Question Period Note: CLIMATE CHANGE MITIGATION

Q1 – How is the Government ensuring that the federal carbon pollution pricing system does not create an unreasonable burden on Canadian farmers? Q2 – What actions has the Government taken to reduce methane emissions from the agriculture sector? Q3 – What is the Government doing in response to rising nitrous oxide emissions from synthetic fertilizer application? Q4 – How will the Sustainable Agriculture Strategy help mitigate climate change?

R1 - We understand the unique challenges faced by the agriculture sector and have designed the carbon pricing system to reflect these challenges.
Greenhouse gas emissions from livestock and crop production are not included in the pollution pricing system.
A portion of the proceeds from the price on pollution is being returned directly to farmers in backstop jurisdictions through a refundable tax credit. It is estimated that farmers would receive $100 million in the first year. R2 - In October 2021, we confirmed our support for the Global Methane Pledge, which aims to reduce global methane emissions from all sources by 30 percent below 2020 levels by 2030.
Methane emissions from agriculture are primarily a result of biological processes from livestock, making them challenging to measure and address. While livestock are a source of methane emissions, they also contribute to environmental objectives such as biodiversity, soil and water health.
Canada’s Methane Strategy emphasizes the importance of building on the successes of livestock producers, many of whom are world leaders in environmental sustainability. The Methane Strategy does not include any specific emissions reduction targets for the agriculture sector. We intend to continue working with the sector to determine the best path forward for reducing emissions. R3 - We have set a national target to reduce emissions from fertilizers by 30 percent below 2020 levels by 2030. The fertilizer target is focused solely on reducing emissions and does not represent a mandatory reduction in the amount of fertilizer used on the farm. The goal is to reduce emissions while maintaining or enhancing yields and profitability.
We look forward to working with provinces and territories, industry partners, and Canadian farmers who are already taking action to reduce greenhouse gas emissions, sequester carbon and continuously improve their operations to ensure they remain sustainable, productive, and competitive. R4 - The Government of Canada is developing a Sustainable Agriculture Strategy to support the agriculture sector’s actions on climate change and other environmental priorities towards 2030 and 2050.
Climate mitigation is one of five priority areas of the Strategy.
The Strategy will build on past and current successes, recognizing action already taken by producers to meet environmental objectives while growing production and supporting Canada’s role as a global food provider.
As part of Strategy development, we have been working with the sector to identify pathways to lowering GHG emissions that also result in economic and social benefits.

The sector has demonstrated a commitment to sustainable practices that help protect Canada’s soil, air, water, biodiversity and climate change, but it accounts for 10% of Canada’s total greenhouse gas (GHG) emissions, mainly through animal production, on-farm fuel use, and fertilizer application. Agricultural lands can also act as “carbon sinks” by storing (or sequestering) carbon in the soil, reducing the amount of carbon in the atmosphere.

The current Sustainable Canadian Agricultural Partnership began in April 2023. The agreement includes a target of 3-5 MT greenhouse gas emissions reductions and an agreement in principle for a $250 million Resilient Agricultural Landscape Program to support ecological goods and services provided by the agriculture sector.

Over 2021 and 2022, the Government has invested over $1.5 billion into supporting farmers with new technologies and farming practices to reduce GHG emissions and improve farm performance. This includes the Agricultural Climate Solutions - Living Labs Program, Agricultural Climate Solutions – On-Farm Climate Action Fund, and the Agricultural Clean Technology Program. The Government has also set a national emission reduction target of 30% below 2020 levels from fertilizers and is working with fertilizer manufacturers, farmers, provinces and territories to develop an approach to meet it. On October 11, 2021, Canada confirmed its support for the Global Methane Pledge, which aims to reduce global methane emissions by 30 percent below 2020 levels by 2030. In support of the Pledge, Environment and Climate Change Canada released Canada’s Methane Strategy in September 2022, which includes a chapter on agriculture that was developed in coordination with officials at Agriculture and Agri-Food Canada.

Sustainable Agriculture Strategy
The Government of Canada is developing a Sustainable Agriculture Strategy (SAS) as a means to support the agriculture sector’s actions on climate change and other environmental priorities towards 2030 and 2050. The SAS is a coordinated federal approach to establish a long-term vision and strategic approach to agri-environmental issues, including climate adaptation and resilience, climate change mitigation, water, biodiversity, and soil health. SAS will build on past and current successes, recognizing action already taken by producers to meet environmental objectives while growing production and supporting Canada’s role as a global food provider.

Carbon Pollution Pricing
Establishing a national price on carbon pollution is a key federal commitment under the Pan-Canadian Framework on Clean Growth and Climate Change. The Federal Government has implemented a carbon pollution pricing legislation (backstop) effective January 1, 2019, in provinces and territories that choose to adopt it or that do not have a carbon pollution pricing system that meets the federal benchmark stringency requirements and carbon price benchmark rising to $170/tonne in 2030.

Private Member’s Bill C-234 would amend the Greenhouse Gas Pollution Pricing Act to expand fuel charge relief for farmers with respect to the use of propane and natural gas. The Bill passed the vote in the House of Commons on March 29, 2023, and was further amended by the Standing Senate Committee on Agriculture and Forestry to remove the clause addressing barn heating and cooling on October 26, 2023. However, the amendment was defeated at the report stage on November 7, 2023, and the unamended Bill is now awaiting third reading in the Senate.

Recognizing that many farmers use natural gas and propane in their operations, and consistent with the Budget 2021 commitment, the government outlined in its Fall Economic and Fiscal Update that it would return fuel charge proceeds directly to farming businesses in backstop jurisdictions via a refundable tax credit, starting for the 2021-22 fuel charge year. It is estimated that $100 million will be available as rebates in the first year.

Canada’s Greenhouse Gas Offset Credit System
Canada’s Greenhouse Gas (GHG) Offset Credit System is designed to encourage cost-effective domestic GHG emissions reductions and removals from activities that go beyond business-as-usual, are not required by regulation and are not already incentivized by carbon pollution pricing, with a focus on activities in the forestry, agriculture and waste sectors.

The specific agriculture practices that can generate offset credits will be determined during the protocol development process. Protocols for Enhanced Soil Organic Carbon, Livestock Feed Management, and the Avoidance of Manure Methane Emissions through Anaerobic Digestion and Other Treatments are currently being developed for the agriculture sector. Technical expert teams have been established, which include scientists from Agriculture and Agri-Food Canada, to provide advice on the latest science and members of the public will have an opportunity to comment on draft protocols as a part of the protocol development process.

• Producers have long been responsible stewards of the land and are already adopting sustainable practices. However, we recognize that additional support is needed to reach Canada’s ambitious climate objectives and to avert the worst impacts of climate change.
• Our government has announced $1.5 billion in initiatives for the agriculture sector, which could yield up to 13 megatonnes of greenhouse gas emission reductions by 2030.
• This year, agriculture ministers have signed on to the Sustainable Canadian Agricultural Partnership, which prioritizes tackling climate change and supporting sustainable agriculture and economic growth.
• We are also developing a Sustainable Agriculture Strategy that will outline a shared vision for long-term action on climate change and other environmental priorities in the sector.