Aidan Charron
Associate Director,
Global Earth Day
Canada is increasingly establishing itself as a leader in the renewable energy sector. From hydroelectric power to wind and solar, the nation’s commitment to clean energy is reshaping its economy, creating jobs, and helping to protect the environment. As one of the world’s largest producers of renewable energy, Canada’s innovative approach to sustainability is a story of progress, challenges, and future opportunities.
A Growing Energy Economy
Canada’s vast natural landscapes are not just easy on the eyes, but also have vast potential in renewable energy. In 2022, renewable sources accounted for 16.9% of Canada’s total primary energy supply. Among these, hydroelectric power stands out as the most significant contributor, providing 61.7% of the country’s electricity generation. As the world’s third-largest producer of hydroelectricity, Canada’s commitment to harnessing the power of moving water continues to drive its energy sector forward.
Wind and solar power are also becoming key players. Wind energy, in particular, has been growing rapidly, now contributing 10% of Canada’s total energy capacity. Solar, although still accounting for less than 1%, is also on the rise, with the potential for significant expansion in the coming years. These advancements are crucial as Canada works toward meeting its ambitious carbon reduction goals.
Green Earth and a Green Economy
Renewable energy is not just about reducing emissions; it’s also an economic powerhouse. In fact, the clean energy sector, which includes hydro, wind, solar, directly employs 37% more people than the oilsands sector. A 2014 report revealed that clean energy employs 23,700 individuals, while the oilsands sector directly employs 22,340 people. This shift is a clear sign of the growing importance of renewable energy to Canada’s workforce.
This transition is expected to continue, with more jobs being created as Canada invests in clean technologies. In 2022, the Canadian energy sector contributed approximately 11.8% of the country’s GDP, directly employing over 290,000 people. As the demand for renewable energy grows, so too does the need for skilled workers in fields like engineering, construction, and manufacturing.
We’re Breathing the Same Air
Moreover, the health benefits associated with renewable energy are significant. The decarbonization of Canada’s energy system has the potential to reduce harmful air pollutants, which in turn can lower the rates of diseases like asthma, cancer, and other respiratory illnesses.
The Battle for a Transition to a Greener Future
Despite the progress made, challenges remain. Canada’s economy is under increasing pressure to meet carbon reduction targets, especially as the country faces rising carbon taxes. In 2019, the federal carbon tax was introduced at $20 per tonne, and it is set to increase to $170 per tonne by 2030. This rising cost of carbon emissions is designed to incentivize businesses and consumers to transition to low-carbon alternatives. While this tax has been effective in driving emissions reductions, Canada’s pace of progress must accelerate to meet its climate goals.
The global shift toward renewable energy presents both a challenge and an opportunity for Canada. As other nations rapidly invest in clean energy, Canada must keep up or risk falling behind in the increasingly competitive global economy.
At EARTHDAY.ORG, we believe renewable energy is inevitable. Learn more about Earth Day 2025’s theme at earthday.org/earth-day-2025, and join EARTHDAY.ORG to take local action on renewable energy.
