ABSTRACT
This chapter examines Canada and EU-Canada relations under decarbonisation. As the production and export of oil, gas and coal are important for its economy, Canada is vulnerable to price fluctuations and the phase-out of fossil fuels. However, it is highly developed far beyond fossil fuels and can build on a highly diversified economy for transitioning towards climate neutrality. Regional differences provide a significant challenge for this process. The chapter argues that historical ties and shared interests and values provide a fruitful basis for developing EU-Canada relations under decarbonisation. These relations have been close and dense for several decades, as evidenced by the conclusion of the Comprehensive Economic and Trade Agreement (CETA) in 2016, as well as long-established close cooperation in a multitude of settings and areas. Trade and investment as well as energy (both fossil fuels and renewables) are important and evolving areas, with significant potential to integrate decarbonisation. In addition, both the EU and Canada face similar challenges in the climate transition, including with respect to the just transition of regions and sectors highly dependent on the fossil fuel-based economy.
