Clean electricity regulations bolster certainty for big investments in Canadas grids

The Canadian Climate Institute asserts that the Clean Electricity Regulations (CER) are critical for providing the long-term predictability needed by risk-averse utilities and regulators to invest in clean energy. By setting emission limits for fossil fuel-burning generation that reach zero tonnes per gigawatt hour by 2050, the CER complements industrial carbon pricing and Investment Tax Credits to lower the cost of capital for decarbonization. The author emphasizes that while the CER allows for provincial flexibility and equivalency agreements, a stable federal standard is necessary to prevent provincial rollbacks—such as Saskatchewan's decision to extend coal plant life—from undermining Canada's overall emissions targets.

• The Clean Electricity Regulations (CER) establish a long-term framework for decarbonization by setting emission limits for fossil fuel-burning electricity generation that begin in 2035 and reach "zero tonnes of emissions per gigawatt hour in 2050".
• The CER works as part of a 'layering' of policies, including industrial carbon pricing and Investment Tax Credits (ITCs), to provide the certainty required for large capital investments and to ensure the lowest cost of capital.
• A stable federal policy is necessary because utility regulators are typically risk-averse; clear policy foundations allow for higher debt-to-equity ratios and cheaper debt, which reduces costs for ratepayers.
• The CER provides flexibility by allowing emitting generation for backup to protect reliability and by permitting provinces to negotiate equivalency agreements to implement their own equivalent legal provisions.
• Recent provincial actions, specifically Saskatchewan's decision to extend the life of coal plants and legal challenges from Alberta, create policy uncertainty that could risk reversing previous emissions progress.

APA

Canadian Climate Institute (2025). Clean electricity regulations bolster certainty for big investments in Canadas grids. https://climateinstitute.ca/clean-electricity-regulations-bolster-certainty-big-investments-canada-grids/

Chicago

Canadian Climate Institute. Clean electricity regulations bolster certainty for big investments in Canadas grids. 2025. https://climateinstitute.ca/clean-electricity-regulations-bolster-certainty-big-investments-canada-grids/.

Wikipedia

{{cite press release |author=Canadian Climate Institute |title=Clean electricity regulations bolster certainty for big investments in Canadas grids |date=25 November 2025 |url=https://climateinstitute.ca/clean-electricity-regulations-bolster-certainty-big-investments-canada-grids/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{canadianclimateinstitute2025clean, author = {{Canadian Climate Institute}}, title = {{Clean electricity regulations bolster certainty for big investments in Canadas grids}}, publisher = {Canadian Climate Institute}, year = {2025}, month = nov, url = {https://climateinstitute.ca/clean-electricity-regulations-bolster-certainty-big-investments-canada-grids/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }