Canada Unveils Finalized Clean Electricity Regulations, Adjusting Net-Zero Target to 2050

On Tuesday, Canada released its finalized Clean Electricity Regulations, which set a new target to achieve a net-zero electricity grid by 2050, replacing the previous goal of an emissions-neutral grid by 2035.

The revised target has been announced after the provinces and energy industry stakeholders had raised the concern that the original 2035 plan may compromise electricity reliability, increase costs, and result in stranded assets. These considerations were highlighted by officials during the briefing on the updated regulations.

Canada is already enjoying a relatively clean electricity grid, as about 85 percent of its electricity comes from renewable sources, such as hydropower, wind, and solar. Less ambitious regulations might hold Canada back from making its more aggressive commitment to meet the overall 2035 deadline of cutting carbon emissions by 45–50 percent below the 2005 level.

Jonathan Wilkinson, the Minister of Natural Resources of Canada, stated that decarbonization needs to be balanced with reliability and affordability on the grid. "It can't just be about reducing emissions; it has to ensure a reliable grid in all provinces and remain affordable for ratepayers," said Wilkinson in an interview with Reuters.

New rules exempt co-generation facilities, like those used by oil sands operators in northern Alberta that do not feed electricity into the grid. Alberta, the largest oil and gas-producing province in Canada, had opposed the draft CER strongly, warning that strict regulations could compromise grid stability.

This new plan is an effort to balance ambitious climate goals with the practical necessity of ensuring a steady and affordable energy system throughout Canada.

The finalized CER will reduce 181 megatonnes of cumulative carbon emissions from the grid between 2024 and 2050. This is much lower than the draft rules, which intended to reduce 342 megatonnes by the middle of this century. On the other hand, the new emissions limit for power-producing units has been set at 65 tonnes of carbon per gigawatt hour as against the previous target of 30 tonnes.

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