Executive Summary

Over the last few years, Canadian governments of different levels have taken first steps in the fight against climate change. With a new federal government in power and COP21 in Paris now on the horizon, Canada must calibrate its climate policies with a view to the long term. In addition to carbon pricing — a core policy idea that is gaining ground at the provincial and, increasingly, federal level — seven preliminary policy ideas can also help the federal government steer Canada toward a low-carbon economy:

Laying the Economic Foundation

1. Green Bank of Canada
A state-sponsored financial entity that promotes greater private-sector investment in the low-carbon economy through a variety of mechanisms, such as credit enhancements, guarantees, project aggregation and securitization.

2. Tax Code Retrofit

A suite of changes to the tax code in favour of energy efficiency, renewable energy, and other sustainable technologies, supported by a phase-out of remaining fossil fuel subsidies.

Promoting Low-Carbon Solutions

3. Accelerated Coal Phase-Out

Amendment to the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations, to accelerate the phase-out of remaining coal-fired power plants.