Insight
Canada’s industry sector thrives on its abundant resources and skilled labour, with a strong focus on chemicals and refining, metals, and cement production. These industries contribute significantly to construction, automotive, and infrastructure sectors. Canada has made strides toward industrial net-zero through new policies, funding opportunities like the Strategic Innovation Fund and Net Zero Accelerator Initiative, and innovative flagship projects.
Industry GHG Emissions
In 2021, greenhouse gas emissions from Canada’s industrial processes and product use totalled 51.9 million tonnes CO2-equivalent. Among hard-to-abate sectors, mineral production accounted for 9 million tonnes, the chemical industry for 5.7 million tonnes, and metal production for 14 million tonnes. Additionally, emissions from energy use in manufacturing and construction contributed 42.2 million tonnes CO2-equivalent. This included 8 million tonnes for metal production, 9.2 million tonnes for chemicals, 6.8 million tonnes for pulp and paper, 3.8 million tonnes for cement, and 12.4 million tonnes for other manufacturing activities.
Economic Relevance of Key Sectors
Chemicals & Refining
Annual net turnover (2021):
10.4 billion CAD
Number of employees (2021):
Direct: 78,500
Indirect: 392,000
Main export markets (2023):
US, China, UK, Japan, Netherlands, Germany, Mexico, Belgium, France
Metals Including Iron and Steel
Annual net turnover (2023):
9.5 billion CAD
Number of employees (2021):
Steel & Aluminium: 347,000
Main export markets (2023):
US, Norway, Netherlands
Biggest companies based on turnover:
ArcelorMittal, Algoma, Stelco
Cement & Lime
Annual net turnover (2021):
0.74 billion CAD
Number of employees (2022):
Cement: 158,000
Main export markets (2023):
United States, Jamaica, Bermuda
Biggest companies based on turnover:
Lafarge Canada, Heidelberg Materials
Decarbonising Canada’s Industry – Funding Opportunities
Canada offers multiple funding mechanisms to support industrial decarbonisation:
Strategic Innovation Fund (SIF) & Net Zero Accelerator (NZA) Initiative: Provide repayable and non-repayable contributions to decarbonisation projects and clean tech ecosystem development.
Sustainable Development Technology Canada (SDTC): Supports start-up and scale-up cleantech projects.
Energy Innovation Program (EIP): Funds clean energy R&D, including carbon capture, clean fuels, and industrial fuel switching.
Clean Fuels Fund: Invests 1.5 billion CAD over five years to support clean fuel production facilities, biomass supply chains, and regulatory alignment.
Additional opportunities include the Green Industrial Facilities and Manufacturing Program, Canada Infrastructure Bank (CIB), and the Low Carbon Economy Challenge.
Relevant Policies and Roadmaps
Canada’s 2030 Emissions Reduction Plan aims to cut greenhouse gas emissions by 40% from 2005 levels by 2030. The Hydrogen Strategy for Canada promotes hydrogen as a vital energy transition element, while the Carbon Management Strategy focuses on carbon capture, storage, and utilisation. The Roadmap to Net Zero Carbon Concrete by 2050 provides a pathway to decarbonising the cement and concrete sectors. Additional policies include the Greenhouse Gas Pollution Pricing Act and the Policy on Green Procurement.
Flagship Projects
Steel producers like ArcelorMittal and Algoma Steel are investing in electric arc furnaces to cut emissions by up to 3 million tonnes CO2-equivalent per year. The Canadian Government supports the BHP low-emission potash mine in Saskatchewan, aiming to create the lowest emissions intensity of any potash mine globally. Other flagship initiatives include the Inter Pipeline’s Heartland Petrochemical Complex, saving 1.75 million tonnes of CO2 per year, and Air Products Canada’s net-zero hydrogen production facility in Edmonton with a 1.3 billion CAD investment. The ELYSIS project, a joint venture between Alcoa and Rio Tinto, is scaling a zero-emissions aluminium smelting process that promises over 1,000 new jobs by 2030.
