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Canada

Combating climate change has become a significant agenda in all nations’ developmental pathways. To address this challenge, Canada has set a new greenhouse gas (GHG) emissions reduction target for 2035, aiming to slash emissions by 45–50% below 2005 levels.

This reformed target modifies its existing 2030 climate goals, which entailed reducing GHG emissions by at least 40–45% below the same baseline. Through this announcement, the Canadian Government wants to maintain continuity and momentum in its climate efforts. Significantly, it also demonstrates the country’s commitment to tackling the climate crisis while aligning with the emerging global carbon markets and fostering economic growth.

Crafting Canada’s 2035 Climate Blueprint

Canada’s 2035 emissions target was shaped by expert insights, scientific research, and collaboration. The government relied on the latest science, international climate agreements, Indigenous knowledge, and advice from the Net-Zero Advisory Body to guide its decision.

To ensure the target reflected the needs of all Canadians, the government sought input from provinces, territories, Indigenous communities, and other stakeholders. Furthermore, the government allowed Canadians to share their thoughts on climate action and the level of ambition needed through surveys and submissions.

The news release noted that approximately 11,000 people shared their opinions through an online public engagement portal launched in spring 2024. The government also received over 23,000 comments and 100 written submissions. Insights from the Canadian Climate Institute further contributed to shaping this decision.

Throughout the process, household affordability remained a key priority, ensuring the target was both practical and achievable.

Two Laws Driving Canada’s Net-Zero Journey

Canada’s journey to achieving net-zero emissions by 2050 is guided by two key commitments, the Paris Agreement and the Canadian Net-Zero Emissions Accountability Act (CNZEAA).

Internationally, the Paris Agreement requires Canada to set ambitious Nationally Determined Contributions (NDCs). These targets aim to keep global temperature rise well below 2°C compared to pre-industrial levels, with efforts to limit it to 1.5°C.

On the other hand, the CNZEAA ensures the government sets 5-year national emissions reduction targets, at least ten years in advance, along the roadmap to net-zero emissions by 2050. This means Canada’s next target must be established by 2025.

Canada net zero emissionSource: Government of Canada

Bending the Emissions Curve: Canada’s Success Stories

Canada is progressing steadily in its journey to reducing greenhouse gas emissions. While challenges remain, the country’s climate strategy is showing promising results.

The government gives credit to its citizens who have been contributing to the economy that has become less carbon-intensive as compared to 2005. In 2015, projections indicated emissions would rise by 9% by 2030 compared to 2005 levels. However, the emission curve is seen to move downward due to initiatives like improving energy efficiency, transitioning to cleaner energy grids, and implementing carbon pricing.

The Green Municipal Fund

This program is an initiative of the Federation of Canadian Municipalities funded by Environment and Climate Change Canada and Natural Resources Canada and has enabled over 2,300 sustainability projects. Their efforts have avoided more than 2.9 billion tonnes of greenhouse gas emissions. Notably, the program’s impact was highlighted in a Senate report emphasizing the need for expanded initiatives to help municipalities adapt to climate challenges.

Carbon Pollution Pricing

Canada’s carbon pollution pricing is a proven tool for reducing emissions. Between 2019 and 2021, this approach reduced 18 megatonnes of emissions that would have otherwise been released. By 2030, carbon pricing is expected to contribute to one-third of Canada’s total emissions reductions.

Clean Jobs

In 2021, the environmental and clean technology products sector employed over 314,000 workers, marking a 6.5% increase from 2020.

Canada’s progress also includes core regulations like the Clean Electricity Regulations and the Electric Vehicle Availability Standard. Incentives such as the Canada Carbon Rebate and the Canada Greener Homes Initiative make adopting net-zero technologies more affordable for businesses and individuals.

Economic Opportunities in the Clean Transition

The shift to a clean economy offers significant opportunities and Canada is on the right track to lead in green innovation and attract investment.

  • Canada ranks 2nd on the Global Cleantech 100 and 3rd in hydroelectricity production, hosting 20% of global CCUS projects.
  • Achieved renewable energy growth with daily launches of hydro, wind, biomass, biofuel, and solar projects.
  • Attracted $71B in FDI since 2013 and has funded 177 clean energy projects, creating 28,000 jobs.

Furthermore, Canada’s clean electricity, known for being reliable and affordable, is a major competitive advantage. Businesses and industries worldwide recognize its value, drawing investors and creating jobs across the country. In 2021, Canada’s clean technology market was valued at $34 billion, with $9.1 billion in exports.

Supporting Workers and Communities

The new 2035 target report has stressed that the government will ensure Canadians have the tools and support needed to sustain this economy. Core programs, such as the Canada Greener Homes Initiative, help individuals and businesses transition to sustainable technologies. Although these technologies may have higher upfront costs, they offer long-term savings and significant emissions reductions.

As Canada advances sectoral transformation, workers will benefit from new opportunities in clean energy and technology. The transition will position the country as a global leader in green innovation.

A Pledge to Protect and Lead

By 2025, Canada will submit this target as its NDCs under the United Nations Framework Convention on Climate Change. Within the following year, the government will outline the key actions required to meet the goal. By December 2029, a detailed 2035 Emissions Reduction Plan will lay out the specific policies and initiatives to achieve the target.

It is now evident that the 2035 emissions reduction target is a bold commitment to drive real change. It’s a pledge to protect Canadians from climate threats like wildfires, floods, and extreme weather. Simultaneously, it strengthens Canada’s global leadership in clean energy and paves the way for a more resilient net zero future.

The post Canada’s 2035 Emissions Reduction Goal: Everything You Need to Know appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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