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Canada Clean Electricity Standard targets a net-zero grid by 2035, using carbon pricing, CO2 caps, and carbon capture while expanding renewables and interprovincial trade to decarbonize power in Alberta, Saskatchewan, and Ontario.

Key Points

A federal plan to reach a net-zero grid by 2035 using CO2 caps, carbon pricing, carbon capture, renewables, and trade.

✅ CO2 caps and rising carbon prices through 2050

✅ Carbon capture required on gas plants in high-emitting provinces

✅ Renewables build-out and interprovincial trade to balance supply

A new tool has been proposed in the federal election campaign as a way of eradicating the carbon emissions from Canada’s patchwork electricity system. 

As the country’s need for power grows through the decarbonization of transportation, industry and space heating, the Liberal Party climate plan is proposing a clean energy standard to help Canada achieve a 100% net-zero-electricity system by 2035, aligning with Canada’s net-zero by 2050 target overall. 

The proposal echoes a report released August 19 by the David Suzuki Foundation and a group of environmental NGOs that also calls for a clean electricity standard, capping power-sector emissions, and tighter carbon-pricing regulations. The report, written by Simon Fraser University climate economist Mark Jaccard and data analyst Brad Griffin, asserts that these policies would effectively decarbonize Canada’s electricity system by 2035.

“Fuel switching from dirty fossil fuels to clean electricity is an essential part of any serious pathway to transition to a net-zero energy system by 2050,” writes Tom Green, climate policy advisor to the Suzuki Foundation, in a foreword to the report. The pathway to a net-zero grid is even more important as Canada switches from fossil fuels to electric vehicles, space heating and industrial processes, even as the Canadian Gas Association warns of high transition costs.

Under Jaccard and Griffin’s proposal, a clean electricity standard would be established to regulate CO2 emissions specifically from power plants across Canada. In addition, the plan includes an increase in the carbon price imposed on electricity system releases, combined with tighter regulation to ensure that 100% of the carbon price set by the federal government is charged to electricity producers. The authors propose that the current scheduled carbon price of $170 per tonne of CO2 in 2030 should rise to at least $300 per tonne by 2050.

In Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia, the 2030 standard would mean that all fossil-fuel-powered electricity plants would require carbon capture in order to comply with the standard. The provinces would be given until 2035 to drop to zero grams CO2 per kilowatt hour, matching the 2030 standard for low-carbon provinces (Quebec, British Columbia, Manitoba, Newfoundland and Labrador and Prince Edward Island). 

Alberta and Saskatchewan targeted 
Canada has a relatively clean electricity system, as shown by nationwide progress in electricity, with about 80% of the country’s power generated from low- or zero-emission sources. So the biggest impacts of the proposal will be felt in the higher-carbon provinces of Alberta and Saskatchewan. Alberta has a plan to switch from coal-based electric power to natural gas generation by 2023. But Saskatchewan is still working on its plan. Under the Jaccard-Griffin proposal, these provinces would need to install carbon capture on their gas-fired plants by 2030 and carbon-negative technology (biomass with carbon capture, for instance) by 2035. Saskatchewan has been operating carbon capture and storage technology at its Boundary Dam power station since 2014, but large-scale rollout at power plants has not yet been achieved in Canada. 

With its heavy reliance on nuclear and hydro generation, Ontario’s electricity supply is already low carbon. Natural gas now accounts for about 7% of the province’s grid, but the clean electricity standard could pose a big challenge for the province as it ramps up natural-gas-generated power to replace electricity from its aging Pickering station, scheduled to go out of service in 2025, even as a fully renewable grid by 2030 remains a debated goal. Pickering currently supplies about 14% of Ontario’s power. 

Ontario doesn’t have large geological basins for underground CO2 storage, as Alberta and Saskatchewan do, so the report says Ontario will have to build up its solar and wind generation significantly as part of Canada’s renewable energy race, or find a solution to capture CO2 from its gas plants. The Ontario Clean Air Alliance has kicked off a campaign to encourage the Ontario government to phase out gas-fired generation by purchasing power from Quebec or installing new solar or wind power.

As the report points out, the federal government has Supreme Court–sanctioned authority to impose carbon regulations, such as a clean electricity standard, and carbon pricing on the provinces, with significant policy implications for electricity grids nationwide.

The federal government can also mandate a national approach to CO2 reduction regardless of fuel source, encouraging higher-carbon provinces to work with their lower-carbon neighbours. The Atlantic provinces would be encouraged to buy power from hydro-heavy Newfoundland, for example, while Ontario would be encouraged to buy power from Quebec, Saskatchewan from Manitoba, and Alberta from British Columbia.

