Canada
Canada is a major energy exporter in the world market, ranking sixth for energy production, with energy exports worth $240.5 billion as of 2022 (Natural Resources Canada (B), 2023). While historically this energy has been primarily oil and gas centered, Canada has taken measures to transition to more sustainable sources; Canada is currently one of the top 10 hydrogen producers in the world (Natural Resources Canada (A), 2020).
To build on this momentum of hydrogen energy, the Ministry of Natural Resources released the Hydrogen Strategy for Canada in 2020. Hydrogen is recognized as an important investment to achieve the national target of net zero emissions by 2050 (Natural Resources Canada (A), 2020). The Government of Canada has set specific goals for the hydrogen sector, including reaching 350,000 related jobs, utilizing hydrogen for 30% of national energy needs, and building a comprehensive hydrogen fuelling network across the country (Natural Resources Canada (A), 2020). Notably, the Hydrogen Strategy for Canada supports both green and blue hydrogen, with certain provinces better equipped for blue production (Alberta, Saskatchewan) and others able to focus primarily on green production (British Columbia, Quebec) (Natural Resources Canada (A), 2020).
Our research on the Canadian hydrogen policy landscape shows over 160 policy interventions linked to hydrogen, the distribution of which can be seen in the country dashboard. Analysis of the implemented interventions to date indicate that Canada is most active in promoting use of hydrogen, followed by increasing production of hydrogen, which corresponds to the targets for zero-emission vehicles (ZEV) to reach 10% of light-duty vehicles sales per year by 2025, 30% by 2030 and 100% by 2040, and becoming a top three global hydrogen producer by 2050 respectively (Natural Resources Canada (A), 2020).
Ministries involved in hydrogen policy
Number of policy interventions by ministry
Number of hydrogen-related interventions by public entities. This graph shows the distribution of policy interventions among the different public entities in the country. The number of interventions per entity takes into account all hydrogen-related activities, both individual as well as those collectively undertaken.
Hydrogen policy by instrument type and value chain segment
Policy instruments by type
Canada
Number of policy instruments in the hydrogen sector by instrument type. The R&D category entails those instruments promoting hydrogen research and development either through tax incentives or grants/subsidies; the Investment category comprehends those instruments promoting the investment in hydrogen production, usage, and/or transport and storage infrastructure; International Initiatives entail the instruments that have an international component i.e. treaties, accords, diplomatic activities, investments made by the Government abroad; Economy-wide instruments refer to non-sector-specific policies that provide a relative advantage to climate-friendly products and economic activities; Network/cluster promotion encompasses those policy instruments focused on building regional clusters and/or networks; Education and information entail the instruments to increase public awareness related to hydrogen; Voluntary agreements refer to those agreements made with private entities to take certain actions without an enforcement mechanism by the government.
Policy instruments by segment of the hydrogen value chain
Canada
Number of policy instruments by intervention sector along the hydrogen value chain. Shown here are those policy instruments classified in the following sector categories: multiple, production, usage, and transport and storage. Here multiple refers to policy instruments that directly impact two or more sectors, while the remaining areas of production, usage, transport, and storage exclusively impact the respective sectors.
International hydrogen initiatives
International Initiatives by instrument type
Canada
Number of policy instruments in the hydrogen sector by instrument type, considering only international initiatives. It is thus a zoom into the distribution of international interventions by type of instrument.
International initiatives by segment of the hydrogen value chain
Canada
Number of policy instruments in the hydrogen sector by segment of the hydrogen value chain, considering only international initiatives. It is thus a zoom into the distribution of international interventions by segment of the hydrogen value chain.
Types of policy instruments
Promotion of Investment
Canada
Number of all policy instruments targeting Promotion of Investment (including those targeting Production, Usage, and Transport and Storage) distributed by the different subcategory types: grants/subsidies, tax incentives public procurement, regulatory instruments, and other instruments). Accordingly, this graph includes all instruments that promote investment in either production, usage, or transport and storage as portrayed by the specific instrument they target.
Promotion of R&D
Canada
Number of policy instruments targeting Promotion of R&D distributed by the different subcategory types: grants/subsidies, tax incentives public procurement, regulatory instruments, other instruments, and multiple). A "Multiple" intervention is one that targets more than one instrument within R&D, e.g., one that addresses R&D through grants and other instruments, or through tax incentives and other instruments.
