On Thursday, the federal government released draft regulations on clean energy, targeting a net-zero carbon emissions electricity grid by 2035.
The draft regulations display the federal government’s vision for both broader electrification and decarbonizing the grid.
To follow, the Canadian Association of Petroleum Producers issued a response stating that the announcement will have significant implications for the energy and electricity sectors.
CAPP is concerned that these regulations will limit the ability to use natural gas as a back-up to renewable energy after 2035. CAPP CEO Lisa Baiton says Canada produces some of the world’s lowest-emitting natural gas and is a critical part of our country’s energy security.
She says natural gas would act as a back-up for the intermittency challenges of renewable power.
CAPP intends to participate in the consultation that begins on August 19th and ends November 2nd, to address the concerns on behalf of its members.

The key idea of the Draft Regulations is a carbon intensity cap of 30 tonnes CO2/GWh that applies if there is any net electricity delivery to the grid. If implemented, the new regulations would take effect on January 1st of 2025.