Canada’s 2030 emissions goal at risk as businesses hesitate on low-carbon projects: report
![Canada's 2030 emissions goal at risk as businesses hesitate on low-carbon projects: report](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/02/1185.jpg)
A new report warns that Canada is struggling to meet its 2030 emissions target because businesses are holding off on low-carbon projects due to uncertainty about the country’s climate policies.
To address this, Prime Minister Justin Trudeau’s government should expand a program that supports carbon trading markets with public funds, according to Clean Prosperity, an organization that promotes market-based climate policies.
Brendan Frank, policy director for Clean Prosperity, said in the report, “Firms and investors lack confidence that provincial carbon markets will deliver the revenue they need to justify big, long-term investments in low-carbon projects”
Trudeau’s key environmental policy is a rising carbon tax, encouraging consumers and businesses to adopt cleaner energy or invest in emission-reducing technology.
However, there’s uncertainty about its future due to political reasons. The Conservative Party, currently ahead of Trudeau’s Liberals in polls, promises to cancel the carbon tax on consumer fuels if it wins the next election.
However, its plans for industrial emitters remain unclear under Leader Pierre Poilievre.
Also read: Canada rebrands carbon tax, highlights rebates
The Clean Prosperity report urged the government to broaden its contracts-for-differences program, making it available to any company undertaking a qualifying project.
This move could unlock an additional 33 megatons in industrial emissions reductions by 2030. However, there’s a risk of substantial future government liabilities, potentially costing tens of billions of dollars, if carbon trading markets decline.
Without significant reductions from heavy industry, Canada will struggle to achieve its 2030 climate target, which aims to reduce emissions by at least 40% below 2005 levels.
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