Canada

Canada’s oil sector has faced challenges, with insufficient pipeline capacity to reach markets and growing opposition to pipelines on environmental grounds. The sector should focus on mitigating its upstream environmental impact.

Canada’s LNG sector is poised to take off, which will bolster Canada’s energy ties with Asia and help monetize vast western shale gas resources.

Canada’s climate strategy is embodied in the Pan-Canadian Framework on Clean Growth and Climate Change, which introduced a federal price for carbon starting at CAD 20/tonne in 2019, rising to CAD 50/tonne in 2022. A strengthened plan announced in December 2020 would see the carbon price grow by CAD 15/tonne annually to CAD 170/tonne in 2030.

Canada has one of the cleanest electricity profiles among IEA countries, with a large share of renewables (especially hydro) and nuclear power. It has launched a refurbishment program to extend the life of the existing fleet of nuclear reactors as part of a future low-carbon electricity mix. The government plans to phase out coal power by 2030.

Last updated Dec 13, 2022