REM: Trudeau unveils C$9.1bn plan to meet 2030 carbon targets

Canada has unveiled a multi-billion-dollar plan to cut carbon emissions, including a clean electricity standard (CES). The plan, presented by Prime Minister Justin Trudeau, includes C$9.1bn ($7.3bn) in new spending to meet carbon emissions reductions by 2030.

Oil and gas sector emissions must be slashed by 42% by 2030, said Trudeau.

He linked Europe’s plans to move away from relying upon Russian oil and natural gas – after the country’s invasion of Ukraine – to a broader, global push towards renewable energy. Trudeau spoke at a rally in Vancouver on March 29.

“The leaders I spoke with in Europe over the past few weeks were clear: They don’t just want to end their dependence on Russian oil and gas; they want to accelerate the energy transformation to clean and green power,” Trudeau told reporters.

“The whole world is focusing on clean energy and Canada cannot afford not to do that,” he said.

Canada – with its large oil and gas sector – may account for only 1.6% of global CO2 emissions, but it is one of the highest emitters per capita.

The plan – the 2030 Emissions Reduction Plan: Canada’s Next Steps to Clean Air and a Strong Economy – is a sector-by-sector approach for Canada to reach its new climate target of cutting emissions by 40% below 2005 levels by 2030, and to reach a goal of net-zero emissions by 2050.

A CES will be developed, says Trudeau’s office. A CES typically requires utilities to acquire a certain proportion of their electricity from clean sources, such as renewable energy.

Additional investments of about C$850mn will go to clean energy projects like wind and solar power, while the government will work with provinces and territories, stakeholders and indigenous partners to move Canada’s electricity grid to net-zero emissions by 2035, according to the Prime Minister’s office. 

More than C$2.9bn will be invested in electric vehicle charging infrastructure. All new passenger vehicles sold in Canada will be zero emission by 2035, with interim targets of at least 20% by 2026, and at least 60% by 2030, said his office.

Some $1bn will be invested in greening buildings.

The Ottawa government will continue working closely with provinces and territories, stakeholders and indigenous partners to develop an approach to cap oil and gas sector emissions to achieve net-zero emissions by 2050, reduce oil and gas methane emissions by at least 75% by 2030 and create good jobs, it said.

The plan includes a projected contribution for the oil and gas sector of a 31% reduction from 2005 levels, which is equivalent to 42% from 2019 levels.