Canada Faces Uncertain Future on Climate Targets Amid Mounting Pressure

Canada faces a critical test to meet its 2030 climate target, a 40% reduction in emissions below 2005 levels. Prime Minister Mark Carney has yet to clarify his stance on the target, which requires slashing carbon pollution and other planet-warming gases by 2030. Experts predict the target will not be met due to the ambitious nature of the goal and the country's current pace of emissions reduction. The government has not provided an update on its emissions reduction plan.

As Canada approaches the halfway point of its 2030 climate target, a 40% reduction in emissions below 2005 levels, Prime Minister Mark Carney's stance remains unclear. Five months into his tenure, Carney has not yet provided a clear direction on whether he will pursue the Liberal predecessor's deep emissions cuts [2].

The country faces a critical test, with just five years left to meet its international climate commitments. Experts predict that the target will not be met due to the ambitious nature of the goal and the current pace of emissions reduction. The federal government's January greenhouse gas projections show that Canada is on pace to miss its interim 2026 target, reducing emissions by only 16% by 2026, short of the 20% required [2].

The removal of the federal carbon tax and the requirement for provinces to either use it or have their own was one of Carney's first acts as prime minister. This move has been responsible for reducing carbon pollution by less than seven percent, according to one analysis [2]. The government has not provided an update on its emissions reduction plan, leaving investors and financial professionals uncertain about the country's climate strategy.

Canada's electricity sector has led the way in decarbonization, slashing the sector's emissions by half. However, these gains have been offset by considerable increases in oil and gas production, which accounts for Canada's largest share of emissions and has increased by 11% since 2005 [2].

Bunge, a global agribusiness leader, is setting an example in reducing its environmental footprint. The company reported a 19.7% reduction in Scope 1 and 2 emissions and a 6.7% reduction in Scope 3 emissions compared to its 2020 baseline in its 2025 Global Sustainability Report [1]. Bunge has successfully achieved full traceability and monitoring of soybean sourcing in deforestation-prone areas of Brazil, a significant achievement for procurement professionals seeking sustainable suppliers.

While Bunge's progress is commendable, it remains to be seen how Canada will address its emissions reduction targets. The country's current trajectory suggests that meeting the 2030 target will require significant policy changes and increased ambition from the government.

References:
[1] https://procurementmag.com/news/how-bunge-is-cutting-farmings-environmental-impact
[2] https://www.cbc.ca/news/politics/carney-climate-targets-1.7604950