New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Canada’s bold energy transition policies support innovation
26/1/2022
News
Photo: Pixabay
Canada has embarked on an ‘ambitious transformation of its energy system with clear policy signals, which will be important to expand energy sector investments in clean and renewable energy sources,’ according to a new policy review by the International Energy Agency (IEA).
The IEA notes that Canada has made a series of international climate change commitments in recent years. Notably, setting a target to cut greenhouse gas emissions by 40–45% from 2005 levels by 2030 and a commitment to reach net zero emissions by 2050.
Faced with criticism by environmentalists and other parties of carbon emissions from oil and gas developments (from Alberta oil-sand developments in particular), governments in Canada have worked on a number of policy measures. These include an ambitious carbon pricing system; a clean fuels standard; commitment to phase out unabated coal-fired electricity by 2030; nuclear plant extensions; new methane regulations in the oil and gas sector; energy efficiency programmes; and measures to decarbonise the transport sector.
The IEA finds that emissions intensity from Canada’s oil and gas production has declined in recent years. But it also recognises that the sector remains a major source of greenhouse gases, accounting for about 25% of the country’s GHG emissions. The report suggests that: ‘along with strong action to curb methane emissions, improving the rate of energy technology innovation will be essential for the deep decarbonisation that is needed in oil and gas production, as well as in the transport and industry sectors.’
As a major producer, consumer and exporter of energy, Canada faces both challenges and opportunities for reaching the country’s enhanced targets. Energy accounts for 10% of GDP and is a major source of capital investment, export revenue and jobs. Moreover, Canada’s highly decentralised system of government means that close coordination between federal, provincial and territorial governments is essential for a successful energy transition.
Canada’s electricity supply is claimed to be among the cleanest in the world by the IEA, with over 80% of supply coming from non-emitting sources thanks to the dominant role of hydro and the importance of nuclear. To further support the expansion of clean power and electrification, the IEA encourages increased interconnections among provinces and territories to ensure balanced decarbonisation progress across the country.
IEA Executive Director Fatih Birol says that the country is also making efforts to build-back greener for pandemic recovery. ‘Canada has laid out a comprehensive set of policy measures and investments across sectors to meet its climate targets, including a strong clean energy component to its COVID-19 economic recovery efforts,’ he remarks.
