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<\/p>\nWe know the consequences of climate change. We know the causes, too. We even know what can be done to address it. What we don\u2019t know is how best to shift into gear to get there in time. It\u2019s why RBC Economics and Thought Leadership set out on a year-long research project to map out some of the necessary pathways for Canada to get to Net Zero. That\u2019s the state when we take as much or more carbon dioxide, methane and other greenhouse gases out of the air as we put into it. And we need to get to that state by 2050, or sooner, to avoid the irreversible consequences of climate change.<\/p>\n
At RBC, we\u2019re committed to Net Zero in our own operations and lending portfolios. We\u2019re working with governments, regulators, clients, environmental groups and the global financial sector to understand what\u2019s needed from each of us\u2014and to share those insights as widely as we can, because we believe a shared understanding of the challenges can lead us to better solutions for all. We undertook this research to inform and inspire those conversations, and welcome you to join the conversation and learn more through our new RBC Climate Hub. The more we can listen and learn, and share the same facts, the better our chances of using Canadian resources and ingenuity to solve perhaps the greatest challenge of our time and achieve Net Zero, together.<\/p>\n<\/div>\n
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Canada has a math challenge.<\/p>\n
When it comes to greenhouse gas emissions, Canadians account for a relatively large share of what the world produces. Although we\u2019ve committed over the decades to cut those emissions, we\u2019ve fallen short. We continue to consume conventional energy to cross our vast land and heat our homes, and allow methane to seep into the atmosphere to feed ourselves and much of the planet.<\/p>\n
All told, we\u2019re putting as much pollution into the atmosphere as we did a generation ago. We don\u2019t have another generation to shift gears\u2014not if we want to avoid the worst consequences of global warming. Canada emits roughly 730 million tonnes of carbon dioxide and equivalent greenhouse gases each year, making us the world\u2019s 10th largest emitter. That number may seem small compared to the nearly 50 billion tonnes the world produces, notably from the U.S. and China. But it\u2019s a lot more than the 602 million tonnes we generated in 1990, just before the world\u2019s first Earth Summit.<\/p>\n
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Despite our best intentions, emissions have grown<\/b><\/p>\n
Greenhouse gas emissions, million tonnes of CO2<\/sub>, equivalent <\/p>\n Source: Environment and Climate Change Canada, RBC Economics<\/p>\n To get on a more serious path to Net Zero, the federal government committed to getting Canada back to around 500 million tonnes by the end of this decade\u2014and eliminating or offsetting the rest by 2050, using new technologies like electric vehicles, new heat sources for homes, and new processes to capture and store some of the emissions that we\u2019ll continue to produce to power our planet.<\/p>\n This report aims to map out some of those pathways, as well as the investments and policies needed to achieve Net Zero. We use a range of established modelling on the emissions of major sectors, and the potential of breakthrough technologies, behavioural changes and improvements in industrial and agriculture processes. Our research aims to project out, over 30 years, what the estimated long-term costs and benefits could be, understanding that many uncertainties exist around climate, technology and behavioural trends and such forecasts will continue to evolve.<\/p>\n The amounts needed could be hefty: around $2 trillion in the next three decades. Based on our estimates, governments, businesses and communities would have to spend at least $60 billion a year to cut Canada\u2019s emissions by 75% from current levels, which is about as far as we can get with current technologies. That\u2019s a significant jump from the estimated $15 billion a year we currently spend. While those are large numbers, they\u2019re also affordable, especially when measured against the economic returns of new technologies, products and even entire industries in which Canada can be a global leader. For context, Ontarians alone spend nearly $70 billion a year on healthcare, an essential national priority.<\/p>\n Nature can help, of course. Scientific forecasts for large-scale tree planting and forest management suggest such measures could sequester some 50 million tonnes annually by 20501<\/sup>, which covers one-tenth of what Canada will need to get to Net Zero. (Protecting Canada\u2019s forests, wetlands and grasslands from being converted to other uses could prevent another 30 million tonnes of GHGs from being released annually.)<\/p>\n Then there\u2019s technology. A nation of electric vehicles, solar-powered houses and hydrogen-fueled airplanes will help enormously, and the innovation spurred by more uptake of these technologies can cut their costs and the overall bill. But as the chart below illustrates, the best-case scenarios for these technologies might only get Canada three-quarters of the way to Net Zero. We\u2019ll need many more inventions, and new habits, to help transform industries and lifestyles. The good news: Canadians, whether we\u2019re developing resources, building technologies or serving a diverse world, are strong innovators, especially in the face of challenges like climate change.<\/p>\n <\/p>\n![\"\"](\"https:\/\/www.rbc.com\/en\/wp-content\/uploads\/sites\/4\/2025\/03\/Greenhouse-gas-emissions-2.png\")
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