Net-Zero Emissions Primers

Net-Zero Challenge

Introduction

Background and context

Environment and Climate Change Canada’s (ECCC) Net-Zero Challenge, in collaboration with the Transition Accelerator, has created a series of industry specific Net-Zero primers. The purpose of this collaboration is to provide support to businesses and organizations and help them create a strategy to reduce emissions while improving their competitiveness and resilience in a net-zero economy.

Purpose of the primers

The purpose of the Net-Zero Emissions Primers is to help companies and organizations in Canada:

• improve their understanding of the importance of net-zero and what the transition to net-zero could look like, both for their subsector and globally
• develop a net-zero strategy and plan for their company or organization

How to use the primers

The primers are separated into two main sections:

1. Section 2: The Shift to Net-Zero Emissions
2. Section 3: Industry Specific Net-Zero Strategy and Planning

The purpose of Section 2 is to provide information on what net-zero is, why it is important, and what the shift to net-zero could look like both for the industry and globally. This section provides important background and context that companies should be aware of before developing their net-zero strategy and plan.

The purpose of Section 3 is to provide companies with guidance on how they can develop a net-zero strategy and a concrete plan for implementation. Note that the primers are  based on the typical activities of a firm in that specific industry. While they provide a general guide to simplify and support the process of net-zero planning, the information in the primer should be applied to the specific circumstances of each company to develop a path forward.

The following steps in net-zero planning will be covered in Section 3:

• Step 1 - Create a base year GHG inventory
• Step 2 - Identify GHG mitigation actions
• Step 3 – Evaluate and prioritize GHG mitigation actions
• Step 4 - Establish targets and develop an implementation timeline
• Step 5 - Monitor implementation and periodically revise your plan

The shift to net-zero emissions

The purpose of this section is to provide relevant background and context on the shift to net-zero emissions. This section describes what net-zero is, why it is important, and what the shift to net-zero will look like globally.

Net-zero definition

Net-zero emissions are achieved when anthropogenic^{Footnote 1} GHG emissions to the atmosphere are balanced by anthropogenic removals over a specified period.

GHGs are gases emitted from both human and natural sources, that once in the atmosphere, absorb and release heat. Rising concentrations of GHGs in the atmosphere contribute to climate change.

GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. A commonly used unit of measurement for GHGs is CO2e, which stands for carbon dioxide equivalent, and takes into account the global warming potential (GWP) of all of the GHGs.

The importance of planning for net-zero emissions by 2050

The world is moving toward net-zero emissions because the science is clear: to avoid the worst impacts of climate change, we must ultimately eliminate all net addition of GHGs to the atmosphere. Achieving the Paris Agreement goal of limiting warming to 1.5°C requires immediate action across all sectors of the economy. Not taking action will increase risks to health, ecosystems, and economic stability and make future transitions more difficult and costly. As the costs and impact of climate change continue to grow, the case for climate action is clearer than ever. That’s why governments, businesses, and communities are committing to actively cut emissions and build a climate-resilient future.

The global shift to net-zero

Globally, the main sources of GHG emissions come from the burning of fossil fuels (oil, natural gas, propane, and coal) for energy production, industry, transportation, and buildings. Other significant sources of GHGs come from agriculture, forestry, and land use changes.

Broadly speaking, the main actions required to reach net-zero emissions in Canada include:

• decarbonize and expand the electricity grid using technologies such as wind, solar, and nuclear, to electrify end-uses (such as light duty vehicles, building heating, and industry) that currently rely on fossil fuels
• increase the production and use of low-carbon fuels – such as hydrogen and advanced biofuels to address end-uses that are not easily electrified
  • For example, high temperature industrial processes and certain types of transportation
• promote energy efficiency to reduce costs and minimize the scale of the new clean energy infrastructure that must be built over the coming years
• address non-energy related emissions from industrial processes (such as the production of cement or steel), waste management practices, and agriculture
• deploy carbon removal approaches – including nature-based solutions (such as tree planting) and direct air capture (DAC) to trap GHG emissions that cannot be eliminated and permanently remove them from the atmosphere

Getting to net-zero will require efforts from every economic sector. Economic sectors are intertwined: products from one firm are used by others; goods and services flow across borders and production chains link many disparate activities. Change on this scale will be spread over decades, with some countries and sectors able to move more quickly than others. Canada has committed to achieving net-zero emissions by 2050 through the Canadian Net-Zero Emissions Accountability Act, which became law in June 2021.

Moving Forward

Reaching net-zero emissions is a long-term journey, but every business has a role to play—and every step matters. Whether your company or organization is just starting to think about climate action or already exploring or implementing emissions reductions measures, the most important thing is to begin with what you can control and to put a plan in place.

The primers lay out how to:

• reflect on how your firm fits into a net-zero economy
• understand where your emissions come from
• identify practical actions across your operations and value chain
• set short- and long-term targets and goals
• adapt your plan as the world changes

Remember: this is not about perfection. Your first plan does not need to solve everything all at once. Focus on taking meaningful action in the next 1–3 years. Talk to your employees, clients, and suppliers. Learn as you go. Use this plan to guide decision-making, communicate your direction, and build momentum.

As markets, technologies, and other factors evolve, so will your opportunities to reduce emissions. Revisit your plan regularly and update it as new solutions become available. As you reduce your own footprint, look for ways to amplify your impact.

Net-zero is a collective effort. Businesses like yours are critical to shaping the path forward—for your clients, your sector, and your community. Start where you are, aim high, and keep going.

Net-zero emissions primer resources

The following Net-Zero Emissions Primers are currently available for:

• professional services companies
• textile manufacturing firms
• pharmaceutical manufacturing companies