Bill C-12 (Historical)

Canadian Net-Zero Emissions Accountability Act

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

This enactment requires that national targets for the reduction of greenhouse gas emissions in Canada be set, with the objective of attaining net-zero emissions by 2050. The targets are to be set by the Minister of the Environment for 2030, 2035, 2040 and 2045.
In order to promote transparency and accountability in relation to meeting those targets, the enactment also
(a) requires that an emissions reduction plan, a progress report and an assessment report with respect to each target be tabled in each House of Parliament;
(b) provides for public participation;
(c) establishes an advisory body to provide the Minister of the Environment with advice with respect to achieving net-zero emissions by 2050 and matters that are referred to it by the Minister;
(d) requires the Minister of Finance to prepare an annual report respecting key measures that the federal public administration has taken to manage its financial risks and opportunities related to climate change;
(e) requires the Commissioner of the Environment and Sustainable Development to, at least once every five years, examine and report on the Government of Canada’s implementation of measures aimed at mitigating climate change; and
(f) provides for a comprehensive review of the Act five years after its coming into force.

Canadian Net-Zero Emissions Accountability Act

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

We need a very brief answer from the member for Kitchener Centre.

[Raj Saini, Liberal, Kitchener Centre, ON]

Madam Speaker, I believe this bill will hold the government accountable, it will be transparent and it will lead us in the right direction.

[Arif Virani, Liberal, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Madam Speaker, it is my pleasure to speak today on Bill C-12, which is legislation that would create transparency and accountability in Canada's efforts to reach net-zero greenhouse gas emissions by 2050.

Climate change is, without a doubt, one of the greatest challenges of the 21st century. It is literally an existential crisis. The House already recognized this when, spurred on by the likes Greta Thunberg in Sweden and so many environmental advocates right here in Canada, we passed a motion in June 2019 declaring a climate emergency, but now it is critical to act and to act quickly on the science that is all around us.

If the COVID-19 pandemic has taught us anything, it is that public policy, be it in relation to health or the environment, must always be informed by evidence and based on science, and this science is unequivocal. Bodies like the Intergovernmental Panel on Climate Change tell us that climate change is real, it is happening all around us and if we, as national governments, do not act decisively, the damage will be irreversible. That is exactly why we must act now, for our children, for our grandchildren, for the future of this country and indeed, it is not hyperbolic to say, for the future of this planet.

In fact, my view is that Canadians of all ages are actually ahead of us on climate action and climate activism. We saw this clearly when tens of thousands of Canadians took to the streets in September 2019 to participate in climate marches and demonstrations right across the country. We saw this again when Canadians went to the polls in the last federal election in October 2019, returning our government to power based on a commitment to a more sustainable and greener future, a commitment where we stated we would not only meet but exceed Canada's 2030 emissions reduction goals while setting legally binding, five-year milestones to reach net-zero emissions by 2050.

Today is an important day. This debate is an important debate, because in tabling and debating Bill C-12, we are fulfilling that important campaign commitment. We know how important this issue is to Canadians across the country.

I, personally, as the member for Parkdale—High Park, know how important this issue is to my constituents through the individuals and groups who speak to me constantly about the urgency of acting on climate change. PHP 4 Climate Action, Green 13, Green Parkdale, Greenest City, Roncy Reduces, Bloor West Reduces, Humberside's HEAT and EcoSchools Canada are just a sample of the groups that are vocal about this issue and are advocating on this issue. These are groups that want not only a net-zero emissions future, but who are already taking concrete steps now to change their behaviour and model best practices for others. It is through these types of community-led, grassroots initiatives that I know we can, together, build back better and greener coming out of this pandemic. I thank these community leaders for all of their advocacy and for always prompting and pushing for even greater ambition on climate change.

When I had the opportunity to go COP24 in Katowice, Poland, prior to attending that climate change conference hosted by the UN, I consulted these leaders. I asked for their input and advice about the issues to focus on during my time at COP24, and that help and expertise was invaluable.

I will turn now to Bill C-12 and how it fits into the broader plan to tackle climate change.

This historic piece of legislation will help us meet our net-zero greenhouse gas emissions target by 2050 by imposing a legally binding process for the federal government. Concretely, this means that this government and every future government, regardless of political affiliation, once the bill is passed, will be held accountable when it comes to lowering our greenhouse gas emissions in order to do our part in reaching the overall goal of net zero by 2050.

