Carbon Neutrality in Canada: Learn more about the Bill C-12

An Act respecting transparency and accountability in Canada’s efforts to achieve net-zero greenhouse gas emissions by the year 2050

Bill C-12, Canada’s Carbon Neutrality Accountability Act (abr.), seeks to require the Canadian government to set national targets for GHG emissions reductions; establish a planning process; and report and evaluate to achieve carbon neutrality by 2050. The bill was first introduced in the House of Commons in November 2020 by Jonathan Wilkinson, Minister of the Environment and Climate Change, and finally passed by the Senate on June 29, 2021 for immediate implementation.

This legislation places an immediate responsibility on current and future governments to achieve carbon neutrality and combat climate change. The Act formalizes, through national legislation, the commitments made under the Paris Agreement. It is an additional weapon in Canada’s legal arsenal to fight climate change, but differs from the Greenhouse Gas Pollution Pricing Act in that it forces the country to meet its own reduction targets, rather than targeting businesses and individuals.

Each year, the Minister of the Environment and Climate Change will have to report to Parliament, detailing greenhouse gas reduction plans, progress and the assessment of each target.

More concretely, what does this new law do?

  • It enshrines the 2030 greenhouse gas emissions target as Canada’s nationally determined contribution (NDC) under the Paris Agreement, which will be 40-45% below 2005 levels by 2030;
  • Requires the Minister of the Environment and Climate Change to set future targets for 2035, 2040 and 2045 at least 10 years in advance;
  • Requires that an emissions reduction plan, progress report and evaluation report for each target be tabled in both Houses of Parliament and made available to the public;
  • Formally establishes an Independent Advisory Panel as a body to provide advice to the Minister of the Environment and Climate Change on achieving carbon neutrality by 2050;
  • It requires the Minister of Finance to prepare an annual report on the key actions undertaken by the federal government to manage its financial risks and opportunities related to climate change;
  • It requires the Commissioner of the Environment and Sustainable Development to review and report at least once every five years on the implementation of the Government of Canada’s actions to mitigate climate change.

The full legislation is available HERE.

What happens if the commitments are not met?

Nothing happens.
Unfortunately, there is no mention in the legislation of any binding or punitive measures to be taken against government authorities if they fail to meet the targets. While this new law theoretically holds the government accountable for the effectiveness of its own carbon footprint reduction plan, in practice it still seems to have a free hand in meeting the targets. How effective would a ban on running a red light be if the offender didn’t face a fine?

Let us remain optimistic. The law is framed by a series of measures including a report from the Commissioner of the Environment and Sustainable Development and a complete review of the law every 5 years. This law constitutes a major advance in terms of climate legislation in Canada.

The Minister of the Environment and Climate Change is expected to release by the end of the year his emissions reduction plan for the 2030 target. This report will be a first opportunity to judge the seriousness of the approach.

To understand climate change regulatory mechanisms at the national and international levels or to learn how to develop your own carbon neutrality commitments and climate action plans, contact our Climate Leadership team at leadershipclimatique@nel-i.com

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