IEA urges Canada to use clean power resources to help cut emissions

Canada, the world's fourth-largest oil producer, needs to give clear policy signals and leverage its abundant clean electricity resources to sharply cut carbon emissions, the International Energy Agency said in a review of the country's energy policies.

More than 80% of Canada's electricity supply comes from non-emitting sources, mainly thanks to its huge hydropower resources, but the country is the world's 10th largest carbon emitter. The majority of greenhouse gases come from the oil and gas sector.

Prime Minister Justin Trudeau's Liberal government has pledged to cut carbon output 40% to 45% below 2005 levels by 2030 and reach net-zero emissions by 2050, and introduced policies, including a price on carbon, to help get there.

The IEA review of Canada's policies, the first since 2015, noted the country's role as a major producer, consumer and exporter of energy presented "both challenges and opportunities" for reaching its targets. Energy makes up 10% of Canada's gross domestic product.

"Canada's efforts to reduce emissions – of both carbon dioxide and methane – from its oil and gas production can help ensure its continued place as a reliable supplier of energy to the world," IEA executive director Fatih Birol said in a news release.