Canada extends net zero electricity grid target to 2050

Canada has revised its target for achieving a net-zero electricity grid, extending the deadline from 2035 to 2050. This decision follows the release of the finalised Clean Electricity Regulations (CER), which were influenced by feedback from provinces and energy industry stakeholders concerned about reliability, cost, and potential stranded assets.

Currently, 85% of Canada’s electricity comes from clean sources, including hydropower, wind, and solar. However, the revised regulations may complicate the country’s efforts to meet its climate goal of reducing carbon emissions by 45% to 50% below 2005 levels by 2035.

The new regulations aim to cut 181 million tonnes (Mt) of carbon emissions from the grid by 2050, down from the initial draft’s target of 342Mt. Emission limits for power-producing units have been adjusted from 30t of carbon per gigawatt-hour (GWh) to 65t per GWh, with additional allowances through emissions offset credits. Co-generation facilities, particularly in Alberta, will be exempt.

Alberta, which is opposed to the CER, plans to challenge the regulations in court. Despite the changes, the regulations are viewed as a realistic framework for guiding energy investments.