Global demand for energy
Global demand for energy is growing, and Canada is uniquely positioned to help meet this demand.
The IEA forecast reinforces that fossil fuels – specifically oil and natural gas – remain the dominant sources of meeting the world’s growing energy demand in the foreseeable future.
The report underlines that Canada’s significant oil and natural gas resources can help meet global demand and be an important source of energy security to world markets compared to politically less stable regions.
Growth in Global Energy Mix, 2017-2040
Source: IEA, World Energy Outlook 2018, New Policies Scenario
Greenhouse gases (GHG) from human activities are a significant contributor to climate change. The challenge is how to reduce GHG emissions while demand for energy – and the amount of energy the world is consuming – is growing.
Rigorous carbon policy
Canada is a world leader in climate policy. Compared to global competitors, Canada has one of the world’s toughest climate policies based on price and stringency. Climate policy is governed in Canada by both the provincial and federal governments.
Currently, Canada is increasing the price on carbon, while the majority of our competitors are reducing regulations related to climate policy. Several provinces have put a price on carbon and the federal government has plans to implement a backstop policy that would raise the carbon price to $50/tonne by 2020.
Find out more:
- B.C. Climate Leadership Plan
- Alberta Environment: Alberta’s Climate Change Strategy
- Saskatchewan's Climate Change Strategy
- Ontario Climate Change Policy
- Quebec Climate Change Action Plan
- Nova Scotia's Action on Climate Change
- Canadian Federal Government: Action on Climate Change
CAPP's Climate Change Policy Principles
Canada’s oil and natural gas producers are ready and willing to do our part to contribute to the overall Canadian plan on climate change.
Collaborative and solutions-oriented
- Given Canada’s climate commitments and industry impacts, CAPP will proactively collaborate with governments and stakeholders towards appropriate policy solutions.
- Policy solutions need to be adaptive and carefully consider environmental, economic, and social outcomes.
Efficient, effective & predictable
- Climate policy should target reductions where they are most efficient and effective right across the entire energy value chain from production to end use and considering fairly all sectors and jurisdictions.
- Climate change policies should achieve emissions reductions at the least cost to Canadians, the economy and industry.
- Revenues from climate policy should be fully recycled back into the economy to incent innovation, assist transition or reduce other taxes and levies.
Technology and innovation focused
- Policy should incent technology and innovation to address climate change, and capture the opportunity to export solutions to the world.
- Considerable future emissions reductions will stem from improving the hydrocarbon energy sector requiring continuing strong innovation and policy effort in these areas.
- Canada’s climate policies must ensure our resource development is cost and carbon competitive with other jurisdictions, especially the U.S. as our largest trading partner.
- Canada’s climate policy leadership should bring proportionate benefits to Canada, including ensuring we receive full value for Canadian energy products through effective access to global markets.
- Canada is highly dependent on the development and trade of its natural resources, and on its ability to attract foreign investment. Canada’s climate policies must be designed to maintain our ability to raise global investment capital.