Justin Trudeaus climate chief and Prime Minister Justin Trudeaus climate minister are ready to explain how Canada will reduce its carbon emissions while running the energy sector, moving a vast nation onto electric vehicles, and keeping it running.
A government emissions reduction plan, due to be submitted this month, is required by net-zero legislation last year. It will detail the specific actions the government will take for its goal to reduce emissions 40% to 45 percent below 2005 levels by 2030.
Canada’s government has been struggling to meet its climate goals for a long time, but Environment Minister Steven Guilbeault said that this plan will finally prove that they are more than just lofty talk.
Existing policies, including phasing out coal-fired electricity generation and adopting a national carbon tax, already have the country on track to reduce emissions by 36 per cent, Guilbeault said. It will be difficult to cross the threshold of 40 percent, however.
It will also not be cheap. The total spending — from both governments and businesses — needed over the next three decades to get Canada to net zero is C$2 trillion (US$1.6 trillion), according to a Royal Bank of Canada report last fall, which it said translates to at least C$60 billion a year in spending given current technologies.
Guilbeault declined information about the amount of spending he had requested from Chrystia Freiland, Finance Minister. He conceded that more spending is necessary.
He said that there is no way to get there without investing year in year. He also stated that the burden cannot be placed solely on the public purse. The government cannot fund the transition alone.
ROOTS OF ACTIVISTS
He pointed to the governments upcoming issuance of C$5 billion in green bonds, a first for the worlds fourth-largest oil producer, as one example of bringing the private sector on board.
Guilbeault, 51, a former Greenpeace activist who was once arrested for scaling the CN Tower in Toronto, said Canada cant reach its targets without tackling emissions in its oil and gas sector. 10 percent of the nation’s total economic output is generated by energy.
The government’s plan will focus on reducing the amount of methane released by the industry. Guilbeault stated that methane can be reduced quickly and there are many technologies available.
His emissions reduction plan comes at a time when oil prices rise due to war in Europe. The minister said impact of US$100 oil is complex. Higher oil prices would theoretically stimulate production, but that’s not what we are seeing. It hurts people at their pumps.
Carbon capture technology is another potentially crucial measure, but also a controversial one. It will cost tens of billions of dollars to implement and the industry wants government to fund the lions share of it. This year’s budget will include details about a tax credit.
The idea has been criticized by environmental groups. A Jan. 19 open letter to Freeland from scientists, academics and energy system modelers urged the government to reject a tax credit as it would constitute a substantial new fossil fuel subsidy that would help companies further boost oil production.
Guilbeault, however, pointed out the Intergovernmental Panel on Climate Change which recommends carbon trapping as a necessary component in reaching net zero. Guilbeault explained that it’s impossible to have both. Guilbeault noted that you can trust the United Nations body regarding climate change, or you don’t.
He stated that he believes the industry must help pay for it. However, implementing carbon capture makes sense — not only for oil and gas but for other heavy industries as well.
Guilbeault stated that they were doing it using steel, aluminum, cement, and transportation. We put in place regulations and also offered investment incentives. Either you believe that there is a just transition or you don’t. I don’t agree with those who think it’s okay to help all sectors, except the oil-and-gas sector.
Moving Canadians to electric vehicles is another difficult task. Late last year, the government launched public consultations on its goal of having all new cars sold be zero emission by 2035, a mandate Guilbeault called super important for getting the transportation sector on track to meet emissions targets.
The minister acknowledged the many difficulties of increasing electric vehicle adoption, including the cost of electric vehicles and the assurance that drivers won’t be stranded on the roads in winter. He rejected the notion that Canada is in a unique situation.
Norway has done it, said he, adding that he was there and had seen fast charging stations at every 50km (31 miles). They are doing it, even though it is cold. There’s no reason to think we can’t do this.
