Feb 12, 2024

A new report from TD Bank highlights that while the U.S. has more successfully reduced emissions than Canada, both countries will face challenges to meet emission reduction goals. 

Likeleli Seitlheko, an economist at TD Bank, said in a report Monday that both Canada and the U.S. have made “moderate progress” regarding reductions in greenhouse emissions. Despite this, Seitlheko highlighted that each country will be challenged to meet 2030 emission reduction targets due to the speed that which new investment can be implemented. 

“The two countries may have to prioritize different measures for addressing emissions in the oil and gas sector as carbon dioxide is the main greenhouse gas emitted in the sector in Canada while methane dominates in the U.S.,” Seitlheko said.

Canada has a goal to reduce greenhouse gas emissions by 40-45 per cent by 2030, while the U.S. has a goal to reduce emissions by 50-52 per cent during that same time, according to the report. 

The report highlighted the importance of understanding the reasons behind why Canada’s performance has lagged the U.S. Specifically, the report said the U.S. leads Canada in absolute emissions declines but also “emissions intensity on a per capita and per unit of GDP basis.” 

“Among the main emitting economic sectors, Canada has been more effective at reducing emissions in the electricity sector. However, this sector accounted for a larger share of total emissions in the U.S. and thus contributed more to the decline in overall emissions there,” the report said. 

“Moreover, the U.S. has made stronger inroads in the transportation sector, further tilting the figures in their favour.” 

Seitlheko said that increased support for electric vehicle ownership in Canada is needed to “counteract