The Canadian Electricity Association, the umbrella organization for Canada’s power sector, did not respond to a request for comment on the Jaccard-Griffin report or the Liberal net-zero grid proposal.

Just how much more clean power will Canada need? 
The proposal has also kicked off a debate, and an IEA report underscores rising demand, about exactly how much additional electricity Canada will need in coming decades.

In his 2015 report, Pathways to Deep Decarbonization in Canada, energy and climate analyst Chris Bataille estimated that to achieve Canada’s climate net-zero target by 2050 the country will need to double its electricity use by that year.

Jaccard and Griffin agree with this estimate, saying that Canada will need more than 1,200 terawatt hours of electricity per year in 2050, up from about 640 terawatt hours currently.

But energy and climate consultant Ralph Torrie (also director of research at Corporate Knights) disputes this analysis.

He says large-scale programs to make the economy more energy efficient could substantially reduce electricity demand. A major program to install heat pumps and replace inefficient electric heating in homes and businesses could save 50 terawatt hours of consumption on its own, according to a recent report from Torrie and colleague Brendan Haley. 

Put in context, 50 terawatt hours would require generation from 7,500 large wind turbines. Applied to electric vehicle charging, 50 terawatt hours could power 10 million electric vehicles.

While Torrie doesn’t dispute the need to bring the power system to net-zero, he also doesn’t believe the “arm-waving argument that the demand for electricity is necessarily going to double because of the electrification associated with decarbonization.” 

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Canada Economic Crossroads highlights bank earnings trends, interest rates, loan delinquencies, EV tariffs on Chinese imports, domestic manufacturing, Algoma Steel decarbonization, sustainability, and housing market risks shaping growth, investment, consumer prices, and climate policy.

Key Points

An overview of how bank earnings, EV tariffs, and Algoma Steel's transition shape Canada's economy.

✅ Higher rates lift margins but raise delinquencies and housing risks

✅ EV tariffs aid domestic makers but pressure consumer prices

✅ Algoma invests to decarbonize, boosting efficiency and compliance

In a complex economic landscape, recent developments have brought attention to several pivotal issues affecting Canada's business sector. The Globe and Mail’s latest report delves into three major topics: the latest bank earnings, the implications of new tariffs on Chinese electric vehicles (EVs), and Algoma Steel’s strategic maneuvers. These factors collectively paint a picture of the challenges and opportunities facing Canada's economy.

Bank Earnings Reflect Economic Uncertainty

The recent financial reports from major Canadian banks have revealed a mixed picture of the nation’s economic health. As the Globe and Mail reports, earnings results show robust performances in some areas while highlighting growing concerns in others. Banks have generally posted strong quarterly results, buoyed by higher interest rates which have improved their net interest margins. This uptick is largely attributed to the central bank's monetary policies aimed at combating inflation and stabilizing the economy.

However, the positive earnings are tempered by underlying economic uncertainties. Rising loan delinquencies and a slowing housing market are areas of concern. Increased interest rates, while beneficial for banks’ margins, have also led to higher borrowing costs for consumers and businesses. This dynamic has the potential to impact overall economic growth and consumer confidence.

Tariffs on Chinese EVs: A Strategic Shift

Another significant development is the imposition of new tariffs on Chinese electric vehicles. This move is part of a broader strategy to protect domestic automotive industries and address trade imbalances, aligning with public support for tariffs in key sectors. The tariffs are expected to increase the cost of Chinese EVs in Canada, which could have several implications for the market.

On one hand, the tariffs might provide a temporary boost to Canadian and North American manufacturers by reducing competition from lower-priced Chinese imports. This protectionist measure could encourage investments in local production and innovation, mirroring tariff threats boosting support for energy projects in other sectors. However, the increased cost of Chinese EVs may also lead to higher prices for consumers, potentially slowing the adoption of electric vehicles—a critical goal in Canada’s climate strategy.

The tariffs come at a time when the Canadian government is keen on accelerating the transition to electric mobility to meet its environmental targets, even as a critical crunch in electrical supply raises questions about grid readiness. Balancing the protection of domestic industries with the broader goal of reducing emissions will be a significant challenge moving forward.

Algoma Steel’s Strategic Evolution

In the steel industry, Algoma Steel has been making headlines with its strategic initiatives aimed at transforming its operations, in a broader shift toward clean grids and industrial decarbonization. The Globe and Mail highlights Algoma Steel's efforts to modernize its production processes and shift towards more sustainable practices. This includes significant investments in technology and infrastructure to enhance production efficiency and reduce environmental impact.

