By Alexander Schummer
TORONTO (Reuters) – Canada on Tuesday released its Emissions Reduction Plan (ERP), its first detailed road map laying out how it expects to reach its climate target of cutting emissions 40-45% below 2005 levels by 2030.
Here are some highlights:
INTERIM EMISSIONS TARGET
* Canada has set an interim target of cutting carbon emissions 20% below 2005 levels by 2026. This will be a key measure of whether the country is on track to meet its more ambitious 2030 target.
SPENDING
* The government announced C$9.1 billion in new investment to help meet the 2030 target. This will need parliamentary approval and form part of the 2022 budget.
OIL AND GAS
* The oil and gas sector accounts for 26% of Canada’s overall emissions, making it the biggest-polluting sector.
* The government expects the sector to cut carbon emissions 31% below 2005 levels by 2030, which is a 42% cut from current levels.
* The government is continuing to consult with industry and provinces to implement a cap on oil and gas emissions.
* Ottawa will support development of carbon capture, storage and utilization (CCUS) and release details of a new CCUS investment tax credit soon. The government said it will eliminate regulatory barriers and facilitate CCUS deployment.
* Canada will reduce methane emissions from the oil and gas sector by at least 75% below 2012 levels by 2030.
TRANSPORTATION
* The transportation sector is the second-biggest emitter, accounting for 25% of overall pollution in Canada.
* The government and Canada Infrastructure Bank will invest C$900 million in zero-emissions vehicles (ZEV) charging and refueling infrastructure. Ottawa will also provide C$1.7 billion to extend an incentive for Canadians buying light-duty electric vehicles.
* Ottawa is mandating at least 20% of all new light-duty trucks offered for sale by 2026 must be ZEVs, rising to 60% by 2030 and 100% by 2035.
* The government is aiming for 35% of medium-and heavy-duty vehicles sales to be ZEVs by 2030.
CARBON PRICE CERTAINTY
* Canada has a carbon price that will rise to C$170 a tonne by 2030, from C$50 a tonne in 2022. The ERP commits the government to exploring measures that help guarantee the price on pollution, a move that would give more certainty to companies investing in cutting emissions.
(Reporting by Alexander Schummer; Writing by Nia Williams; Editing by Marguerita Choy)
