Canada Clean Economy Investments
Canada’s commitment to reducing carbon emissions signals opportunities for U.S. clean technology companies to expand into the Canadian market.
According to data from 2019, Canada is responsible for 2% of global greenhouse gas (GHG) emissions. It currently has the fourth highest emissions amongst members of the OECD. Canada’s greatest sources of GHG emissions are the oil and gas sectors, representing 27% of its total emissions. Transportation follows closely after, contributing 24% to Canada’s total emissions.
Reducing emissions is a major priority for Canada and this may present opportunities for U.S. companies focusing on decarbonization solutions. Canada is taking steps towards achieving its goal of a net-zero carbon emitting economy by 2050, which includes the implementation of a USD $131 per ton carbon tax by 2030.
In February 2021, President Biden and Prime Minister Trudeau launched the Roadmap for a Renewed U.S.-Canada Partnership. The partnership affirms a shared commitment to addressing the climate crisis and strengthening the implementation of the 2015 Paris Agreement. The two countries concluded that a coordinated approach was necessary towards achieving sustainable, resilient, and clean cross-border energy infrastructure. Canada and the United States are strongly aligned in their climate goals and ambitions, making Canada a promising destination for U.S. companies seeking to export climate technology and solutions.
In March 2022, Prime Minister Trudeau announced the release of the 2030 Emissions Reduction Plan. The plan details a variety of investments, incentives, and mandates that, if implemented, will enable Canada to reach its GHG reduction target of 40-45% below 2005 levels by 2030. The plan commits the government to spending approximately $7 billion on reducing pollution and growing the clean economy.
The U.S. Commercial Service in Canada is closely following the developments in Canadian climate action and opportunities for U.S. exporters. For more information on how we can assist U.S. companies export to Canada, visit www.trade.gov/canada or contact Commercial Specialist Stefan Popescu Commercial Specialist Ozlem Toplu