Canada has made significant progress in reducing emissions, but a new report from the Canadian Climate Institute reveals that this progress is being undermined by rising emissions in three sectors.
According to the report, between 2021 and 2022, climate policy and market drivers led to a decrease of 22.9 metric tons of carbon dioxide emissions. However, emissions from certain sectors increased by a combined total of 37.1 metric tons. As a result, despite climate policy efforts, Canada saw a net increase of 14.2 metric tons of emissions.
The largest contributors to this increase were emissions from oil and gas production and buildings, accounting for 72% of the total emissions increase. The report attributes the rise in building emissions to increased heating demand during a colder winter.
The report also highlights that all sectors of the Canadian economy, except for oil and gas, buildings, and agriculture, have seen a reduction in emissions since 2005. Oil and gas emissions have increased by over 15% since 2005, while emissions from buildings have risen by nearly 9%.
In terms of electricity generation, Canada has performed well. Emissions from the electricity sector are now less than half of what they were in 2005, a reduction of 55.6%. The report notes that Canada’s electricity grid is 84% non-emitting, compared to 40% in the US.
“Our Early Estimate of Canada’s 2022 emissions shows that climate policy and clean technology are cutting emissions — but that progress is being swamped by the continued rise in emissions from oil and gas and buildings,” said Rick Smith, president of the Canadian Climate Institute. “Acting quickly to cap emissions from oil and gas, reducing methane leaks, and expanding clean electricity will accelerate our progress while building a more prosperous and competitive future for Canada.”
The report coincides with a recent survey by Leger, indicating that 68% of Canadians are unwilling to pay higher taxes for gasoline to support Canada’s net-zero policies. Quebec had the highest support for higher gas prices at 24%.
The survey also suggests that the carbon price has prompted behavioral changes among Canadians. The survey found that three in ten Canadians are traveling and driving less and keeping their homes cooler in the winter.
According to Dave Sawyer, principal economist at the Canadian Climate Institute, the report underscores the need for climate policy to focus on the most polluting sectors of the economy. “When emissions from just two sectors, oil and gas and buildings, account for nearly three-quarters of the total increase in emissions last year, policy action for those sectors should be a top priority for all governments in Canada,” he said.
Environmental groups are urging Ottawa to implement a federal cap on oil and gas emissions to hold the industry accountable. Environment Minister Steven Guilbeault has announced plans to publish draft regulations this fall to cap emissions from oil and gas production.
The first cap has not been specified yet, but the Emissions Reduction Plan published in 2022 calls for a cut of over 40% in oil and gas emissions by 2030. The proposal has faced pushback from oil groups and Alberta Premier Danielle Smith.
Environmental groups stress that Canada is at a critical moment in mitigating the effects of climate change.
— with a file from The Canadian Press.
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