QUESTION PERIOD — Innovation, Science and Economic Development
Net Zero Accelerator Initiative
May 9, 2024
Senator Gold, the federal Commissioner of the Environment and Sustainable Development reported that Innovation, Science and Economic Development Canada did not have a coherent and comprehensive industrial decarbonization policy involving all relevant government entities, including the Net Zero Accelerator. The commissioner and the Net-Zero Advisory Body have recommended that Canada develop a net‑zero industrial policy. The U.S. has its Inflation Reduction Act and its Bipartisan Infrastructure Law. The U.K. has its Industrial Decarbonisation Strategy.
Senator Gold, will the government commit to developing and implementing a comprehensive Canadian net-zero industrial policy that includes the Net Zero Accelerator? If not, why not?
Thank you for your question and for underlining the important work of the federal Commissioner of the Environment and the recommendations. My understanding is that the department has partially agreed with the commissioner’s recommendations. I’ve been informed that Innovation, Science and Economic Development Canada, ISED, recognizes the importance of and is actively pursuing a horizontal approach to achieving Canada’s climate goals.
Additionally, the government announced in March 2022 the 2030 Emissions Reduction Plan, which is a horizontal government policy with sectoral paths for Canada to reach its target of 40% below 2005 levels by 2030 and net zero by 2050. As a key initiative, the Net Zero Accelerator focuses on reducing near-term emissions from large emitters and ensuring the competitiveness of Canadian industries in a net-zero economy. ISED will continue evolving its approach and investment framework.
Thank you. The commissioner also reported occasions when ISED Canada did not follow the Greenhouse Gas Protocol for project accounting when approving Net Zero Accelerator projects affecting the credibility of emission reductions estimates.
Senator Gold, how will the government improve its procedure so that Net Zero Accelerator applications can be approved efficiently and with credible accounting for emissions reductions?
Thank you. It’s my understanding that in this case the government has accepted and agrees with the commissioner’s recommendations regarding a more effective and efficient process. I further understand that moving forward, in the spirit of this recommendation, ISED is committed to increasing consultation with large emitters, helping to gain a deeper insight into their needs and to explore better ways to encourage them to apply to the initiative. ISED will also leverage opportunities to improve the program’s design and its delivery.
