This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Canada needs to speed up efforts to green its energy and transport sectors

  • OECD (Organisation for Economic Co-operation and Development) Image

Dec 19, 2017

On December 19, 2017, the Organisation for Economic Co-operation and Development (OECD) released its third Environmental Performance Review of Canada.

According to the report, Canada needs to quickly implement planned measures to reduce the carbon intensity of its energy industry, particularly in oil sands, and green its transport sector in order to progress towards its 2030 emissions goals.

The report states that although Canada has reached a stage where it can grow its economy without driving up energy use, air pollution and emissions, it remains the second most carbon-intensive OECD country (after Estonia) and the fourth-biggest emitter of greenhouse gases. Rising emissions from transport and oil production mean that overall, Canada’s emissions have declined by just 1.5% since 2000 compared with an average decrease of 4.7% across the OECD area.

Key recommendations in the Review include:

  • Ensure effective and timely implementation of the Pan-Canadian Framework and establish a mechanism for policy evaluation and adjustment.
  • Improve consultation with Indigenous communities on environmental issues and build their capacity to meaningfully participate in decision making.
  • Co-ordinate sub-national climate policy and foster links between provincial carbon pricing systems. Exemptions aimed at smoothing the transition should be temporary and limited.
  • Review and adjust tax, royalty and subsidy regimes that encourage fossil fuel production to meet a pledge to phase out by 2025 inefficient subsidies that encourage wasteful consumption.
  • Review the taxation of energy use. In particular, reduce the petrol-diesel gap and revise taxes on fuel-inefficient vehicles to encourage the purchase of lower-emission vehicles.
  • Press ahead with the Canada-US commitment to reduce methane emissions from the oil and gas sector, regardless of a US decision not to implement the commitment.
  • Increase tariffs for wastewater services to secure funding for system upgrades.

Review the press release and the report on the OECD's website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.