Canada has ‘ambitious’ targets to decarbonize the economy, but it will take ‘significant reductions’ in greenhouse gas emissions to meet them as Canada’s economy is one of the most energy-intensive among developed countries , according to a report by the Organization for Economic Co-operation and Development (OECD).
Among OECD members, only Australia is less efficient when considering the amount of greenhouse gases (GHGs) that are emitted to produce a comparable level of wealth, according to the report unveiled in Ottawa on Monday.
For every unit of gross domestic product (GDP) generated, Canada emits on average more than double the amount of GHGs for equivalent wealth creation in the UK. Canada’s carbon intensity is nearly one-third higher than the United States.
“Canada produces a lot of oil and gas,” said the OECD’s acting chief economist, Alvaro Pereira, at a press conference. The harsh winters in Canada mean that more energy is needed in Canada to keep our buildings warm. »
A “good frame”, but could do better
Despite the scale of the challenge, the OECD believes that Canada “has a good framework” with a “range of instruments” to make the energy transition. However, some mechanisms could be improved, believes the chief economist of the international organization, Philip Hemmings.
“We have to move forward with the increases in carbon prices that are planned,” comments the economist. We also believe that it would be good if the carbon pricing system were strengthened in certain sectors and found ways to be more efficient. »
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