Canada's hidden heat: why regulatory harmonization is key to a geothermal breakthrough
As the world races toward a clean energy future, Canada stands on the brink of a geothermal breakthrough. Beneath our feet lies a vast, untapped resource — clean, renewable and secure baseload power. Yet, despite our geological riches and world-class drilling expertise, Canada's geothermal sector remains dormant. One reason is the patchwork of inconsistent and incomplete regulations across provinces and territories — 10 jurisdictions across the country have no regulations in place for geothermal power production.
Geothermal energy, which harnesses heat deep within the Earth to generate renewable heat and electricity, offers a rare combination of benefits. It is clean, reliable and, unlike other renewable energies dependent on the wind or the sun, it is available 24/7. It can be developed in partnership with Indigenous communities, supports rural economic development and reduces our reliance on fossil fuels. It can also be co-produced with other subsurface resources like lithium or hydrogen, creating new revenue streams and accelerating the energy transition.
The world is experiencing a geothermal breakthrough — new technologies are emerging, costs are falling and the International Energy Agency estimates US$1 trillion worth of investments by 2035. But technology doesn't exist in a vacuum. Regulations and policies must keep up or risk becoming bottlenecks. Canada has already learned this lesson.
A new report from the Cascade Institute, Groundwork: Regulatory Guidelines for Making Canada a Geothermal Powerhouse, makes one thing clear: if Canada wants to lead in geothermal energy, we must first lead in regulatory coherence for geothermal energy.
Currently, only three provinces — British Columbia, Alberta and Nova Scotia — have geothermal regulations in place. Even among these, the rules vary widely in scope, clarity and effectiveness. This inconsistency creates uncertainty for developers, delays project timelines and increases financial risk — barriers that Canada can no longer afford if it hopes to compete in the global clean-energy economy.
The report draws on lessons from the world's top 10 geothermal producers, from the United States to Indonesia, New Zealand to Türkiye. The common thread? Success hinges on clear, consistent and technology-agnostic regulations that reduce risk and attract investment.
In the US, for example, federal lands are governed by standardized geothermal leasing rules, providing developers with predictable pathways to project approval. In Mexico, mandated decision timelines ensure regulatory efficiency. In New Zealand, Indigenous rights are integrated into geothermal governance, offering a model for Canada's own reconciliation efforts.
Geothermal energy offers not just clean power, but energy security, economic development and a path to decarbonization, writes Emily Smejkal.
Canada's federal structure means provinces and territories control their subsurface resources. But that doesn't mean we must accept regulatory fragmentation across the federation. Instead, we should embrace a coordinated approach — one that respects jurisdictional autonomy while aligning on core principles: clear resource definitions, fair tenure systems, streamlined permitting and early public engagement.
For example, the federal government could establish a voluntary national geothermal code of practice — developed in collaboration with provinces, Indigenous groups and industry — that outlines best practices and model regulations. This would provide a common reference point, while allowing provinces to tailor implementation to local needs.
The Cascade Institute's report offers a starting point with practical guidelines that provinces can adopt or adapt to. It's a blueprint for harmonization without homogenization — tailored to Canada's unique legal, environmental and cultural landscape.
The stakes are high. Geothermal energy offers not just clean power, but energy security, economic development and a path to decarbonization. The United States is already adding geothermal electricity to power grids and data centres. With the right regulatory foundation, Canada could do the same, starting today — unlocking our potential and becoming a global leader in geothermal innovation.
But the window is closing. Other countries are moving fast. If we want to compete, we must act now — and we must act together.
The good news is that we don't have to start from scratch. Canada knows how to move fast when it wants to: the oil and gas sector can issue a drilling permit in Alberta in just 15 days. Shouldn't geothermal projects be able to do the same? Canada has the geology, the technology, and the policy expertise. What we need now is alignment across provinces.
As Natural Resources Minister Tim Hodgson has said, "It is a time for bold action, clear decisions, and a renewed spirit of building." Consistent regulations can set the stage for industry to deliver on geothermal power and make Canada a clean energy superpower — using conventional energy expertise.
It's time to lay the groundwork for Canada's geothermal future. That starts with bringing in effective, consistent regulations, from coast to coast.
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