Greening Government Strategy: A Government of Canada Directive

From: Treasury Board of Canada Secretariat

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Overview

In Canada and abroad, the effects of climate change are evident. Warming in Canada is, on average, about double that of the global average, and is even more in northern parts of the country. Impacts such as increases in heat waves, droughts, wildfires and flooding; ecosystem changes; coastal erosion; thawing permafrost; and risks to critical infrastructure and impacts to food and water are already being felt in Canada and globally. The science is clear that human activities are driving unprecedented changes in the Earth’s climate, which pose significant risks to human health, security, biodiversity and economic growth.

Response to climate change requires action to:

  • reduce greenhouse gas (GHG) emissions to the atmosphere
  • increase the resilience of assets, services and activities by adapting to the changing climate

By taking climate change action within its own operations, the federal government plays an important role. Reducing the climate and environmental impact of federal government operations will support Canada’s sustainability goals already established under:

  • the United Nations Framework Convention on Climate Change and its Paris Agreement on climate change
  • the Canadian Net-Zero Emissions Accountability Act
  • the National Adaptation Strategy and Government of Canada Adaptation Action Plan (2023)
  • Canada’s 2030 Emissions Reduction Plan (2022)
  • A Healthy Environment and a Healthy Economy (2020)
  • the Pan-Canadian Framework on Clean Growth and Climate Change (2016)
  • commitments under the Ocean Plastics Charter and the Convention on Biological Diversity

This Greening Government Strategy (the Strategy) is consistent with the United Nations’ 2030 Agenda for Sustainable Development and the Federal Sustainable Development Strategy.

Objective

The Government of Canada’s operations will be net-zero emissions by 2050 and will enhance its climate resilience by 2035, while also reducing environmental impacts beyond carbon, including on waste, water and biodiversity.

To implement net-zero emissions in real property and conventional fleet operations,Footnote 1 the Government of Canada will reduce absolute Scope 1 and Scope 2Footnote 2 GHG emissions by 40% by 2025 and by at least 90% below 2005 levels by 2050. On this emissions reduction pathway, the government will aspire to reduce emissions by an additional 10% each 5 years starting in 2025.

Net-zero emissions means reducing GHG emissions from operations to as close to zero as possible and then balancing out any remaining emissions with an equivalent amount of carbon dioxide removal.Footnote 3

Enhanced climate resilienceFootnote 4 means minimizing the risk to disruption of critical government assets, services and activities, and the costs associated with climate impacts. To achieve this and manage related financial risk, the Government of Canada will reduce significant climate risks to critical assets, services and activities by 2035 and remaining high-valueFootnote 5 assets, services and activities by 2040.

Roles and responsibilities

The following entities have roles and responsibilities in relation to the Strategy:

The Treasury Board of Canada Secretariat Centre for Greening Government

The mandate of the Treasury Board of Canada Secretariat Centre for Greening Government (TBS-CGG) is to provide leadership toward net-zero emissions, climate-resilient and green Government of Canada operations. The TBS-CGG will:

  • lead and coordinate federal operations emissions reduction, climate resilience and greening government initiatives
  • integrate knowledge from other leading organizations and share best practices broadly
  • track and disclose government environmental performance information centrally
  • drive results to meet greening government environmental objectives

Technical departments

Departments with technical expertise and capacity in their mandate areas support TBS-CGG and departments in their implementation of the Strategy. These include:

  • Public Services and Procurement Canada
  • Natural Resources Canada
  • Environment and Climate Change Canada
  • National Research Council Canada
  • Shared Services Canada

Federal organizations

All federal organizations are responsible for implementing the Strategy in their operations. Departments have appointed leads for the development of their Departmental Sustainable Development Strategies (which include greening government commitments) and have appointed senior designated officials with responsibility for ensuring that projects, real property, procurement and materiel are managed in a manner that enables environmental objectives.

