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1 2030 EMISSIONS. REDUCTION PLAN. Canada's Next Steps for Clean Air and a Strong Economy Cat. No.: En4-460/2022E-PDF. ISBN: 978-0-660-42686-0. Unless otherwise specified, you may not reproduce materials in this publication, in whole or in part, for the purposes of commercial redistribution without prior written permission from Environment and climate Change Canada's copyright administrator. To obtain permission to reproduce Government of Canada materials for commercial purposes, apply for Crown Copyright Clearance by contacting: Environment and climate Change Canada Public Inquiries Centre 12th Floor, Fontaine Building 200 Sacr -Coeur Boulevard Gatineau QC K1A 0H3. Telephone: 819-938-3860. Toll Free: 1-800-668-6767 (in Canada only). Email: Cover photo: Getty images Her Majesty the Queen in Right of Canada, represented by the Minister of Environment and climate Change, 2022. Aussi disponible en fran ais 2030 Emissions Reduction Plan: Canada's Next Steps for Clean Air and a Strong Economy 1.

2 Table of Contents Minister's 6. Overview .. 7. Chapter 1: Introduction .. 14. Canada's Emissions 17. Progress to Date: How Canada is Bending the Emissions Curve .. 19. Chapter 2: Road to 2030 for Canada's Economy .. 21. 24. Putting a Price on Carbon Pollution .. 24. What have we done so far? .. 24. What was heard from the 2030 ERP engagement process? .. 27. What's next? .. 27. Production and Use of Clean Fuels .. 29. What have we done so far? .. 29. What's next? .. 29. Supporting the Transition to a Clean Growth Economy .. 30. What have we done so far? .. 30. What's next? .. 31. Taking a Holistic Approach to Reduce Methane .. 31. What have we done so far? .. 31. What's next? .. 32. Buildings .. 33. Current sector emissions .. 33. The buildings sector in context: key drivers .. 34. What have we done so far? .. 35. What was heard from the 2030 ERP engagement process? .. 35. What's next? .. 36. 38. Current sector emissions.

3 38. The electricity sector in context: key drivers .. 39. What have we done so far? .. 40. What was heard from the 2030 ERP engagement process? .. 41. What's next? .. 41. 2. Heavy Industry .. 43. Current sector emissions .. 43. Heavy industry in context: key 44. What have we done so far? .. 44. What was heard from the 2030 ERP engagement process? .. 46. What's next? .. 46. Oil and Gas .. 48. Current sector emissions .. 49. The oil and gas sector in context: key drivers .. 50. What have we done so far? .. 51. What was heard from the 2030 ERP engagement process? .. 52. What's next? .. 52. Transportation .. 55. Current sector emissions .. 55. The transport sector in context: key drivers .. 57. What have we done so far? .. 60. What was heard from the 2030 ERP engagement process? .. 60. What's next? .. 61. Agriculture .. 63. Current sector emissions .. 63. The agriculture sector in context: key drivers .. 64. What have we done so far?

4 64. What was heard from the 2030 ERP engagement process? .. 65. What's next? .. 65. Waste .. 67. Current sector emissions .. 67. The waste sector in context: key drivers .. 67. What have we done so far? .. 68. What was heard from the 2030 ERP engagement process? .. 68. What's next? .. 69. Nature-Based Solutions .. 70. Current sector emissions .. 70. What have we done so far? .. 72. 3. What was heard from the 2030 ERP engagement process? .. 73. What's next? .. 73. Clean Technology and climate Innovation .. 75. The clean technology sector in context: key drivers .. 76. What have we done so far? .. 76. What was heard from the 2030 ERP Engagement Process? .. 77. What's next? .. 77. Sustainable Finance .. 80. What have we done so far? .. 81. What was heard from the 2030 ERP engagement process? .. 82. What's next? .. 82. Sustainable jobs, skills, and communities .. 84. What have we done so far? .. 84. What was heard from the 2030 ERP engagement process?

5 85. What's next? .. 86. Chapter 3: Projections .. 87. Canada's Modelling Approach .. 87. Canada's 2030 Trajectory .. 88. Providing transparency in Canada's pathway to 2030 .. 91. Achieving Even Less Carbon Pollution .. 92.. 94. Chapter 4: Collaborating on climate Change Mitigation .. 95. Provincial and Territorial Collaboration: key cooperative measures and agreements .. 96. What's next? .. 98. Indigenous climate Leadership .. 99. What's next? .. 100. International Leadership .. 102. What's next? .. 103. Chapter 5 Looking ahead to 2050 .. 105. Laying the Foundation for 2050 .. 105. What is net-zero emissions and why is it important?.. 105. Pathways to Net-Zero Emissions: Observations and the 2030 ERP .. 105. Enabling the transition through additional domestic and international actions .. 107. 4. Next Steps .. 110. Conclusion .. 111. Annex 1 Provincial and Territorial Submissions .. 112. British Columbia .. 112. 119. Saskatchewan.

