2030, in order to push consumers to cleaner energy sources. To maintain this carbon footprint after the next change of government, the report says, Ottawa is “exploring legislative approaches to support a fixed price for carbon pollution.” Ottawa may also soon adopt a “carbon frontier adjustment” that would impose tariffs on imports from non-carbon jurisdictions, the report said. The single largest contributor to greenhouse gas emissions in Canada is the oil and gas sector. In 2019, this sector accounted for 26 percent of national emissions, or about 191 megatons. According to the plan released on Tuesday, the federal government wants to see this number reduced to just 110 megatons by the end of the decade. As Trudeau announced at COP26 in Glasgow last fall, the government will soon impose a tough emission limit – meaning that if companies want to pump more fossil fuels in the coming decades, they will have to do so at significantly lower emissions.

Ottawa is all-in on carbon capture

To achieve such a big reduction – the government predicts a 42 percent reduction from current levels in just eight years – Ottawa is adopting the CCUS, a process that captures and reuses or stores carbon dioxide emissions. It’s a technology that has already been used, with some success, in Saskatchewan and elsewhere. The federal government has said it wants to see technology expand to reduce emissions from Alberta and other oil-producing areas. Pumpjacks pump oil from the ground near Olds, Alta., July 16, 2020. (Jeff McIntosh / The Canadian Press)
To encourage the adoption of the CCUS, the government said it would provide significant new investment tax credit. The plan released today does not include details on how to build such an incentive. In addition to the imminent tax cut, the government is urging oil and gas companies – many of which have recently laundered cash thanks to rising fossil fuel prices – to invest more in emissions reduction projects.

Report calls on oilpatch to do its “fair share”

An industry that has developed creative ways to extract oil from the ground is also capable of seeking new technologies to make the whole process cleaner and greener, the report said. “Canada’s oil and gas industry is currently setting a cash flow record. of the country “, the report states. To further limit growth in the sector, the federal government has said it will abolish all “ineffective” fossil fuel subsidies and develop a plan to “phase out funding for the fossil fuel sector, including federal corporations.” This will virtually eliminate a source of funding for companies wishing to expand. An electric vehicle is charging at a charging station. (Brittany Spencer / CBC)
As hundreds of thousands of people working directly or indirectly in the energy sector face an uncertain future under these more limited circumstances, the federal government has said it is working on a “fair transition” plan so that displaced workers can “achieve low emissions.” carbon economy. “ About $ 2 billion in federal money will be directed to new so-called “future funds” in Alberta, Saskatchewan and Newfoundland and Labrador to “help workers in all sectors upgrade or acquire new skills to stay on top. zero carbon industry “. The report suggested that some displaced oil and gas workers could also find work in emerging industries such as low-carbon hydrogen. “A hydrogen production facility using carbon capture technology will not be very different from an existing refinery – and the same is true for a biofuel plant,” the report said. Trinto said that “the big oil lobbyists had their time in the field” and now “passed it on to the workers and engineers who build the solutions” to chart a course for the industry.

Zero emission vehicles

The second largest source of emissions is the transport sector. According to data from the most recent National Census Report, emissions from transportation were 186 megatons in 2018, accounting for 25 percent of total emissions in Canada. The government wants to see this drop to 143 megatons by 2030. To achieve this, the government is proposing more aggressive action to attract more people to ZEVs – zero-emission vehicles that do not emit exhaust fumes or other pollutants. The government says it will spend $ 1.7 billion to expand existing incentives to provide credit to people who buy cars and trucks with zero emissions. The forthcoming federal budget will “provide additional details for the planning of the program,” the report said. The government will also require 20 percent of all new light vehicle sales in Canada to be ZEV by 2026 – a rapid recovery in a country where the vast majority of new cars sold still have internal combustion engines. According to market research firm IHS Markit, ZEV’s share of light vehicle sales in Canada was just 5.6 percent in 2021. The federal mandate will then dictate that at least 60 percent of all new vehicles sold in 2030 be ZEVs, before rising to 100 percent in 2035. Under this plan, Canadians will not be able to buy a new car. with an internal combustion engine or truck in the middle of the next decade. “With the growing consumer demand for ZEV and the exciting new products offered by both traditional and new manufacturers, the world is approaching a tipping point. The global stock of electric cars reached 10 million in 2020 and the trend line is curving upwards for in 2021. ” the report states. This transition will require a dramatic expansion of the ZEV charging station infrastructure. The government is pledging $ 400 million in new funding to help add 50,000 chargers to Canada’s network. Canada Infrastructure Bank, the federal agency that supports infrastructure projects that generate revenue that is in the public interest through public-private partnerships, will also spend about $ 500 million on large-scale ZEV charging and refueling infrastructure. The government also wants to lead to emission reductions in medium and heavy vehicles, which have adopted zero emission technology more slowly. The transition from gas-powered vehicles to electricity-based vehicles will lead to a significant increase in electricity demand – and the government wants the future grid to have zero emissions by 2035. The government says it will work with provinces and territories to set up a “Pan-Canadian Network Council” to promote investment in clean electricity infrastructure and the development of emerging technologies such as geothermal, tidal and small modular nuclear reactors (SMRs). . For its part, the federal government promises to spend $ 850 million more than previously budgeted to help build renewable energy capacity through new wind and solar projects.