Canada

The 2016 Pan-Canadian Framework on Clean Growth and Climate Change (PCF) aims for a cleaner, innovative economy that promotes economic growth while limiting environmental damage and carbon emissions. Organised around four pillars (carbon pricing, emissions reduction, resilience building, and innovation & jobs), the PCF commits federal, provincial and territorial governments to annual progress reviews and a roadmap of action through to 2030. Strong on carbon pricing, but lacks an overall strategic budget, and has met fierce opposition from some provincial governments.

In December 2020, Canada boulstered the PCF with a strengthened climate plan 'A healthy environment and healthy economy', aiming to accelerate progress towards meeting its climate goals. However, like the PCF, analysis suggests the plan still falls short of meeting the country's updated NDC targets. In June 2021, the federal government passed the Canadian Net-Zero Emissions Accountability Act, enshrining Canada's 2050 net-zero GHG emissions into law, and a detailed emissions reduction plan (required for the Act) is due to be released in 2022.

The PCF was developed through a consultative process, including specific ongoing engagement with youth, civil society, indigenous groups, and business. Gender is a particular area of focus, with the Gender Based Assessment System (GBA+) (in place since 1995) providing government with an analytical framework to assess the impact of policy on women, men, and non-binary groups. Renewed in 2015, the GBA+ also considers other factors including age, ethnicity and disability - though its modalities of consultation are unclear. The framework was successfully applied to Canadas Covid-19 Economic Response Plan to consider the potential impacts of proposed policy measures on gender equality, income distribution and inter-generational equity. However, there is no national policy on workers rights within corporate governance (since labour law is largely devolved to the provinces), and Canada has not adopted quotas or other gender diversity requirements aimed at increasing the number of women on boards.

No information found on national program or monitoring initiatives for business compliance with SDGs; although considerable government effort on sustainable development strategies at a sectoral / societal level, and good voluntary engagement with SDGs from Canadian business and civic society.

National Balance Sheet Accounts (NBSA) seek to measure national wealth across all sectors of the economy, including natural resources and some intangible assets, although human / social capital is missing entirely. Non-governmental organisations have used this data to devise potential Canadian wealth accounts; for example, IISDs Comprehensive Wealth in Canada 2018 report builds on UN and World Bank inclusive wealth methodologies.

Government support for sustainable finance is strong on ambition, but so far short on concrete commitment. A 2019 report from the governments Expert Panel on Sustainable Finance lays out 15 recommendations, including sectoral green finance plans and establishing a Canadian Sustainable Finance Action Council, but it remains to be seen how far federal & state governments adopt these measures.

Auditing has been undertaken by the Ministry of Finance, but no green fiscal policy reforms yet proposed. Some innovative policies in the financial sector, including proposed disclosure requirements around climate risk. And encouraging growth in Canadas green bond market at C$ 32.9 bn, the fifth-largest in the world.

Some stress-testing for banks deployed under the MacroFinancial Risk Assessment Framework, but these only include financial risks and lack environmental, social and ethical dimensions.

In November 2020, the Bank of Canada announced intentions to incorporate climate change risk in its analysis of the countrys economy and financial system and to implement the recommendations of the Taskforce on Climate-Related Financial Disclosures. The Office of the Superintendent of Financial Institutions (OSFI) announced key findings from its three-month consultation with federally regulated financial institutions to assess their measurement of and sensitivity to climate-related risks. The Bank of Canada and OSFI also recently published the results of a pilot stress test conducted using climate-change scenarios developed with 6 Canadian banks and insurers. Although promising initial steps, Canada's future plans to adopt regular, standardised climate stress testing remain unclear.

Canada's world-leading legislation on carbon pricing commits all states to implement either an explicit carbon pricing system with a minimum price floor, or an equivalent cap and trade system. States that do not have such systems or taxes fall under the federal benchmark minimum. Some states (British Columbia) have surpassed minimum requirements, while others (Alberta) have dragged their feet. In 2021, four provinces challenged the legislation enacting the carbon price scheme, but were subsequently dismissed by Canada's Supreme Court, which re-affirmed the Pricing Act as constitutional.

In the latest climate plan, the government has pledged to raise the federal benchmark minimum carbon price (currently CAD 50/tCO2e) by CAD 15 per year over the 2023-2030 period. If actioned, this would produce a national carbon price of CAD 170 by 2030. But the government's own watchdog found that projected carbon prices need to be doubled for the country to meet its Paris Agreement commitments. A 2022 audit of the scheme also found its requirements for large emitters were poor and could be strengthened. The next government review of carbon pricing is planned for 2026.

The Sustainable Development Advisory Council is an inter-sectoral body bringing together government ministries from federal, territorial and provincial level to collaborate on growing our economy and achieving our GHG emissions (through) an integrated, economy-wide approach that includes all sectors, creates jobs, and promotes innovation. However, the Council is consultative only and has no enforceable legal powers.

