Mr. Speaker, it is my honour to rise in the House today to discuss some of the government's key actions to combat climate change, cut pollution and drive clean technologies.
In recent years, climate change has had unprecedented effects on Canadians. Impacts from climate change are wide-ranging, affecting our homes, our cost of living, infrastructure, health and safety, and economic activity in communities across Canada.
The latest science warns that to avoid the most severe impacts of climate change, greenhouse gas emissions must be reduced significantly, and urgently, to hold the global average temperature increase at 1.5°C.
The government is taking this seriously. We have a plan to reduce Canada's emissions by 40% to 50% below 2005 levels by 2030 and to reach net zero emissions by 2050. Carbon pricing is the cornerstone of our plan. Since 2019, every province and territory has had a price on carbon pollution. Some provinces, like B.C. and Quebec, have had carbon pricing in place for much longer than that. The question is why. It is because it works.
It creates powerful financial incentives for industries and individuals to take concrete steps to reduce their emissions and invest in clean options. Carbon pricing has proven to be effective around the world and here in Canada. We remain focused on ensuring that it is designed to keep life affordable for Canadians. Over 90% of the federal fuel charge proceeds go back to households via quarterly Canada carbon rebate payments delivered to families by cheque or direct deposit. The majority of households, particularly lower- and middle-income households, get back more through these rebates than the cost of the fuel charge.
We are also working with provinces and territories, as well as other stakeholders, on ensuring that carbon pricing and our credit markets remain effective across the country and drive the big investments needed to decarbonize industry. Most provinces in Canada maintain their own carbon pricing systems for industry, which have broad support across businesses and experts in Canada.
Our federal and provincial systems for pricing carbon pollution from industry are designed to send a strong carbon price signal that creates a powerful incentive for all polluters to reduce their emissions.
For every tonne of pollution reduced by an industrial polluter, either they avoid paying the carbon price or they can earn a credit that they can sell to other emitters. These trading systems are key to protecting industry's competitiveness while still driving emissions reductions, and all proceeds collected under Canada's pricing system for industry are used to further support industrial decarbonization and clean electricity incentives.
We also recognize that many Canadian industries are trade-exposed, competing in the global market. That means that too heavy a hand will just shut down production and lead to carbon leakage, more production by competitors outside of Canada who may face a lower carbon price. That is not going to accomplish anything, not emissions reductions and not economic growth.
Our system, however, as well as provincial and territorial systems for industry, is carefully designed to achieve both. The clean fuel regulations in place since 2022 are another market-based instrument that will accelerate the use of clean technologies and fuels and support good jobs in a diversified economy. In fact, they are expected to deliver up to 26.6 million tonnes of emissions reductions annually by 2030, which is a significant contribution to our emissions reduction target.
We have already seen significant investments in the energy sector as a result of the incentives from the clean fuel regulations. Since the announcement of the regulations, over $53 billion in investments have been announced across Canada in low-carbon industry fuels such as green hydrogen, renewable diesel and sustainable aviation fuel.
For example, Imperial's renewable diesel complex at its Strathcona refinery near Edmonton is under construction. Once completed, it will produce more than one billion litres per year of renewable diesel from locally-sourced feedstocks. Covenant Energy will start construction of a renewable diesel and sustainable aviation fuel production facility in Saskatchewan this year, with production expected to start in 2026. Another example, Braya Renewable Fuels, has finalized the retrofit of the refinery at Come By Chance, Newfoundland, right in my riding of Bonavista—Burin—Trinity. I was delighted to attend the opening and the celebration of the first renewable diesel being produced in Come By Chance. It has saved the refinery and salvaged it from closure, and now people in the region are seeing long-term, sustainable jobs for decades ahead.
These companies, and others like them, will be able to create and sell valuable credits for supplying low-carbon fuel to Canada. These are the types of economic investments that the clean fuel regulations are supporting in Canada.
The Government of Canada is committed to ensuring that Canada's transition to a low-carbon economy is achieved in a way that is fair and predictable for businesses. It supports Canadian jobs, as I just alluded to in Come By Chance, Newfoundland and Labrador, as well as Canada's international competitiveness.
Climate change is arguably the defining issue of our time. Canadians want to be a part of the solution. The government is taking concrete action to cut emissions and to create incentives and opportunities for new investments and technologies.