For years, climate alarmists, some politicians and others have told us that we are undergoing an energy transition, in which fossil fuels are being replaced by so-called “renewable” energy sources such as wind and solar. Unfortunately for them, the facts keep getting in the way of these pronouncements. The most recent example of this is a new report from the Fraser Institute that demonstrates just how dependent Canada still is on fossil fuels. The answer is very dependent.
The main finding in the Fraser study was that fossil fuels accounted for 76.3 per cent of Canada’s domestic energy consumption in 2024. This compared to 76.8 per cent in 1995. The difference is basically a rounding error. When you consider how many of our tax dollars have gone to supposedly boost alternative energy sources and cut back on fossil fuel consumption, the words “complete waste” barely do justice to the situation.
In an uncharacteristic moment, Prime Minister Mark Carney recently admitted that the $200 billion allocated by the Trudeau government to reduce emissions and the consumption of fossil fuels had been virtually useless in accomplishing anything for the climate. A few years ago, then-environment minister Steven Guilbeault boasted that the Liberals had allocated the most money to climate initiatives than any other government. As seems to be typical for these Liberals, they cannot account for how this massive amount of money was spent or even if it was all spent. It’s a pretty safe bet that much of it went into the pockets of the many “environmental” organizations that use our tax dollars to ensure projects that would be beneficial to Canada never get built. Imagine how many good things this immense amount of our money could have done, or how significantly it could have reduced our national debt.
The Fraser report also noted how 88 per cent of Canada’s energy production was accounted for by fossil fuels, demonstrating how little was being produced by alternate sources. It also indicates the huge need for pipelines. The Fraser study commented on the fact that pipeline safety had improved dramatically by about 60 per cent from 2014, which should significantly reduce opposition to their construction.
Other facts included in the report were that industrial energy use remains very dependent on fossil fuels, which supplied about three quarters of industrial demand in 2024. In the residential market, about half of demand was met by fossil fuels – mostly natural gas. As for the transportation sector, almost all of that market continues to be reliant on fossil fuels.
The fossil fuel energy sector continues to make a major contribution to Canada’s economy, representing almost seven per cent of total economic activity. It is even more vital to several provinces, accounting for about 30 per cent of the economy of Alberta, 23 per cent of Newfoundland and Labrador and 21.5 per cent of Saskatchewan.
The same trends on energy use can be seen globally. Fossil fuels account for about 85 per cent of energy consumption, virtually unchanged from a decade ago. Natural gas and coal generate about 60 per cent of the world’s electricity, with the remainder made up by “renewables” and nuclear.
The main reason wind and solar have not made more of a dent and fulfilled the dreams of the “net zero” constituency is that they are expensive and unreliable. Even where there is sufficient generating capacity from wind and solar, they require back-up – usually with natural gas – for the times the wind isn’t blowing and the sun isn’t shining.
The environmental lobby oversold the capability and affordability of alternate energy sources from the beginning and have lost credibility as a result. Nevertheless, they continue to push the “energy transition” and the “net zero by 2050” fictions, presumably because they think if they say it often enough, people will believe it. It may well be that some future technological innovation will come along that will permit fossil fuels to be replaced, but we’re not there yet. In the interim, fossil fuels will be essential to permit a decent standard of living, a viable economy and an effective means of lifting the poorest countries out of poverty. The real shame is the billions in Canada, and trillions globally, that have been spent on a fiction instead of more reliable ways of boosting economic growth and prosperity.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