Algoma's focus on reducing carbon emissions aligns with broader industry trends towards sustainability. The company’s efforts are part of a larger push within the steel sector to address climate change and meet regulatory requirements. As one of Canada’s leading steel producers, Algoma’s actions could set a precedent for the industry, showcasing how traditional manufacturing sectors can adapt to evolving environmental standards.

Implications and Future Outlook

The interplay of these developments reflects a period of significant transition for Canada's economy, shaped in part by U.S. policy where Biden is seen as better for Canada's energy sector by some analysts. For banks, the challenge will be to navigate the balance between profitability and potential risks from a changing economic environment. The new tariffs on Chinese EVs represent a strategic shift with mixed implications for the automotive market, potentially influencing both domestic production and consumer prices. Meanwhile, Algoma Steel’s push towards sustainability could serve as a model for other industries seeking to align with environmental goals.

As these issues unfold, stakeholders across sectors will need to stay informed and adaptable. For policymakers, the challenge will be to support domestic industries while fostering innovation and sustainability, including the dilemma over electricity rates and innovation they must weigh. For businesses, the focus will be on navigating financial pressures and leveraging opportunities for growth. Consumers, in turn, will face the impact of these developments in their daily lives, from the cost of borrowing to the price of electric vehicles.

In summary, Canada’s current economic landscape is characterized by a blend of financial resilience, strategic adjustments, and evolving industry practices, amid policy volatility such as a tariff threat delaying Quebec's green energy bill earlier this year. As the country navigates these crossroads, the outcomes of these developments will play a crucial role in shaping the future economic environment.

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IRENA Climate Investment Platform accelerates renewable energy financing through de-risking, bankable projects, and public-private partnerships, advancing Paris Agreement goals via grid integration, microgrids, and decarbonization while expanding access, jobs, and sustainable economic growth.

Key Points

A global platform linking bankable renewable projects with finance, derisking and partners to scale decarbonization.

✅ Connects developers with banks, funds, and insurers

✅ Promotes de-risking via policy, PPAs, and legal frameworks

✅ Targets Paris goals with grid, microgrids, and off-grid access

The heads-of-state and energy ministers from more than 120 nations just met in Abu Dhabi and they had one thing in common: a passion to increase the use of renewable energy to reduce the threat from global warming — one that will also boost economic output and spread prosperity. Access to finance, though, is critical to this goal. 

Indeed, the central message to emerge from the conference hosted by the International Renewable Energy Agency (IRENA) this week in the United Arab Emirates is that a global energy transition is underway that has the potential to revitalize economies and to lift people out of poverty. But such a conversion requires international cooperation and a common desire to address the climate cause. 

“The renewable energy sector created jobs employing 11 million people in 2019 and provided off-grid solutions, having helped bring the number of people with no access to electricity to under 1 billion,” the current president of the UN General Assembly Tiijani Muhammad-Bande of Nigeria told the audience. 

Today In: Business
While renewables are improving energy access and reducing inequities, they also have the potential to curb CO2 emissions globally. The goal is to shrink them by 45% by 2030 and 90% by 2050, with Canada's net-zero race highlighting the role of renewable energy in achieving those targets. Getting there, though, requires progressive government policies that will help to attract financing. 

According to IRENA, investment in the clean energy sector is now at $330 billion a year. But if the 2050 goals are to be reached, those levels must nearly double to $750 billion annually. The green energy sector does not want to compete with the oil and gas sectors but rather, it is seeking to diversify fuel sources — a strategy that could help make electricity systems more resilient to climate risks. To hit the Paris agreement’s targets, it says that renewable energy deployment must increase by a factor of six.  

To that end, IRENA is forming a “climate investment platform” that will bring ideas to the table and then introduce prospective parties. It will focus on those projects that it believes are “bankable.”

It’s about helping project developers find banks, private companies and pension funds to finance their worthy projects, IRENA Director General Francesco La Camera said in response to this reporter’s question. Moreover, he said that the platform would work to ensure there is a sound legal structure and that there is legislative support to “de-risk” the investments. 

“Overcoming investment needs for energy transformation infrastructure is one of the most notable barriers to the achievement of national goals,” La Camera says. “Therefore, the provision of capital to support the adoption of renewable energy is key to low-carbon sustainable economic development and plays a central role in bringing about positive social outcomes.”

If the monies are to flow into new projects, governments have to create an environment where innovation is to be rewarded: tax incentives for renewables along with the design and implementation of transition plans. The aim is to scale up which in turn, leads to new jobs and greater economic productivity — a payback of three-to-seven times the initial investment.  

