Canada

Canada maintains its position at 62nd in this year’s CCPI and its status as a very low performer. As in previous years, Canada receives a very low rating in the GHG Emissions, Renewable Energy, and Energy Use categories. Climate Policy is rated as low.

Positive developments in the GHG Emissions and Energy Use trend indicators give hope that emissions will continue falling, leading to an improved CCPI ranking. Canada’s Emissions Reduction Plan includes the target of a 40% emissions reduction compared with 2005 levels by 2030 and achieving net-zero emissions by 2050.

Carbon Pricing Effective, but Oil and Gas Producers Are Often Exemp

In 2019, Canada introduced a carbon price system to help the country reach its GHG emissions targets. As of 1 April 2024, the fuel charge was $80 CAD per tonne of gasoline, $15 more than in 2023. The government’s goal is to charge $170 per tonne by 2030. A Canadian Climate Institute report shows that federal and provincial carbon pricing for industry and consumers is expected to account for almost half of Canada’s emissions reductions by 2030. However, most of the emissions oil and gas producers generate are exempted, meaning these companies pay a very low average price for their emissions.

Although the country is transitioning from coal power and reducing methane, it plans to increase its gas and oil production by 2030. In 2023, Canada produced 5.76 million barrels of oil per day, making it the fourth largest oil-producing country and with a 6% share of the world total. This is not compatible with the 1.5°C target.

The CCPI national experts also note that the government under Prime Minister Justin Trudeau and the Minister of Environment and Climate Change Steven Guilbeault has repeatedly delayed or weakened proposed climate policies following sustained lobbying from the fossil fuel industry and provincial premiers.

A need to increase renewables, some promising green strategies, persistent fossil pursuits

Since 2010, the share of renewables in the energy mix has remained relatively stable, at around 17%. The government has undertaken some actions to help increase the share. In October 2024, it announced an additional USD 500 million of funding to the Smart Renewables and Electrification Pathways program to support Canadian utilities and system operators in transforming their electricity systems. The CCPI experts point to the introduction of the Canada Green Building Strategy in 2024, which outlines the government’s vision for greener and more efficient buildings. The Greening Government Strategy, also introduced in 2024, plans to use 100% clean electricity in federal buildings by 2025.

Despite the above, Canada’s provinces have a great deal of power to expand or restrict fossil fuel development. While some provinces, such as Quebec, have implemented bans on fossil fuel exploration and exploitation, others, such as Alberta, are promoting oil and gas expansion well into the future. The federal government is showing leadership that far surpasses what the provinces have shown to date, and though it is not enough, there continues to be a jurisdictional imbalance between what the federal governments can do and where provincial action is needed.

The CCPI experts note that, since 2021, the speed, scale, and scope of Canada’s climate action have increased though there is still a great deal of room for improvement. As in the past, the experts expect Canada to take on greater responsibility in climate policy and increase the pressure on provinces to reduce their emissions (from the electricity sector). Canada is a wealthy country and a major oil and gas producer, but it has the potential and capacities to transform its energy system and reduce its emissions substantially.

The experts call for plans for a strong emissions cap, provincial fossil fuel phase-out that meaningfully supports resource-intensive communities, transparent progress report on the Emissions Reduction Plan, and climate-friendly financial regulations.

Key Outcomes

CCPI Experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• John Bennett (Friends of the Earth Canada)
• André Bélisle (AQLPA)