Thank you.
I'm also pleased to be here today to speak about the role of energy efficiency in Canada and its contribution to Canada's Paris climate change commitments. As you've heard already from my colleague, Matt Jones, the pan-Canadian framework on clean growth and climate change is our national climate change plan. It is intended to make Canada more resilient to the impacts of climate change while helping us reach our greenhouse gas reduction target of 30% below 2005 levels by 2030.
Energy efficiency is an important part of reducing greenhouse gas emissions and forms part of the regulatory aspect of the complementary measures we're implementing to reduce these emissions. I'm going to talk further about some of those complementary measures, including some of those related to methane in the oil and gas sector, to transportation, to electricity and to the clean fuel standard.
As part of the pan-Canadian framework on clean growth and climate change, we've reaffirmed our commitment to reduce methane emissions from the oil and gas sector by 40% to 45% below 2012 levels by 2025. For those of you who don't know, methane is quite a potent greenhouse gas. It's 25 times more powerful than carbon dioxide and makes up about 15% of Canada's total greenhouse gas emissions. The oil and gas sector is the largest contributor of methane emissions in Canada.
In April 2018, Environment and Climate Change Canada published federal methane regulations to deliver on this commitment and reduce methane emissions. We've consulted extensively with provinces, territories, industry, environmental organizations and indigenous people to put in place a robust and cost-effective regulation. The regulations were designed to promote innovation and provide flexibility to enable industry to choose the most cost-effective compliance options.
Transportation accounts for about 25% of Canada's total GHG emissions, half of which are from passenger vehicles, or what we call light-duty vehicles. Our current light-duty vehicle regulations limit greenhouse gas emissions and have associated impacts on reducing energy consumption and increasing energy efficiency. The regulations are designed to promote innovation and provide flexibility to industry to choose the most cost-effective compliance options. New 2025 model year vehicles are expected to burn about 50% less fuel and emit 50% less greenhouse gas than vehicles built in 2008.
Canada's new heavy-duty vehicle emissions regulations, published in May 2018, introduce greenhouse gas standards for a full range of heavy-duty vehicles and engines. These standards increase in stringency from model years 2021 to 2027. It's estimated that some vehicle types can expect pollution reductions of up to 25% for model year 2027 heavy-duty vehicles.
With respect to electricity, about 80% of Canada's electricity generation is from sources that do not emit greenhouse gases, such as nuclear, wind or hydro. However, the remaining 20% is from emitting sources. On February 16, 2018, Environment and Climate Change Canada published proposed amendments to our traditional coal-fired electricity regulations to accelerate the phase-out of coal by 2030. At the same time we published draft standards for natural gas-fired electricity generation.
We expect these regulations to be finalized later this year. They will help Canada achieve its goal of 90% non-emitting electricity by 2030, and they form an important part of the pan-Canadian framework on clean growth and climate change. That is not only part of our plan to reduce emissions and grow the economy, but will also help us to transition as part of our mid-century strategy. The regulations will set greenhouse gas emission intensity performance standards for new gas-fired generation, ensuring that new gas-fired electricity generation is cleaner and more efficient. The new natural gas-fired capacity will be required in the coming years to ensure reliable and affordable electricity. A large amount of coal is coming offline, and it will provide a bridge for increased deployment of renewables.
With respect to clean fuel standards, using lower-carbon fuels in transportation industries and in buildings is one of the biggest steps we can take to reduce carbon pollution and make our economy cleaner and more competitive. The government is committed to developing a clean fuel standard to reduce carbon pollution by 30 million tonnes by 2030, which is a reduction in pollution equivalent to taking about seven million cars off the road each year.
In terms of the development of the standard, we announced in 2016 that we were moving forward with it and then recently announced in the summer that we're taking a phased approach. We'll be starting with liquid fuels. We'll be requiring a reduction in the carbon intensity of the fuel over its life cycle.
That regulation will have flexibility in terms of its compliance mechanisms, which will include things like energy efficiency or other efficiency measures that the refiners or upstream producers can put in place to lower the carbon intensity of their fuels, in addition to a range of other compliance flexibilities.
It's built in two parts. There will also be an element in the second phase to deal with solid and gaseous fuels such as natural gas and coal, and elements to see them moving forward and lowering their carbon intensity.
As mentioned by my colleague Matt Jones, there are a number of research and development initiatives that are designed to support provincial and territorial actions to reduce greenhouse gas emissions and spur clean growth across several sectors. Those funds are there to help support both the innovation that's needed but also the development of these measures that are needed to help us meet our commitments.
I thank you for your time. I'll turn it over to my colleagues from Natural Resources Canada.