This type of legislation will be pivotal to put us on the path to meet the overall objective identified in the Paris Agreement, which has been spoken about on many occasions during the course of today's debate, and the goal of limiting global warming to 1.5ºC above pre-industrial levels. We have to reach these targets. The stakes of not doing so are simply too high, again, not just for this country but for all countries wanting to meet the 2050 objective, which is an objective that has been agreed to by 120 different nation-states around the planet. In order to do so here, what we are proposing with this legislation is establishing clear milestones to ensure that we are making continued and steady progress.

Bill C-12 would ensure that five-year targets would be set. A progress report and an assessment report would be required for each step. By doing this, we are putting clear measures in place to ensure that the fight against climate change is prioritized and addressed in a transparent manner. We are making sure that if a future government misses a five-year target, it will be held accountable for it by assessing its failure and putting in place a plan to meet its shortfall.

There would be no excuses. The report would explicitly need to mention the reasons why the federal government failed to meet the target, a description of the actions that the government is planning to undertake in order to address the failure, and any other relevant information the minister wished to include.

Further, Bill C-12 also contemplates an advisory body, composed of 15 members, that would be created in order to assist the minister of the environment in achieving net zero emissions by 2050. It would be consulting and engaging with experts, stakeholders, indigenous peoples and the public. Based on these consultations, the advisory body would be providing advice to the government on how to meet its targets.

This is an important measure to keep the Government of Canada focused and on track when it comes to reducing emissions and formulating policy that is informed by science and expertise, as I outlined earlier.

Finally, Bill C-12 would require the minister of finance to publish an annual report that explains how the financial risks and opportunities associated with climate change are being considered by departments and Crown corporations in their decision-making process.

Let us turn to the issue of milestone years and targets. It is something that has been raised by commentators, and on the floor of this Chamber during the context of this debate. Concerns have been raised, mainly, that the first five-year cycle under Bill C-12 commences in 2025, with the first milestone year being 2030. This begs the question of what transpires between now and 2025 under this legislative model. When I reflected on this myself and looked back at the bill, I noted a couple of important points.

Hypothetically we could see passage of this legislation, if Parliament undertook the scrutiny required. The first point is that within six months of this bill coming into force, potentially in the fall of 2021, we could have a tabling of the milestone plan and the target.

Second, the bill stipulates that within five years of coming into force, again, potentially five years from the spring of next year, the commissioner of the environment, in conjunction with the Auditor General, would examine and report on the Government of Canada's implementation of measures aimed at mitigating climate change.

We have also heard a lot about these progress reports. I mentioned them myself earlier in my comments. A progress report must be tabled, and it would form part of the government's scrutiny and the scrutiny of all future levels of government.

The frequency of these types of progress reports is important. That should not be understated. If we were to have a current progress report, looking back on what we have accomplished as a Liberal government since we came to power in 2015, I would posit that progress report would be extensive.

Why do I say that? No federal government has done more to fight climate change than the current federal Liberal government. Our very first action in 2015 was to participate in the Paris conference. With 194 parties, we also signed on to and led the Paris Agreement shortly after. As soon as we came into office, we decided to unmuzzle scientists, which prompted one Globe and Mail reporter, Mark Hume, to state, “The Conservatives wanted tight control on the message and didn't trust their own experts to be experts. That has all changed now. [The Prime Minister] has unmuzzled the scientists.”

In 2018, we championed the development of an Ocean Plastics Charter following the G7 ministerial meeting on climate change. This charter is now endorsed by 25 governments and 60 businesses and organizations worldwide. It aims to keep our oceans free from plastics.

In 2018, we put a price on carbon pollution. This concrete action is a pillar of our approach to climate action. It applies to individuals and industries. The current price on carbon is $30 per tonne. By 2022, it will rise to $50 per tonne, as will the climate action incentive rebate, which allows Canadians the opportunity to take those dollars and invest in greener alternatives in their everyday lives. By putting a price on pollution, we are clearly contributing to lowering emissions.

On October 7 of this year, the Minister of Environment provided more details on our plan to ban harmful single-use plastics. This is an ambitious step toward achieving zero plastic waste.

