Modernizing Canada’s Energy Efficiency Act to Improve Affordability and Competitiveness
December 1, 2025
The Government of Canada is taking action to build a clean, affordable and economically competitive future for all Canadians. Modernizing legislation and delivering programs to enable tenants, homeowners, building operators, manufacturers and industrial facilities to choose energy-efficient equipment and technologies helps them save money and reduce greenhouse gas emissions.
To that end, amendments to modernize the Energy Efficiency Act were introduced in the Senate. First passed in 1992, the Act aims to reduce the overall energy consumption of energy-using products and allow consumers to make informed purchasing decisions. Since 1995, Canadian households, businesses and industries have saved over $110 billion as a result of regulations under the Act. It is estimated that the Canadian industrial sector will see annual savings of $743 million in 2030, thanks to regulations already in place.
The new amendments presented will build on progress to date, ensuring the Act functions in modern online marketplaces, and enable it to keep pace with technological innovations in the ways energy is used and managed. Among other updates, amendments will:
- expand the legislation to include online sales and digital labels;
- bring tools in the Act in line with those in other modern legislation, like adding regulatory sandboxes and more nimble and targeted compliance options; and
- make the regulatory processes faster and more cost-effective by introducing new mechanisms that streamline government processes.
Energy efficiency is central to how the Government of Canada is improving affordability and supporting industrial competitiveness. Increased energy efficiency in homes and buildings, as driven by a modernized Energy Efficiency Act, helps Canadians and their businesses lower their energy bills, boosts productivity and reduces greenhouse gas emissions, all while supporting more secure, reliable electricity systems.
Quotes
“Modernizing the Energy Efficiency Act ensures Canadian families, homes and businesses can access higher-performing, lower-cost energy-using products that save them money and reduce greenhouse gases. This is good news for our environment and Canadians’ wallets.”
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
“The Energy Efficiency Act cuts emissions and saves Canadians money by ensuring appliances and equipment use less energy. It’s one of the federal government’s clearest and most powerful levers — and it’s overdue for a 21st-century upgrade.”
Corey Diamond
Executive Director, Efficiency Canada
Quick facts
- Industrial energy efficiency is Canada’s biggest untapped opportunity, as our industrial sector accounts for 40 percent of national energy use and over $60 billion in annual energy costs.
- Buildings are Canada’s third-largest source of greenhouse gas emissions, and the way we heat, cool and power them is critical to tackling climate change and lowering energy bills for Canadians.
- Canada will be co-hosting the IEA’s Global Conference on Energy Efficiency in 2026 — the first time this event will be held in North America.
Related Story
Canada Opens G7 Energy and Environment Ministers’ Meeting
The G7 was created 50 years ago with the understanding that economic growth and stability and energy security are rooted in international cooperation. Now, the world is confronting evolving energy and environment challenges — shaped by conflict, geopolitical pressures, climate change and technological disruption. In this critical moment, the G7 must again move swiftly to secure an environmentally sustainable and market-based energy future, and Canada is leading the way.
