Similarities and contrasts: Comparing U.S. and Canadian paths to net-zero

• Policy and technology levers combine to affect net zero economic outcomes in Canada and the US. • GDP increases in Canada and the United States under alternative net zero scenarios. • Electricity supply and demand dynamics determine economic outcomes. • Canada's economy is slightly more responsive to negative emissions technology cost declines. Canada and the United States (US) have both committed to reaching net zero emissions by 2050 but neither have implemented policy sufficient to reach this target. Knowledge of the technical steps to deep decarbonization is needed alongside an understanding of how each country might be similarly and uniquely impacted by a transition to net zero emissions, contingent on specific technology advancements or policy decisions. We use the computable general equilibrium model, gTech, to simulate sixteen net zero scenarios for Canada and the US varying by technology and policy assumptions as part of the energy modelling forum 37 (EMF37) study. We find that both economies similarly continue to grow in all scenarios out to 2050 with the rate of growth largely determined by assumptions on negative emissions technology. Sectoral impacts differ between countries as a result of current emissions and GDP profiles in combination with assumed net zero scenario policy and technology advancements. In the US, we find that efficient use of electricity is a slightly more important predictor of economic outcomes, while Canada's economy is marginally more responsive to cost and performance improvements in carbon capture technologies.