OTTAWA, Aug 10 (Reuters) – Canada on Thursday released long-awaited draft clean electricity regulations designed to create a net-zero emissions power grid by 2035, and said some continued use of fossil fuels would be allowed.
The environment ministry said the rules – which do not prescribe the use of any particular technology – would cut over 340 million metric tons of greenhouse gas pollution between 2040 and 2050 and only result in small increases in average residential electricity rates.
The federal Liberal government has promised Canada will reach overall net-zero emissions by 2050 and says electrifying the grid will drive that decarbonization push by providing clean power for transportation, buildings and industry.
According to the 185-page set of draft regulations, many utility companies said they could not reliably generate power beyond 2035 without some use of natural gas or liquid fuel.
Utilities will therefore be able to use a fossil fuel plant for 20 years, starting from when it was commissioned, as long as they agree to tight emissions limits.
Federal Environment Minister Steven Guilbeault said the government did not yet have a firm plan to deal with those residual emissions to fully achieve a net-zero grid.
“The regulations get us almost there, and we have 12 years to figure out how to get the rest of the way,” he told Reuters in an interview.
The David Suzuki Foundation, which focuses on green issues, said the loopholes would undermine the 2035 target. However the Canadian Climate Institute think tank said the regulations were flexible and pragmatic.
The electricity sector currently makes up 9% of Canada’s total emissions compared to 28% for the oil and gas sector.
Around 84% of Canada’s electricity already comes from non-emitting sources, but four of the 10 provinces still rely on fossil fuels for much of their power generation.
The conservative oil- and gas-producing province of Alberta described the draft regulations as “irresponsible” and said they would endanger grid reliability, while the Canadian Association of Petroleum Producers said it was concerned they would cause investment uncertainty in the Canadian energy sector.
A series of consultations will now take place and the finalised rules are due to come into force on Jan. 1, 2025.
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