This country note features selected environmental indicators from the OECD Core Set, building on harmonised datasets available on OECD Data Explorer. The indicators reflect major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The OECD is working with countries and other international organisations to further improve the indicators and the underlying data.
Environment at a Glance: Canada
Canada is the world’s second largest country, covering nearly 10 million km2. Canada’s open and diversified economy is more reliant on natural resources than most other OECD countries. Canada is one of the world’s top five producers of crude oil, natural gas, primary aluminum and copper. It is also a major exporter of pulp, paper and several agricultural commodities such as wheat, canola, soybeans and vegetables. Canadians generally enjoy a high quality of life.
Geography, climate and land use varies widely. A broad belt of coniferous forest (essentially boreal forest) crosses Canada from east to west; agriculture mainly concentrates in the south and southwest; and tundra and permanent ice dominate Canada’s far north (covering roughly a quarter of total land area). Much of the country is uninhabited or only thinly populated due to the severe climate. Its vast territory hosts a great diversity of territorial and marine ecosystems and large tracts of it are undisturbed wilderness. It hosts about one-quarter of remaining wetlands, as well as the world’s longest coastline.
Canada’s natural resources include about 9% of the world’s renewable freshwater supply, 10% of its forests and significant reserves of oil (Alberta), gas (Alberta), coal (western Canada) and other minerals (e.g. copper, nickel, gold, lead, silver, uranium, zinc).
Canada has relatively decoupled energy supply and production-based CO2 emissions from real GDP growth. Due to its significant energy production, per person production-based and demand-based (or footprint) greenhouse gas (GHG) emissions remain well above the OECD averages but have steadily declined since the 2010. Demand-based emissions are lower than production-based ones, meaning that Canada is a net exporter of GHG emissions embodied in final demand.
Energy industries are the largest source of GHG emissions, followed by transport, buildings and manufacturing industries.
Canada is one of the largest crude oil and natural gas producers in the world. Moreover, the country produces one of the largest amounts of hydroelectricity worldwide. Despite a sharp decline of the share of coal, peat and oil shale since 2000, Canada’s energy mix remains dominated by fossil fuels. The share of oil in total energy supply decreased little, from 34% in 2000 to 33% in 2023, and that of natural gas increased from 29% to 40.5%. The shares of renewables and nuclear remained relatively stable, at 16% and 8%, respectively, in 2023.
Canada’s electricity supply is among the least carbon-intensive in the world, with 66.8% of renewables in 2023 (mainly from hydro power) and the important role of nuclear energy (IEA, 2022[1]).
The emissions of non-methane volatile organic compounds (NMVOC), sulfur oxide (SOx) and nitrogen oxide (NOx) have decreased substantially since 2000, whereas small particulates (PM2.5) emissions decreased in the first half of 2000s to then stabilise, and ammonia (NH3) emissions stagnated. Despite the progress, emission intensities, both per GDP and per person, remain much higher than the OECD average. Industry (including industrial processes and combustion) and transport are the largest emitters of most pollutants. Emissions from both sectors have decreased since 2000. This was mainly owing to the installation of new technology and processes at non-ferrous smelting and refining facilities and the closure of two smelters (which reduced industrial SOx emissions), as well as stricter trucks and vehicles regulations (which drove down NOx emissions in particular). The decline in NOx and SOx emissions also reflects the shift in electricity generation from coal to natural gas (OECD, 2017[2]).
Despite the modest reductions in PM2.5 emissions, population exposure is relatively low, just higher than the World Health Organisation threshold of 5 microgrammes/m3, with about half of the regions below the threshold.
Canada is blessed with enormous amounts of freshwater renewable resources, thus water stress is not an issue, despite the relatively high (but decreasing) abstractions for public supply.
Due to the disparate reality of settlements across Canada, about 14% of the population is connected to independent treatment systems. Between 2004 and 2022, the percentage of the population that has been connected to advanced tertiary treatment plants has increased from about 19% to 29%. Over the same timeframe the percentage of the population that is not connected to wastewater treatment has decreased from about 3% to less than 1%.
Canada’s data on municipal waste treatment refer to residential and non-residential sources, including industrial waste and demolition and construction waste. They show that more than two thirds of generated waste is landfilled. In 2018, waste from households amounted to 424 kg per person.
Canada per person domestic material consumption and material footprint increased until 2013 and have been stable since 2017. Material productivity has stagnated and remains well below the OECD average. This is explained by the overwhelming role of fossil fuels production and exports.
Forests occupy almost 40% of the land area. About 3 473 km2 of land-use changes were observed between cropland, forest and settlement south of 60 North (the southern territorial border of Yukon, Northwest Territories and Nunavut) from 2010 to 2015. Of these a large proportion (65% or 2,258 km2) was the conversion of forest to cropland. About 1,215 km2 of cropland and forest were converted to settlement. Prior to this period, in the Toronto, London, St. Catharines–Niagara and Windsor metropolitan areas, 85% of the land converted to settlements between 1971 and 2011 was high-value agricultural land. In the same time period, large amounts of forests were also converted to settlement in the Halifax, St. John's, Saint John and Trois-Rivières metropolitan areas.
About 80 000 species are known to exist in Canada, excluding bacteria and viruses. However, wild species face a variety of threats, including the loss, fragmentation and degradation of habitat, pollution, overexploitation and fishery bycatch and other incidental loss due to resource harvesting. Conserving wild species promotes biodiversity and maintains ecosystem services that Canadians rely on like pollination, controlling floods, and air and water filtration.
The status of wild species in Canada has been assessed every 5 years since 2000. Between 2000 and 2020, of those that have a NatureServe numerical rank, the proportion of species ranked as secure or apparently secure has varied between 70% and 80%. This variation is due mainly to the assessment of additional species. Of the 24,483 native species with a NatureServe numerical rank, 19 600 species (80%) are ranked as secure or apparently secure, 4 883 species (20%) are at some risk of extirpation (ranked as vulnerable, imperilled or critically imperilled), and 135 species are presumed extirpated or possibly extirpated (no longer found in Canada).
Canada supports a remarkable diversity of tundra, forest, grassland, freshwater, and ocean ecosystems. About 40% of Canada is forests and woodlands, representing about 10% of the world’s total forest cover. It has been estimated that Canada has about 25% of the world’s wetlands, occupying roughly 14% of the country’s area. Approximately 8 500 rivers and over 2 million freshwater lakes cover almost 9% of Canada’s total surface area. Scientists have identified over 70 000 species occurring in Canada’s diverse ecosystems, and as many more remain to be properly investigated. Canada has a low percentage of endemic species compared to many countries, but approximately 54 species of vascular plants, mammals and freshwater fish and molluscs are known to be endemic to Canada.
Native prairie grassland ecosystems have undergone the most extensive modification of any of Canada’s major ecological units, mostly through conversion to agricultural land. Development, mainly dyking and draining for agriculture and urban areas resulted in an estimated loss of up to 65% of Atlantic coastal marshes, up to 68% of southern Ontario wetlands, up to 70% of prairie wetlands, and up to 88% of freshwater wetlands in the Lower Fraser Valley, British Columbia. The quality of sea ice has also changed, with an increase in younger, thinner ice and a decrease in the older, multi-aged and thicker ice. Increasing numbers of species of landbirds, seabirds, freshwater fish, reptiles, and freshwater mussels are imperilled. Most populations of caribou are declining (CBD, 2022[3]).
At the end of 2023, Canada had conserved 13.7% of its terrestrial area (land and freshwater), including 12.8% in protected areas as well as 14.7% of its marine territory, including 9.1% in protected areas. Terrestrial area conserved has increased by 101% in the last 20 years, by 22% in the last 5 years, and by 1% in the last year. Marine area conserved has increased by 3 099% in the last 20 years, by 137% in the last 5 years, and by less than 1% in the last year.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
The share of environmentally-related tax revenue in GDP has remained stable at about 1.2%, below the OECD average. Its share in total revenues is between 3% and 4% and is dominated by the energy base.
Government responses to the pandemic and subsequent oil price shock in mid-2020 resulted in several support measures for fossil fuel consumption and production being created or expanded at federal and provincial levels. In July 2023, the Government of Canada released the Inefficient Fossil Fuel Subsidies Assessment Framework and the Inefficient Fossil Fuel Subsidies Guidelines. The Framework provides a methodology for assessing whether a measure constitutes an inefficient fossil fuel subsidy, while the Guidelines are meant to avoid the creation of any new inefficient fossil fuel subsidies. This policy applies to all federal departments and agencies and provides for a standardized methodology to ensure future government support is aligned with Canada’s climate and energy priorities. Canada has also committed to develop and release an implementation plan to phase out public financing of the fossil fuel sector, including by federal Crown Corporations, by the end of 2024. However, despite these reforms at the federal level, Russia’s invasion of Ukraine and global inflation have impacted energy prices, leading to several provinces establishing further support for fossil fuels to combat surging prices.
