Canada’s Bold Policies and Support for Innovation Can Underpin a Successful Energy Transition Says New IEA Policy Review

EIN IEA logo 400

January 28, 2022

Canada has embarked on an ambitious transformation of its energy system, and clear policy signals will be important to expand energy sector investments in clean and sustainable energy sources, according to a policy review by the International Energy Agency (IEA).

Since the IEA’s last in-depth review in 2015, Canada has made a series of international and domestic climate change commitments, notably setting a target to cut greenhouse gas emissions by 40–45 percent from 2005 levels by 2030 and a commitment to reach net-zero emissions by 2050.

To support those climate and energy targets, governments in Canada have in recent years worked on a number of policy measures, including an ambitious carbon-pricing system, a clean fuels standard, a commitment to phase out unabated coal-fired electricity by 2030, nuclear plant extensions, methane regulations in the oil and gas sector, energy efficiency programs and measures to decarbonize the transportation sector.

Canada has shown impressive leadership, both at home and abroad, on clean and equitable energy transitions,” said Fatih Birol, IEA Executive Director, who is launching the report today with the Honourable Jonathan Wilkinson, Canada’sMinister of Natural Resources. “Canada’s wealth of clean electricity and its innovative spirit can help drive a secure and affordable transformation of its energy system and help realize its ambitious goals. Equally important, Canada’s efforts to reduce emissions — of both carbon dioxide and methane — from its oil and gas production can help ensure its continued place as a reliable supplier of energy to the world.”

Canada’s profile as a major producer, consumer and exporter of energy presents both challenges and opportunities for reaching the country’s enhanced targets. Energy makes up 10 percent of gross domestic product and is a major source of capital investment, export revenue and jobs. Moreover, Canada’s highly decentralized system of government means that close coordination between federal, provincial and territorial governments is essential for a successful energy transition.

“This report acknowledges Canada’s ambitious efforts and historic investments to develop pathways to achieve net-zero emissions by 2050 and ensure a transition that aligns with our shared objective of limiting global warming to 1.5 degrees Celsius,” said Minister Wilkinson. “These are pathways that make the most sense for our people, our economy and our country and will also yield technology, products and know-how that can be exported and applied around the world.”                              

The IEA finds that emissions intensity from Canada’s oil and gas production has declined in recent years, but the sector remains a major source of greenhouse gases, accounting for about a quarter of the country’s GHG emissions.  Along with strong action to curb methane emissions, improving the rate of energy technology innovation will be essential for the deep decarbonization that is needed in oil and gas production, as well as in the transportation and industry sectors. Canada is actively advancing innovation in a number of key fields, including carbon capture, utilisation and storage; clean hydrogen; and small modular nuclear reactors, with a view to serving as a supplier of energy and climate solutions to the world. The IEA notes that further federal support for research, development and demonstration would help accelerate progress toward these goals.

The IEA is also recommending that Canada’s federal government promote a comprehensive energy efficiency strategy in consultation with provinces and territories that sets clear targets for energy efficiency in the buildings, industry and transportation sectors.

The IEA report highlights that Canada’s electricity supply is among the cleanest in the world, with over 80 percent of supply coming from non-emitting sources, thanks to the dominance of hydro and the important role of nuclear. To further support the expansion of clean power and electrification, the report encourages increased interconnections among provinces and territories to ensure balanced decarbonization progress across the country.

The IEA commends Canada on its efforts to advance a people-centred approach to its clean energy transition, including initiatives to promote diversity and inclusion in clean energy sectors; programs to increase access to clean energy in northern, remote and Indigenous communities; and actions to enable just transitions for coal workers and their communities.

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,” said Dr. Birol. “I hope this report will help Canada navigate its path toward economy-wide emissions reductions and a net-zero future.”

Related Articles


Latest Articles

  • Littelfuse: Solid-State Industrial Relays Quality Test Report

    Littelfuse: Solid-State Industrial Relays Quality Test Report

    April 21, 2025 Littelfuse Provides Insights Into Their Solid-State Industrial Relays Introduction Solid-State Relays (SSRs) are a critical component in modern electrical & electronic systems, providing reliable switching capabilities for various applications from industrial automation to consumer electronics. When it comes to choosing the right solid-state relay for your application, it’s important to know the… Read More…

  • PataBid vs. Accubid Classic: How Electrical Estimating Software is Evolving

    PataBid vs. Accubid Classic: How Electrical Estimating Software is Evolving

    April 21, 2025 By Melvin Newman, Patabid CEO The landscape of construction technology — especially in electrical estimating software—is evolving at a rapid pace. With the rise of cloud-based platforms, AI-driven automation, and advanced data integration, contractors now have more options than ever when choosing the right digital estimating tool.    With the rise of… Read More…

  • ESA has Identified Increasing Safety Concern Surrounding Meter Base Installations

    ESA has Identified Increasing Safety Concern Surrounding Meter Base Installations

    April 18, 2025 ESA and EFC are raising awareness on an increasing safety concern the ESA has identified surrounding meter base installations. ESA identified an increase of installed meter bases where the neutral block is isolated from the enclosure. According to OESC Rule 10-210 a bonding conductor must be installed between the meter base and… Read More…

  • Non-residential Construction Investment Continues to Reach Record Highs in January 2025

    Non-residential Construction Investment Continues to Reach Record Highs in January 2025

    April 18, 2025 Overall, investment in building construction rose 1.8% (+$393.7 million) to $22.1 billion in January. The residential sector increased 2.3% to $15.4 billion, while the non-residential sector was up 0.8% to $6.7 billion. Year over year, investment in building construction grew 5.7% in January. On a constant dollar basis (2017=100), investment in building construction increased 1.5% from the previous month to $13.2 billion… Read More…


Changing Scene

  • nVent Sustainability Report Highlights Progress and Focus on Electrification

    nVent Sustainability Report Highlights Progress and Focus on Electrification

    April 15, 2025 nVent Electric plc announced the release of its 2024 Sustainability Report. The new report highlights nVent’s achievements in each of its sustainability focus areas: People, Products, Planet and Governance. The report also highlights how nVent solutions support electrification, digitalization and sustainability efforts around the world. “nVent is becoming a more focused electrical… Read More…

  • Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    April 18, 2025 As a next step in its plan to protect Ontario by unleashing the province’s economy, the Ontario government is introducing the Protect Ontario through Free Trade within Canada Act to unlock free trade and labour mobility within Canada. This legislation will, if passed, create new opportunities for job creation and investment attraction, supporting economic… Read More…

  • Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    April 18, 2025 Prince Edward Island and Ontario have joined the Nova Scotia by introducing reciprocal legislation that will help foster an environment of mutual recognition of goods, services and labour mobility between these provinces. “Leaders across the country are expressing interest in removing trade barriers, and I’m very pleased that P.E.I. and Ontario have… Read More…

  • New Brunswick Signs MOU with Ontario to Reduce Trade and Labour Mobility Barriers

    New Brunswick Signs MOU with Ontario to Reduce Trade and Labour Mobility Barriers

    April 18, 2025 The governments of New Brunswick and Ontario have signed a memorandum of understanding on free trade and labour mobility. “Ontario is New Brunswick’s second-biggest trading partner, and we are excited to be building on the positive momentum to reduce internal trade barriers across Canada,” said Premier Susan Holt. “Today’s signing of this… Read More…