5.5.1 British Columbia
Main targets and incentives
GHG emissions reduction
- 16% by 2025 (2007)
- 40% by 2030 (2007)
- 60% by 2040 (2007)
- 80% by 2050 (2007)
Carbon pricing
- $40/tonne tax
Renewable energy targets
- 93% renewable electricity generation
- 15% of residential and industrial natural gas consumption derives from renewable gas
Coal phase-out
- N/A
Low-emission vehicles incentives and renewable fuel mandates
- Cash rebates up to $3,000 for the purchase of electric (including longer-range hybrid) and hydrogen fuel cells
- Share of zero-emission vehicles sales or leases, 10% by 2025, 30% by 2030 and 100% by 2040
- Renewable fuels mandates and carbon intensity targets for fuels sold
Other
- Carbon Neutral Government
- New buildings “net-zero ready” by 2032
- Reduction of methane emissions by 45% (2014)
N/A = non applicable
British Columbia has its own carbon pricing system, first introduced in 2008 as a revenue-neutral tax on carbon emissions that reached $30/tonne in 2012. The rate has increased again by $5/tonne per year since 2018 to match federal requirements and the revenue-neutral condition has been eliminated. The rate applied for the carbon tax depends on the fuel’s carbon content; an additional Motor Fuel Tax applies for gasoline and diesel.
Revised GHG targets were introduced in the 2018 Climate Change Accountability Act (40% by 2030, 60% by 2040, as well as a recommitment to 80% by 2050). In light of the results of a progress assessment in 2020, the province added a target of 16% reduction by 2025. The Zero-Emission Vehicles Act (2019) also set targets for the share of zero-emission light-duty vehicles sales or leases, which must reach 10% by 2025, 30% by 2030 and 100% by 2040. This is in addition to the Renewable and Low Carbon Fuel Requirements Regulation, which includes renewable fuels mandates as well as carbon intensity targets for fuels sold.
Most of these initiatives are part of the CleanBC strategy, released after the Climate Change Accountability Act as a set of measures to achieve the province’s GHG emissions reduction targets. The strategy also requires that a minimum of 15% of residential and industrial natural gas consumption come from renewable gas. It has paid particular attention to the building sector, aiming to make every new building constructed in the province “net-zero energy ready” by 2032. In addition, regulations were enacted to reduce methane emissions from upstream oil and gas operations by 45%.
5.5.2 Alberta
Main targets and incentives
GHG emissions reduction
- None
Carbon pricing
- Federal “backstop” for the carbon tax, provincial system for industrial emitters
Renewable energy targets
- None
Coal phase-out
- By 2030
Low-emission vehicles incentives and renewable fuel mandates
- Renewable Fuels Standard (5% gasoline, 2% diesel)
Other
- GHG emissions cap of 100Mt for the oil and gas sector
- Reduction of 45% by 2025 for methane emissions in upstream oil and gas production (2014)
After the 2019 election, the new government announced early on that it would modify or eliminate several provisions following from the Climate Leadership Plan enacted by the previous government in 2015. These efforts began with the Carbon Tax Repeal Act, voiding the Climate Leadership Act and ending the Alberta Climate Leadership Adjustment Rebate. This triggered an announcement from the federal government that the federal carbon pollution pricing system would replace the Alberta carbon tax. Although the provincial government challenged the federal system in court, following Saskatchewan and Ontario, it lost after the Supreme Court’s decision in March, 2021.
The provincial government also chose not to repeal the 100 Mt cap imposed on emissions from the oil and gas industry, underscoring that it is unlikely that the cap will be reached in the next several years. As a result, a significant increase in the province’s overall emissions (and Canada’s) is possible even while respecting the cap, which would largely offset efforts to reduce emissions through other measures.
In the electricity sector, Alberta remains the province with the highest share of coal in its electricity production. The government has planned a system of transition payments for facilities that were slated to be in operation beyond 2030.
As for cuts in methane emissions, conflicting regulations from both the Alberta and federal governments took effect on January 1, 2020; however, an equivalency agreement was subsequently reached in late 2020.
5.5.3 Saskatchewan
Main targets and incentives
GHG emissions reduction
- -40% by 2030 (2005) for SaskPower operations
Carbon pricing
- Federal “backstop” for carbon tax, split system (federal and provincial) for industrial emitters
Renewable energy targets
- 50% of electricity from renewable sources by 2030
Coal phase-out
- Exemption for Boundary Dam plant
Low-emission vehicles incentives and renewable fuel mandates
- 7.5% renewable content in gasoline, 2% in diesel
Other
- Reduction of 40%-45% in methane emissions in flared and vented methane emissions
In 2017, the province released its Prairie Resilience Action Plan, outlining its approach and strategy for reducing GHG emissions. This release was followed by the introduction of the Climate Resilience Measurement Framework in 2018, which set out a series of 25 targets for the province and municipalities to meet and manage. Saskatchewan remains the only province not to have signed on to the PCF.