What is important to underline, as a final comment, is that we also believe fundamentally that the economy and the environment are not dichotomous. This is a false presentation put forward most frequently by members of the official opposition.

The single thing I will point members to is something that has already been raised in the context of today's debate. We are funding battery vehicles: zero-emitting vehicles. Plants are being opened in Oakville and Windsor, by Fiat and Ford, to do just that. It will embrace a just transition and show that we can build toward a sustainable future and keep people employed at the same time.

This bill is part of that broader suite of approaches. It is a critical bill for this generation and future generations. It is one I hope all parliamentarians can get behind.

[John Williamson, Conservative, New Brunswick Southwest, NB]

Madam Speaker, I am beginning to think, watching the reactions of my hon. colleagues on the other side, that tabling this bill demonstrates they have a wonderful sense of humour.

They are talking about targets in 2030, 10 years from now, to 2050, 30 years from now. There is an old saying an economist once said: Eventually we are all dead. These targets are so far out.

Let us look at what the Liberals are doing today, and for that I turn to former Liberal MP Dan McTeague, who just put a commentary out. He said that the current targets for 2020, which the Liberal government adopted in 2015, are going to be missed by 99.2%. That is not even close to being serious. Regarding the Paris targets the government has accepted, it is on track today to miss those by at least 15%, and we are still 10 years out.

How can we take all this talk of post-2030 seriously when the government cannot even hit targets today? They are missing them by 99.2%.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Madam Speaker, forgive me if there is a bit of incredulity on this side of the House in the climate activism I am sensing from that member.

In terms of what we have been doing, I listed some of the things, if he was listening to my comments, and I will list more. We put approximately $60 billion into initiatives such as cleaner infrastructure, public transit and ensuring home retrofits. I mentioned the carbon price, which is the single most important lever, and is appreciated by industry and individuals.

The member's concern would only be valid if no action had been taken to date. I have listed copious examples of what we have done since 2015 to address climate action.

What this bill would do is ensure that not only we, but any future government, would maintain that course, show further ambition and be held accountable to the Canadian people. That is surely an initiative all parliamentarians should be behind.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, it is incredible to hear Conservatives talk about meeting climate objectives and their new-found desire to do something about climate change.

Not even five or six years ago, Stephen Harper was literally muzzling scientists and telling them they were not allowed to utter the words climate change. Suddenly members on the opposite side of the House are challenging the government for not doing enough to fight climate change.

I am wondering if the member can expand a bit more on where he sees we have actually come in the last five to six years since Stephen Harper was in power.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Madam Speaker, it is an important point. We have come to a stage where the Canadian public and Canadian businesses are behind the same goal. It is unfortunate not all parties are behind the same goal. I think about four out of five parties in this chamber are. The goal is simply that we have to be heading toward a net-zero-emissions future.

I will return to that zero-emission vehicle strategy, because it is not just about opening up plants in Oakville and Windsor that will make zero-emission vehicles. It is also about targets we set as a government. Another part of what we campaigned on was to set a goal that there would no longer be such a thing as an emitting vehicle in this country by 2040.

That is the kind of ambition we need to see. That is the kind of ambition that will be entrenched in this kind of proposal, because the plan to get to that goal will be entrenched as part of the five-year cyclical objectives and targets that would be established under Bill C-12. Those are the kinds of initiatives we—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Questions and comments, the hon. member for London—Fanshawe.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Speaker, this bill references the United Nations Declaration on the Rights of Indigenous Peoples; however, the Liberal government has not actually enforced the UN declaration into law.

Will the Liberals put action behind their words? They are talking a good game about doing that. Will they actually commit to upholding the rights of indigenous people by enforcing and bringing into law the UN declaration?

[Arif Virani, Liberal, Parkdale—High Park, ON]

Madam Speaker, I think that is an important question. It is important to inject indigenous perspectives into this discussion. That is something that has informed our approach to the climate throughout, and that will continue for the purposes of Bill C-12.

In direct response to the member for London—Fanshawe, absolutely, we have been crystal clear. It is in the Minister of Justice's mandate letter. He has been public about committing to tabling UNDRIP legislation as government legislation before the end of this year. That is exactly what we intend to do, and I would note, for her edification, that in the last Parliament it proceeded as a private member's bill, and it was only stopped in the Senate because of opposition from the Conservative Party of Canada.

