The Canadian government has unveiled a set of clean electricity regulations (CER) to accelerate the switch to renewable energy and help achieve the country’s goal of reaching net-zero by the year 2035 by reducing emissions. The country is already producing 84 per cent of its electricity by utilising renewable sources such as wind, hydropower, and nuclear power.
By decarbonising the remaining portion of the electrical system, the proposed regulations would reduce greenhouse gas emissions by over 340 mega tonnes between 2024 and 2050. The CER states that the government may continue to permit minor amounts of fossil fuel burning in the generation of electricity after its 2035 net-zero target date.
The draft regulations projected that the country will utilise more clean energy by 2050, cutting energy expenditure by 12 per cent. Furthermore, new tax credits of over $40 billion and other significant federal investments would be provided to companies to reduce emissions.
REGlobal’s Views: Canada has historically been heavily dependent on hydro and other conventional energy sources with very less contribution from renewables in the energy mix. These long-awaited clean energy regulations come at a time when the country has to significantly increase its renewables dependence especially with drought-related problems in case of hydro and volatility in supply and pricing in case of oil and gas.
