Canada, known for its vast natural resources, is rapidly becoming a global leader in renewable energy and clean technologies. In 2025, the country is making significant strides in transitioning toward a low-carbon economy, driven by ambitious government policies, groundbreaking clean tech innovations, and a commitment to achieving net-zero emissions by 2050.
The Canadian government’s investment in renewable energy has been substantial, with $10 billion earmarked for the development of wind, solar, and hydropower projects in 2025. In addition to conventional clean energy sources, Canada is focusing on cutting-edge technologies such as green hydrogen, carbon capture, and energy storage, aiming to reshape its energy future while mitigating the effects of climate change.
Canada’s Renewable Energy Landscape
Canada has long been a major player in the global energy sector, thanks to its abundant hydropower resources, which account for approximately 60% of the country’s electricity generation. However, as part of its Green Economy Plan, the Canadian government is diversifying its energy mix by boosting the adoption of wind and solar power.
In 2025, Canada became the first G7 nation to achieve a milestone of 50% renewable electricity generation, with provinces like Ontario, Alberta, and British Columbia leading the charge in scaling up wind and solar farms.
For example, the Sunshine Valley Solar Project in British Columbia, which went online in 2025, is expected to generate 500 MW of clean energy, enough to power 100,000 homes annually. Similarly, Ontario’s Great Lakes Wind Initiative is set to add 1 GW of offshore wind power to Canada’s energy grid by 2026.
Green Hydrogen: A Game Changer for Canada
One of Canada’s most exciting clean tech innovations is the development of green hydrogen as a viable alternative fuel source. Green hydrogen, produced by electrolysis powered by renewable energy, is seen as a key component in the decarbonization of heavy industries such as steel, cement, and transportation.
The Canadian government has committed $3 billion to accelerate the adoption of green hydrogen technology. This includes investments in hydrogen production facilities and the development of a hydrogen transport network that will connect the east and west coasts, helping to integrate green hydrogen into the broader energy system.
In Alberta, the Hydrogen Valley Initiative is already underway, with Hydrogen Alberta collaborating with major industry players like Suncor Energy and ATCO Group to scale up green hydrogen production. The project is expected to reduce Alberta’s carbon emissions by 5 million tons annually by 2030.
Carbon Capture and Storage: The Path to Net-Zero
To meet its net-zero emissions goal by 2050, Canada is heavily investing in carbon capture and storage (CCS) technologies. CCS involves capturing carbon dioxide (CO₂) emissions from power plants and industrial processes and storing them underground to prevent them from entering the atmosphere.
Canada’s Carbon Clean Tech Initiative provides incentives to companies that adopt CCS technology, and several pilot projects are already in operation. The Quest Carbon Capture Project in Alberta, one of the world’s first large-scale CCS projects, has successfully captured 4 million tons of CO₂ since its launch in 2015 and is expanding to capture an additional 2 million tons by 2026.
The Canadian government is also investing in direct air capture (DAC) technologies, which remove CO₂ directly from the air. The DAC technology project in Saskatchewan, being developed by Carbon Engineering, is expected to capture 500,000 tons of CO₂ annually once operational.
Energy Storage: Overcoming Intermittency Challenges
A major challenge in renewable energy deployment is the intermittency of wind and solar power. To address this, Canada is investing heavily in energy storage solutions that will allow excess renewable energy to be stored and used when demand is high.
In 2025, Hydro-Québec launched its “Energy Storage 360” initiative, aimed at developing advanced battery storage technologies and grid-scale storage systems. The project will enable the storage of 1 GW of renewable energy, helping to balance the grid and ensure a steady supply of power.
Additionally, energy storage projects in Alberta and Ontario are using pumped hydro storage, where excess electricity is used to pump water uphill to a reservoir. The water is then released to generate electricity when needed, providing a reliable source of renewable energy.
A Green Future: Canada’s Role in the Global Clean Tech Revolution
Canada’s leadership in clean tech is gaining international recognition. The country’s innovative policies, coupled with its vast natural resources, make it an ideal partner for global collaborations aimed at combating climate change.
At the 2025 COP30 Summit, Canada announced plans to join the Clean Energy Transition Partnership (CETP), an international coalition committed to advancing sustainable energy solutions. Canada’s expertise in renewable energy technologies, along with its track record of successful partnerships with countries like Germany and Japan, positions the country as a key player in the global clean tech revolution.