Five actions Canada can take to supercharge the economy and improve affordability

 

 

1. Expand energy access in Indigenous, northern, and rural communities

The federal government must reduce diesel dependence in Indigenous, northern, and rural communities, where it remains costly and contributes to higher emissions and environmental impacts. Propane offers a practical, lower-risk and affordable alternative that does not require remediation if spilled. It can be delivered year-round, stored indefinitely without degradation, and used for heating, power, and backup energy, making it a strong option for safer, more resilient energy in these communities.

RECOMMENDATION: Include propane in federal programs to reduce diesel use in Indigenous, northern, and rural communities. Provide the matching diesel subsidy to propane for remote communities that must rely on their own energy grids.

 

 

2. Power Canada’s AI strategy with reliable energy

Canada’s rapidly expanding digital and AI infrastructure demands resilient, uninterrupted power. The federal government should include propane as a reliable, lower-emission backup energy that can be rapidly deployed, safely stored on-site, and trusted to keep critical data infrastructure running without interruption.

RECOMMENDATION: Ensure propane is included as an eligible solution in new data and AI infrastructure projects, and replace diesel backup systems with propane where feasible.

 

 

3. Strengthen exports to global markets as a trusted energy partner

Canada must build on its position as a global propane leader by strengthening production, expanding processing capacity, and fully leveraging West Coast export infrastructure to meet growing demand in Asian markets. With propane already recognized as a strategic export in emerging partnerships (including with China and India), the government must support continued growth and secure Canada’s role in the evolving global energy landscape.

RECOMMENDATION: Make use of West Coast export infrastructure by removing regulatory bottlenecks, coordinating federal actions for access to tidewater, and aligning tax, regulatory, and trade frameworks to strengthen competitiveness and support long-term growth in Canadian propane production and exports.

 

4. Strengthen national defence infrastructure in rural and remote areas

The Department of National Defence relies heavily on diesel to support operations across remote and northern locations. Reducing this reliance can improve energy security, decrease logistical burdens, support federal emissions targets and reduce environmental impacts to soil and water

RECOMMENDATION: Reduce reliance on diesel in defence operations by transitioning appropriate systems to propane and integrating it into energy planning, procurement, and logistics to improve reliability, fuel security, and operational resilience in remote and northern environments.

 

5. Remove policy barriers to renewable propane access and production

Renewable propane offers a practical solution that can help Canada reduce emissions while maintaining reliable energy across transportation, agriculture, industry, and commercial applications. The federal government must remove regulatory barriers and fully recognize renewable propane as a low-carbon biofuel within federal fuel standards and programs to accelerate Canadian production and significantly grow domestic supply.

RECOMMENDATION: Establish a level incentive framework for renewable propane, aligned with other biofuels, while streamlining approvals and enabling clear regulatory pathways to accelerate production and market access across Canada.

 

PROPANE POWERS CANADA

Across Canada, propane supports reliable energy access, strengthens key industries, and contributes to economic security. With a practical focus on access, infrastructure, and fair policy treatment, propane can play a larger role in supporting jobs, investment, and long-term growth.