Mr. Speaker, I will go a back a little to set the context for my future comments. I was at the point where I was saying that pollution is not free. Its costs are incurred through droughts, floods, smog, wildfires, and the effect it has on water, food, and the air that we breathe. The price we pay is our health and our future. The financial costs are very real.
Climate change alone is expected to cost our economy $5 billion a year by 2020, which is why our government has taken action to reduce greenhouse gas emissions nationally with our pan-Canadian framework on clean growth and climate change. Our national target is to reduce greenhouse gas emissions by 30% below 2005 levels by 2030. That is to 517 megatonnes. Pricing carbon pollution will make a significant contribution to reaching Canada's 2030 target. By driving innovation and discouraging pollution, we estimate that carbon pricing could reduce emissions across Canada by between 80 megatonnes and 90 megatonnes in 2022.
Emission reductions in 2030 would depend on decisions about the design of carbon pollution pricing systems, including the carbon price after 2022. We have committed to review carbon pricing in 2022 with the provinces and territories to determine the path forward.
Carbon pricing is just one of the actions being taken to reduce emissions.
The pan-Canadian framework on clean growth and climate change includes many complementary measures to reduce emissions such as accelerating the phase-out of traditional coal-fired electricity, reducing methane, and energy efficiency measures. Some of them we have been discussing in our committee today.
Our approach is based on understanding that the environment and the economy go hand in hand. By investing in the former, we are spurring the latter: supporting clean economic growth, creating jobs, strengthening the middle class, and helping everyone working hard to join it. This approach is good for business and it is good for Canadians. It is delivering long-term economic growth while giving people the support they need to succeed today. It is supporting a clean and healthy environment for future generations.
The results speak for themselves. Through innovation in clean technology and the production of cleaner fossil fuels, Canada's oil and gas sector is now a global leader in responsible energy production. I had the privilege to travel to the GLOBE conference this year with the committee and I was really impressed with all the innovation and technology that was going on in the industries to reduce emissions and greenhouse gases.
Other countries are now looking to Canada to share that expertise in more efficient and lower emission oil extraction and other green innovations. One of them we heard about at committee was the capture of carbon and putting it in concrete to make it stronger. We are solving two problems. A very carbon-intense industry is now looking to solve that problem so that we can feel good about using concrete again because it was not a good thing to do if we were looking green.
I am thankful for the opportunity to talk about what our government has been doing, the incredible work that is going on in reducing those incentives we had before that encouraged the oil and gas industry. We have been working very hard to have the economy and the environment go hand in hand. It is something that we have been talking about a lot in the House. I want to make sure that as we discuss this issue today, we keep in mind that the government is trying to do both at the same time and we are succeeding.