Energy and Greenhouse Gas Emissions (GHGs)

Protecting the environment and growing the economy go hand in hand. Taking action on climate change means reducing emissions and increasing climate resilience, while helping Canada diversify its economy and generate well-paying jobs.

Learn more about energy’s impact on the environment

Energy use and greenhouse gas emissions

A wide variety of factors have an influence on the level of GHG emissions in Canada. Globally, about 78% of GHG emissions from human activity are from the production and consumption of energy. This includes activities such as using gasoline for transportation, non-renewable electricity production, oil and gas production, and heating and cooling of buildings.

In Canada, over 81% of emissions come from energy. Canadians use more energy due to our extreme temperatures, vast landscape and dispersed population.

Learn more about Greenhouse gas emissions by Canadian economic sector.

GHG spotlight on oil and gas

GHG emissions from oil and gas production have gone up 23% between 2005 and 2017, largely from increased oil sands production, particularly in-situ extraction.

The Government of Canada has committed to reducing methane emissions from the oil and gas sector by 40% to 45% from 2012 levels by 2025. New regulations limiting methane emissions from fugitive sources such as leaks and venting will apply to the oil and gas sector beginning in 2020.

Due to technological and operational efficiency improvements, oil sands emissions per barrel have decreased 28% from 2000 to 2017.

Learn more about GHG emissions intensity by source type for oil and gas industrial sector.

GHG spotlight on electricity

Despite accounting for less than 9% of total electricity generation, coal was responsible for 77% of electricity related GHG emissions in 2017. Total electricity emissions decreased by 42% from 2000 to 2017 due to increased generation from non-emitting sources.

Renewable electricity generation has increased 18% between 2010 and 2017, with solar and wind having largest growth.

In 2017, almost 82% of electricity in Canada came from non-GHG emitting sources. Hydro made up 60%, nuclear 15%, and other renewables the remaining 7%.

Renewable energy sources make up 2/3’s of Canada’s electricity mix. Renewable electricity generation has increased 18% between 2010 and 2017, with solar and wind having largest growth.

GHG spotlight on transportation

Transportation GHG emissions have increased 19% from 2000 to 2017. Emissions from passenger light trucks and freight trucks have continued to rise due to an increased number of vehicles (especially light trucks and SUVs). Freight emissions have increased due to many factors including increasing trade and globalization, and online shopping.

Passenger transportation contributes 54% to total emissions, freight emissions are 41% of total and off-road is 5%.

Energy efficiency improvements in the transportation sector have saved Canadians 763 PJ of energy and almost $20.8 billion in energy costs in 2016.

Total transportation energy use increased 16% from 2000 to 2016.

Electric vehicles in Canada

In 2015, electricity powered less than 0.5% of all transportation. In 2018, electric vehicle sales made up 2.2% of total vehicle sales. Almost 44,000 vehicles were sold in 2018, more than double the sales in 2017. Electric vehicle sales are highest in the provinces of Quebec, Ontario and British Columbia.

To ensure continued uptake, the federal government is undertaking a series of measures. It includes a $300 million investment in the creation of a new federal purchase incentive to buy zero-emission vehicles, a $130 million investment in new zero-emission vehicle infrastructure deployment, and a $5 million fund to work with automakers to secure ZEV sale targets.

Canada’s energy consumption

A look at Canada’s total primary energy supply (TPES) helps to better understand the impact of energy sources on greenhouse gas emissions. The TPES^{Footnote 1} is calculated as:

TPES = Production + Imports - Exports + Stock changes

Fossil fuels made up 76% of Canada’s TPES in 2017.

Renewable energy sources made up 17.3% of Canada’s TPES in 2017.

Comparatively, the global TPES is made up of:

• 81% fossil fuel (oil 32%, coal 27%, natural  gas 22%)
• 14% renewables
• and 5% nuclear

* Not including electricity trade
**“Other renewables” includes wind, solar, wood/wood waste, biofuels and geothermal

Energy use by sector

There are two different kinds of energy use, primary and secondary.

Primary energy use is a measure of the total energy requirements of all users of energy. It includes the energy required to transform one form of energy into another (e.g. coal to electricity); the energy used to bring energy supplies to the consumer (e.g. pipeline); and the energy used to feed industrial production processes Primary energy use includes secondary energy use.

