FOSSIL FUELS ARE STILL CENTRAL TO CANADIAN ENERGY - Fossil Fuels Still Accounted for 76.3% of Canada’s Domestic Energy Consumption in 2024 Compared to 76.8% in 1995 - Canadian Energy News, Top Headlines, Commentaries, Features & Events

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Despite government spending and regulations on green energy transitions, fossil fuels still accounted for 76.3% of Canada’s domestic energy consumption in 2024 compared to 76.8% in 1995

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By: Kenneth P. Green, Julio Mejía and Elmira Aliakbari

Energy Facts – Canada Edition

Despite continued discussion about energy system transitions, fossil fuels remain central to Canada’s energy system. In 2024, they accounted for nearly 88% of domestic energy production and more than 76% of energy consumption.
Pipelines remain essential for the country’s energy system. Over the past decade, pipeline safety has improved, with safety incidents falling by nearly 60% and the share of incidents involving product releases declining from 83.2% in 2014 to 20.6% in 2024.
Canada’s largest energy-consuming sectors remain heavily reliant on fossil fuels: in 2024, fossil fuels supplied nearly three-quarters of industrial energy use, and more than half of residential energy use, with natural gas remaining the dominant source, particularly for space heating. Meanwhile, fossil fuels accounted for almost 99% of the transportation sector’s energy consumption in 2024.
The energy sector is also a major economic contributor, representing 6.9% of Canada’s total economic activity. Its importance is even greater in some provinces: energy accounts for 30.1% of Alberta’s economy, 22.7% of Newfoundland & Labrador’s, and 21.5% of Saskatchewan’s.
Energy is one of the top 10 categories of average household spending. Over the past two decades, energy prices have risen faster than overall inflation and have been more volatile than many other household expenses, increasing pressure on family budgets.
Overall, fossil fuels remain essential to Canada’s standard of living, and ensuring reliable, affordable, and safe energy systems will remain a key priority in the years to come.