The Government of Canada has implemented its own Carbon Management Strategy, through consultation with various stakeholders.
Canada's climate strategy integrates a price on pollution, substantial investments, and regulations, emphasizing emissions reduction through carbon management.
The strategy highlights five key areas:
The strategy focuses on the use of technologies, such as carbon capture and carbon dioxide removal, to ensure a balancing point between absolute zero carbon emission and industry needs. The strategy highlights a need for further research and development of these two types of technologies. For example, early-stage ocean-based carbon dioxide removal (CDR) technologies, including direct ocean capture and ocean alkalinity enhancement, could be key in achieving Canada’s long-term climate goals. Additionally, the strategy recommends finding further ways to lower carbon capture costs.
Canada’s Carbon Management Strategy aims to foster a safe, competitive environment for carbon management through policies, regulatory collaboration, and economic incentives. The strategy finds that Canada has strong investment tools and joint partnerships that help coordinate the process of creating new policies and regulating carbon emissions in Canada. Federal programs like the CCUS tax credit and Canada Growth Fund support project financing, while partnerships with provinces promote regional initiatives. Future actions include enhancing market demand for low-carbon products and addressing regulatory gaps, especially for offshore CO₂ storage.
The Government of Canada enhances carbon management by supporting investment and trade. Public funding and trade initiatives help Canadian companies attract foreign investment, while the Trade Commissioner Service promotes Canadian carbon management technologies globally. These options help connect companies with strategic partners and foreign markets.
To stay competitive in global carbon management, Canada is enhancing policies to support capital and operating needs, ensuring revenue certainty, and encouraging private investment. This includes promoting Canadian carbon management opportunities to attract foreign investment and using public procurement to foster demand for low-carbon products. Additionally, Canada is strengthening international cooperation through multilateral free trade agreements and bilateral partnerships to ensure mutual coordination on carbon management standards.
In past federal budgets, the Government of Canada has helped support the usage of carbon capture technologies and related infrastructure projects. The government has joined coalitions centred around “public-private initiative leverages”, which incentivizes the push by businesses and the market towards net-zero emissions.
The Government of Canada is working with financial institutions to explore innovative funding mechanisms like blended finance to support large-scale carbon management projects. Efforts also include researching CO2 storage potential, advancing regulatory frameworks, and developing carbon management hubs in regions like Alberta, Saskatchewan, and British Columbia.
The government has continued to engage in partnerships with provincial governments and other stakeholders, consisting of Indigenous communities and equity groups. The government has also implemented other plans that will ensure the creation of sustainable jobs as Canada transitions towards a low-carbon workforce.
The Government of Canada aims to ensure carbon management's growth is inclusive, diverse, and accessible. This includes engaging Indigenous organizations and communities, integrating local knowledge, and fostering public confidence in the sector. Collaboration with underrepresented groups is essential for promoting equity and identifying regional opportunities. Indigenous participation is already seen in carbon management projects, such as in Alberta with First Nations and Métis communities.