Is your business prepared for Canada’s upcoming climate disclosure requirements?

In this newsletter, we’ll be sharing updates on two major announcements: the IPCC Synthesis Report and the latest federal budget release. You also won’t want to miss our free resource that provides guidance on how to prepare for upcoming climate risk disclosure requirements. 

IPCC report provides another stark warning

The Synthesis Report of the latest Intergovernmental Panel on Climate Change (IPCC) Assessment was issued last month, and the main message was that “our world needs climate action on all fronts – everything, everywhere, all at once!”.

In a nutshell, there are four things to know:
 

1. We’re still far off track. Although we are seeing progress, the climate commitments and efforts taken to date will not be sufficient to keep warming below 1.5 degrees Celsius. There will be irreversible impacts to our planet and humanity if we overshoot this limit.
    

2. Action is required immediately. The level of action we take in this decade will be a determining factor to whether warming can be limited to 1.5 °C. The good news is that there are effective and low-cost options available and economic benefits to acting early.
    

3. Equity is key in mitigation and adaptation efforts. Vulnerable communities who have contributed the least to climate change are disproportionately affected. It is imperative we take a lens of equity and inclusion to our global mitigation and adaptation efforts.
    

4. All business sectors play an important role. Effective climate action will require systemic change, including cooperation and strategic coordination between government, business, non-profits and communities. Remember that your business is a part of this ecosystem and plays a role!
    

Federal budget offers new funding for industry decarbonization efforts

Given the influential U.S. Inflation Reduction Act that passed last year, Canada had large shoes to fill in making climate action a priority for its 2023 budget.  We are heartened to see that Canada is taking steps in the right direction with incentives for businesses such as:

• $500 million over ten years to the Strategic Innovation Fund around developing clean technologies

• $4.2 billion for the Low Carbon Economy Fund, which supports emission-reducing technologies for businesses

• $3.9 billion to make zero-emission vehicles more affordable for Canadian businesses and to build new charging stations across the country

• At least $20 billion to support major clean electricity and clean growth infrastructure projects through the Canada Infrastructure Bank

• Investment tax credits for clean electricity, clean hydrogen, clean technology manufacturing and adoption, and carbon capture, utilization and storage

• Investment in the Canada Innovation Corporation, which supports Canadian businesses in investing in research & development

• The Canada Growth Fund, a public investment vehicle that makes it less risky for the private sector to invest in low carbon projects, businesses and supply chains

We will continue to keep an eye out on other incentives and opportunities offered to support businesses to decarbonize.
 

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