Canada's clean electricity future

Building our economy with clean electricity

Clean Electricity Strategy

Powering Canada’s Future: A Clean Electricity Strategy is the Government of Canada’s strategy for building more clean electricity. It sets the path forward to build the grids that will serve as the backbone of our low-carbon economy – and to do so at the pace and scale needed to drive clean growth, strengthen our competitiveness and attract more major investments. It combines historic investments and balanced, fair policies to enable building new clean electricity systems. The strategy also provides a road map for the enhanced participation and leadership of Indigenous Peoples in building more clean electricity.

Clean Electricity Regulations

Canada’s Clean Electricity Regulations (the Regulations) were announced on December 17, 2024. Read the full text of the Regulations (PDF) and the accompanying Regulatory Impact Analysis Statement.

The Clean Electricity Regulations are an integral part of the Government of Canada’s strategy for clean electricity. Since investments in electricity projects are made years in advance, the Government of Canada is enacting the Regulations now to signal to the electricity sector that it must begin to transform Canada’s electricity system.

To maintain Canada’s clean electricity advantage and create the conditions for a successful transition, the Regulations have been developed with the following three principles:

1. enable significant greenhouse gas reductions to ensure a net-zero electricity grid by 2050
2. enable provinces and territories to maintain electricity affordability for Canadians and businesses
3. enable provinces and territories to maintain grid reliability as Canada’s electricity needs to grow

The Regulations are established under the authorities of the Canada Environmental Protection Act, 1999 to prevent and manage pollution, and help protect the environment and health of Canadians from the impacts of climate change.

Consultations during the development of the Regulations

Beginning in March 2022, Environment and Climate Change Canada undertook extensive engagement with electric utility companies, provincial and territorial governments, Indigenous groups, industry associations, environmental non-governmental organizations, unions, researchers and academics, and the general public.

The breadth and depth of these engagement activities helped to inform the development of Regulations and take into account the different circumstances across Canada.

Overview of the Clean Electricity Regulations

Beginning in 2035, the Regulations will set limits on carbon dioxide pollution from almost all electricity generation units that use fossil fuels. The Regulations provide a mix of compliance flexibilities and do not prescribe specific technological solutions. This enables provincial, territorial, and municipal decision-makers to choose the best solutions for their circumstances. As electricity system operators and utilities gradually replace older units with cleaner and more efficient units, GHG emissions will decrease. By 2050, the Regulations will ensure a net-zero electricity system.

For more information on the annual emissions limit and the role of greenhouse gas offset credits in Canada’s Clean Electricity Regulations, please see: Maintaining Reliability.

Supporting reliable electricity in Canada

Reliable electricity is vital to Canadians’ way of life, the success of Canada’s economy, and the wellbeing of all Canadians. A reliable electricity grid has enough electricity supply to meet the needs of households, businesses, and industries, which includes having the capacity to withstand sudden disruptions or disturbances, such as extreme weather or system equipment failure.

Learn more about how the Regulations work to support a reliable grid across Canada.

Maintaining affordability

Electrification has enormous potential to save families money on their energy bills. Families can save hundreds of dollars every month by switching to electric cars and electric heat pumps. Switching to electricity also means protecting families from the unpredictable changes in fossil fuel prices due to global markets. 

Learn more about what the Regulations and electrification mean for energy affordability.

Emissions Reductions

The electricity sector in Canada has taken significant steps to reduce its emissions in recent years. Nonetheless, given the significant increase in electricity generation projected over the next few decades, GHG emissions from the electricity sector could substantially increase in the absence of regulatory guardrails. To enable electricity provides to be able to continue to provide reliable and affordable electricity, the Regulations will work alongside the Government of Canada’s historic suite of investments to support the development of grids that increasingly operate primarily on low- and non-emitting electricity sources, achieving net-zero economy-wide by 2050.

Source: National Inventory Report, 1990–2022: Greenhouse Gas Sources and Sinks in Canada

*Regulatory Impact Analysis Statement (2024) for the Clean Electricity Regulations.

Under a scenario where electricity demand grows by about 50%, the regulations are expected to reduce nearly 181 megatonnes of cumulative GHG emissions between 2024 and 2050 from Canada’s electricity generation sector.   

Evolution of Canada’s electricity systems

Approximately 85% of Canada’s electricity comes from renewable and non-emitting sources such as solar, hydro, nuclear, and wind power. As provinces and territories decide what technologies to adopt to meet the growing demand for electricity, clean electricity technologies are often cost competitive or less expensive to build and operate. As a result, the cost of renewable energy decreases, the pace of renewable energy growth increases in Canada.

A national picture: How electricity is generated in each province

Source: Canada’s Official Greenhouse Gas Inventory – Electricity Intensity

Following the gains made through earlier electricity sector regulations on coal and natural gas, Canada is well positioned to transition to net-zero by 2050.

