While it may not make front-page news, Canada’s formal promulgation of Amendment 18 to the Energy Efficiency Regulations under the Energy Efficiency Act represents one of the most impactful federal climate policy developments this year.
Energy efficiency standards rarely attract the spotlight, but they’ve delivered more emissions reductions than nearly any other policy tool. They tend to be nonpartisan, cost-effective, and quietly transformative. The new amendment is no exception.
The appliances under this regulation will cover a majority of operational emissions from residential and commercial buildings. The IEA’s ‘Net-Zero Roadmap: A Global Pathway to Keep the 1.5 °C in Reach’ report identifies that reduced demand through energy efficiency, more efficient use of materials and behavioral change can contribute to roughly 25% of needed emissions reductions in a net-zero by 2050 scenario.
What Amendment 18 delivers
According to the government’s Regulatory Impact Analysis Statement, Amendment 18 is expected to:
- Save consumers $1.7 billion annually in energy costs by 2030, with cumulative savings of $34.5 billion by 2050
- Reduce carbon emissions by 1.6 million tonnes annually by 2030, with a cumulative reduction of 65 million tonnes by 2050
- Provide net benefits of $2.5 billion annually by 2030 and $51 billion cumulatively by 2050
These benefits stem from updated and expanded efficiency standards across a wide variety of everyday products including household appliances, air conditioners and heat pumps, water heaters, and lighting.
A cost-effective climate tool
As carbon pricing continues to face challenges, energy efficiency regulations like these are proving to be indispensable climate tools. With a sustained upwards trend in electrification, more efficient appliances will bring down energy demand at a far lower cost than having to build out more energy infrastructure.
How amendment 18 benefits Canadians
At its core, this regulation benefits Canadians in practical, everyday ways. By phasing out low-efficiency products from the market, it ensures households have access to better-performing, more energy-efficient options. This translates directly into lower utility bills and long-term cost savings, as well as improved health outcomes.
While energy savings vary regionally due to differences in energy pricing, the cost-benefit analysis clearly shows that all Canadians benefit, regardless of where they live. In fact, the advantages are more pronounced for households in rural, northern, and remote communities that are not connected to the national electricity grid and are reliant on expensive, local energy sources.
While most of the proposed amendments are a strong step forward, the regulations missed the mark on water heaters. Efficiency Canada’s detailed analysis breaks down where they fell short and why it matters..
Canada can lead the way
As Canada moves forward, it’s worth watching what’s happening south of the border: the U.S. is preparing to shut down its Energy Star program – a “nearly universally supported” program that helps families save over $40 billion a year on energy costs for $32 million annually.
Canada typically aligns with the U.S. automatically on energy efficiency regulations, however at a time where American environmental standards are being weakened or delayed, Canada is proving that it can step up. The promulgation of Amendment 18 reflects a forward-looking approach that prioritizes long-term economic and environmental outcomes.
Smart, forward-looking regulation like this doesn’t just cut emissions, it lowers energy bills and supports healthier homes.
Let’s keep moving forward.
Call to action
Write to your MPP and MP to support efficiency to reduce your bills, reduce carbon emissions, and help Ontario be more self-sufficient on our own energy
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