As climate change continues to threaten the wellbeing of Earth and its natural resources, countries across the world race toward a net-zero economy. A net-zero economy means that an economy either emits no greenhouse gasses (GHG) or it offsets the emissions by planting trees or implementing technologies that capture released carbon. Due to the adverse effects of climate change, Canada has implemented many programs to help achieve its goal of net-zero emissions by 2050.
Canada's climate change solutions began with adopting the Pan-Canadian Framework on Clean Growth and Climate Change (PCF) on December 9, 2016. The primary efforts of the PCF were to price carbon pollution, create complementary actions to reduce emissions, adapt and become more resilient to climate change and develop clean technologies and jobs. As a result of the PCF, Canada passed the Greenhouse Gas Pollution Pricing Act in 2018, which created a carbon pollution pricing system throughout Canada.
In addition, as the harmful risks of climate change continue to expand, the Government of Canada has increased its budget and released new plans to combat climate change. The A Healthy Environment and a Healthy Economy plan was created to work alongside the PCF. The plan aims to decrease Canada's GHG emissions between 32.0% and 40.0% below its 2005 levels by 2030. Subsequently, Canada recently passed bill C-12, or the Canadian Net-Zero Emissions Accountability Act (CNZEAA), to ensure that Canada achieves net-zero emissions by 2050.
Crown Corporation Aid
To help combat the climate change crisis, the British Columbia Hydro and Power Authority, also known as BC Hydro, a Crown corporation, and the provincial government have announced a new five-year plan to incentivize people and businesses to switch from fossil fuels to electricity to power their homes, businesses and vehicles. This plan aims to divide $260.0 million into various agendas that promote a switch from fossil fuels, including $190.0 million to advocate fuel switching in homes, vehicles and industries; and more than $50.0 million on attracting different industries to operate in British Columbia using hydroelectricity. The remainder of this budget is expected to go toward existing rebates and customer support for upgrading connections.
Certain companies seeking to enter a particular industry may benefit from this five-year plan as BC Hydro is also expecting its rates to fall 1.6% by 2026. Additionally, companies seeking to enter an industry are expected to benefit from more rebate incentives to build a greener facility. Companies in the oil and gas extraction, transportation and agricultural sectors are expected to benefit the most from setting up operations in British Columbia since these sectors emit the most GHG and can achieve a higher profit margin from new rebates and a potential rate decline.
Net-Zero by 2050?
If everything goes as intended, British Columbia Premier John Horgan expects the plans to reduce GHG emissions by about 930,000 tonnes, or the equivalent of taking almost 200,000 passenger vehicles a year off the road, by 2026.
In addition to all the provincial and federal programs to combat climate change, the renewable power industry in Canada is expected to improve due to innovative technological innovations. Technologies that help improve the fight toward ending climate change are vital to Canada’s goal of net-zero emissions by 2050. Implementing technologies that help capture carbon before it releases into the atmosphere is crucial for Canada to achieve its goal. To date, more than 130 other countries have also committed to carbon neutrality by 2050.
