Ottawa – While the window to minimize the worst impacts of climate change is rapidly closing, we still have a chance to protect our planet and our economy for current and future generations. The science is clear, the stakes are high, and the time to act is now.
As part of this effort, Canada has established its 2035 greenhouse gas emissions reduction target of 45–50% below 2005 levels. This milestone reinforces Canada’s commitment to tackling the global climate crisis and will shape our next decade of climate action, aligning environmental progress with economic growth.
Why are we setting a new target?
Canada’s path to net-zero emissions is anchored by two legally binding commitments: the Paris Agreement and the Canadian Net-Zero Emissions Accountability Act. Both require Canada to set increasingly ambitious greenhouse gas emissions reduction targets, building momentum toward net-zero emissions by 2050.
The 2035 target does not replace Canada’s 2030 target to reduce greenhouse gas emissions by at least 40–45% below 2005 levels. It builds on it.
What have we achieved to date?
Like our international partners, Canada has been working diligently to reduce its greenhouse gas emissions and limit global warming, and while there is still work to do, our plan is working.
Thanks to the hard work of all Canadians, Canada’s economy is already less carbon-emission intensive than it was in 2005 while continuing to grow. In 2015, Canada’s emissions were projected to increase by 9% by 2030 when compared to 2005 levels. Now, we have successfully bent the emissions curve. This is due to efforts like energy efficiency improvements, grid decarbonization, and pollution pricing.
For example, the Green Municipal Fund, an initiative of the Federation of Canadian Municipalities funded by Environment and Climate Change Canada and Natural Resources Canada, has helped municipalities avoid more than 2.9 billion tonnes of greenhouse gas emissions through more than 2,300 sustainability projects across Canada. In the recent Senate report Urgent: Building Climate Resilience Across Canada’s Critical Transportation Infrastructure (PDF) , the Green Municipal Fund was cited as the type of program that should be expanded to help municipalities mitigate and adapt to climate change.
Carbon pollution pricing is also working. It will contribute as much as one-third of Canada’s emissions reductions in 2030. Between 2019 and 2021, pricing pollution accounted for 18 megatonnes fewer emissions than would otherwise have been emitted.
And according to labour market data from 2022, there were over 314,000 jobs in the environmental and clean technology products sector in 2021, up 6.5% from 2020.
Continuing to advance core regulations, like the Clean Electricity Regulations and the Electric Vehicle Availability Standard, is encouraging sectoral transformation. Meanwhile, providing incentives such as the Canada Carbon Rebate, vehicle purchase incentives, the suite of clean economy investment tax credits, and the Canada Greener Homes Initiative is increasing affordability for businesses and individuals to adopt net-zero-ready technologies that can have higher upfront costs, but lead to cost savings and significant emissions reduction over time. And Canadians from coast-to-coast-to-coast have taken on these challenges to get us to where we are today.
How was the new target decided?
The Government of Canada’s decision was informed by the best available science, Canada’s international climate commitments, Indigenous knowledge, and the advice of the Net-Zero Advisory Body.
The Government also invited provinces and territories, Indigenous peoples, stakeholders, and interested Canadians to share their thoughts on climate action and the appropriate level of ambition for Canada’s 2035 target via an online survey and oral or written submissions. The Government ensured the priorities of Canadians, including household affordability, remained at the forefront in setting Canada’s realistic and achievable 2035 target.
How will the target benefit workers and the economy?
Tomorrow’s economy will be less emissions-intensive than it is today, meaning the transition to a clean economy is ripe with economic opportunities. The 2035 target will enable Canada to seize the benefits offered by the global transition to net zero by capitalizing on green innovation and establishing Canada as a stable and attractive place for investment.
Globally, Canada is already a leader in clean technology. Canada is the second-most represented country on the Global Cleantech 100. It is the third-largest producer of hydroelectricity. It has 20% of the world’s large-scale carbon capture, utilization, and storage projects. And it is launching new hydroelectric, wind, biomass and biofuel, and solar projects nearly every day.
Clean electricity is key to Canada’s efforts to fight climate change, and businesses and industries around the world recognize its value. That makes Canada’s clean, reliable, and affordable electricity a significant global competitive advantage that is bringing investors, and subsequently new jobs, right to its door.
Before the end of this year, Canada will publish regulations that will ensure significant reductions in greenhouse gas emissions, affordable electricity for Canadian households and businesses, and a reliable grid as the country’s electricity needs’ grow.
In 2023, Canada was ranked second globally by a respected Foreign Direct Investment Confidence Index (FDI) and has become a top destination for global companies looking for opportunities to expand their green energy projects. Over the last 10 years, over $71 billion in FDI has been invested across 177 clean projects in Canada, creating an estimated 28,000 jobs. Canada’s total clean technology market was also estimated at $34 billion in 2021, with approximately $9.1 billion in exports and $14.7 billion in imports.
The 2035 target will build on this momentum by ensuring Canadians have the tools and supports they need to thrive in a clean economy.
What’s next?
Canada’s 2035 emissions reduction target is about more than a number—it’s about measurable change. Every step we take to cut emissions, both at home and abroad, protects Canadians from the escalating effects of climate change, such as extreme weather, wildfires, and flooding. It also supports Canada’s role as a global leader in clean energy and green innovation, creating new opportunities for workers, industry, and communities.
Setting the 2035 target is just one step toward the next decade of climate ambition. Canada’s 2035 target will be submitted to the United Nations in 2025 and will act as its nationally determined contribution (NDC) under the United Nations Framework Convention on Climate Change. Canada is contributing to the collective fight to limit global temperature rise to 1.5 °C under the Paris Agreement and stands with its international partners to lower global greenhouse gas emissions. Within one year of the target being set, the Government of Canada will publish a high-level description of the key measures the Government intends to take to meet the target and the latest emissions projections.
Of course, climate targets are only as effective as the credible plans that back them up. The Government will work closely with partners across sectors to develop the 2035 Emissions Reduction Plan by December 2029. This plan will outline concrete policies and initiatives to get us to our goal.