The path of least resistance, for now, is off-grid green energy solutions, or providing electricity to rural areas by installing solar panels that may connect to localized microgrids. Africa, which has a half-billion people without reliable electricity, would benefit. However, “If you want to go to scale and have bankable projects, you have to be connected to the grid,” Moira Wahba, with the UN Development Program, told this writer. “That requires large capital and private enterprise.”

Public policy must thus work to create the knowledge base and the advocacy to help de-risk the investments. Government’s role is to reassure investors that they will not be subject to arbitrary laws or the crony allocation of contracts. Risk takers know there are no guarantees. But they want to compete on a level playing. 

Analyzing Risk Profiles

He is speaking during the World Energy Future Summit. 
Sultan Al Jabber, chief executive of Abu Dhabi’s national oil company, Adnoc, who is also the former ... [+]ABU DHABI SUSTAINABILITY WEEK
How do foreign investors square the role of utilities that are considered safe and sound with their potential expansion into new fields such as investing in carbon-free electricity and in new places? The elimination of risk is not possible, says Mohamed Jameel Al Ramahi, chief executive officer of UAE-based Masdar. But the need to decarbonize is paramount. The head of the renewable energy company says that every jurisdiction has its own risk profile but that each one must be fully transparent while also properly structuring their policies and regulations. And there needs to be insurance for political risks. 

The United States and China, for example, are already “de-risked,” because they are deploying “gigawatts of renewables,” he told this writer. “When we talk about doubling the amount of needed investment, we have to take into account the risk profile of the whole world. If it is a high-risk jurisdiction, it will be difficult to bring in foreign capital.” 

The most compelling factor that will drive investment is whether the global community can comply with the Paris agreement, says Dr. Thani Ahmed Al Zeyoudi, Minister of the Ministry of Climate Change and the Environment for the United Arab Emirates. The goal is to limit increases to 2 degrees Celsius by mid-century, with the understanding that the UN’s latest climate report emphasizes that positive results are urgently needed. 

One of the most effective mechanisms is the public-private model. Governments, for example, are signing long-term power purchase agreements, giving project developers the necessary income they need to operate, and in the EU plans to double electricity use by 2050 are reinforcing these commitments. They can also provide grants and bring in international partners such as the World Bank. 

“We are seeing the impact of climate change with the various extreme events: the Australian fires, the cyclones and the droughts,” the minister told reporters. “We can no longer pass this to future generations to deal with.” 

The United Arab Emirates is not just talking about it, adds Sultan Al Jabber, chief executive of Abu Dhabi’s national oil company, Adnoc, who is also the former head of subsidiary Masdar. It is acting now, and across Europe Big Oil is turning electric as traditional players pivot too. His comments came during Abu Dhabi’s Sustainability Week at the World Future Energy Summit. The country is “walking the walk” by investing in renewable projects around the globe and it is growing its own green energy portfolio. Addressing climate change is “right” while it is also making “perfect economic sense.” 

The green energy transition has taken root in advanced economies while it is making inroads in the developing world — a movement that has the twin effect of addressing climate change and creating economic opportunities, and one that aligns with calls to transform into a sustainable electric planet for long-term prosperity. But private investment must double, which requires proactive governments to limit unnecessary risks and to craft the incentives to attract risk-takers. 

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Russian Utility Grid Cyberattacks reveal DHS findings on Dragonfly/Energetic Bear breaching control rooms and ICS/SCADA via vendor supply-chain spear-phishing, threatening blackouts and critical infrastructure across U.S. power utilities through stolen credentials and reconnaissance.

Key Points

State-backed ops breaching utilities via vendors to reach ICS/SCADA, risking grid disruption and control-room access.

✅ Spear-phishing and watering-hole attacks on vendor networks

✅ Stolen credentials used to reach isolated ICS/SCADA

✅ Potential to trigger localized blackouts and service disruptions

Hackers working for Russia were able to gain access to the control rooms of US electric utilities last year, allowing them to cause blackouts, federal officials tell the Wall Street Journal.

The hackers -- working for a state-sponsored group previously identified as Dragonfly or Energetic Bear -- broke into utilities' isolated networks by hacking networks belonging to third-party vendors that had relationships with the power companies, the Department of Homeland Security said in a press briefing on Monday.

Officials said the campaign had claimed hundreds of victims and is likely continuing, the Journal reported.

"They got to the point where they could have thrown switches" to disrupt the flow power, Jonathan Homer, chief of industrial-control-system analysis for DHS, told the Journal.

