Canada needs to look beyond the U.S. global energy transition

The author contends that while the U.S. has retreated from climate policy, global momentum toward a low-carbon economy continues, posing a risk to Canada's oil-dependent economy if it does not keep pace. The text highlights the rapid growth of electric vehicles in China, the expansion of carbon markets in China and India, and the implementation of carbon tariffs in the EU and UK. It recommends that the Canadian federal government prioritize industrial carbon pricing, methane regulations, and a national climate taxonomy to ensure competitiveness in non-U.S. markets.

• Global electric vehicle (EV) adoption is accelerating, with EVs expected to comprise 25% of global car sales this year and 40% within five years, which will reduce global oil demand by over 5 million barrels per day.
• Major emitters China and India are advancing carbon pricing mechanisms; China is expanding its carbon market to include steel, cement, and aluminum—covering an additional three billion metric tonnes of emissions—while India plans to launch a national carbon trading system next year.
• The EU and UK are implementing carbon tariffs on imported goods starting in 2026 and 2027 respectively, which may penalize exporters from countries without domestic carbon pricing, though Canada's industrial carbon pricing system may offer protection.
• Despite political uncertainty in the U.S. and EU, the global green bond market remains strong and is on track to exceed pre-pandemic levels, with specific growth noted in Australia through the development of a climate taxonomy.
• To maintain competitiveness and diversify trade, the Canadian federal government should prioritize strengthening industrial carbon pricing, finalizing methane regulations for oil and gas, completing the Clean Electricity Investment Tax Credit, and releasing a domestic climate taxonomy.

APA

Canadian Climate Institute (2025). Canada needs to look beyond the U.S. global energy transition. https://climateinstitute.ca/canada-needs-to-look-beyond-the-u-s-global-energy-transition/

Chicago

Canadian Climate Institute. Canada needs to look beyond the U.S. global energy transition. 2025. https://climateinstitute.ca/canada-needs-to-look-beyond-the-u-s-global-energy-transition/.

Wikipedia

{{cite press release |author=Canadian Climate Institute |title=Canada needs to look beyond the U.S. global energy transition |date=28 May 2025 |url=https://climateinstitute.ca/canada-needs-to-look-beyond-the-u-s-global-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{canadianclimateinstitute2025canada, author = {{Canadian Climate Institute}}, title = {{Canada needs to look beyond the U.S. global energy transition}}, publisher = {Canadian Climate Institute}, year = {2025}, month = may, url = {https://climateinstitute.ca/canada-needs-to-look-beyond-the-u-s-global-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }