Match hydrocarbon funding; end coal by 2035

AI summary

Petitioners ask that federal law require any federal investment, tax credit, or support for hydrocarbon infrastructure (including carbon capture) be matched dollar‑for‑dollar by renewables funding and to end coal‑fired generation by 2035. The government responds that it provides tax credits, funding and regulations to expand clean power and reduce coal.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Prime Minister We support our Federal Government’s efforts to make Canada an Energy Superpower and recognize that for many Canadians this means continuing to make major investments in oil and gas infrastructure, including pipelines; For Canadians committed to protecting our biosphere, becoming an energy superpower must also include abundant investment in renewables generation, transmission and storage technologies that will support our low Greenhouse Gas emission economy; For Canadians committed to protecting our biosphere, becoming an energy superpower cannot include any further investment in power generation through burning coal; Canada has some of the best renewable energy resources on Earth, many of which are underdeveloped; and A commitment to matching, dollar for dollar, any federal investment, use of tax-credits or financial support for the development of hydrocarbon-based infrastructure with funding for renewables-based infrastructure would catalyse development of our renewable energy resources. We, the undersigned, Citizens of Canada, call upon the Prime Minister to 1. Provide a legislative foundation that supports our stated commitment to protect our shared environment as we develop energy infrastructure by ensuring that any federal investment, use of tax-credits or financial support for the development of hydrocarbon-based infrastructure, including carbon capture and storage infrastructure, be matched, dollar for dollar, by federal funding for renewables-based infrastructure; and 1. Provide a legislative foundation that supports our stated commitment to protect our shared environment as we develop energy infrastructure by ensuring that any federal investment, use of tax-credits or financial support for the development of hydrocarbon-based infrastructure, including carbon capture and storage infrastructure, be matched, dollar for dollar, by federal funding for renewables-based infrastructure; and 2. Enact legislation to end coal-fired power generation by 2035.

Government response

Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne As the global economy moves towards lower carbon pathways, addressing climate change and increasing Canada’s clean energy capacity have become essential to sustaining both economic opportunities and environmental well-being. To meet this growing need for clean energy, the federal government provides key tax incentives for clean energy such as: The Clean Technology investment tax credit which provides a refundable tax credit of up to 30 percent to businesses for eligible investments in certain clean electricity generation systems (such as wind and solar energy systems), stationary electricity storage systems, low-carbon heating equipment (such as air-source heat pumps) and non-road zero-emission vehicles and related recharging and refuelling equipment; The Clean Electricity investment tax credit which provides a refundable tax credit of up to 15 percent to taxable and certain non-taxable corporations (including provincial and territorial Crown corporations) for eligible investments in low-emitting electricity generation systems, stationary electricity storage systems and inter-provincial transmission equipment; and Class 43.1 which provides immediate expensing to businesses for eligible investments in clean energy generation and energy conservation equipment. Response by the Minister of Energy and Natural Resources Signed by The Honourable Tim Hodgson, P.C., M.P. Canada is at a pivotal moment in history. Geopolitical conflict, shifting trade relationships, rapid technological change and resulting volatility are placing strain on global energy systems and intensifying competition for resources, investment, and supply chains. The Government of Canada recently released “Powering Canada Strong: A National Strategy for an Electrified Canadian Economy.” This strategy seeks to achieve two goals: building new infrastructure to double Canada’s electricity supply by 2050 and meet growing demand; and accelerating electrification across the economy to support competitiveness and address climate change. Access to abundant, affordable, and reliable electricity is — more than ever — fundamental to competitiveness, energy security, economic sovereignty and critical progress towards climate goals. We must strengthen the economy while also doing our part to decarbonize, in line with our Paris Agreement targets and commitment to achieve net-zero emissions by 2050. In a new global context, our strategy is to make Canada an energy superpower by being a leader in clean energy, as well as a supplier of secure, reliable, and low-carbon conventional energy and natural resources. The Government of Canada announced the “Climate Competitiveness Strategy” in Budget 2025, outlining significant investments to attract private capital, accelerate innovation, and build a competitive low-carbon economy. To seize opportunities in clean technology, the government has enacted its five Clean Economy