Ottawa no longer committed to a net-zero electricity grid by 2035

The Canadian government has made a significant shift in its goals for reducing emissions in the national electricity grid. While the previous target of achieving net-zero by 2035 has been abandoned, Ottawa is now promising even deeper emissions reductions in the energy sector after 2050.

This decision was announced ahead of the release of the final Clean Electricity Regulations, which have faced opposition from provinces like Alberta, Saskatchewan, and Ontario. These provinces argued that the draft regulations were costly and unrealistic in their targets.

The final regulations provide more flexibility for provinces and territories to comply, with non-emitting sources like hydroelectricity, wind, solar, and nuclear expected to easily meet the new criteria. Natural gas plants will also need to meet specific, albeit less strict, standards.

Under the new regulations, emissions from natural gas plants operating in emergency conditions due to extreme weather will not be counted. Additionally, plants that exceed their emissions limits will have the option to use greenhouse gas offset credits.

Rather than imposing emissions limits on individual power plants, a broader emissions limit will apply to a collection of units. This approach allows electricity providers to balance higher-polluting units with cleaner ones to ensure compliance.

Certain industrial entities, such as oilsands operations that generate large amounts of onsite electricity, are exempt from the regulations. As a result, Canada’s electricity sector is projected to generate more pollution than initially expected between 2024 and 2050. Instead of eliminating 342 million tonnes of carbon dioxide equivalent, the final regulations will cut around 193 million tonnes.

While federal officials have indicated that even deeper emission reductions are planned after 2050, the specifics of these targets have not been disclosed. Despite the revisions to the regulations, Electricity Canada, a national organization representing the electricity industry, believes that the regulations still fall short.

According to Electricity Canada, the stringent Clean Electricity Regulations will pose challenges to reliability and affordability, particularly in provinces like Ontario, Saskatchewan, and Alberta. The organization argues that these regulations will add unnecessary costs as provinces work towards decarbonizing their economies by 2050.

In conclusion, while the Canadian government has adjusted its targets for emissions reductions in the electricity sector, there is still debate surrounding the impact of these regulations on the industry and the economy as a whole. The shift in goals post-2050 signals a continued commitment to reducing emissions, but the practical implications of these regulations remain to be seen.