[Francesco Sorbara, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Madam Speaker, it is very important and great to rise today in the House on Bill C-12, which I have read extensively over the last couple days. It is the Canadian net-zero emissions accountability act.

Why is it important to rise? It is because of the opportunity that is ahead of us, the residents in my riding of Vaughan—Woodbridge, the residents here in the province of Ontario, and the residents and all the citizens across Canada, to achieving net zero by 2050.

What are the economic opportunities that we are speaking about? Why is the target of the legislation we have put forward in this House important to families like mine and to kids all over this country? It is because of the economic opportunities that it would create, the families that would benefit from it and a stronger, cleaner and healthier environment, which we all want to have and which should be a non-partisan issue to achieve.

I have read extensively on this topic. Even just yesterday, the Royal Bank of Canada laid out a plan on carbon sequestration with some comments from one of the economists there. I just want to read this out, because this is not a partisan issue, this is about growing the economy. We see this from Conservatives in the U.K. under Boris Johnson and in other places in the world. People are coming together and working together on getting to net zero.

RBC wrote in its report:

As it lays out long-term climate plans, the federal government has an opportunity to write a new chapter in Canadian climate policy: one that acknowledges the importance of the energy sector, encourages abatement across industries, leverages investment from the private sector, and spurs innovation in sectors that contribute the most to our climate challenge.

Yes, we want to reduce greenhouse gas emissions. Yes, we want to set those targets. The framework that is laid out in Bill C-12 is functional and workable, and within six months of the legislation enactment, a plan would be put forward to continually lower greenhouse gas emissions.

In my research, I saw this week “Canada's Energy Future 2020”. I encourage all members of Parliament to read it and look through that document. It is about Canada's energy future and how important it is that we have different sources of energy in this country to continue to power our economy going forward.

There is one company I need to highlight, because it is so important. There is an economic opportunity here in the world, because we are talking about a global economy that our country participates in. It is a global economy that our workers compete in. We need to make sure they have the right skills, training and know-how to compete against the best and the brightest, and we have the best and the brightest in this country.

I think about the Enel Group. Most MPs know my heritage. My parents came from Italy and then immigrated to Canada. Here is a company from my parents' homeland, which just received the ranking of number one on Bloomberg's sustainability index. It is a company that is investing in green technologies all over the world.

I will read a comment from earlier this year. I believe it is from January 27, 2020. It says, “For the first time, the United Nations Global Compact has galvanized the chief financial officers...of global companies—responsible for investments worth $14 trillion—by establishing a taskforce to help close the gap in funding a sustainable future.”

That is what we are talking about. We are talking about a conversation for tomorrow. We are talking about our future, and we need to get with it. We need to get this legislation implemented. We need to develop that plan, work with the private sector, the provinces and non-profits to move Canada forward, because the opportunity is there. We have the skills. We have the know-how. We have the resources.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

It being 5:30 p.m., the House will now proceed to the consideration of Private Members' Business as listed on today's Order Paper.

The House resumed from November 26 consideration of the motion that Bill C-12, An Act respecting transparency and accountability in Canada's efforts to achieve net-zero greenhouse gas emissions by the year 2050, be read the second time and referred to a committee.

[Francesco Sorbara, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Madam Speaker, it is always a pleasure to rise and speak as the member of Parliament for Vaughan—Woodbridge on behalf of the residents of my riding as their strong voice in Ottawa. I know first-hand how important the issue of climate change is to Vaughan residents.

Our government has adopted a whole-of-government approach, partnering and consulting with industry and stakeholders to tackle climate change and ensure not only a healthy environment but a strong economy for generations, including for my two young daughters, Eliana and Natalia, and all youth across the country.

It is great to speak today and continue the debate on Bill C-12, the Canadian net-zero emissions accountability act, which would provide for the implementation of national targets and plans for the reduction of greenhouse gas emissions, with the objective of attaining net-zero emissions by 2050. Fighting climate change is most certainly about reducing or lowering greenhouse gas emissions, but it is also about a stronger Canadian economy and strengthening our middle class while helping those working hard to join it.

Many of my colleagues know that I am a champion of the private sector. I have increased linkages between countries through trade, investment and, most importantly, wealth creation. Our economic system has brought with it a high standard of living and has lifted literally billions of individuals out of poverty despite the current setback caused by the pandemic.

