Large Final Emitters

The almost 700 companies that produce about half of Canada's emissions – including companies in the oil and gas, mining and manufacturing and thermal electricity sectors – will have challenging emissions reduction targets. They will also have the flexibility to meet their targets in a number of ways, including:

• making energy efficiency upgrades to their operations and technologies;
• investing in projects that reduce emissions in Canada and in developing countries and other emerging markets in order to showcase Canadian technology or strengthen Canada's trade or development ties;
• participating in an emissions trading market that allows companies to buy credits from large industrial emitters who have exceeded their set targets;
• contributing to the new Greenhouse Gas Technology Investment Fund that will develop and commercialize Canadian technologies to enable substantial emission reductions over the long term.

Large Final Emitter System

Canada's LFEs include companies in the mining and manufacturing, oil and gas, and thermal electricity sectors. These sectors make an important contribution to Canada's economic base, but they are also large contributors to our GHG emissions – just under 50 percent of total Canadian GHG emissions. They must play a significant role in meeting Canada's climate change goals.

The purpose of the LFE system is to secure emission reductions from Canada's largest emitters through a system that is market-based and in line with our policy regarding Smart Regulations. The LFE system will achieve significant reductions in GHG emissions in a manner that supports the continued competitiveness of our industry.