Several provinces continue to provide support for the extraction sector through targeted royalty concessions and research and development (R&D) spending (OECD, 2023[4]).
In total, 74.6% of GHG emissions in Canada were subject to a positive Net Effective Carbon Rate (ECR) in 2023. Explicit carbon prices in Canada consist of emissions trading systems (ETS) permit prices and carbon taxes, which cover 72.5% of GHG emissions in CO2 eq. With roughly 42.3% of total GHG emissions, coverage is largest for ETS. Fuel excise taxes, an implicit form of carbon pricing, cover 22.9% of emissions in 2023. About 19% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 eq., a mid-range estimate of current carbon costs. Net Effective Carbon Rates are highest in the road transport sector, which accounts for 18.6% of the country's total GHG emissions. The Net ECR is on average positive in all sectors (OECD, 2024[5]).
Through Budget 2017, Canada committed CAD 2.3 billion toward a clean growth policy agenda, as outlined in the PCF under the clean technology, innovation and jobs pillar. This investment resulted in the creation of new research, development and demonstration (RD&D) programmes that incorporated novel approaches to design and implementation, including cohort-based capacity building, milestone-based prize challenges, and partnerships with the private sector and foreign governments. Notably, Canada has introduced the Strategic Innovation Fund, which has been supporting the creation and growth of innovative businesses across several sectors. Subsequent measures were announced under Budget 2021, including a Net Zero Accelerator, which will invest a total of CAD 8 billion to support faster decarbonisation from large emitters, scale up clean technology and accelerate industrial transformation (IEA, 2022[1]).
With an average of 17.5 environmentally-related inventions per person by national residents in 2020-22, not far from the OECD average (22.9), Canada is a major player in environmentally-related innovation. The share of environmentally-related in total inventions has followed closely the OECD area trend, with a decline in recent years to reach 8.4% in 2022.
Canada’s development co-operation seeks to eradicate poverty and build a more peaceful, inclusive and prosperous world. It channels its bilateral official development assistance (ODA) mainly through multilateral organisations as earmarked funding and the public sector. Canada’s total ODA decreased in 2024 to USD 7.4 billion (preliminary data), representing 0.34% of gross national income (GNI).
In 2022-23, Canada committed 25% of its total bilateral allocable ODA in support of the environment and the Rio Conventions, down from 31% in 2020-21. The DAC average was 39% in 2022-23.Sixteen per cent of screened bilateral allocable ODA focused on environmental issues as a principal objective, above the DAC average of 10%. Eighteen per cent of total bilateral allocable ODA focused on climate change overall, up from 16% in 2020-21 (the DAC average was 35%). Canada had a greater focus on mitigation (15%) than on adaptation (11%) in 2022-23. Six per cent of screened bilateral allocable ODA focused on biodiversity overall, up from 4% in 2020-21 (the DAC average was 8%). Canada committed USD 96.3 million in support of the conservation and sustainable use of the ocean in 2023, USD 35 million more than in 2022. The 2023 value is equivalent to 2% of Canada’s bilateral allocable ODA. (OECD, 2025[6]).
References
[3] CBD (2022), Country profiles: Canada, https://www.cbd.int/countries/profile?country=ca.
[1] IEA (2022), Canada 2022 Energy Policy Review, OECD Publishing, Paris, https://doi.org/10.1787/a440d879-en.
[6] OECD (2025), Development Co-operation Profiles, OECD Publishing, Paris, https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/canada_0c742aaa-en.html.
[5] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
[4] OECD (2023), OECD Inventory of Support Measures for Fossil Fuels: Country Notes, OECD Publishing, Paris, https://doi.org/10.1787/5a3efe65-en.
[2] OECD (2017), OECD Environmental Performance Reviews: Canada 2017, OECD Publishing, Paris, https://doi.org/10.1787/9789264279612-en.
CESI (2024), Air indicators, https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/air.html
CESI (2023), Canada's conserved areas, https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/conserved-areas.html
CESI (2023), General status of wild species, https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/general-status-wild-species.html
CESI (2021), Land-use change, https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/land-use-change.html
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