Fossil fuels accounted for 76.3 per cent of Canada's domestic energy consumption in 2024, down only slightly from 76.8 per cent in 1995, according to a new study released by the Fraser Institute.
The report says the figures indicate Canada's overall energy mix has changed little over the past three decades despite government spending and regulations aimed at reducing fossil fuel use and supporting a transition to lower-emission energy sources.
The study, Energy Facts – Canada Edition, was published by the Fraser Institute's Mathison Centre Research Initiatives. It examines energy production and consumption across Canada and highlights the continued role of fossil fuels in major sectors of the economy.
According to the report, Canada's industrial, transportation and residential sectors remain heavily dependent on fossil fuels. It says fossil fuels supplied 74.0 per cent of industrial energy use in 2024, while they accounted for 50.6 per cent of residential energy use, with natural gas remaining the primary energy source for home heating.
The transportation sector showed the highest level of reliance, with fossil fuels representing 98.7 per cent of total energy consumption in 2024, the report said.
"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 report also examines the economic role of Canada's energy sector. It says the sector represented 6.9 per cent of the country's total economic output in 2025.
Provincial contributions varied, with the energy sector accounting for 30.1 per cent of Alberta's gross domestic product in 2024, followed by 22.7 per cent in Newfoundland and Labrador and 21.5 per cent in Saskatchewan.
The study presents those figures as evidence of the sector's continued importance to provincial economies while outlining the extent to which fossil fuels remain integrated into Canada's energy system.
Elmira Aliakbari
"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."
The Fraser Institute described the study as an examination of Canada's energy production, consumption and economic contribution, with findings intended to inform discussion about the country's energy system and policy decisions.