New report finds Canada still overwhelmingly dependent on fossil fuels despite decades of green policies

CALGARY — Canadian households and businesses remain almost as dependent on oil, natural gas and coal today as they did three decades ago, despite years of government policies and spending aimed at accelerating the transition to renewable energy.According to a new report issued by the Fraser Institute, fossil fuels accounted for 76.3% of Canada’s domestic energy consumption in 2024 — only slightly down from the 76.8% recorded in 1995.Kenneth P. Green, one of the study’s co-authors, said the findings challenge the perception that Canada has made significant progress in moving away from fossil fuels."There are a lot of misunderstandings about the reality of energy production and consumption in Canada today, which is still heavily dependent on fossil fuels and will be for many years to come," Green said.The report found industry relied on fossil fuels for 74% of its energy use in 2024, while transportation remained almost entirely dependent at 98.7%. In the residential sector, fossil fuels supplied 50.6% of energy demand, with natural gas continuing to be the primary source of home heating..The continued importance of the energy sector to Canada’s economy was also highlighted, with energy accounting for 6.9% of national GDP in 2025, with Alberta by far the most energy-dependent province.Energy represented just over 30% of Alberta’s economy in 2024, with Newfoundland and Labrador coming in second at 22.7% and Saskatchewan at 21.5%, respectively.The report also showed 87.9% of Canada's energy production came from fossil fuels, up from 83.3% in 2000 — growth mainly due to the expansion in oil production offsetting declines in coal and natural gas.Wind, solar and other renewables accounted for just 0.8% of Canada's total primary energy production.It was also found that since 2000, Canada’s total energy production had increased by slightly over 55% — driven primarily by crude oil, which has increased by 137.5%..Natural gas production also rose by 20.5%, while coal production fell by 23.6%.Elmira Aliakbari, the Fraser Institute’s director of natural resource studies, said the findings underscored the ongoing role fossil fuels continue to play in both the economy and Canadians' daily lives."Fossil fuels remain essential to Canadians' living standards as they provide reliable and affordable energy and are a major economic driver," Aliakbari said, adding that federal energy policy should reflect that reality."Policymakers and Canadians more broadly need to understand our continued reliance on fossil fuels so that energy policies are grounded in the realities of Canada's energy needs and opportunities."

New report finds Canada still overwhelmingly dependent on fossil fuels despite decades of green policies

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