Ottawa – Canada’s climate action is driving down greenhouse gas pollution—and that’s thanks in large part to the leadership of the electricity sector. Since the 1980s, Canada’s total electricity capacity has nearly doubled, while greenhouse gas emissions have been cut in half. Our clean, affordable, and reliable electricity has long been a major competitive advantage and will be the foundation of a strong economy into the future. As Canada’s demand for electricity grows, the opportunity to power our communities, our businesses, and our transportation with clean, affordable, and reliable power is a win-win-win—for workers, for affordability, and for the environment.
The Government of Canada is taking a comprehensive, practical, and collaborative approach to building a clean grid in a way that enables continued access to affordable, reliable electricity for all Canadians. Minister Guilbeault presented Canada’s finalized Clean Electricity Regulations, which are the result of almost three years of extensive consultations with provinces, territories, Indigenous communities, industry, and other stakeholders and provide the certainty necessary for planning Canada’s future electricity grid.
The Regulations limit harmful pollution while ensuring that grid operators have the flexibility to meet rising electricity demand as our population and economy grow. Provinces and territories are responsible for grid management and rates, and demand projections tell us that all jurisdictions will have to make large investments in their electricity systems to support growing demand in the coming decades, even without the Clean Electricity Regulations. The Regulations will ensure that these investments are targeted toward clean, reliable sources, such as renewables and nuclear.
The Clean Electricity Regulations are just one part of a broader federal clean electricity strategy. Called Powering Canada’s Future, the strategy combines historic investments and balanced, fair policies to ensure that building more clean, reliable electricity to meet demand is affordable for ratepayers.
Maintaining affordability for households and businesses
Federal analyses find that the Regulations have no impact on electricity rates for the vast majority of Canadians, and in some cases, will even have a slightly positive impact on rates. Independent third-party expert modelling substantiates federal analysis that the Regulations are feasible. To ensure rates are affordable for Canadian families over the coming decade, the federal government is investing $60 billion to support the electricity sector.
The adoption of efficient electric appliances, vehicles, and heat-pumps presents an enormous opportunity for families to save money on their energy bills. In the shift to clean electricity, 84% of households are expected to spend less on their monthly energy costs, when accounting for the over $60 billion in federal clean electricity incentives. This could lead to $15 billion in total energy-related savings for Canadians by 2035. These savings occur because clean electricity is, in many cases, cheaper than fossil fuels, which are also subject to volatile global markets.
Learn more about how the Clean Electricity Regulations enable affordable electricity across Canada.
Reliable power across Canada
Reliable electricity is vital to Canadians’ way of life, the success of Canada’s economy, and the well-being of all Canadians. A reliable electricity grid has enough electricity supply to meet the needs of households, small businesses, and industries, which includes having the capacity to withstand sudden disruptions or disturbances, such as extreme weather or system equipment failure. Canada’s Clean Electricity Regulations provide a mix of flexibilities designed to help those responsible for power generation choose the best solutions for their circumstances, without ever compromising on reliability. In addition, the Government is providing over $60 billion in federal support will also be an investment in reliability, including for the adoption of new technologies.
The Regulations set an emissions limit without prescribing specific technologies. This technology-neutral approach enables provincial, territorial, and municipal decision-makers to determine the most suitable path for building out their clean grid in their circumstances.
Learn more about how Canada’s Clean Electricity Regulations enable clean electricity providers to continue ensuring a reliable grid across Canada.
The Clean Electricity Regulations: Maintaining reliability
Cutting greenhouse gas pollution
The electricity sector has been Canada’s best performer when it comes to reducing emissions over the last 20 years—proving that expanding generation and reducing emissions at the same time is not only possible, but good business. Continuing to cut pollution from the sector is key to guarding our current economic advantages, securing new investment, meeting our climate targets, cutting air pollution, and improving health outcomes.
The Regulations are expected to reduce nearly 181 megatonnes of cumulative greenhouse gas emissions between 2024 and 2050 from Canada’s electricity generation sector, equivalent to taking over 55 million cars off the road.
The Regulations are designed to work in tandem with other federal climate policies, including Canada’s globally recognized pollution pricing system, which is helping to put more money in the pockets of Canadian families while driving innovation and driving down pollution across the economy. Reducing greenhouse gas pollution pays significant dividends for Canadians, who are already paying heavily for the costs of climate impacts from storms, wildfires, and extreme heat—including on insurance and grocery bills. Independent analysis shows climate-related impacts are already costing average Canadian households $720 per year and are likely to rise to $2,000 per year by 2050 without significant action to reduce emissions. Reducing pollution will help fight against the increasing frequency of severe weather events and help Canadians avoid the worst impacts and costs of climate change.
Cutting pollution in communities across the country is good for our climate, economy, health, and well-being. Air pollution is a major contributor to the development of disease and premature death and is a key environmental risk factor to human health in Canada.