Not every fuel is consumed as energy. For example, hydrocarbon gas liquids in Canada are also used as a non-energy feedstock in the petrochemical industry.

Canada’s primary energy consumed in 2016 was estimated at 12,713 PJ.

Secondary energy use accounts for the energy used by final consumers in the economy.

This includes the energy used to run vehicles; the energy used to heat and cool buildings; and the energy required to run machinery.

Canada’s secondary energy use in 2016 was 8,786 PJ

Total secondary energy use increased 9% from 2000 to 2016. Natural gas usage grew by almost 18% during the same time period.

Historical energy efficiency

Canada’s industrial, transportation, commercial and institutional sectors are large consumers of energy. One of the key benefits of efficiency improvements is that they slow the rate of growth in energy use and reduce GHG emissions.

Total Energy use per unit of GDP

Per capita energy consumption is 9% lower in 2017 than in 2000. Canada used 20% less energy per dollar of GDP in 2017 than in 2000. This metric indicates how much energy was consumed for every dollar of economic activity generated.

Residential energy use

Canadian households use energy every day – to power lights and appliances, heat or cool spaces, run personal vehicles, recharge electronics, and more.

• 80% of residential energy consumption is used for space and water heating
• Residential energy efficiency improved by 51% between 1990 and 2016, saving 721 PJ of energy and $15 billion in energy costs
• Residential energy use increased 2.4% since 1990, but would have increased by 53% without energy efficiency improvements

While the energy intensity of sub-sectors has decreased since 1990 (apart from freight), their energy use has increased, especially in the industrial and transportation sub-sectors.

• Distributed generation and storage technologies – e.g. rooftop solar arrays, battery storage systems – will allow an increasing number of households to produce and use their own electricity. This will reduce household reliance on the grid.
• Electric passenger vehicles will gradually replace traditional passenger vehicles, reducing residential consumption of gasoline. The price of electricity will eventually supplant the price at the pump as the most salient energy price for household budgeting.
• Net-zero energy homes are homes that produce at least as much energy as they consume on an annual basis. Net-zero energy homes are technically feasible, but not yet scaleable or affordable for the average homebuyer. The costs are falling, however, and net-zero energy homes may eventually become common.

Commercial and institutional energy use

Commercial and institutional energy use increased 34% between 1990 and 2016, but would have increased 58% without energy efficiency improvements.

Between 1990 and 2016, energy intensity decreased 8% in the sector.

Industrial sector energy use

The industrial sector includes all manufacturing, mining (including oil and gas extraction), forestry and construction activities. Industrial energy use increased 26% and would have increased 42% without the energy efficiency improvements made to the sector.

Since 1990, energy efficiency in the commercial and institutional sector has improved 16%, saving Canadians 426 PJ of energy and $4.9 billion in energy costs in 2016.

Energy intensity (MJ/$ of GDP) decreased 15%.

* “Other” includes HFO, coal, LPGs, NGL, steam and waste

Canada’s transition to a low carbon future

The international community, along with Canada, have agreed that tackling climate change is a priority and an opportunity to shift towards a global low carbon economy.

The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCC), is a commitment to accelerate and intensify the actions and investments needed for a sustainable low carbon future, to limit global average temperature rise to well below 2°C above pre-industrial levels, and to pursue efforts to limit the increase to 1.5°C.

As a first step towards implementing these commitments, Canada developed the Pan-Canadian Framework on Clean Growth and Climate Change. The Pan-Canadian Framework has four main pillars:

• pricing carbon pollution;
• complementary measures to further reduce emissions across the economy;
• measures to adapt to the impacts of climate change and build resilience; and
• actions to accelerate innovation, support clean technology, and create jobs.

Together, these interrelated pillars form a comprehensive plan to support Canada’s transition to a low carbon future.

Phasing Out Coal

To support this transition and to reduce GHG emissions, Canada has committed to phasing out its coal-fired electricity power plants by 2030.

Canada has reduced its coal consumption by 24% since 1990 and by 41% since 2000.

Carbon Pollution Pricing

Canada has committed to reduce GHGs by 30 percent from 2005 levels by 2030.

In 2016, the federal government announced a national climate change policy, which included a Canada-wide carbon pollution pricing system.

With existing and planned provincial action, broad-based carbon pollution pricing has started to apply in nearly all provinces and territories, covering a large part of Canada’s emissions.

Learn more about the Pathway to Canada’s 2030 target.