- Federal Government Announces Pan-Canadian Framework on Clean Growth and Climate Change
- January 11, 2017 | Author: Michael R. Barrett
- Law Firm: Bennett Jones LLP - Toronto Office
The federal government, along with most of the premiers, signed a new pan-Canadian framework (the "Federal GHG Framework") on Friday, December 9, 2016. The Federal GHG Framework is intended to address climate change on a national platform. The federal government's approach to meeting its 2030 target of a 30-percent reduction in greenhouse gas ("GHG") emissions below 2005 levels is to ensure the provinces and territories have sufficient flexibility to design their own programs while being supported federally through infrastructure spending, clean technology investments and targeted GHG reduction opportunities.
The Federal GHG Framework builds on already-announced measures and includes the following:
- all provinces and territories shall have carbon pricing in some form by 2018;
- provinces and territories can implement a carbon tax/carbon levy or a cap-and-trade system;
- each jurisdiction can choose to provide that all program revenues are to remain in the applicable jurisdiction;
- systems featuring a carbon tax/carbon levy shall have a $10/GHG tonne floor in 2018 rising by $10/GHG tonne per year to $50/GHG tonne by 2022;
- systems featuring a cap-and-trade program shall feature a declining cap to at least 2022 which mirrors the projected GHG emission reductions of carbon tax/carbon levy systems and shall result in aggregate GHG emission reduction outcomes by 2030 that line up with the federal plan; and
- each jurisdiction will provide regular, transparent and verifiable reports on the outcomes of their particular system.
- developing new building codes to ensure that buildings use less energy;
- deploying more electric charging stations to support zero-emitting vehicles; and
- expanding clean electricity systems, promoting inter-ties, and using smart-grid technologies to phase out the reliance on coal, make more efficient use of existing power supplies, and ensure a greater use of renewable energy.