Canada's new rules eye Net Zero power grid by 2035

Canada has released draft clean electricity regulations aimed at creating a Net Zero power grid by 2035, but said the country would allow some use of fossil fuels.

The proposals state that many of the country's utility companies believed they would need some natural gas or liquid fuel capacity to ensure reliable generation of power beyond 2035. Therefore, the rules allow utilities to operate fossil fuel plants for 20 years from the date of commissioning, provided the companies agree to tight emissions limits.

The decision will aid regions needing time to transition. Four of the country's 10 provinces still depend on fossil fuels for the bulk of their power. The final rules will come in force from January 1, 2025. 

Canada's environment ministry said the new rules, which are technology agnostic, would cut more than 340 million metric tons of greenhouse gas emissions between 2040 and 2050.

Canada is aiming to reach Net Zero as a country 2050 and believes electrifying the grid will drive decarbonization by supplying clean electricity to the transportation, building and industrial sectors. The power sector currently accounts for about nine percent of Canada's total greenhouse gas emissions.

Last month, the country became the first G20 nation to meet the grouping's 2009 pledge to outline plans to wind down subsidies for fossil fuels.