Canada’s Role in the Global Energy Picture

This report, an excerpt from a paper presented at the Banff Dialogue in April 2010, argues for the creation of a coherent national energy strategy for Canada to better manage its diverse energy resources and navigate its heavy trade dependence on the United States while transitioning toward low-carbon energy.

• Canada possesses significant competitive advantages in traditional energy production, ranking as the top exporter of natural gas and hydro, the top producer of uranium, and second in oil reserves (including oil sands). Its status as a stable democracy makes it a more secure environment for large-scale private sector investment compared to many developing countries.
• Canada's energy sector is overwhelmingly dependent on the United States, which accounts for 98 per cent of its energy exports. This creates a vulnerability where Canadian markets are threatened by U.S. trends toward clean energy development, as Canada primarily supplies conventional and 'dirty' non-conventional fuels, although this same trend creates potential for hydro power exports.
• Various Canadian provinces and territories have implemented diverse clean energy initiatives, such as Alberta's C$3 billion investment in carbon capture and storage (CCS), Ontario's feed-in tariff program for renewables, British Columbia's energy conservation targets, and Nova Scotia's tidal power development.
• The report argues that Canada lacks a coherent national energy vision, resulting in a fragmented approach where provinces and territories pursue independent, and sometimes competing, policies. This fragmentation hinders Canada's ability to meet long-term climate change emission reduction targets.
• A national clean energy strategy is presented as a tool to mitigate trade risks, such as low-carbon fuel standards or border measures targeting high-carbon exports, and to avoid international reputational damage that could dampen investment outside the U.S. market.
• The international energy regime is described as a "patchwork affair," with various bodies like OPEC, the IEA, and IRENA having limited scopes or being in early operational stages. The report suggests that trade organizations like the WTO and NAFTA could help resolve uncertainties regarding energy exports and intellectual property rights to foster technology transfer.
• The "Three Amigos" initiative between Canada, Mexico, and the United States is identified as a potential model for integrating energy, trade, and environmental considerations in North American policy.

APA

Gass, P., & Drexhage, J. (2010). Canada’s Role in the Global Energy Picture. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/banff_dialogue_national_energy_approach.pdf

Chicago

Gass, Philip, and John Drexhage. Canada’s Role in the Global Energy Picture. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/banff_dialogue_national_energy_approach.pdf.

Wikipedia

{{cite report |last1=Gass |first1=Philip |last2=Drexhage |first2=John |title=Canada’s Role in the Global Energy Picture |publisher=International Institute for Sustainable Development |date=2010 |url=https://www.iisd.org/system/files/publications/banff_dialogue_national_energy_approach.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gass2010canadas, author = {Gass, Philip and Drexhage, John}, title = {{Canada’s Role in the Global Energy Picture}}, institution = {International Institute for Sustainable Development}, year = {2010}, url = {https://www.iisd.org/system/files/publications/banff_dialogue_national_energy_approach.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }