No improvement in Quebec’s energy productivity
Publication of 11th State of Energy in Quebec
February 13, 2025
Despite several developments related to energy sector management, petroleum product sales continued to rise and total energy consumption increased faster than the economy and population in Quebec.
Energy productivity was therefore down in 2022, the last year for which data is available. This marks a 3% decline, the first since 2009.
These are some of the main findings of Professor Pierre-Olivier Pineau and researcher Johanne Whitmore of HEC Montréal, who published The State of Energy in Quebec 2025 Edition. This annual report is produced by the HEC Montréal Chair in Energy Sector Management with financial support from the Government of Quebec.
Its authors point out that Quebec is targeting a 40% reduction in its petroleum product consumption by 2030. And since around 40% of the energy consumed by industry, transportation and buildings is lost, we would stand to benefit by increasing energy efficiency in these sectors.
“Prioritizing energy efficiency and clean energy production will be essential for ensuring a more affordable and equitable transition, while promoting economic growth and energy security in Quebec.”
Energy consumption and vehicle sales
Pros:
- Electric vehicles accounted for 19% of new vehicle sales in 2023.
- The number of vehicles per 1,000 inhabitants is starting to decline, after peaking in 2021.
Cons:
- Petroleum product consumption not only increased in 2023, but it also hit a record high for motor vehicle-related gasoline sales.
- The sales share of SUVs and other gas-powered trucks continues to increase.
- Per capita energy consumption in Quebec (191 GJ) remains one of the highest in the world.
Potential progress
With only five years to go until 2030, there is very little time left to meet Quebec’s greenhouse gas (GHG) reduction target. Pierre-Olivier Pineau mentions that certain announced measures could, however, result in some progress:
- Reduction in the fleet of gasoline and diesel vehicles
- Increase in the proportion of biofuels included in fuels
- Electricity and gas tariff increases
- Ban on the sale of light-duty gasoline vehicles in 2035
- Review of carbon market rules
- Enactment of the Act respecting the environmental performance of buildings
“To make the transition a success, Quebec must first reverse its energy consumption trends in order to better absorb the costs of emerging energies and electrification. Quebec’s approach relies more on incentives, such as subsidies for heat pumps. Greater emphasis on tax, tariff and regulatory measures as well as efficiency standards, is necessary to align markets with the goal of carbon neutrality by 2050.”
For more information, consult The State of Energy in Quebec 2025 Edition [in French only]