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 investments and upgrades are made in the coming years, there is an opportunity to ensure that Canada’s growing electricity systems accelerate toward low or non-emitting sources. This will be key to enabling Canada’s electrification and making electricity more affordable and reliable in the long term. Fortunately, many of these technologies already exist. 

By 2050, the Regulations are expected to help Canada generate almost all of its electricity from non-emitting sources.

Federal support

To support provinces and territories in the transition to clean electricity, the Government of Canada has committed more than $60 billion in financial support for the electricity sector. This will help to reduce the costs of the transition that could get passed on to ratepayers, particularly in jurisdictions with electricity systems that are more dependent on fossil fuels, such as Nova Scotia, New Brunswick, Ontario, Saskatchewan and Alberta.

• Clean Economy Investment Tax Credits
• Smart Grid Program
• Smart Renewables and Electrification Pathways Program
• Canada Growth Fund
• Canada Infrastructure Bank
• Low Carbon Economy Fund

The federal government is working with provinces and territories through the Regional Energy and Resource Tables and the Canada Electricity Advisory Council and supporting businesses and utilities through the following programs:

• 2030 Emissions Reduction Plan
• Canadian Critical Minerals Strategy
• The Hydrogen Strategy for Canada
• Small Modular Reactor Action Plan
• Carbon Management Strategy
• Canada Green Buildings Strategy
• Greening Government Strategy

Advancing clean electricity with Indigenous communities

We are also supporting Indigenous communities in the transition to clean electricity through various federal programs:

• Clean Energy for Indigenous, Rural and Remote Communities
• Indigenous Off Diesel Initiative
• Northern REACHE program

Helping Canadians save on energy costs

The Government of Canada has many programs and tips to help you make energy efficiency upgrades to lower your electricity consumption and bills while reducing your carbon footprint. Many types of upgrades are also eligible for federal, provincial, and territorial rebates programs.

Learn more about saving electricity:

• Energy efficiency for homes
• Energy efficient home
• Save money on energy
• Energy efficiency
• Directory of Energy Efficiency Programs for Homes
• Heating and cooling with a heat pump
• Greener Neighbourhoods Pilot Program

Other benefits of clean electricity in Canada

Reducing air pollutant emissions for cleaner air and healthy Canadians

Transitioning to clean electricity in communities across the country is good for our climate, economy, health and well-being. In addition to cutting GHGs, reducing the use of fossil fuels reduces air pollution, which is a major contributor to the development of disease and premature death and is a key environmental risk factor to human health in Canada.

The Regulations will reduce the amount of air pollutants emitted by electricity generating units, resulting in improvements to local air quality and avoiding adverse health and environmental impacts. The Regulations are estimated to result in benefits of $3.4 billion from avoided health impacts.

Ontario, Alberta, Saskatchewan and Nova Scotia are expected to see the biggest reduction of air pollutant emissions reductions, largely attributable to the switch from unabated emitting generation to low or non-emitting generation.

Creating more good-paying jobs

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 suggest 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 seven per cent per year). Growth will be especially high in clean energy generation, with jobs more than doubling to reach almost half a million by 2050.

Attracting new businesses, boosting global competitiveness and growing the economy

The Clean Electricity Regulations provide a clear market signal for new investments in renewable energy, smart grids, distributed energy systems, energy storage and the development and deployment of emerging technologies such as small modular reactors and carbon capture and storage.

Canada is joining some of the world’s largest economies in committing to clean electricity. Matching the commitments from other G7 nations to reach net-zero electricity will aid Canada’s competitiveness by attracting businesses looking for clean power. It will support growth and create good paying jobs in communities across the country.

Advancing economic reconciliation with Indigenous peoples

The clean electricity transition presents an opportunity to advance economic reconciliation with Indigenous peoples. Supporting non-emitting electricity infrastructure growth can empower Indigenous participation and equity ownership as a means to create wealth. Further, clean power projects can support energy sovereignty and self-sufficiency of remote Indigenous and Northern Communities by reducing their reliance on diesel. As of 2021, Indigenous communities were the largest clean energy asset owners in Canada, apart from Crown and private utilities, and continue to be leaders in clean power generation.

Learn more about the benefits of the Regulations and clean electricity.

More resources on clean electricity in Canada

Provincial and territorial electricity snapshots

Learn more about the electricity profile of each province and territory, the economic opportunities and federal investments to help them move towards a clean electricity grid. Note: Power systems in the Northwest Territories, Nunavut and Yukon are not subject to the Clean Electricity Regulations.

• Alberta
• British Columbia
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
  
• Nunavut
• Ontario
• Prince Edward Island
• Quebec
• Saskatchewan
• Yukon

Useful links

• Electricity in Canada
• Renewable energy
• Energy sources and distribution
• Canadian Centre for Energy Information
• Electricity sector emissions