The Canadian government of Justin Trudeau tabled its Emissions Reduction Plan for 2030 on Tuesday. What should we remember? The duty offers you an overview of the highlights.
Reduced targets for the fossil industry and the transport sector
The oil and gas industry will have a lower greenhouse gas (GHG) emissions reduction target than the rest of the economy. Indeed, it is only being asked to reduce its emissions by 31% by 2030, compared to their 2005 level. Canada is aiming for a total reduction of 40% of emissions for this period. Environment Minister Steven Guilbeault explained that he could not impose the same target on all industries, describing his approach as “very pragmatic and specific to each sector. For example, for the important transport sector, the decline would be even smaller, a mere 12% by 2030, compared to 2005.
No emissions cap yet for the oil sector
The plan unveiled by the Trudeau government on Tuesday still does not indicate how the oil and gas industry will be able to reduce its GHG emissions, since it remains silent on the ceiling that must be imposed on it. At most, it specifies the data which “will guide the work” of the government in this file, promised during the last election campaign. Consultations must still take place, in particular. If the industry succeeds in reducing its carbon footprint as planned, it could further increase its production, for which there is no cap. Nor has the federal government announced a way forward to eliminate all subsidies to the fossil fuel industry, another election promise.
9.1 billion in new investments
In total, this Emissions Reduction Plan for 2030 provides for new investments of $9.1 billion. These funds will be used, among other things: to facilitate the transition to electric cars ($2.9 billion), in particular by improving charging infrastructure and expanding the Incentive program for zero-emission vehicles, reducing the energy consumption of buildings ($1 billion ), to develop clean energy projects (850 million) and to develop carbon capture and storage technology (780 million).
Targets for electric cars
Starting in 2035, all new light-duty vehicles sold in Canada must be zero-emission vehicles. To achieve this objective, Ottawa is also setting intermediate targets. By 2026, at least 20% of new light-duty vehicles sold must be zero-emissions, and at least 60% must be zero-emissions by 2030. Ottawa also wants to ensure that “35% of all medium and trucks sold are zero-emission vehicles by 2030.”
Focus on carbon capture
The Canadian government is betting big on the invention of a technology capable of capturing and storing carbon to reach its targets for 2030. The plan unveiled on Tuesday refers to this technology of the future 75 times, while the most recent budget devoted 319 million dollars for its development. Government officials argue that any path to carbon neutrality by 2050 necessarily involves carbon capture. Critics point out, however, that this experimental technology has not yet demonstrated that it can be commercially viable.