Sunday, December 28, 2025

Canada Pushes Back Net-Zero Electricity Grid Target to 2050

The federal government announced Tuesday it has delayed its target for achieving a net-zero electricity grid to 2050, extending the timeline by 15 years, while introducing new clean electricity regulations that prompted immediate opposition from Alberta.

Environment Minister Steven Guilbeault defended the timeline shift. “It was always our intention that we want to see things happening before 2035. But that we wouldn’t be able to get to a decarbonized grid before 2050,” he said.

“2035 is an important moment because although the regulation only enters into force then, the signal we send to those who will invest and operates grids starts now,” Guilbeault added.

Currently, 85% of Canada’s power supply comes from non-emitting sources. However, four provinces — Alberta, Saskatchewan, Nova Scotia and New Brunswick — still rely on coal and natural gas for 30-85% of their power generation. The territories will be exempt from the regulations due to their reliance on diesel generation and their status as relatively small emitters.

Alberta Premier Danielle Smith announced an immediate legal challenge, calling the regulations unconstitutional for regulating provincial jurisdiction. While acknowledging the extended timeline, Smith criticized the regulations, saying they “require generators to meet unreasonable and unattainable federally mandated interim targets beginning in 2035 that will still make electricity unaffordable for Canadian families.”

The final regulations, published Wednesday, include more flexibility for provinces to comply, including an annual emissions limit for power-producing units and a credit system allowing provinces to pool emissions limits across units.

Energy Minister Jonathan Wilkinson acknowledged the government could have been more precise in its previous communications about the 2035 date. “At the end of the day we want Saskatchewan to succeed. We want Nova Scotia to succeed. We want New Brunswick and Alberta to succeed. But we also want to achieve a net zero grid by 2050,” he said.

The government also announced $60 billion in support over the next decade for clean energy. Officials noted that emissions from cogeneration facilities will now be covered under the recently-announced oil and gas emissions cap rather than these electricity regulations.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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