Backgrounder: Transition to a Clean Economy
A clean economy is one that creates good jobs for Canadians, keeps the emissions that cause climate change low, and invests to protect the environment.
Since Budget 2016, the Government has committed more than $60 billion to make that economy a reality for Canadians – including:
- $26.9 billion in green infrastructure over 12 years
- $28.7 billion in public transportation infrastructure over 10 years
- $2 billion in the Low Carbon Economy Fund over 2 years, starting in 2017-18
- $1.5 billion in the Oceans Protection Plan over 5 years, starting in 2017-18
- $1.3 billion in the Nature Legacy over 5 years, starting in 2018-19
- $2.3 billion in clean technology funding over 5 years, starting in 2017-18
- $1.0 billion in energy efficiency initiatives through the Federation of Canadian Municipalities in 2018-19 through investments in green infrastructure and the development of a Pan-Canadian Framework on Climate Change
The Government has also demonstrated its commitment to building a clean economy by:
- Putting a price on pollution and investing 10 per cent of proceeds back into businesses to help improve efficiency and adoption of new technologies
- Regulating reductions in methane emissions in the oil and gas sector by 40 to 45 per cent by 2025
- Phasing out coal-fired electricity by 2030
- Making historic investments through the Oceans Protection Plan
- Establishing new marine protected areas on the British Columbia coast
- Providing $167.4 million for the Whales Initiative, and an additional $61.5 million to address threats to the Southern Resident Killer Whale population
- Committing $626.3 million to respond to recommendations from the National Energy Board, and to implement accommodation measures to address the concerns of Indigenous groups
The oil and gas sector will play an important role in this transition, which cannot happen overnight. The Trans Mountain Expansion Project is a significant investment in Canada's energy future, and will create good, middle class jobs while maintaining the highest environmental standards. With the approval of the Project, the Government will be even better positioned to fund the transition to a clean economy.
To support this important work, the Government is committed to using every dollar the federal government earns from the Project to invest in Canada's clean energy transition.
The Department of Finance estimates that additional corporate tax revenues could be around $500 million per year once the Project is online.
Additionally, any net proceeds from the eventual sale of the Project will also be invested in the low carbon transition. This could fund public transit, housing and green infrastructure projects across the country, advance the development of cutting-edge clean technology, make electricity more reliable and affordable, and invest in the future of transportation, among other measures.
The Government is committed to developing Canada's natural resources in cleaner, more sustainable ways, which will create good, middle class jobs, keep Canadian businesses competitive in global markets, advance our clean energy future, and help to realize our ambitious plan to fight climate change.