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To date, two provinces (Alberta and Ontario) have initiated retail competition.In Alberta, the electricity sector is largely privatized, in Ontario the process is ongoing.The United States is Canada's major trade market for energy products and services.Canada sends around 98% of its total energy exports to the United States, meaning that Canada is the largest supplier of energy exports to the world's largest economy.On the other hand, the federal government has the power to make treaties with foreign countries.This has important implications for treaties involving energy production, like the Kyoto Protocol, which the Canadian government signed in 2002.Provincial governments have jurisdiction over the exploration, development, conservation, and management of non-renewable resources, as well as the generation and production of electricity.Federal jurisdiction in energy is primarily concerned with regulation of inter-provincial and international trade and commerce, and the management of non-renewable resources on federal lands.
The producing provinces impose royalties and taxes on oil and natural gas production; provide drilling incentives; and grant permits and licenses to construct and operate facilities.The energy and climate policies in Canada are interrelated.These energy and climate policies are implemented at both the federal and provincial government level.Although the federal government had the authority to sign the treaty, it may require the cooperation of the provincial governments to enforce it.Canada has a robust energy profile with abundant and diverse resources. These policies are implemented at both the federal and provincial governmental level.
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The National Energy Board (NEB) is an independent federal regulatory agency that regulates the Canadian energy industry.