Canada’s economic competitiveness and the global energy transition

The Canadian Climate Institute argues that Canada faces an existential challenge to accelerate its transition to net zero to remain competitive. Key recommendations include implementing a climate investment taxonomy, finalizing Clean Electricity Regulations to meet demand that could triple by 2050, and addressing the high carbon intensity of the oil and gas sector through emissions caps and methane regulations. The Institute emphasizes that the risk of moving too slowly outweighs the risk of moving too quickly, especially as international investors managing over $61 trillion in assets commit to net zero.

• Canada faces a significant competitive risk by transitioning too slowly to net zero, as over 70 countries—representing over 90 per cent of global economic activity—have committed to net zero by mid-century, and investors managing over $61 trillion in assets have made similar commitments.
• While the U.S. Inflation Reduction Act accelerates the global energy transition, Canada should focus on its own policy tools, such as targeted investment tax credits and its carbon pricing framework, rather than emulating the U.S. model. To provide investor certainty, Canada needs to prioritize carbon contracts for differences and the creation of a climate investment taxonomy, as it is one of the few G20 countries lacking one.
• Canada's electricity system, where over 80 per cent of production is zero-emissions, is a competitive advantage, but demand could double or triple by 2050. This requires the implementation of the federal Clean Electricity Regulations and the use of $25 billion in federal investment tax credits to scale the system.
• The Canadian oil and gas sector is among the most carbon intensive globally, facing a dual challenge: the need to reduce emissions to remain competitive in a market favoring low-carbon barrels, and the risk that declining global fossil fuel demand will undermine long-term economic viability. Recommended policy interventions include capping oil and gas emissions, strengthening methane regulations, and utilizing Investment Tax Credits for carbon capture and storage.

APA

Canadian Climate Institute (2023). Canada’s economic competitiveness and the global energy transition. https://climateinstitute.ca/canadas-economic-competitiveness-global-energy-transition/

Chicago

Canadian Climate Institute. Canada’s economic competitiveness and the global energy transition. 2023. https://climateinstitute.ca/canadas-economic-competitiveness-global-energy-transition/.

Wikipedia

{{cite press release |author=Canadian Climate Institute |title=Canada’s economic competitiveness and the global energy transition |date=30 October 2023 |url=https://climateinstitute.ca/canadas-economic-competitiveness-global-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{canadianclimateinstitute2023canadas, author = {{Canadian Climate Institute}}, title = {{Canada’s economic competitiveness and the global energy transition}}, publisher = {Canadian Climate Institute}, year = {2023}, month = oct, url = {https://climateinstitute.ca/canadas-economic-competitiveness-global-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }