VANCOUVER—Even with considerable government spending and regulations focused on discouraging fossil fuels and imposing a green energy transition, fossil fuels still accounted for 76.3 per cent of domestic energy use in 2024 compared to 76.8 per cent in 1995, showing almost no real change, according to a new study published today by the Fraser Institute’s Mathison Centre Research Initiatives, an independent, non-partisan Canadian public policy think-tank.

“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,” said Kenneth P. Green, co-author of Energy Facts – Canada Edition.

The study finds that Canada’s largest energy-consuming sectors—including the industrial, transportation, and residential sectors —remain heavily dependent on fossil fuels.

In 2024 alone, fossil fuels supplied 74.0 per cent of industrial energy use, and more than half (50.6 per cent) of residential energy use, with natural gas remaining the dominant source, particularly for home heating.

Crucially fossil fuels accounted for 98.7 per cent of the transportation sector’s energy consumption.

In 2025, Canada’s energy sector is also a major economic contributor, representing 6.9 per cent of Canada’s total economic output. The share of the overall economy represented by the energy sector (2024) varied by province, with the highest shares in Alberta (30.1 per cent of provincial GDP), Newfoundland and Labrador (22.7 per cent) and Saskatchewan (21.5 per cent).

“Fossil fuels remain essential to Canadians’ living standard as they provide reliable and affordable energy and are a major economic driver,” said Elmira Aliakbari, director of natural resource studies at the Fraser Institute.

“Policymakers and Canadians more broadly need to understand our continued reliance on fossil fuels so that energy polices are grounded in the realities of Canada’s energy needs and opportunities.”

Media Contact:
Kenneth P. Green, Senior Fellow, Mathison Centre Research Initiatives
Fraser Institute
To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 ext.721 [email protected]

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.

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