Investment Tax Credits, to support Canadian businesses with eligible clean technology projects and manufacturing. These support major investments in clean energy; clean technology; clean technology manufacturing in critical minerals; clean hydrogen; and carbon capture, utilization and storage. Our energy future also depends on investing in clean solutions to deepen Canada’s competitive advantage. We are supporting initiatives such as nuclear energy development, electricity grid interties, investments in fuels such as hydrogen, renewable energy projects, and critical mineral development. Building a clean electricity system at the pace and scale required will depend on accelerating major infrastructure projects. Through the Major Projects Office, the Government of Canada is providing a single federal window to help advance projects of national significance with more coordinated and efficient processes. This includes clean electricity generation and transmission projects that can connect regions, improve reliability, reduce emissions, strengthen energy security, and unlock economic opportunities across Canada. This requires true collaboration, including working closely with provinces, territories, Indigenous communities, labour, and industry leaders to deliver results, ensuring national projects reflect regional strengths, respect Indigenous Peoples and the environment, and deliver long-term prosperity. Indigenous ownership, equity participation, and partnership are increasingly shaping the success of major energy and natural resource projects. To this end, the Government of Canada has developed policy tools such as the Canada Infrastructure Bank’s Indigenous Equity Initiative, and doubled the Indigenous Loan Guarantee Program to increase Indigenous communities’ access to capital. Through significant federal-provincial collaboration and efforts, electricity systems across Canada have already cut emissions by over 50% since 2005 and by 31% over the past decade, with thermal coal reductions accounting for three quarters of the decline. Today, electricity sector emissions in Canada are below 50 megatonnes, representing roughly 7% of Canada’s total emissions. This was accomplished while also increasing total generating capacity, and despite regional differences in resource endowment. In 2024, coal made up 2.4% of Canada's electricity generation and was concentrated in Nova Scotia (39%), Saskatchewan (28%), New Brunswick (20%), and Alberta (2%), and Alberta went on to fully phase out coal-based generation midway through that year. Nova Scotia has a plan to phase out coal and achieve 80% renewables by 2030, and New Brunswick is exploring the option of converting its coal-fired facility to sustainably sourced biomass, supported by the Government of Canada. Provinces also have the option of seeking an equivalency agreement on the “Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations” if they put in place their own rules to achieve equivalent emissions outcomes. Moving forward, a clean electricity grid is a critical component of Canada’s economy and a core competitive advantage. Approximately 80% of our electricity already comes from non-emitting sources such as hydroelectricity, wind, solar, and nuclear power. Our electricity grid, one of the cleanest in the world, provides access to clean power that businesses around the world are looking for, in a wide range of sectors, from manufacturing to artificial intelligence. It allows us to attract investment, decarbonize heavy industry, and create good-paying jobs. As demand for electricity grows, building a better-connected, modernized, clean, reliable, and affordable electricity system will be critical to competitiveness, energy security and meeting our climate objectives. The federal government will continue to work with provinces and territories, Indigenous partners and industry stakeholders to support our electricity systems, including through Investment TaxCredits, along with targeted funding programs, and strategic financing. For example, the Smart Renewables and Electrification Pathways Program is a $4.5-billion program designed to support the deployment of grid modernization, energy storage, and renewable energy technologies in every region of Canada. Moreover, over the last decade, the Government of Canada has invested in the work of federal labs, as well as a wide range of businesses, utilities, Indigenous communities, and other organizations that are working to develop novel and innovative clean energy technologies, scale up and integrate existing technologies, and support the clean energy ecosystem by sharing information and knowledge. For example, the Energy Innovation Program led by Natural Resources Canada advances clean energy technologies that will help Canada maintain a competitive, reliable, and affordable energy system while transitioning to a low-carbon economy. Response by the Minister of the Environment, Climate Change and Nature Signed by The Honourable Julie Dabrusin The Government of Canada is committed to positioning Canada as a leading energy producer while supporting the transition to a low-carbon economy. This means reducing greenhouse gas emissions, strengthening energy security, expanding trade opportunities, and supporting the long-term competitiveness of Canadian industries. The Government recognizes that climate change is an urgent global challenge and remains committed to sustained progress on emissions reduction and achieving net-zero by 2050. In Budget 2025, the Government of Canada announced the Climate Competitiveness Strategy, which aims to boost Canada’s economy and position us as a leader in clean growth and decarbonization. The Strategy will strengthen industrial carbon markets, streamline regulations, and drive investment in clean energy, innovation, and technology through measures that include as suite of Clean Economy Investment Tax Credits, support for critical mineral projects and developing Sustainable Investment Guidelines. The Clean Economy Investment Tax Credits are designed to attract investments in clean energy and clean technology projects. This includes renewable and low-emitting electricity generation, the production of clean hydrogen, clean technology manufacturing and adoption of carbon capture, utilization, and storage technologies. Together, these investment tax credits provide the certainty businesses need to make investment decisions and build Canada’s clean economy. With respect to coal power, Canada is advancing the global transition away from unabated coal power generation through its role as co-founder and co-chair of the Powering Past Coal Alliance. The Powering Past Coal Alliance brings together governments, businesses, financial institutions and organizations to accelerate the coal power transition, support clean energy deployment, and advance a sustainable and economically inclusive transition for workers and communities. Through the Alliance, Canada works with international partners to encourage the coal-to-clean transition and support global efforts to reduce emissions and build clean energy systems. The Government of Canada is fully committed to building a low-carbon economy, working to prevent the most harmful effects of climate change while protecting both the world’s climate and Canadians. Building a low-carbon economy is essential for a secure, competitive, and resilient Canadian economy. Over the past decade, there has been significant progress in Canada on phasing out unabated coal, which has contributed to Canada having one of the cleanest electricity systems globally. In 2012, the Government of Canada put in place greenhouse gas emissions regulations for coal-fired power plants (Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations), and in 2018 these regulations were strengthened to apply a stringent emissions intensity standard to all coal-fired power generation by 2030. Coal power plants cannot achieve this emissions standard without abatement measures like carbon capture. Starting from 2035, the Clean Electricity Regulations will apply an annual emissions limit to electricity-generating units that burn fossil fuels and sell power to the grid, including both coal and natural gas power. The Clean Electricity Regulations will also require all electricity units to achieve net-zero emissions by 2050. As of 2024, over 80% of Canada’s electricity generation is from non-emitting sources like hydro, nuclear, wind and solar. Meanwhile, coal power is in steep decline. From 2005 to 2024, coal’s share of Canada’s electricity generation declined from about 17% in 2005 to just 3% in 2024. As a result, Canada’s greenhouse gas emissions from the electricity sector have dropped by 53%, from 123 megatonnes in 2005 to 57 megatonnes in 2024 (Canada’s National Inventory Report 1990-2024). This progress has been driven by a combination of provincial and federal action. In the early 2000s, Alberta and Ontario were Canada’s largest users of coal-fired electricity, but now they have both fully phased out coal power. Ontario phased out coal power by 2014, and Alberta closed its last coal-fired power plant in 2024. In Canada, jurisdiction over electricity rests primarily with the provinces and territories, who are responsible for the management and operation of their electricity systems, including making choices about which electricity sources to build and operate. The federal government has a role to play, centred on its responsibilities for international and inter-provincial trade, nuclear energy, and its shared responsibility for environmental protection, including addressing greenhouse gas emissions. The Government of Canada continues to work with provinces, territories, Indigenous partners, businesses, and workers to ensure Canada not only reaches net-zero but also builds prosperity in the clean economy that is already taking shape around the world. Achieving net-zero emissions in the electricity sector, while also growing Canada’s electricity supply, will help to decarbonize other sectors of the economy through electrification, such as transportation, buildings, and industries, and will aid in Canada’s commitment to achieve net-zero emissions economy-wide by 2050. In May 2026, Canada launched its new electricity strategy, Powering Canada Strong: A National Strategy for an Electrified Canadian Economy. This plan aims to double the capacity of our grid by 2050 and supply clean, reliable, affordable power across the country for decades to come. As part of this strategy, the Government of Canada announced its intention to amend the Clean Electricity Regulations to provide additional flexibility, to help enable the electricity sector to grow more rapidly, while still limiting emissions and maintaining the goal of a net-zero grid by 2050. The proposed adjustments will be the subject of consultations.