"While hundreds of energy and non-energy companies were targeted, the incident where they gained access to the industrial control system was a very small generation asset that would not have had any impact on the larger grid if taken offline," the DHS said in a statement Tuesday. "Over the course of the past year as we continued to investigate the activity, we learned additional information which would be helpful to industry in defending against this threat."

Organizations running the nation's energy, nuclear and other critical infrastructure have become frequent targets for cyberattacks in recent years due to their ability to cause immediate chaos, whether it's starting a blackout or blocking traffic signals. These systems are often vulnerable because of antiquated software and the high costs of upgrading infrastructure.

The report comes amid heightened tension between Russia and the US over cybersecurity, alongside US condemnation of power grid hacking in recent months. Earlier this month, US special counsel Robert Mueller filed charges against 12 Russian hackers tied to cyberattacks on the Democratic National Committee.

Hackers compromised US power utility companies' corporate networks with conventional approaches, such as spear-phishing emails and watering-hole attacks as seen in breaches at power plants across the US that target a specific group of users by infecting websites they're known to visit, the newspaper reported. After gaining access to vendor networks, hackers turned their attention to stealing credentials for access to the utility networks and familiarizing themselves with facility operations, officials said, according to the Journal.

Homeland Security didn't identify the victims, the newspaper reports, adding that some companies may not know they had been compromised because the attacks used legitimate credentials to gain access to the networks.

Cyberattacks on electrical systems aren't an academic matter. In 2016, Ukraine's grid was disrupted by cyberattacks attributed to Russia, which is engaged in territorial disputes with the country over eastern Ukraine and the Crimean peninsula. Russia has denied any involvement in targeting critical infrastructure.

President Donald Trump signed an executive order in May designed to bolster the United States' cybersecurity by protecting federal networks, critical infrastructure and the public online. One section of the order focuses on protecting the grid like electricity and water, as well as financial, health care and telecommunications systems.

The Department of Homeland Security didn't respond to a request for comment.

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SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge; the Rate Review Panel approved increases, affecting residential utility bills amid affordability concerns and government energy policy shifts.

Key Points

An 8% SaskPower electricity rate increase split 4% in Sept 2022 and 4% in Apr 2023, driven by natural gas costs.

✅ 4% increase Sept 1, 2022; +4% on Apr 1, 2023

✅ Panel-approved amid natural gas price surge and higher fuel costs

✅ Avg residential bill up about $5 per step; affordability concerns

The NDP Opposition is condemning the provincial government’s decision to approve the Saskatchewan Rate Review Panel’s recommendation to increase SaskPower’s rates for the first time since 2018, despite a recent 10% rebate pledge by the Sask. Party.

The Crown electrical utility’s rates will increase four per cent this fall, and another four per cent in 2023, a trajectory comparable to BC Hydro increases over two years. According to a government news release issued Thursday, the new rates will result in an average increase of approximately $5 on residential customers’ bills starting on Sept. 1, 2022, and an additional $5 on April 1, 2023.

“The decision to increase rates is not taken lightly and came after a thorough review by the independent Saskatchewan Rate Review Panel,” Minister Responsible for SaskPower Don Morgan said in a news release, amid Nova Scotia’s 14% hike this year. “World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fueled facilities, SaskPower requires additional revenue to maintain reliable operations.”

But NDP SaskPower critic Aleana Young says the rate hike is coming just as businesses and industries are struggling in an “affordability crisis,” even as Manitoba Hydro scales back a planned increase next year.

She called the announcement of an eight per cent increase in power bills on a summer day before the long weekend “a cowardly move” by the premier and his cabinet, amid comparable changes such as Manitoba’s 2.5% annual hikes now proposed.

“Not to mention the Sask. Party plans to hike natural gas rates by 17% just days from now,” said Young in a news release issued Friday, as Manitoba rate hearings get underway nearby. “If Scott Moe thinks his choices — to not provide Saskatchewan families any affordability relief, to hike taxes and fees, then compound those costs with utility rate hikes — are defensible, he should have the courage to get out of his closed-door meetings and explain himself to the people of this province.”

The province noted natural gas is the largest generation source in SaskPower’s fleet. As federal regulations require the elimination of conventional coal generation in Canada by 2030, SaskPower’s reliance on natural gas generation is expected to grow, with experts in Alberta warning of soaring gas and power prices in the region. Fuel and Purchased Power expense increases are largely driven by increased natural gas prices, and SaskPower’s fuel and purchased power expense is expected to increase from $715 million in 2020-21 to $1.069 billion in 2023-24. This represents a 50 per cent increase in fuel and purchased power expense over three years.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” SaskPower president & CEO Rupen Pandya said in the release “We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

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Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

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