Canada reforms Energy Efficiency Act to align policy with digital markets

The Canadian government introduces major legislative changes to the Energy Efficiency Act to support its national strategy and adapt to the realities of digital commerce.

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The Government of Canada has introduced a set of amendments to the Energy Efficiency Act in the Senate with the objective of modernising its regulatory framework. First enacted in 1992, the Act governs the energy consumption of products used in Canada. The proposed changes aim to include online sales, strengthen compliance tools and reduce the time required for regulatory implementation.

The revisions notably extend the scope of the legislation to digital platforms, introduce electronic energy labels and implement more flexible processes to ensure faster enforcement. These updates are designed to keep Canadian legislation aligned with technological innovation and evolving consumer behaviour.

Significant industrial savings projected by 2030

According to official estimates, regulations enacted under the Act have generated more than CAD110bn ($80.75bn) in savings for consumers and businesses since 1995. The industrial sector alone is projected to save an additional CAD743mn ($545mn) annually by 2030 based on current measures.

The reform would also make administrative procedures more cost-effective by introducing mechanisms to streamline government processes. Authorities view these amendments as a critical tool to strengthen the efficiency of the national energy system without increasing the burden on economic operators.

A legislative framework aligned with national energy priorities

The amendments introduce instruments such as regulatory sandboxes, allowing new approaches to be tested in controlled environments before broader implementation. This type of mechanism is intended to ensure energy sector innovations can be integrated without slowing market development.

The legislative revision forms part of a broader strategy to improve the country’s economic competitiveness through better control of energy costs. The Ministry of Energy and Natural Resources states that high-efficiency products enable households and businesses to manage their expenses more effectively while contributing to a more stable energy network.

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