Canada's Clean Electricity Regulations (CER) are federal rules that limit greenhouse gas emissions from fossil-fuel power plants, starting in 2035. Finalized in December 2024, they do not ban natural gas power; instead they set annual emissions limits for larger units, with flexibility for older plants, backup generation and emergencies. They are also contested: Alberta has challenged them in court, and a 2026 Canada-Alberta agreement puts their application in that province on hold while the challenge proceeds.
Key takeaways
- The CER apply to fossil-fuel generating units of 25 MW or more that are connected to an electricity system.
- From 2035, covered units face an annual emissions limit based on their capacity and an intensity of 65 tonnes of CO₂ per gigawatt-hour, falling to zero from 2050.
- Built-in flexibility includes a 25-year "prescribed life" for many existing units, offset credits, compliance credits and emergency provisions.
- Alberta referred the regulations to its Court of Appeal; a hearing is scheduled for November 2026.
- Under the May 2026 Canada-Alberta implementation agreement, the regulations are held in abeyance in Alberta while court proceedings continue, subject to the carbon pricing framework being implemented.
Why the regulations exist
Electricity is central to Canada's climate plans in two ways. First, generating it with coal and natural gas produces emissions. Second, clean electricity is what makes heat pumps and electric vehicles low-emission. Much of Canada already runs on low-emission power from hydro, nuclear and growing wind and solar, but several provinces still rely heavily on fossil fuels for electricity.
The CER are meant to set a clear, long-term direction for those fossil units so that new investment shifts toward clean generation, storage and transmission, while keeping the lights on.
What the regulations require
Who is covered
The rules apply to generating units that burn fossil fuel, have a capacity of at least 25 MW, and connect to an electricity system. Smaller new units can be covered if a facility's total capacity reaches 25 MW.
The emissions limit
Instead of banning gas, the final rules set an annual emissions limit for each covered unit, calculated from its capacity and a set emissions intensity:
| Period | Emissions intensity used to set the limit |
|---|---|
| 2035–2049 | 65 tonnes CO₂ per GWh |
| 2050 and later | 0 tonnes CO₂ per GWh |
Because the limit is an annual total based on capacity, a gas unit that runs only occasionally, such as a peaking plant used during cold snaps, can often operate within its limit. A unit running around the clock without emission controls generally cannot.
Built-in flexibility
- Prescribed life. Units commissioned between 2010 and 2024 generally do not face the limit until 25 years after they started operating.
- Planned units. Units commissioned between 2025 and 2034 that meet early development milestones have a prescribed life ending at the end of 2049.
- Offset credits. Operators can use Canadian offset credits for part of their emissions.
- Compliance credits. Units that emit below their limit earn credits that can be used later, with some transferable.
- Emergencies. Emissions while a grid operator directs a unit to run during an emergency can be deducted.
These details are why some critics call the rules too weak and others call them too strict.
How the target changed
Early drafts were framed around a net-zero electricity grid by 2035. The final regulations added significant flexibility, and the federal government's stated goal for the electricity sector became net-zero by 2050. Before and after finalization, provinces including Alberta and Saskatchewan argued the rules threatened reliability and affordability, while environmental groups argued the flexibility weakens emissions cuts. In spring 2026, media reports indicated the federal government was considering further changes; check for the latest status before relying on any detail.
Alberta's challenge and the 2026 agreement
Alberta, which depends heavily on natural gas for electricity, argues that the regulations intrude on provincial jurisdiction over electricity and natural resources. It referred the question to the Alberta Court of Appeal in 2025. Canada maintains the rules are a valid use of federal powers. Other provinces and several organizations are participating, and the hearing is scheduled for November 16 to 19, 2026.
Meanwhile, Canada and Alberta signed a memorandum of understanding in November 2025 and released an implementation agreement on May 15, 2026. According to legal analyses of that agreement, the CER are held in abeyance in Alberta while court proceedings continue, linked to Alberta implementing an agreed industrial carbon pricing path. Our post on carbon pricing in Canada covers that side of the deal.
What it means for your power bill and your home
Effects differ sharply by province:
| Grid type | Examples | Likely CER impact |
|---|---|---|
| Mostly hydro | Quebec, B.C., Manitoba, Newfoundland and Labrador | Small; little fossil generation to regulate |
| Mixed nuclear, hydro and gas | Ontario | Moderate; gas plants used for peaks and backup |
| Fossil-heavy | Alberta, Saskatchewan, Nova Scotia, New Brunswick | Largest; major investment in new generation, storage or emissions control needed over time |
Building new clean generation and transmission costs money, and some of those costs eventually show up in rates, as does maintaining aging fossil plants. Federal measures such as the clean electricity investment tax credit are intended to offset part of the cost. Our province guides show how each grid is made up.
For households, the direction of travel is still a cleaner grid over time, which makes electric heating and transportation progressively lower-emission. Practical steps like efficiency upgrades and shifting usage to off-peak hours help both your bill and the grid; see our home energy page.
Frequently asked questions
Do the Clean Electricity Regulations ban natural gas power plants?
No. They set annual emissions limits from 2035, with flexibility for older units, occasional backup use and emergencies. Gas plants with carbon capture, or those running infrequently, can continue operating.
Will the regulations raise my electricity rates?
They could add costs in provinces that rely heavily on fossil fuels, though estimates vary and other factors, such as aging infrastructure and growing demand, also drive rates. In hydro-dominated provinces the effect is expected to be small.
Are the regulations in effect now?
They are law, but their main limits do not begin until 2035. In Alberta, they are held in abeyance under the 2026 agreement while the court challenge proceeds.
The bottom line
The Clean Electricity Regulations set a long-term emissions limit for fossil power that tightens from 2035 and reaches zero by 2050, with considerable flexibility along the way. Their future in Alberta depends on the courts and on the 2026 federal-provincial agreement, and further changes are possible. Whatever the outcome, Canada's grids are steadily adding clean generation, which matters for every homeowner thinking about heat pumps, EVs and solar.
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