A national strategy for sustainable SMEs provides training and skills development for small businesses seeking to go green, but lacks fiscal and financial support, and currently only covers the energy, construction, tourism, food, and textile sectors. Some provinces offer separate legal status and finance for social enterprises. Some recent improvement in this area, with new funding from Sustainable Development Technology Canada, the Business Development Bank of Canada, and Export Development Canada in low-carbon / green tech.

Federal targets set out in Canada's latest NDC are for a 40-45% reduction in CO2e from 2005 levels, which is (just about) compliant with a 1.5C pathway. National carbon budgets remain a distant prospect; only one pilot project, covering forestry, currently exists. Government data suggests that not only is the country some way from meeting its 2030 target, but also the gap is widening each year.

In June 2021, the federal government enshrined its 2050 net-zero emissions target into law under the Canadian Net-Zero Emissions Accountability Act, and established a Net-Zero Advisory Body to inform the production of Canada's 2030 Emissions Reduction Plan, due in spring 2022. The advisory body's initial guidance document 'Net Zero Pathways', recommends a pathway which "starts now, and uses a carbon budget as a basic tool", with the co-chair saying they are currently "exploring the idea of creating budgets".

Canadas world-class hydropower reserves means the country already produces some 80% of its electricity from low-carbon sources, and is targeting 100% by 2050, with additional goals for utilising clean electricity as Canadas primary energy source for heating and transport. However, electricity only represents 20% of current energy consumption, and support for high-carbon, unconventional energy sources (including tar sands and fracking) remains strong, especially at provincial level. No cohesive federal plan for phasing out these projects.

Both the 2016 Pan-Canadian Framework and Canada's recently released climate plan 'A healthy environment and healthy economy' give little consideration to social inclusion and the potential negative social impacts of environmental change. While sustainable employment is a target area, as is preserving the sovereignty and environmental leadership of Canadas indigenous peoples, green jobs are not a high priority and both plans lack specific green jobs programmes. The Task Force: Just Transition for Canadian Coal Power Workers and Communities has undertaken some research on green transitions, and the Coal Transition Initiative provides a USD$35 million to support skills development for workers and help communities adapt to a low-carbon economy. As part of Canada's 2050 net-zero commitment, the federal government launched a USD$5 billion Strategic Innovation Fund - Net-Zero Accelerator to support the decarbonisation of heavy industry by financing retrofits and the scale-up of emissions reduction projects. The initiative aims to support the growth of the clean tech sector and create new green jobs, with further details on its likely scale and impact forthcoming.

Poverty and environmental policies remain separate, and government commitment to an integrated approach is currently rather limited. However, the issue is acknowledged, with new policies planned including a Social Innovation and Social Finance Strategy to support community innovation on poverty-environment challenges.

The Gender Based Assessment System (GBA+) has been in place since 1995, providing government with an analytical framework to assess the impact of policy on women, men, and non-binary groups. Renewed in 2015, the GBA+ also considers other factors including age, ethnicity and disability - though its modalities of consultation are unclear.

Canadas relationship with its indigenous communities is managed by a dedicated government ministry, which recognises a duty to consult with First Nations, Inuit, Mis and Northerners to help shape policies, programs and legislative initiatives. The Canadian Net-Zero Emissions Accountability Act also requires public participation to guide efforts to meet its legally binding 2050 net-zero target. A series of consultations are underway with provinces, territories, Indigenous Peoples as well as the newly established Net-Zero Advisory Body to inform the production of Canada's 2030 Emissions Reduction Plan, due in spring 2022. The government has also stated it is considering adopting more formal, ongoing, and consistent engagement processes for the establishment of future emissions reduction targets, plans and reports.

Some innovative programs are in place, for example direct provision programs to guarantee basic essential services for fragile communities (disabled people, indigenous communities etc). However, so far these are somewhat piecemeal and only cover health services; the overall strategy lacks cross-cutting elements, and is not clear on links to challenges posed by green economic reform.

Canada has specific and concrete strategies, including relevant governmental agencies, milestones and annual reporting requirements, for achieving each SDG, including SDG 14 and 15. However, the SDGs themselves are not integrated into the overall Federal Sustainable Development Strategy, but addressed separately. This may lead to some conflicting priorities.

A pioneer in the field, Canada has had an active environmental statistics program since the 1970s. More recently, natural capital accounting has been introduced at the federal level, tracking natural assets as well as material and energy flows in a format consistent with the UN System of Environmental and Economic Accounting. The integration of ecosystem services remains in its early stages.

Environmental accounting and statistical evaluation is overseen by the national statistics agency, Statistics Canada, following the closure of the pilot Natural Capital Lab in 2017. Government recognises that accounting for natural capital may be among the most important steps that any organization, municipality, province or country may ever take to accelerate its transition to a truly prosperous, low-carbon, economy.

Some strong environmental taxes, mainly on energy, transport, pollution and natural resources, as well as a mandated federal carbon price, however most environmental taxes are not designed with a specific environmental objective. The federal government has committed to phase out fossil fuel subsidies by 2020, but support still exists, particularly through tax incentives at the provincial level.