Creating more good jobs
Canada already generates 85% of its electricity from clean sources like hydropower, wind, solar, and nuclear. This is a big reason why companies are choosing to invest in Canada, providing opportunities for Canadian workers and businesses.
Increasingly, clean electricity is the cheapest form of energy. In recent years, the economics of renewables have driven investment toward new wind and solar projects, along with energy storage, to power our communities and deliver electricity at the lowest price possible. These trends are expected to continue—our efforts to build a clean economy are expected by RBC to create 400,000 new jobs by the end of this decade.
In particular, building and operating a net-zero electricity grid is expected to result in many new jobs across Canada. A recent estimate from Clean Energy Canada suggests that in a net-zero economy by 2050 scenario, jobs in the clean energy sector will grow by 2.2 million in the decades ahead (at 7% per year). Growth will be especially high in clean energy generation, with jobs more than doubling to reach almost half a million by 2050.
The Government of Canada’s clean economy investment tax credits are helping to drive the creation of good-quality, union-level jobs by linking the maximum credit rates of some of those tax credits to the creation of positions that include collective agreements, apprenticeships, and prevailing wages—including in the electricity and energy sectors.
Renewable energy is cost competitive
As provinces, territories, and utilities decide what electrical infrastructure to build to meet growing electricity demand, clean energy technologies are often cost competitive or less expensive to build and operate.
Wind and solar can now produce electricity at lower cost than fossil fuels in many cases, and costs are continuing to fall as the technology and manufacturing improves.
Globally, there is a rapid shift of energy systems toward clean electricity. The International Renewable Energy Agency reported that in 2023, renewable capacity accounted for 43% of total installed capacity around the world. Furthermore, new renewable power capacity added in 2023 was nearly double that of just two years earlier, showing that renewables are growing at an unprecedented rate. The improving cost competitiveness of clean energy, alongside expanded policy measures designed to drive energy security, are collectively contributing to the historic growth of renewable and clean power around the world—and Canada is no exception.
A significant portion of existing capital infrastructure throughout Canada’s electricity system is nearing the end of its useful technical life and will require replacement or refurbishment in the coming years. As routine investments and upgrades are made in the future, there is an opportunity to ensure that Canada’s growing electricity systems accelerate toward low- or non-emitting sources of electricity generation.
Supporting provinces and territories
Canada’s Clean Electricity Regulations have been designed to allow every province the freedom to leverage their regional electricity strengths. For example: wind, hydro, and battery storage in Atlantic Canada; hydro and renewable energy in British Columbia and Quebec; and nuclear in New Brunswick, Ontario, and the Prairie provinces. Power systems in the Northwest Territories, Nunavut, and Yukon are not subject to the Regulations.
The Regulations provide lead time to enable electricity providers to make the necessary investments and take advantage of the more than $60 billion in federal support to help clean and grow the electricity system. Some highlights of this federal support are:
- $20 billion in low-cost financing from the Canada Infrastructure Bank for clean electricity projects.
- Nearly $4.5 billion from the Smart Renewables and Electrification Pathways Program.
- A 15% refundable clean electricity investment tax credit for eligible investments in low-emitting electricity generation systems, electricity storage systems, and transmission of electricity between provinces and territories.
- A 30% refundable clean technology investment tax credit for eligible investments by businesses in certain electricity generation and storage equipment, low-carbon heating, and non-road, zero-emission vehicles and related charging or refuelling infrastructure.
- $453 million for the Clean Energy for Indigenous, Rural and Remote Communities programs for renewable energy and capacity-building projects and related energy efficiency measures across Canada. This includes the complementary Indigenous Off-Diesel Initiative.
Alongside the Clean Electricity Regulations, these investments are a critical part of Canada’s clean electricity strategy, Powering Canada’s Future. Collectively, these measures will help drive significant economic opportunities across the country through constructing new power sources and retrofitting existing plants.
The Government of Canada also has many programs to make it easier for families to adopt cost-saving electricity technologies. This includes the Canada Greener Homes Initiative, which helps homeowners make the switch from more expensive and polluting home heating oil and natural gas to energy-saving heat pumps and solar panels through a suite of loans and grants. As of November 2024, over 350,000 grants have been issued by the federal government through the Canada Greener Homes Grant and the Oil to Heat Pump Affordability Program alone. Since 2020, over 211,000 heat pumps have been installed with federal support in homes across Canada.
In addition, the Government offers a purchase incentive of up to $5,000 for Canadians who want to purchase a zero-emission vehicle, which in some provinces can be combined with provincial incentives for more savings.
Significant progress toward a cleaner grid
Canada has already made significant progress transforming the electricity sector. Since the 1980s, Canada’s total electricity capacity has nearly doubled while slashing greenhouse gas pollution. The Clean Electricity Regulations will help Canada retain and further strengthen this competitive advantage.
Several electric utilities and power producers in Canada have adopted net-zero emission targets and significant procurements of renewable generation are underway in many provinces. Stationary energy storage is being deployed across Canada, and we are a global leader in the development of small modular reactors.