Save for later Print Download Share LinkedIn Twitter Canada said on Monday it plans to cut carbon emissions more aggressively and issue its first green bonds, part of a global push for more action on climate change. Ottawa's budget for the fiscal year ending next March sets a new target to cut emissions by 2030 to 36% below 2005 levels, more ambitious than its previous 30% goal. Canada has a net-zero emissions target of 2050 (OD Nov.24'20). An even more ambitious 2030 target will be set "in the coming days," the budget says, probably when Prime Minister Justin Trudeau attends a virtual leaders summit on climate starting on Thursday. It will be hosted by US President Joe Biden, who has put new focus on fighting climate change (OD Apr.16'21). Canada has a carbon pricing scheme but has failed to meet past climate pledges, which have met resistance from politicians who say the targets threaten the oil industry's future. In a bid to get the energy sector to pivot toward lower emissions, the budget offers tax credits for capital invested in carbon capture, utilization and storage projects, and for hydrogen production, although it said the rate of the incentive would be determined in coming months. Ottawa will also issue its first green bonds this year to fund projects aimed at fighting climate change. Some C$5 billion will be issued, or about 2% of total government bond issuance during the current fiscal year. The budget includes C$17.6 billion ($14.1 billion) to support what the government calls a "green recovery." (Reuters)
