Canada’s cannabis industry: a high-energy, high-emissions 'bud-ness'

Forget carbon monoxide, it turns out weed is a major source of CO2 emissions.
Forget carbon monoxide, it turns out weed is a major source of CO2 emissions.WS Files
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It gives new meaning to the term ‘greenhouse grass’.

That’s because it’s becoming increasingly clear as a smoke-induced haze that the environmental impact is staggering, especially in Canada, where colder climates and energy-intensive production methods result in some of the highest emissions in the world.

In states like Colorado where it has been legal for more than a decade, cannabis cultivation now accounts for 1% of all US electricity consumption, a figure projected to triple by 2035. In Canada, where it has been legal since 2018, studies are showing that the environmental toll is potentially even greater. 

With over 700 hectares dedicated to legal cannabis production, the country’s colder climate forces producers to rely heavily on artificial lighting, temperature controls and heating systems, making it some of the most carbon-intensive in the world.

Emissions cycle of legal weed production in Canada
Emissions cycle of legal weed production in CanadaElsevier

With more than 700 hectares dedicated to legal cannabis production — almost exclusively in massive football field-sized warehouses — the country’s colder climate forces producers to rely heavily on artificial lighting, temperature controls and heating systems, making it some of the most carbon-intensive in the world.

And no region of Canada contributes more to the industry’s emissions than Alberta. While home to some of the country’s largest legal cannabis grow operations, it is also a major user of natural gas to power those facilities. 

In fact, Alberta’s reliance on fossil fuels means that its cannabis industry generates more greenhouse gas emissions than any other producing region in North America, according to a peer-reviewed study for Dutch academic publisher Elsevier.

The strain on electricity grids isn’t just a Canadian issue. In the US, cannabis production has already been linked to power outages, including seven blackouts directly linked to legal grow-ops in Oregon alone. 

Alberta — and Saskatchewan — are home to some of the most emissions intensive weed output in North America
Alberta — and Saskatchewan — are home to some of the most emissions intensive weed output in North AmericaElsevier

In Colorado, one of the first states to legalize recreational marijuana, energy demand from indoor grow operations surged by 45% after legalization. 

To curb excessive energy use, some local governments have begun imposing additional costs on cultivators. Boulder, CO, now requires cannabis producers to pay $2.16 per kilowatt-hour unless they offset their usage with renewable energy. 

Meanwhile, municipalities in California have introduced a 45% tax on households using more than 600% of baseline electricity levels, a policy largely aimed at illegal home-grow operations.

That’s because growing four pounds of cannabis in an indoor facility consumes as much electricity as the average American home uses in an entire year. On a larger scale, the cannabis industry’s energy use now surpasses that of all outdoor agriculture in the US combined.

GHG emissions from cannabis production
GHG emissions from cannabis productionElsevier

A typical indoor grow facility uses up to 2,000 watts of electricity per square metre, or 40 times more than leafy greens like lettuce.

“For being such a ‘green’ industry, there are some skeletons in the closet,” said Kaitlin Urso, an environmental consultant with the Colorado Department of Public Health and Environment.

As Canada’s cannabis market grows, so too does its emissions footprint. In 2025, the domestic cannabis industry is expected to reach nearly $45 billion, with over three million kilograms consumed. 

Some Canadian companies, like Ontario-based Canopy Growth Corporation — formerly Tweed — are beginning to prioritize energy efficiency to remain competitive.

The former stock market darling's shares are down more than 50% in the past year. In 2018, its share price was USD$515. On Wednesday it was $1.80.

“As demand grows, we need more infrastructure and use more energy,” said Hilary Black, Canopy’s director of patient education and advocacy. “It’s important for us to prioritize sustainability while also keeping our operating costs down.”

Canaport shares are down more than 50% in the past year
Canaport shares are down more than 50% in the past yearGoogle Finance

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