Saskatchewan released a plan to price carbon pollution in 2018. Overall, the plan, which uses an output-based performance standards approach for some of its large industrial facilities, has resulted in only a partial attainment of the federal stringency requirements. The federal pricing system applies as an output-based pricing system for electricity generation and natural gas transmission pipelines that covers facilities from sectors emitting 50,000 tonnes or more of CO2 equivalent annually, as well as a charge on fossil fuels, which is generally paid by registered distributors (fuel producers and distributors).
Saskatchewan is one of the four provinces that use coal for electricity generation. After the federal coal phase-out plan was announced, the province reached an agreement that allowed it to meet the federal emission requirement on an electricity system-wide basis in 2019. This agreement enabled the province to keep the station running at the Boundary Dam Carbon Capture Project beyond 2030. The project is a commercial-scale station that uses carbon capture, utilization and storage (CCUS) technology.
5.5.4 Ontario
Main targets and incentives
GHG emissions reduction
- -30% by 2030 (2005)
Carbon pricing
- Federal system applies for the carbon tax; federal system applies to industrial emitters but a provincial proposal will replace it shortly
Renewable energy targets
- N/A
Coal phase-out
- N/A
Low-emission vehicles incentives and renewable fuel mandates
- 10% renewable content in gasoline (to be increased to 15% in 2030), 4% in diesel
After its election in the spring of 2018, the new government led by Premier Doug Ford announced several changes to the climate policies put in place by successive Liberal governments from 2003 to 2018. The government introduced the Cap and Trade Cancellation Act in 2018, withdrawing the province from the cap-and-trade system it had joined with Quebec and California earlier that year, resulting in the application of the federal carbon pricing system instead. In 2020, the province received approval from the federal government for a carbon-pricing system for large industrial emitters, which functions as emissions performance standards. However, since its coverage was described as concerning by the federal Environment Minister, it will be reviewed in two years. At the time of writing, it had not yet been determined when the provincial system would take effect. The Green Energy and Green Economy Act was also repealed in 2018.
After the 2018 election, Ontario released its Preserving and Protecting our Environment for Future Generations: A Made-in-Ontario Environment Plan, under which the province commits to a 30% reduction in GHG remissions from 2005 levels by 2030, in line with the federal target at the time. The plan includes emission performance standards for large emitters; the Ontario Carbon Trust, an emissions reduction fund to encourage private investment in clean technology solutions; and the Ontario Reverse Auction, which establishes an auction system that allows bidders to send proposals for emissions reduction projects and compete for contracts based on the lowest-cost GHG emission reductions.
Many of these changes arose from a concern about the impact on electricity costs, which have climbed rapidly in Ontario in recent years. The significant changes in policies to reduce GHG emissions (and to energy policy more generally) underscore the new government’s different approach to these issues.
5.5.5 Quebec
Main targets and incentives
GHG emissions reduction
- -37.5% by 2030 (1990)
- Net-zero by 2050 (1990)
Carbon pricing
- Cap-and-trade system linked with California
Renewable energy targets
- +50% in bioenergy production by 2030
- +25% overall renewable energy output by 2030
Coal phase-out
- Elimination of the use of thermal coal by 2030
Low-emission vehicles incentives and renewable fuel mandates
- Zero-emission vehicle standard, increasing to 22% of new sales by 2025
- Cash rebates (up to $8,000) for the purchase of low-emission vehicles
- Renewable content in gasoline (15%) and diesel (10%) in 2030
Other
- No sales of new gasoline-powered vehicles from 2035
- -40% of consumption of oil products by 2030 (2016)
- +15% in energy efficiency
- -50% in space heating emissions by 2030 (1990)
- 55% of urban buses and 65% of school buses powered by electricity by 2030
In late 2020, the Quebec government introduced its Plan pour une économie verte (Plan for a green economy), which relies heavily on electrification. The plan includes various targets, including no sales of gasoline-powered vehicles from 2035, a 50% reduction in emissions from building space heating by 2030, and 10% renewable gas in the natural gas distribution network by 2030s. A large part of the efforts are to be achieved through investments from the Fonds d’électrification et de changements climatiques (Fund for electrification and climate changes), a fund dedicated to projects with GHG reduction potential financed mainly by proceeds from Quebec’s participation in the Western Climate Initiative’s cap-and-trade system with California since 2013. The system covers fossil fuel distributors and companies in the industrial and electricity sectors that emit more than 25,000 tonnes of CO2e.
The province’s Politique énergétique 2030 (2030 Energy policy) includes several other 2030 targets. Established in 2016, the policy also created Transition énergétique Québec (Quebec energy transition), an agency tasked with developing cohesive action plans every five years to ensure progress toward the policy’s objectives. Although the first plan was published in 2018, the 2020 strategy abolished the agency and the Conseil de gestion du Fonds vert (Green fund management board) (which provided oversights on climate-related expenses) and their responsibilities were transferred to existing ministries.
Quebec has introduced a zero-emissions vehicles mandate, enabling automakers to accumulate credits by selling zero-emission or low-emission vehicles, in order to meet progressively more stringent targets for the share of zero-emission or low-emission vehicles. This share is scheduled to reach 22% in 2025. A similar mandate for heavy-duty vehicles is planned but has yet to be formally announced. A second transport electrification policy offers cash rebates for the purchase of electric vehicles.