Canada’s energy transition

Most Canadians understand that climate change will progressively contribute to the frequency and severity of extreme-weather events, like flooding and wildfires, that pose significant risks to our health, safety, and economy. We know that to mitigate these worsening effects of climate change, we need to move toward a low-carbon future. For good reason, many are concerned that Canada’s economy cannot bear the cost of this transition and the resulting shift in GDP with the nation’s energy and natural resources sectors. But recognizing that inaction or delayed action will in fact be more costly, both the public and private sectors have set ambitious targets to achieve net-zero emissions by 2050 or sooner, in line with recommendations from climate scientists.

The investments required to reach these targets are significant—about 5% to 6% of the economy—and are intended to fund the creation of new innovations and technologies that enhance productivity in areas like electrification, renewable energy, low-carbon fuels, and carbon capture utilization and storage. There are already numerous promising technology-based solutions in Canada. World-class, nature-based conservation and restoration projects have been developed to generate revenue through carbon offsets while generating additional social and biodiversity benefits. There are also developments in carbon management solutions, and companies are continually investing in emerging carbon-removal, storage, and utilization solutions that are necessary to reduce their emissions to net-zero.

So, while the imperative to mitigate climate change through decarbonization can create risks for businesses, it can also create a wealth of possibility.

A whole-economy approach is critical for a low-carbon transition. No sector or technology can achieve these emissions-reduction targets alone. Sound policy and transformative business decisions are urgently required to enable the scaling of solutions within Canada’s borders and beyond. With the right set of policies and investments, we can both achieve our targets and create new economic opportunities.

The path is uncertain. The good news: you’re not on this journey alone.

Electrifying the nation

Electrification is a critical component of Canada's transition to a net-zero emissions economy. The use of electricity as a primary energy source will significantly reduce greenhouse gas emissions, particularly in hard to abate sectors such as transportation and real estate.