Canada’s fossil fuel reliance barely budges in three decades, study finds
“There is a lot of misunderstandings 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,” Green said.
The report finds Canada’s biggest energy-consuming sectors, industrial, transportation and residential, remain overwhelmingly reliant on fossil sources. Industrial energy use drew 74.0% of its supply from fossil fuels in 2024, while the residential sector sourced 50.6% from fossil fuels, with natural gas continuing to dominate home heating. Transportation showed the heaviest dependence by far, with fossil fuels accounting for 98.7% of energy consumed in the sector.
Provincial impact
Energy remains a significant driver of the national economy, contributing 6.9% of Canada’s total output in 2025, the report notes. That contribution varies sharply by province. Alberta drew the largest share, with energy representing 30.1% of provincial GDP in 2024, followed by Newfoundland and Labrador at 22.7% and Saskatchewan at 21.5%.
Elmira Aliakbari, director of natural resource studies at the Fraser Institute, said the findings underline how central fossil fuels remain to everyday affordability and to the broader economy.
“Fossil fuels remain essential to Canadians’ living standard as they provide reliable and affordable energy and are a major economic driver,” Aliakbari said.
