The Government of Canada recently announced new initiatives to reach its net-zero commitments. Although these initiatives don’t impact local governments directly, related initiatives have the potential to open doors for local governments.

One of the new initiatives announced by the Government of Canada is that major suppliers to the federal government will be required to disclose their greenhouse gas emissions and set reduction targets as of April 1, 2023. This policy will apply to federal government procurements over $25 million, which should incentivize suppliers to disclose their greenhouse gas emissions and set reduction targets.

To meet this requirement, suppliers can participate in Canada’s Net-Zero Challenge. The challenge is a voluntary program that encourages businesses to develop credible and effective plans to transition their facilities and operations to net-zero emissions by 2050. While the program currently targets businesses, it’ll be expanded to include public entities and local governments. A timeline for when the program will be expanded to include public entities and local governments is not yet available.

Although we do not have details about what the program will look like when it is expanded, it is likely to encourage public entities and local governments to transition their facilities and operations to net-zero emissions by 2050. By committing to the challenge, public entities and local governments are likely to get access to a community of practice that focuses on net-zero planning in Canada. The aim of the community of practice is to provide a space where ideas and best practices can be shared, and where participants can collaborate to further their own net-zero plans.

At a broader level, through the Net-Zero Challenge, the Government of Canada hopes to normalize net-zero planning so that it becomes a default practice in Canada. The Government of Canada also hopes to reduce greenhouse gas emissions and build momentum through guidance and collaboration.