Natural Resources Canada’s (NRCan) Green Buildings Strategy (GBS), released on July 16, 2024, outlines the Government of Canada’s plan to subsidize electric heat pump installations and energy efficiency measures. The primary objective appears to be to eliminate heating oil for home heating. The GBS does not call for a ban on natural gas heating, an idea that had been contemplated in earlier GBS drafts. However, the possibility of very aggressive building codes remains real.
The Canadian Gas Association (CGA) is pleased that the GBS does not call for an explicit ban or phaseout strategy for natural gas and infrastructure. Seven million Canadian homes currently use natural gas and that infrastructure, and 10s of 1000s more homes are connected to the gas system each year. However, we remain concerned about the lack of clarity in the GBS around new residential building codes, given that they could serve as an indirect ban on natural gas. We will continue to work with all interested parties to ensure government actions affecting home heating in Canada consider the full range of consumer priorities including choice, reliability, safety, affordability and environmental performance.
Natural gas remains Canada’s most affordable and reliable energy source and is supported by an extensive infrastructure system spanning almost 600,000 kilometers. This network serves nearly two-thirds of Canadians across eight provinces and one territory, contributing to almost 50% of residential energy use. Furthermore, the residential rate for natural gas at a national level is between one and six times less expensive than that of electricity on a per unit of energy basis. Canada’s natural gas utilities are constantly working to find ways to efficiently integrate gas and electric systems to benefit Canadians and to incorporate new lower-emitting fuel choices like hydrogen and renewable natural gas. The CGA will continue to advocate for energy policies that reflect the value of natural gas and gas infrastructure for Canadians’ energy security.
Canada’s population is growing fast, which means the demand for energy will grow. The best policy framework for addressing growth is one that recognizes the value of all energy options and pathways—including natural gas and its infrastructure—not one that calls for the elimination of choice for Canadian consumers.