Canada’s Energy Efficiency Regulations Amended, Comment Period Open

Trade Update • June 24, 2024

mendment 18 to Canada’s Energy Efficiency Regulations was pre-published in the Canada Gazette, Part I on June 22, 2024. It aims to update energy standards and testing procedures for various products to align more closely with U.S. regulations.

The Amendment would benefit Canadians by reducing energy consumption and resulting greenhouse gas emissions of products used in homes, commercial and institutional buildings, and industries. Homeowners, businesses, institutions, and industries would benefit from reduced energy costs associated with the use of more efficient technologies.

Key Details

Regulatory Impact Analysis Statement Excerpt

The amendment focuses on reducing energy consumption and greenhouse gas emissions, thereby supporting Canada’s goal of achieving net-zero emissions by 2050. This involves setting more stringent energy efficiency standards for some products and adopting new ones for others, enhancing cross-border trade efficiency and reducing compliance costs. The anticipated benefits significantly outweigh the costs, with projected net benefits valued at approximately $51 billion by 2050, facilitating substantial reductions in energy usage and greenhouse emissions.

Issues

Canada’s building sector (including homes, commercial and institutional buildings) and industrial sector are a significant contributor to Canada’s total energy consumption and greenhouse gas emissions. Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption and support the goal of net-zero emissions by 2050. This is often achieved by harmonizing regulatory requirements with our principal North American trading partner (the United States), and at this time, there are unnecessary regulatory differences across jurisdictions, which can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. In this context, regulatory actions are necessary for some energy-using products to keep pace with changes that have taken place in the United States. Also, adjustments in the Regulations are necessary to adapt quickly and maintain harmonization with changes that take place in the United States and address regulated parties’ requests to maintain harmonization with the United States in a timely matter. Finally, some products require going further than the United States on energy efficiency standards to drive more significant energy savings and assist with the Government’s goal to reduce GHG emissions and achieve net-zero by 2050.

If Canada does not amend the Regulations, select requirements would unintentionally be misaligned with key testing standards from the United States, which could impact cross-border trade, would require companies to test differently for Canada, and ultimately increase costs for citizens, businesses, and economies. In addition, in the absence of a regulatory approach, a market for low-efficiency products would continue.

For more details please view the full Regulatory Impact Analysis Statement.

Submit Comments

Natural Resources Canada encourages stakeholders to submit comments at any point throughout the 70-day period (ending on August 31, 2024), but early submission will allow for early analysis of any potential changes to the proposal to address concerns. To submit your comments online using the new commenting feature on the Canada Gazette, Part I website.

For questions or concerns on how these proposed amendments will affect your imports/exports, please contact us.