On climate change, industry and the private sector are again leading the charge. We see and hear about this every day. There are technological advances on many fronts, including right here in Canada, where electric buses are engineered, manufactured and assembled. There are announcements by automotive companies to produce electric vehicles here in Canada, made by the hard-working individuals at Ford's Oakville plant, Stellantis's Windsor facility and GM's operation in Ingersoll. My Vaughan—Woodbridge riding is home to a Tesla dealership where Canadians are able to purchase and pick up their electric vehicles. It is less than two kilometres from my constituency office.

The feedback from leading private sector stakeholders on Bill C-12 has been unequivocally positive. Allow me to quote from the Business Council of Canada's statement “Transparency around net-zero emissions targets is essential, business leaders agree”. In it, the council said, “Greenhouse gas (GHG) emissions targets are important, as is the process to assess progress against those targets.... Clear guidelines, a predictable policy framework and a supportive investment environment will help them get there faster.”

The Canadian Association of Petroleum Producers, or CAPP, represents an industry that is the largest exporting sector of the Canadian economy, with over $100 billion in export proceeds. The energy sector directly and indirectly employs nearly 900,000 Canadians. As CAPP noted:

The Canadian Association of Petroleum Producers is committed to working with the Canadian government to meet emissions reduction objectives, which includes the ambition to achieve net-zero by 2050.

By working together, we can further accelerate innovation and develop technology that reduces emissions while delivering responsibly produced energy to meet global energy demand.

We all welcome the new leadership in the United States, as our neighbour to the south has rejoined the Paris climate accord. The Biden administration will once again join with the Conservative U.K. Prime Minister, the European Union and all 195 countries that have signed it, 190 of which have ratified it. Canadians expect no less than leadership, and that is what we are delivering through Bill C-12.

I wish to return briefly, in my remaining time, to a company that I mentioned in my first opportunity to speak to Bill C-12. I wish to dive a little deeper into it, as it is indicative of where the private sector is going and leading on climate change.

Enel is Europe's largest utility and the world's largest renewable energy provider, with nearly 100 million end-users across 33 countries. For years, Enel has been recognized as a leader of sustainable development in its work to reduce greenhouse gas emissions. We know this is a global issue and will require global leadership.

Speaking at the 2020 Bloomberg Green Summit, Enel CEO Francesco Starace laid out why the company for years has pursued policies in line with the United Nations sustainable development goals. As noted by the CEO, “We’re looking at sustainability, not just green energy—it’s a little larger. As the world evolves more and more into a circular and sustainable economy, it makes sense that financial instruments are tailored to that direction.”

In fact, in 2020, the United Nations Global Compact galvanized chief financial officers of global companies responsible for over $14 trillion of investments, which compares with the size of the Canadian economy of $2 trillion, by establishing a task force to help close the gap in funding for a sustainable and green future. Enel is the task force's patron sponsor and co-chair. Quite innovatively, the company issued its first sustainable development green SDG-linked bonds, denominated in U.S. dollars and euros, as part of its sustainable future.

The future is now. Innovation is driving the transition to a carbon-neutral economy. Yes, it will take time, but we know that Canada and Canadians are ready and excited for this future.

Bill C-12 provides the framework, the certainty and the rigour for Canada to achieve its goal of net zero by 2050. The bill requires the tabling and publication of targets, plans, progress reports and assessment reports. The initial target of 2030 must be set by the Minister of Environment within six months of the coming into force of this act, along with an emissions reduction plan. Notably, a progress report must also be tabled by 2027.

Bill C-12 is a dynamic document. In addition to having a robust parliamentary accountability mechanism, the commissioner of the environment and sustainable development, supported by the Office of the Auditor General, must examine and report on the government's implementation of the measures aimed at mitigating climate change within five years of the coming into force of this act and every five years thereafter.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, the NDP clearly supports climate accountability. Jack Layton presented a bill 15 years ago that basically called for these measures. We have lost that 15 years. Science tells us that we have to do the lion's share of the work in the next decade to battle climate change, so we need accountability now.

We need a 2025 target and an audit of that target in 2025. I ask the parliamentary secretary why the government seems so unwilling to do this.