Scope of application
  • The commitments in the Strategy encompass all Government of Canada operations, including:
    • government-owned and leased real property
    • mobility: fleets, business travel and commuting
    • procurement of goods and services
    • national safety and security fleet (NSSF) operationsFootnote 6
    • government services and activities
  • The Strategy is a set of government-approved commitments that apply to all core government departments and agenciesFootnote 7
  • Crown corporations are expected to align with the Strategy or adopt an equivalent set of commitments in each significant area of their operations, including the commitment to net-zero emissions by 2050 and to be climate resilientFootnote 8

Commitments

Real property

In conjunction with the development of their real property portfolio strategies, departments will review and update, if necessary, their net-zero emissions climate-resilient real property portfolio plan every 5 years to determine the most cost-effective pathway to achieve net-zero emissions by 2050. This includes leveraging opportunities for portfolio rationalization, sharing facilities, maximizing energy efficiency and switching to lower-carbon fuels. It also includes ensuring that climate risks to critical assets are assessed as soon as possible (and no later than 2030), and that measures to reduce these risks are implemented no later than 2035. Action to assess and take measures to address the climate risks to remaining high-value assets will be taken as soon as possible, and at the latest by 2040.

Low-carbon new construction and major retrofits

Departments will ensure that all new buildings and major building retrofits prioritize low carbon and climate resilience. Investment decisions will be based on total cost of ownership:

  • all new federal buildings (including build-to-lease and public-private partnerships) will have net-zero emissionsFootnote 9 unless a GHG life cycle cost analysis indicates net-zero-emissions-ready constructionFootnote 10
  • all major building retrofits, including significant energy performance contracts, require a GHG reduction life cycle cost analysis to determine the optimal GHG savings (the life cycle cost approach will use a period of 40 years and a carbon shadow priceFootnote 11 of $300 per tonne and be maintained at all project stages)
  • the Treasury Board of Canada Secretariat will require the submission of a life cycle cost analysis, including the shadow price of carbon, for major real property funding proposals that do not achieve net-zero emissions
  • all new buildings and major retrofits incorporating parking facilities for federal fleet vehicles must include provisions for electric vehicle (EV) readinessFootnote 12
Climate-resilient new construction and major retrofits

Departments will ensure that all new buildings and major building retrofits prioritize low carbon and climate resilience, as follows:

  • all new federal buildings, infrastructure and major building retrofits, including significant energy performance contracts, require a climate change risk assessment that incorporates both current and future climate conditions in the analysis and the incorporation of adaptation measures to reduce significant risks
  • as of 2025, office tenant operations will be located in buildings (both leased and Crown-owned) based on identified operational risk level thresholds in discussion with client departments
  • new and renewed office space leases, and occupancy agreements in Crown-owned buildings, for critical operations must have assessed and addressed significant climate risks
Low-carbon operations

The government will manage its real property portfolios to minimize their GHG emissions. Departments will implement low-carbon real property operations, which include:

  • using 100% clean electricity where available, and by 2025 at the latest by producing or purchasing renewable electricityFootnote 13
  • recommissioning large energy-intensive buildings on a regular cycle and/or implementing smart building technology
  • incorporating all facilities in the RETScreen Clean Energy Management Software by 2025
  • metering energy use for government-owned buildings of no less than 1,000 square metres with significant energy consumptionFootnote 14
  • converting or replacing existing heating, ventilation, and air-conditioning and refrigeration (HVAC-R) systemsFootnote 15 using high global warming potential refrigerants, ozone depleting refrigerants by 2030
  • tracking and disclosing the total stock of refrigerants in large systems and associated GHG emissions from significant releases by 2025
Buy clean: low-carbon construction

The government will implement Buy Clean in its procurement by reducing the environmental impact of construction materials and design by:

  • disclosing the amount of embodied carbonFootnote 16 in the construction materials of major construction projects, based on material carbon intensity or a life cycle assessment
  • conducting whole-building (or asset) life cycle assessments by 2025 at the latest for major buildings and infrastructure projects
  • reducing the embodied carbon of major construction projects by 30%, starting in 2025, using recycled and lower-carbon materials, material efficiency and performance-based design

Projects will also minimize the use of harmful materials in construction and renovation, including using low volatile organic compound (VOC) materials in building interiors.

