Why minimum energy performance standards matter for Canada
Why minimum energy performance standards matter for Canada
What are minimum energy performance standards?
Minimum energy performance standards (MEPS) are regulations that define the maximum energy (or water) that appliances or equipment may consume.
Because many appliances and equipment stay in use for several years — and some industrial equipment can operate for decades — the standards set today influence energy use and costs well into the future.
Inefficient appliances and equipment are driving up Canada's energy costs and emissions.
MEPS can help federal and provincial regulators lower energy bills for households and businesses, reduce greenhouse gas emissions, and decrease peak electricity demand.
Affordability and lower emissions
Canada’s MEPS ensure that appliances and equipment shipped into Canada and between provinces meet certain efficiency levels. This reduces energy waste, lowering energy bills for households and businesses while reducing emissions.
Energy reliability for all
Efficient electric appliances and equipment reduce peak electricity demand. This improves energy reliability for all, especially when the grid is strained during extreme weather events like cold snaps or heatwaves.
Canada lags behind world leaders
Canada’s annual energy intensity progress trails other G20 nations. For Canada to be an “energy superpower,” it should emulate MEPS from world-leading jurisdictions for electric motors, lighting, major home appliances and other key categories.
How minimum energy performance standards can benefit Canadians
Lower energy bills
Inefficient appliances and equipment use a disproportionate amount of energy. Over their lifetime, that translates into higher utility bills for households and businesses. MEPS eliminate the least efficient appliances and equipment from the market, meaning consumers will purchase products that require less energy while offering the same performance.
Lower emissions
Strengthened MEPS ensure new appliances and equipment produce fewer emissions (either directly from fuel-burning appliances or indirectly from electricity generation).
As Canada and the rest of the world fall increasingly behind emissions reduction targets, MEPS could be a powerful, cost-effective tool. Lower emissions also improve outdoor and indoor air quality, leading to myriad health benefits and enabling increased productivity.
Economic benefits
Improving appliance and equipment efficiency is one of the lowest-cost ways to reduce energy use and emissions.
Canada’s own experience reflects this. According to NRCan, recent amendments to the Energy Efficiency Regulations will deliver billions in net benefits.
- Amendment 18 (finalized in 2025) will provide $50 billion in net benefits by 2050 — a more than 9:1 benefits-cost ratio.
- Amendment 17 (finalized in 2022) will provide $1.68 billion in net benefits by 2050 — a more than 5:1 benefits-cost ratio.
MEPS can also drive product innovation and redesign, enabling high-skill job growth and manufacturing competitiveness.
Strengthened electricity demand management
Strengthened electricity demand management
Canada’s electricity demand is increasing at a rate that utility resource planning is struggling to keep pace with. More frequent extreme weather events can also prompt spikes in peak electricity demand, adding greater strain to the grid.
Stronger MEPS reduce the amount of electricity that appliances and equipment consume over their operating life. This includes electricity use during periods of high demand, making MEPS an important tool for managing long-term electricity system needs.
Reduced electricity consumption benefits utilities by reducing peak loads and the need to add more generating, transmission and distribution capacity. This improves access to energy for all Canadians.
Canada has room to catch up
Natural Resources Canada also has a target of 77.4 petajoules (PJ) of total annual energy savings from strengthened MEPS by 2030. In the 2022–23 fiscal year, it achieved 16 PJ.
Canada can improve its MEPS by emulating world-leading jurisdictions, including China for electric motors, the U.S. for general service lamps (lighting) and the European Union for many major home appliances.
It can also engage in capacity-building and awareness-raising to encourage the production, supply and use of more efficient appliances and equipment.
Who sets MEPS?
NRCan sets MEPS through the Energy Efficiency Regulations, which also include test standards and energy labelling requirements. The regulations apply to approximately 80 categories of appliances and equipment shipped into Canada or between provinces for sale or lease.
How are MEPS strengthened?
NRCan periodically amends the Energy Efficiency Regulations to introduce updated standards. These are primarily based on impact assessments, consultations, public submissions and benchmarking against MEPS elsewhere in North America.
When will Canada's MEPS next be updated?
NRCan is consulting on Amendment 19 to the Energy Efficiency Regulations in Spring 2026. Categories impacted include ground-source heat pumps, electric motors, major appliances and more.
Our research on MEPS in Canada
Efficiency Canada’s research and analysis focus on areas where stronger standards could deliver meaningful benefits. It shows that other jurisdictions have adopted stronger minimum standards for key appliances and equipment. Aligning Canadian standards with these higher-performing jurisdictions represents a clear opportunity to improve outcomes.
