Question Period Note: Clean Electricity Regulations

In December 2024, the Government of Canada published the final Clean Electricity Regulations. The Clean Electricity Regulations are an integral part of the Government of Canada’s Clean Electricity Strategy and, starting from 2035, puts the electricity sector on a path to net-zero by 2050.

• The objective of the Clean Electricity Regulations is to protect the environment and human health from the threat of climate change by significantly reducing greenhouse gas emissions
• A clean, reliable, and affordable electricity grid is key to building a strong net-zero economy. This gives Canada a competitive advantage and makes it an attractive place for businesses around the world to invest since clean electricity will help them succeed.
• The Government will continue working with provinces and territories and electricity providers to expand Canada’s current supply of electricity to meet future demand while ensuring that it is net-zero by 2050. The federal government has committed more than $60 billion towards this goal.

• In December 2024, the Government of Canada published Powering Canada’s Future: A Clean Electricity Strategy, which brings together significant measures that the federal government is taking to help support the build-out of a clean, reliable, and affordable electricity sector.

• The Clean Electricity Regulations (CER), which were finalized in December 2024, are an important element of the Strategy. The objective of the CER is to help protect the health and environment of Canadians from the threat of climate change by prohibiting excessive emissions of carbon dioxide from fossil-fuel fired electricity generation. Achieving net-zero emissions in the electricity sector will also help to decarbonize other sectors of the economy, such as transportation and buildings, and aid in Canada’s commitment to achieve net-zero GHG emissions economy-wide by 2050. Starting in 2035, the CER require fossil-fuel-fired electricity generating units connected to the electricity grid to achieve net-zero emissions by 2050. This timeline of a net-zero grid by 2050 aligns with the goals set by many provinces, including Alberta and Saskatchewan.

• The Regulations were developed pursuant to well-established federal authority to prohibit releases of harmful pollution, including greenhouse gas emissions, under the Canadian Environmental Protection Act, 1999.

• Reducing greenhouse gas (GHG) emissions in all sectors, including electricity, is necessary to address the threat to the environment and human health caused by climate change.

• Demand for electricity is expected to double over the coming 25 years due to increasing demand from a growing population and new drivers like artificial intelligence and data centres. Ensuring that the coming grid expansion is clean is crucial to addressing climate change.

• The CER is complemented by over $60 billion in funding over the next 10 years to support the electricity sector in their transition to net-zero by 2050. This includes a series of investment tax credits and concessional loans and funding programs.

• Global clean energy investment reached $2.1 Trillion in 2024—nearly double that of fossil fuels—with Canada ranking 8th at $35 Billion. Canadian jobs in clean energy are set to grow 7% a year from 509,000 in 2025 to 2.7 million in a net-zero 2050.

• The federal government recognizes that some provinces face unique challenges in transitioning to a net-zero electricity grid. Based on extensive feedback, the final regulations were revised significantly from the draft regulations to include flexibility to enable provinces and territories to continue providing reliable and affordable electricity to Canadians, while maintaining the primary objective of achieving significant emissions reductions.

• In addition, Environment and Climate Change Canada is open to negotiating equivalency agreements that would stand down the federal regulations in provinces that have in force provincial laws that achieve equivalent environmental outcomes (emissions reductions).

• On May 1, 2025, the Province of Alberta commenced a challenge to the constitutionality of the Clean Electricity Regulations in the Alberta Court of Appeal.

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