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VANCOUVER — Despite decades of government policies promoting renewable energy and reducing fossil fuel use, oil, natural gas and coal continue to dominate Canada’s energy consumption, according to a new report from the Fraser Institute.
The report says fossil fuels accounted for 76.3 per cent of Canada’s domestic energy consumption in 2024, down only slightly from 76.8 per cent in 1995.
Researchers say the figures illustrate Canada’s continued reliance on fossil fuels across the economy despite increased spending and regulations aimed at encouraging a transition to lower-emission energy sources.
“There is a lot of misunderstanding 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,” co-author Kenneth P. Green said in a statement.
The report found fossil fuels supplied 74 per cent of industrial energy use in 2024 and just over half of residential energy consumption, with natural gas remaining the primary source of home heating.
Transportation remained the sector most dependent on fossil fuels, with oil and other fossil fuel products accounting for 98.7 per cent of energy consumption.
The study also highlights the economic role of Canada’s energy sector, saying it accounted for 6.9 per cent of national economic output in 2025.
Provincially, the report says the energy sector represented 30.1 per cent of Alberta’s gross domestic product, followed by Newfoundland and Labrador at 22.7 per cent and Saskatchewan at 21.5 per cent.
“Fossil fuels remain essential to Canadians’ living standard as they provide reliable and affordable energy and are a major economic driver,” said Elmira Aliakbari, director of natural resource studies at the Fraser Institute.
The Fraser Institute describes itself as an independent, non-partisan public policy think tank.
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