6 123. 127. Ontario .. 131. Qu bec .. 135. New 137. Nova Scotia .. 141. Newfoundland and Labrador .. 144. Prince Edward 146. Yukon .. 152. Northwest Territories .. 155. 157. Annex 2: Indigenous Submissions .. 159. Assembly of First Nations (AFN) .. 159. Inuit Tapiriit Kanatami .. 166. M tis National Council .. 168. Annex 3 Net-Zero Advisory Body Advice .. 174. Annex 4: Public Engagement .. 203. Annex 5: Modelling and Analysis of Canada's Emissions Reduction Plan for 2030 . 209. Annex 6: CNZEAA Planning and Reporting Cycle .. 230. Annex 7: Gender-based Analysis + .. 231. Annex 8: Implementation Table .. 231. 5. Minister's Foreword - 2030 Emissions Reduction Plan: Canada's Next Steps for Clean Air and a Strong Economy On climate action, it is amazing to see the pace of progress from coast to coast to coast. No matter what part of the country I visit, I meet families, youth, workers, Indigenous Peoples, and businesses building a better future in their communities.

7 There is no doubt: Canadians are facing climate change head-on, developing and adopting solutions to the greatest challenge of our time. As a government, we stand with them. On behalf of the Government of Canada, I am excited to present Canada's first Emissions Reduction Plan under the Canadian Net-Zero Emissions Accountability Act. The plan lays out the next steps as we ramp up our fight against climate change and bring sustainable, lasting economic prosperity to Canada. The science is clear. Reducing carbon pollution to net zero by 2050 is our best chance of keeping the planet livable for our children and grandchildren. Achieving net zero means we need to reduce emissions to the point that the carbon emissions that we do produce can be negated through measures like tree planting or carbon capture technologies. Countries around the world are stepping up to the challenge of keeping global warming below C by achieving net zero by 2050.

8 This is our ambitious and achievable roadmap to reach our emissions reduction targets under the Paris Agreement. It reflects the input of thousands of Canadians. And I know that we can get there, because we have already come such a long way together. Since 2015, we have turned the tables of our emissions trajectory: where we were once projecting an increase in emissions by 2030, we have now flattened the curve and are on track to achieving our target and putting Canada on the path to reaching our goal of net zero by 2050. This follows over $100 billion committed by our government to climate and green economy investments and more than one hundred different measures. This first Emissions Reduction Plan charts a credible path to emissions that are 40 percent lower than 2005 levels by 2030. This is an evergreen plan, and we will continue raising our ambition in the years to come. climate change is a crisis that persists and will only grow if we do not do more, faster.

9 Flooding, landslides, drought, and wildfire the mounting costs of extreme weather underscore the need to chart towards a future where Canadians have both a clean environment and a strong economy. Developed economies and businesses around the world are already going this way, because they know the alternative doing nothing entails a level of climate volatility that would harm our way of life and the stability of everyday business. Global investments in climate solutions such as renewable energy, hydrogen, electrified transport, and carbon capture and storage are already in the trillions of dollars. 6. Overview On climate change, the science is clear we must take action now to protect our planet and secure our children's future. But the economics are clear too to build a strong, resilient economy for generations to come, we must harness the power of a cleaner future. Canada's average temperatures are rising at twice the global average, and three times in the North.

10 Polluting less and taking steps to remove excess carbon from the air will be one of the most important undertakings in Canada's history. Last year, Canada increased its ambition on climate change under the Paris Agreement. The 2030 Emissions Reduction Plan describes the many actions that are already driving significant reductions as well as the new measures that will ensure that we reduce emissions across the entire economy to reach our emissions reduction target of 40 to 45% below 2005 levels by 2030 and put us on a path to achieve net-zero emissions by 2050. Reaching our climate goals will also help ensure that the conditions are right to seize the growing economic opportunities of a clean future. This Plan includes $ billion in new investments, and reflects economy-wide measures such as carbon pricing and clean fuels, while also targeting actions sector by sector ranging from buildings to vehicles to industry and agriculture.