Leased facilities

The government will reduce the carbon footprint of its leased office space and assess assets for climate change risk to achieve net-zero emissions, climate-resilient leasing operations:

  • Starting in 2030, 75% of long-term domestic office new lease and lease renewal rentable space must be in net-zero emissions, climate-resilient buildingsFootnote 17. Starting in 2025, all lease transactions will request and prioritize net-zero-emissions spaceFootnote 18. By 2023, Public Services and Procurement Canada will develop a zero-carbon, climate-resilient leasing portfolio plan to achieve this objective, including a program to work with landlords
  • In all new domestic office leases and lease renewals for space over 500 square metres, landlords must report building energy and water usage, GHG emissions and waste generated using ENERGY STAR Portfolio Manager. Starting in 2023, this information will be publicly disclosed at the building level for new leases in major urban centres
  • GHG emissions from the majority of office floor space leased will be reported by 2025
  • By 2025, new leases and lease renewals where there are significant federal fleet operations must provide EV charging capacity
Water

The government will reduce its water consumption and its load on municipal systems by:

  • tracking and disclosing its potable water consumption from major facilities
  • using best-in-class water-use practices in new construction and major renovationsFootnote 19
  • designing all new Crown-owned buildings to effectively manage storm water
Waste

The government will manage its operations to reduce the amount of waste that is generated and take steps to reduce the environmental impact of waste by:

  • diverting at least 90% by weight of all construction and demolition waste from landfills. By 2030, departments will strive to achieve 100% diversion for all construction and demolition waste from landfills Footnote 20
  • diverting at least 75% by weight of non-hazardous operational waste from landfills by 2030
  • diverting at least 75% by weight of plastic waste from landfills by 2030
  • tracking and disclosing its waste diversion
  • minimizing environmentally harmful and hazardous chemicals and materials used and disposed of in real property operations
Biodiversity and nature-based climate solutions

The government will manage its significant land holdings, where operational requirements permit, to retain and restore biodiversity, and mitigate and adapt to climate change by:

  • sequestering carbon through ecosystem restoration and improved management practices that increase carbon stored in forests, grasslands, soils, inland and coastal wetlands, and marine environments while maintaining ecological values
  • enhancing climate resilience through nature-based solutions and natural infrastructure that, for example, reduce storm surge, improve flood water management, recharge groundwater and reduce heat islands and do not negatively impact surrounding areas
  • ensuring that climate change impacts are considered in land management activities intended to protect, restore or advance biodiversity outcomes
  • maintaining and restoring wild or near-wild areas that conserve healthy and climate-resilient populations of native species, including:
    • identifying any potential federal Crown lands or waters that could contribute to the commitment to conserve and protect 25% of Canada’s land and oceans (working toward 30% by 2030) through low- to no-cost designation or other effective conservation measures
    • developing management approaches as required for federal sites to protect biodiversity and enable sites to be recognized as protected areas or other effective conservation measures

The government will also manage its operating practices where operational requirements permit to:

  • minimize the impacts of air, land and marine activities on species, including by addressing impacts from vessels’ noise emissions on marine species and by taking steps to minimize bird strikes into buildings
  • adopt low GHG-emitting ecosystem-sensitive land use practices on areas of properties actively managed for operations
  • implement climate-resilient groundskeeping using native species where possible and practices such as xeriscaping and porous landscapes where feasible
  • eliminate the use of pesticides for cosmetic purposes on federal landsFootnote 21

Mobility and fleets

The government will adopt low-carbon mobility solutions, deploy supporting infrastructure in its facilities and modernize its fleets as follows.

Mobility
  • The government encourages employees to use low-carbon forms of transportation to reduce emissions from employee commuting and is tracking these emissions. The federal public service is a hybrid workforce that offers flexible work arrangements, enabled through advancements in information technology (IT), allowing most employees to work from home up to 3 days a week
  • The government will promote and incentivize lower-carbon alternatives to work-related air travel. Departments will contribute to the Greening Government Fund based on their air travel emissions.Footnote 22 The Greening Government Fund aims to incentivize lower-carbon alternatives to government operations by providing project funding to federal government departments and agencies to reduce GHG emissions in their operations, including through adoption of clean technology
  • Purchase of carbon offsets are permitted for major events hosted, travel related to operations not included in Greening Government Fund contributions, and ministerial travelFootnote 23
  • Purchase of carbon offsets for events, conferences and travel may also be used as an eligible expense for grants and contribution program recipientsFootnote 24
Conventional fleet
  • The government will prioritize zero-emissions options for all new vehicle and mobile equipment purchases where suitable options are available and considering operational feasibility
  • Starting in 2025, 100% of new light-duty fleet vehicle purchasesFootnote 25 will be zero-emissions vehicles (ZEVs),Footnote 26 with the objective that the government’s light-duty fleet comprises 100% ZEVs by 2030Footnote 27
  • By 2030, at least 40% of new commercial medium- and heavy-duty vehicle purchases will be ZEVsFootnote 28
  • Fleet management will be optimized to achieve the targets, including by maintaining a long-term strategic fleet greening plan, establishing internal policies and controls to prioritize ZEVs, right-sizing fleets and vehicles, promoting energy-efficient operating practices, and applying telematics to analyze vehicle usage data and inform EV charging needs
National safety and security fleet

On the pathway to net-zero emissions, the Government of Canada is committed to reducing emissions from NSSF operationsFootnote 29 while providing Canada with effective operational capability. The government’s NSSF will use more environmentally friendly technologies and low-carbon fuels when available, affordable, compatible and operationally feasible. These measures will allow NSSF to decarbonize operations without impacting operational levels, requirements or mission parameters.

Canada is currently modernizing and expanding its NSSF operations to protect Canadian interests at home and abroad. By 2024, NSSF departments will develop Operational Fleet Decarbonization PlansFootnote 30 that outline how they will reduce their emissions from operations in line with the overall 2050 target and contribute to the following interim objectives:

  • By 2030, at least 20% of the total volume of annual domestic fuel purchases for NSSF air and marine operations will be low-carbon fuelsFootnote 31
  • By 2030, the RCMP’s NSSF light-duty fleet will comprise 50% ZEVs, increasing to 100% ZEVs by 2035Footnote 32
  • By 2040, the average net-emission intensityFootnote 33 of all NSSF operations will be reduced by at least 50% on the path to net-zero emissions by 2050.Footnote 34 This will be achieved through measures such as low-carbon fuels, low- and zero-emission platforms, and permanent carbon dioxide removal

In addition, NSSF departments will adopt best practices to improve efficiency and reduce emissions and environmental impacts in the areas of:

  • fuel procurement, including low-carbon fuelsFootnote 35
  • fleet procurement, including purchasing energy-efficient platformsFootnote 36
  • operational efficiency and net-zero emissions research and innovation

Climate-resilient services and activities

The Government of Canada is committed to enhancing the climate resilienceFootnote 37 of its critical services and activities by at the latest 2035 and in doing so, minimizing disruptions to its services and activities, and managing financial risks related to the impacts of climate change. Consistent with the Government of Canada Adaptation Action Plan and the National Adaptation Strategy, departments will:

  • review and update (if necessary) their climate risk assessments at least every 5 years and take measures to reduce identified significant risks
  • strengthen support for enhancing climate resilience through guidance, tools and training for public service employees

The climate risk assessments should:

  • be aligned and/or integrated with existing departmental risk assessment or business continuity management activities
  • include the consideration of all departmental services and activities, focusing on those identified as criticalFootnote 38
  • include an implementation plan to reduce identified significant risks
  • support the Minister of Finance’s reporting requirement in accordance with section 23 of the Canadian Net-Zero Emissions Accountability Act

Procurement of goods and services and materiel management

The government will aid the transition to a net-zero emissions, climate-resilient and circular economy through green procurement and materiel management that includes life cycle assessment principles and the adoption of clean technologies and environmentally preferable products and services through the following actions.

Greening products and services and working with suppliers
  • include criteria that address GHG emission reductions (including embodied emissions), as well as broader environmental benefits such as reducing waste (including plastic waste), in all phasesFootnote 39 of the procurement of products and services that have a high environmental impact
  • include criteria that addresses climate resilience in high-value procurements and of critical services or activities by 2027Footnote 40
  • promote procurement of goods and services that are environmentally preferable, reduce waste (including plastics waste), and eliminate unnecessary use of plastics, in particular single-use plastics, in government operations, events and meetings
  • promote materiel management and procurement practices that are in line with circular economy principles of reusing, repairing, refurbishing, repurposing and recycling, such as divesting of surplus materiel through GCSurplus
  • incentivize major suppliers to adopt a science-based emissions reduction target in line with the Paris Agreement, and to disclose their GHG emissions and environmental performance information
  • require that suppliers provide GHG life cycle assessment reports as deliverables for high-value procurements starting in 2025
  • include or enhance environmental criteria in the renewal or creation of shared procurement instruments led by Public Services and Procurement Canada and Shared Services Canada, such as standing offers and supply arrangements, for commodities with the highest environmental impact
  • strengthen support for green procurement, including guidance, tools and training for public service employees
Further integrating greening into departmental procurement frameworks

Federal departments will integrate green procurement considerations into their management control frameworks according to the Policy on Green Procurement by:

  • implementing centrally established green procurement criteria (from this Strategy, the Policy on Green Procurement, and shared procurement instruments)
  • identifying departmental categories of procurement with the highest environmental impact, with a focus on carbon; establishing related criteria by 2025 (if no centrally established criteria already exist); and starting the implementation of these criteria by 2026

Departments are adopting clean technologies as they green their buildings, electricity, fleet and procurement. Departments are also adopting clean technologies through initiatives including the Greening Government Fund, the Innovative Solutions Canada program’s Challenge and Testing Streams, and the Innovation for Defence Excellence and Security program.

Policy and engagement

The government is collaborating and establishing communities of practice with provincial, territorial, municipal and international governments; Indigenous peoples; Crown corporations; and key stakeholders to achieve common environmental goals. Examples include the Buyers for Climate Action, a coalition of large, green public-sector buyers in Canada, and the Canada and United States–initiated Greening Government Initiative.

The government continues to align relevant government operations policies to further incorporate greening and climate resilience. As part of its greening strategy, the government is focusing on the well-being of its employees and communities in which it operates by creating sustainable workplaces, including through employee mobilization and action. Employee awareness and mobilization is a key success factor to support and adopt measures in the Strategy—employee and government-led initiatives will continue to increase employee knowledge of climate change and environmental impacts and solutions toward successful implementation. Implementation will be supported through opportunities to integrate net-zero emissions, climate-resilient and green content into training on real property, fleet, procurement and operations.

Oversight and performance management

The Government of Canada will ensure accountability for the government’s environmental performance and is committed to the principles of transparency and open data.

By 2025, departments will report annual environmental performance to the Treasury Board of Canada Secretariat Centre for Greening Government using the RETScreen Clean Energy Management Software, where applicable, and their Departmental Sustainable Development Strategy reports. In order to ensure oversight, the centre will publicly disclose detailed environmental performance information on government operations, including a complete inventory of federal GHG emissions.

Crown corporations are expected to publish information on their commitments, including their GHG emissions footprint in their significant areas of operations, in their annual reports.Footnote 41

Note that Budget 2021 stated that Crown corporations adopt the Task Force on Climate-related Financial Disclosures standards as part of their corporate reporting.

Benefits

Acting on climate change will reduce climate-related risks and create new economic opportunities and good jobs for Canadians. There is already a global market for low-carbon goods and services worth over $5.8 trillion, which is projected to keep growing at a rate of 3% per year. Through the deployment and promotion of innovative technologies that address climate change, the Government of Canada will contribute to the global competitiveness of the Canadian clean technology sector.

As the owner and manager of the largest fixed asset portfolio in Canada—with more than 34,000 buildings, 20,000 engineered assets, such as bridges and dams, as well as more than 40,000 vehicles—the Government of Canada is making a critical contribution to meeting Canada’s climate objectives.

The ongoing greening of federal Crown-owned assets will support the development of the green building industry. Investments in clean electricity will contribute to both reductions in GHG emissions from federal operations and renewable power development in Canada.

With over $30 billion in annual procurement, the Government of Canada is also the largest public buyer in Canada and is well positioned to leverage its procurement power to stimulate market demand for low-carbon products from Canada’s emerging clean technology sector and incentivize action to increase Canada’s climate resilience.

Through increased resource productivity and decoupling GHG emissions from its operations, the government will contribute to low-carbon, environmentally responsible growth and to halting and reversing biodiversity loss.

Taking action to adapt to the impacts of climate change will also increase our resilience to other events that have the potential to disrupt the government’s services and operations. A climate-resilient workforce, promoted by the Greening Government Strategy, will help government operations maintain business continuity through many types of large-scale disruptions.

A focus on sustainability will help the government become an employer of choice, and contributions to wellness will increase productivity and attract and retain public servants. Broad-based approaches to sustainability integrated into the community will support the effective achievement of common goals.

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