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The State of Energy Efficiency in Canada, Office of Energy Efficiency Report 2005

Energy Use and Greenhouse Gas Emissions

Canada, like other industrialized countries around the world, depends heavily on fossil fuels to meet its energy needs. These fuels, when burned, release carbon dioxide (CO₂) and, to a lesser extent, nitrous oxide and methane, all of which are greenhouse gases (GHGs). In general, the more energy Canadians use, the more GHGs emissions produced and the greater the impact on global climate change.

Between 1990 and 2002, the amount of energy that Canadians used to heat and cool their homes and workplaces and to operate their appliances, vehicles and facilities – known as secondary energy use – increased by about 18 percent. GHG emissions associated with this energy use increased by about 18 percent, accounting for 66 percent of all GHG emissions in Canada in 2002.

Factors That Affect Energy Use

Several factors affect how much energy the Canadian economy uses.These include the level of economic activity in a sector (e.g. production by industry, floor space in the residential or commercial /institutional sector); the weather; structure (the mix of activities that consume energy in a sector); a higher service level (increased penetration of auxiliary equipment and space cooling in commercial/institutional buildings); and how efficiently each sector uses energy. By promoting improved energy efficiency, the Office of Energy Efficiency's (OEE's) programs are helping Canada reduce its GHG emissions.

Canada's increased energy use between 1990 and 2002 was primarily due to growth in economic activity in each end-use sector. For example, activity in the industrial sector increased by 44 percent during this period. In the residential sector, there was a 23 percent increase in activity (which is represented by a mix of households and floor space). Likewise, the amount of commercial floor space in Canada grew by 26 percent over 1990-2002. In the transportation sector, there was a 16 percent increase in passenger-kilometres travelled and a 36 percent increase in tonne-kilometres moved.

Changes in structure – the mix of activities that consume energy – contributed to decreased energy use between 1990 and 2002. The decrease was mainly due to changes in the industrial sector.

The industrial sector accounted for approximately 39 percent of total secondary energy use in Canada in 2002 (see Figure 1) and 34 percent of secondary energy-related GHG emissions (see Figure 2).² The second largest energy-using sector – transportation – accounted for almost 28 percent of energy use and about 34 percent of GHG emissions in 2002. The energy used in transportation, primarily gasoline and diesel fuel, produces more GHG emissions than other energy sources when combusted.

Of the factors that affect energy use and GHG emissions in Canada's end-use energy markets, the primary focus of the OEE is energy efficiency. The following chapter takes an in-depth look at the state of energy efficiency in Canada.

² There are other sources of GHG emissions (e.g. fugitive emissions and non-energy industrial process emissions). For further information, refer to Environment Canada's Canada's Greenhouse Gas Inventory: 1990-2002. A copy is available at www.ec.gc.ca/pdb/ghg/inventory_e.cfm.