North American Energy Relationships

This 2009 research paper examines the energy relationships between Canada, the United States, and Mexico, focusing on how their integrated energy infrastructure and differing regulatory regimes impact climate change policy. It details the energy profiles of each nation, discusses the role of agencies like the NEB and FERC, and identifies potential trade frictions such as 'Buy American' rules and low-carbon fuel standards. The author proposes three policy scenarios for 2020, concluding that a 'bottom-up' approach with increasing bilateral linkages between Canada and the U.S. is the most probable outcome.

• North America is a global energy hub, producing approximately 25% of the world's energy supply and consuming about 33% of its commercial energy.
• Energy regulation in Canada is split between federal and provincial jurisdictions. The federal government, via the National Energy Board (NEB), regulates interprovincial and international trade, pipelines, and offshore areas, while provinces manage the exploration and development of non-renewable resources and electricity generation within their borders.
• In the United States, the Federal Energy Regulatory Commission (FERC) is the primary independent agency regulating the interstate transmission of oil, natural gas, and electricity, as well as licensing hydropower projects and reviewing LNG terminal proposals.
• The document identifies several potential trade irritants in climate policy, including 'Buy American' provisions in the American Recovery and Reinvestment Act (ARRA) and California's Low-Carbon Fuel Standard (LCFS), which could lead to challenges under NAFTA or the World Trade Organization.
• The author presents two boundary climate regime scenarios for 2020: a 'bottom-up' approach where countries implement national plans with limited linkage, and a 'North American emissions bubble' involving a continental cap-and-trade system with coordinated standards for energy efficiency and low-carbon fuels.
• The 'most likely' policy scenario posited is a variation of the 'bottom-up' approach, where Canada and the U.S. adopt identical emission reduction targets for 2020 and increase linkages between their cap-and-trade systems after 2015, while Mexico implements Nationally Appropriate Mitigation Actions (NAMAs).
• Canada's energy security is defined by its need for 'unfettered access' to the United States market, as net energy exports contributed 7% of Canada's GDP in 2008, totaling C$73 billion in revenue.

APA

Russell, D. (2009). North American Energy Relationships. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/north_american_energy_relationships.pdf

Chicago

Russell, Doug. North American Energy Relationships. International Institute for Sustainable Development, 2009. https://www.iisd.org/system/files/publications/north_american_energy_relationships.pdf.

Wikipedia

{{cite report |last1=Russell |first1=Doug |title=North American Energy Relationships |publisher=International Institute for Sustainable Development |date=December 2009 |url=https://www.iisd.org/system/files/publications/north_american_energy_relationships.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{russell2009north, author = {Russell, Doug}, title = {{North American Energy Relationships}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = dec, url = {https://www.iisd.org/system/files/publications/north_american_energy_relationships.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }