The European Union and Canada are forming a “Green Alliance” according to a recent press release from the European Commission. Both jurisdictions will be creating joint policies aimed at cutting pollution, cutting methane emissions, collaborating on new hydrogen energy projects, and phasing out fossil fuel subsidies by 2025. The press release states that:
“Both the EU and Canada share the aim of becoming climate-neutral by 2050, and intend to scale up climate action in this critical decade to 2030. The EU and Canada will work together closely to ensure the successful implementation of the Paris Agreement, to keep global average temperature increase below 1.5 degrees Celsius above pre-industrial levels. The two partners will jointly promote ambitious climate action on the global stage, and cooperate to support developing countries and emerging economies in implementing their climate and environmental policies.”
Canada’s federal auditor recently found that the country is lagging in meeting its climate targets due to key policy delays and will likely not meet its emissions reduction goals by 2030. Hopefully, this partnership with the EU can bring the country closer to its goals. Additionally, the EU and Canada both use carbon pricing mechanisms, so cooperation on carbon pricing could prove beneficial to trade between the two countries.
We’ll be tracking what comes out of this agreement. In many ways, the EU is at the cutting edge of sustainability policy. Many observers criticized the European Green Deal as unrealistic, but this agreement could signal momentum gathering around the EU’s policies. North American companies should take note of the EU’s policies, even those that may not directly apply. If the EU is successful, these laws could become blueprints for other jurisdictions looking to catch up on emissions reductions.
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