Education and Information
Canada
Number of policy instruments targeting Education and Information distributed by the different types of subcategories: education/training, awareness raising, labelling, and quality infrastructure. "Multiple" interventions target more than one instrument within Education and Information, e.g., one that addresses Education and Information through awareness raising and labelling, or education/training and quality infrastructure.
Promotion of Investment in Hydrogen Production, by instrument type
Canada
Number of policy instruments targeting Promotion of Investment in Hydrogen Production exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Production) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Production), e.g., one that addresses Promotion of Investment in Hydrogen Production through grants/subsidies, tax incentives or regulatory instruments, and other instruments.
Promotion of Investment in Hydrogen Use, by instrument type
Canada
Number of policy instruments targeting Promotion of Investment in Hydrogen Use exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Use) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Use), e.g., one that addresses Promotion of Investment in Hydrogen Use through grants/subsidies, tax incentives or regulatory instruments, and other instruments.
Promotion of Investment in Hydrogen Storage and Transport Infrastructure, by instrument type
Canada
Number of policy instruments targeting Promotion of Investment in Hydrogen Storage and Transport Infrastructure exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Storage and Transport Infrastructure ) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Storage and Transport Infrastructure , e.g., one that addresses Promotion of Investment in Hydrogen Storage and Transport Infrastructure through grants/subsidies, tax incentives or regulatory instruments, and other instruments.
Policy instruments by segments of the hydrogen value chain
Production of hydrogen and hydrogen derivatives, by production process and type of derivative
Canada
Displays the number of policy instruments targeting hydrogen and hydrogen derivatives by the production process (electrolysis, SMR with CCS, methane pyrolysis or unspecified) and derivative type (methanol, synthetic fuels, LOHC, ammonia, other or unspecified). Thus, this graph shows both, interventions targeting hydrogen production, and hydrogen derivatives production. "Multiple" interventions target more than one subcategory either or and within the production of hydrogen and production of hydrogen derivatives e.g., one that addresses the production of hydrogen via electrolysis and methane pyrolysis, or production of hydrogen derivatives specific for ammonia and methanol. These subcategories encompass not only the instruments directly affecting production of hydrogen in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the production of hydrogen and hydrogen derivatives-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to production. The latter needs to be included here for an accurate representation of policy instruments targeting production of hydrogen and hydrogen derivatives.
Hydrogen production by electrolysis, by type of electrolyzer
Canada
This graph displays the number of policy instruments targeting hydrogen production by electrolysis, distributed by electrolyzer type: PEM, Alkali, SOEC, or unspecified. "Multiple" interventions target more than one electrolyzer type within hydrogen production by electrolysis e.g., one that addresses Alkali and PEM electrolyzers or SOEC and PEM electrolyzers. These subcategories encompass not only the instruments directly affecting production of hydrogen in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the production of hydrogen by electrolysis policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to production of hydrogen b of hydrogen by electrolysis. The latter needs to be included here for an accurate representation of policy instruments targeting production of hydrogen by electrolysis.
Instruments in support of hydrogen storage and transport, including mode of transport
Canada
Number of policy instruments targeting hydrogen storage and transport infrastructure distributed by its subcategories: mode of transport: road, pipeline, maritime or unspecified, and storage. "Multiple" refers to interventions that touch on different modes of transport and/or transport and storage infrastructure at the same time. These subcategories encompass not only the instruments directly affecting transport and storage infrastructure in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the transport and storage infrastructure-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to transport and storage infrastructure. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen transport and storage infrastructure.
Instruments in support of hydrogen use, by area of application
Canada
Number of policy instruments targeting different types of hydrogen usage. These policy instruments are further divided into six subcategories: power generation, heat, industry (i.e., steel, chemical, cement, other), transport/mobility (i.e., automobile, bus, rail, trucks, aviation and maritime), unspecified, and multiple (touching on two or more subcategories within usage). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage.
Instruments in support of hydrogen use in transport, by sub-sector
Canada
Number of policy instruments that target hydrogen usage in the transport/mobility sector distributed by its further subcategories: passenger vehicles, buses, rail, trucks, aviation, maritime, unspecified, and multiple (touching on two or more subcategories within transport/mobility). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage and more specifically, use in transport/mobility.
Instruments in support of hydrogen use in industry, by industrial sector
Canada
Number of policy instruments that target hydrogen usage in the industrial sector distributed by its further subcategories: steel, chemical, cement, other, unspecified, and multiple (touching on two or more subcategories within industry). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage and more specifically, use in industry.