Efficiency Canada’s Response to the 2024 Fall Economic Statement
Last month, the federal government released the Fall Economic Statement, which not only outlines broad investments to strengthen social programs and spur economic growth, but also boosts the Canada Greener Homes Loan Program with additional interest-free loans for comprehensive energy retrofits, ensuring fewer disruptions for both homeowners and contractors while paving the way for new financing models that eliminate up-front costs. The statement reiterates funding for the Canada Greener Homes Affordability Program, directed at low-to-median income households (including renters), and announces a call for proposals emphasizing swift, regionally tailored approaches. Starting with the publication of its Efficiency for All report, Efficiency Canada has advocated for a federal approach that complements existing programs. Expanding low-income programs across the country can’t happen soon enough and should be the first step towards a national energy poverty elimination agenda.
Where’s Energy Efficiency in the New Clean Electricity Strategy?
On December 17th, the federal government introduced the Clean Electricity Regulations alongside “Powering Canada’s Future: A Clean Electricity Strategy,” outlining a path toward net-zero emissions. The plan calls for equal treatment of electricity demand and supply by modernizing the Energy Efficiency Act, prioritizing demand-side management in federal funding, and introducing building code updates. It also encourages better data-sharing on energy poverty and requires provinces to develop “Energy Roadmaps” to guide their net-zero efforts.
Op-Ed: Priorities May Change, But Energy Efficiency Remains a Solution
Efficiency Canada’s Director of Research recently published an op-ed inPolicy Options discussing the 2024 Provincial Energy Efficiency Scorecard, which shows growing efforts across provinces and territories to cut energy costs and emissions. With multiple elections on the horizon and Canadians increasingly concerned about affordability, the op-ed argues that energy efficiency policies—such as demand flexibility, stronger building codes, and better support for low-income households—can offer practical relief and long-term savings, provided governments put effective frameworks in place.
Read the op-ed | Read the 2024 Provincial Energy Efficiency Scorecard
Pay People Instead of Power Plants for Clean Electricity
Co-authored by Efficiency Canada’s senior director of policy strategy, alongside Clean Energy Canada and the Canadian Climate Institute, this opinion piece argues that while new Clean Electricity Regulations permit ongoing use of natural gas for grid flexibility, a better approach is to harness households and businesses as “virtual power plants.” By shifting or reducing electricity use at peak times, using strategies like pre-cooling with smart thermostats or upgrading insulation, participants save on energy costs while boosting grid stability. Paying people to save energy is more cost-effective than continuing to rely on gas-fired plants.
Deep Retrofit Accelerator Initiative: Open Application
The Government of Canada has opened a second call under the Deep Retrofit Accelerator Initiative, offering $8 million over two years for capacity-building projects. Eligible proposals must reduce barriers to deep retrofits and advance market transformation, focusing on at least one of the following: developing tools for financing deep retrofits, strengthening workforce skills and capacity, or creating robust business cases. The application window remains open until February 12, 2025.
Two Million Green Homes: Quality, Affordable Housing for Canadians
Canada’s Greenhouse Gas Emissions Decline, But Major Reductions Needed
Canada’s greenhouse gas emissions decreased by 1% in 2023 compared to 2022, bringing national levels nearly 9% below 2005 figures. While the electricity sector has made significant strides, reducing emissions by 58% since 2005 through the phase-out of coal, the oil and gas sector remains a challenge with emissions up 7% since 2005. Environment Minister Steven Guilbeault highlighted the government’s commitment to achieving a 40-45% reduction by 2030, emphasizing the importance of finalizing regulations to cap emissions in the oil and gas industry. Despite early positive trends and enhanced public accountability from the timely release of emissions data, experts agree that much larger reductions are necessary to meet Canada’s climate targets and ensure a sustainable future.
B.C. NDP and Greens Announce Four-Year Co-operation Agreement
The B.C. NDP and B.C. Green Party have signed a co-operation agreement that outlines key priorities for the next legislative session, including measures to address climate change and protect natural resources. Under the deal, the province has committed $50 million annually for two years to speed up electric heat pump adoption, especially for low- and moderate-income households, to reduce reliance on fossil fuels and lower residential energy bills. In addition, the government plans to review its CleanBC strategy, though environmental groups are calling for more decisive action on issues such as LNG expansion and old-growth forest protection. They argue that significantly curbing fracking and preserving ancient forests are critical steps for meeting provincial climate targets and ensuring a truly sustainable future.
Supporting High-Performing Building Codes in Prince Edward Island
The Honourable Jonathan Wilkinson has announced a $2.4-million investment through the Codes Acceleration Fund to help Prince Edward Island adopt higher performance tiers of Canada’s 2020 national model energy codes. This funding will provide training and resources for building officials and industry professionals, enabling them to comply with more ambitious provincial building codes. By advancing energy-efficient design and construction, Prince Edward Island can cut greenhouse gas emissions, create sustainable jobs, and move closer to Canada’s 2050 net-zero target while helping Islanders save on energy costs.
Over $256.7 Million for Clean Electricity Projects in Saskatchewan
The Government of Canada is investing over $256.7 million through the Future Electricity Fund for eight clean electricity projects across Saskatchewan, of which $42 million is dedicated to Indigenous-led initiatives. These projects range from rural distribution improvements and battery storage to interprovincial grid connections and renewable energy expansions, helping lower greenhouse gas emissions and strengthen energy reliability. An additional $12.4 million from the Smart Renewables and Electrification Pathways Program will support six more renewable energy and electrification projects, further advancing Canada’s goal of a net-zero, affordable electricity system.
New Rules to Phase Out Natural Gas in Québec Buildings
The Government of Québec has announced a plan to eliminate fossil fuels in building heating by 2040, replacing them with 100% renewable energy sources. Backed by nearly $900 million in funding under the 2030 Plan for a Green Economy, the initiative covers both new and existing residential, commercial, and institutional buildings. It includes tighter rules on natural gas furnaces, higher targets for renewable gas use, and expanded support for energy efficiency and electrification. By 2030, the province aims to cut greenhouse gas emissions from building heating by 50% (from 1990 levels) and achieve zero fossil fuel–related emissions in public institutions by 2040.
Read more about how Quebec plans to eliminate fossil fuels in building heating
Ontario Launches New Energy Efficiency Programs
The Ontario government is rolling out a $10.9-billion, 12-year investment—the largest of its kind in Canada—to help families and businesses cut energy costs and lower emissions. Key highlights include the new Home Renovation Savings Program, launching January 28, 2025, which offers up to 30% rebates for home retrofits like heat pumps, insulation, smart thermostats, and rooftop solar panels. The province is also expanding its Peak Perks program to small businesses and continuing 12 Save on Energy initiatives supporting low-income households, communities, and key sectors. By 2036, these measures are expected to reduce peak electricity demand by 3,000 megawatts, deliver billions in energy bill savings, and strengthen Ontario’s capacity for future growth.
Ontario Expands Historic Energy Procurement to Meet Growing Electricity Demand
Ontario is increasing its largest-ever competitive energy procurement target from 5,000 megawatts (MW) to 7,500 MW, aiming to keep pace with a forecasted 75% rise in electricity demand by 2050. The expanded procurement, known as LT2, will support up to 14 terawatt-hours (TWh) of new renewable and storage projects over the next four years, placing a strong emphasis on protecting agricultural land, promoting Indigenous partnerships, and encouraging development in northern communities. The initiative is part of Ontario’s broader “Affordable Energy Future,” which combines nuclear power expansion, new transmission infrastructure, and cost-saving energy efficiency programs to ensure reliable, affordable, and sustainable electricity for homes and businesses.