Canada is pinning hopes on a green energy transition

Significance

Canada has vast renewable energy resources and a ready market for low-carbon power in the United States, with which its electricity system is already well integrated. However, fossil fuel production is solidly embedded in the country’s national and provincial economies. Resolving this dichotomy poses a major challenge for Canada’ energy transition.

Impacts

• Cross-border transmission projects will continue to find support in both the United States and Canada.
• Exports from Canada’s liquid natural gas (LNG) projects will benefit from being powered by the country’s low-carbon electricity.
• Canada is likely to attract investment, particularly from Europe, to develop its potential for hydrogen exports.