Developing Canada’s Sustainable Investment Guidelines

BACKGROUNDER

Overview

In December 2025, the federal government announced two years of seed funding to develop Canada’s sustainable investment guidelines, commonly referred to as a sustainable finance taxonomy.

Successfully establishing sustainable finance investment guidelines in Canada will be crucial to securing our country’s energy transition and future prosperity. It will create a common language for capital markets around the types of projects and activities that are aligned with Canada’s climate and economic goals. And it will help mobilize private finance towards new, clean growth projects that can decarbonize existing, emissions-intensive sectors, increasing their global competitiveness.

Who’s Involved

The Canadian Climate Institute will work collaboratively with Business Future Pathways to establish a robust and independent governance structure to oversee the development of science-based taxonomy criteria and undertake stakeholder engagement. Together, the Canadian Climate Institute and Business Future Pathways will enable and support the work of a new independent Taxonomy Council, which will review and ultimately approve investment guidelines.

The Canadian Climate Institute will lead the research and technical work to inform development of the proposed  guideline criteria, and work with Business Future Pathways to convene the decision-making Council and its  financial and technical advisory bodies. The Council and advisory bodies will include representatives from independent experts and academics, the financial sector, climate scientists, Indigenous representatives, and civil society. As efforts get underway, working groups with specific areas of expertise in key industries and sectors will also be established to inform recommendations to the Council. 

The Taxonomy Council is expected to finalize investment guidelines for three priority sectors by the end of 2026 and complete three additional priority sectors by Fall 2027. The Council will collaborate closely with government, industry, and other key stakeholders to determine the initial priority sectors, based on consideration of where taxonomy guidance has the greatest potential to deliver emissions reductions and promote low-carbon competitiveness in the Canadian economy.

Why Made-in-Canada Sustainable Investment Guidelines Matter

Building on the significant work of Canada’s Sustainable Finance Action Council—which will form the basis for Canada’s new sustainable investment guidelines, and was endorsed by Canada’s 25 largest financial institutions—the Canadian  guidelines will establish criteria for “green” investments as well as “transition” investments. It will prioritize guidelines for investment in projects and sectors that are most essential to Canada’s economic growth while ensuring alignment with international investment taxonomies and science-driven climate targets.

Developing these investment guidelines will help Canada catch up in the race for global capital as markets shift. More than 60 sustainable finance taxonomies are currently being used and developed around the world, including almost all of Canada’s major trading partners. Recent research from the University of Hamburg shows that investments into companies aligned with the European Union’s sustainable finance taxonomy generated an “alignment premium” in returns for those companies.

There is significant momentum behind aligning international taxonomies to support the flow of green and transition capital across borders, for example, in the form of green and transition bonds. 

Next Steps

The first order of business will be the selection of the new Taxonomy Council. This process will be led by a temporary Appointment Committee composed of highly-regarded finance, climate, and governance experts. It is anticipated that Council members will be appointed and announced early in the new year.

Over the next two years the Council will work to formalize green and transition investment guidelines for six (yet to be determined) priority Canadian sectors. These guidelines will be science-based, technology-neutral, and include criteria that screen-out investments that could cause significant harm. 

Quotes

“As Canada works to build stronger, more diversified trading partnerships and undertake nation-building projects, globally-aligned, made-in-Canada sustainable investment guidelines will help unlock our country’s economic potential. Canada is one of the best places in the world to put green and transition capital to work. These guidelines will help direct that investment toward the opportunities that will shape our shared future.”

  • Barb Zvan, Chair of the Financial Advisory Committee, Business Future Pathways; Former Chair of the Sustainable Finance Action Council Taxonomy Technical Expert Group

“The new sustainable investment guidelines will give Canada what investors have been asking for: a clear, credible, science-based system for identifying which activities in the economy are aligned with the country’s climate and competitiveness goals. Crucially, Canada’s guidelines will not just focus on defining clean technologies and investments—they will be designed to help transform emissions-intensive sectors that are central to the national economy, and guide credible pathways for them to compete in a low-carbon world.”

  • Jonathan Arnold, Director of Sustainable Finance, Canadian Climate Institute


About the Canadian Climate Institute

The Canadian Climate Institute is Canada’s leading climate change policy research organization. We produce rigorous analysis, economic modelling, and in-depth research on policy solutions to help Canada adapt to the effects of climate change, and compete and prosper in the global energy transition. The Institute led the technical analysis behind the Sustainable Finance Action Council’s Taxonomy Roadmap Report in 2023.

About Business Future Pathways

Business Future Pathways is a pragmatic, science-based, and non-partisan initiative focused on improving clarity and alignment on climate-readiness expectations between investors and companies. The ultimate goal is to increase Canada’s climate competitiveness by equipping Canadian companies with the guidance and guidelines necessary to meet investor and market expectations as the world transitions to net-zero emissions. Separate from its taxonomy-related work Business Future Pathways has also secured philanthropic support to develop investor-endorsed, made-in-Canada guidance to help companies operationalize and report credible climate transition plans. 

Canada’s climate progress well off track and needs immediate policy delivery, government report shows

OTTAWA—Rick Smith, President of the Canadian Climate Institute, made the following statement in response to the release of the 2025 Progress Report on the 2030 Emissions Reduction Plan: 

“Today’s release of the 2025 federal government progress report on its climate plan—called the Emissions Reduction Plan—confirms the country is significantly off track to meeting its emissions targets and the federal government needs to renew policy action over the next six months to course correct. 

“The report shows current policies will not deliver the results necessary to achieve the country’s 2030 or 2035 climate targets, as the Canadian Climate Institute had previously calculated. While it shows emissions are falling under current and additional measures, these actions are only projected to reduce emissions by 28 per cent below 2005 numbers, which still misses the 2030 target by roughly 129 megatonnes.

“Canada has good policy tools to cut emissions while staying competitive and increasing certainty for businesses. The federal government has committed to strengthening industrial carbon pricing, building out more clean electricity, increasing electric vehicle adoption, and reducing methane emissions, but many important details remain to be settled. In the coming months, the federal government should follow up on the Canada-Alberta MOU with final plans for strengthening industrial carbon pricing, and rigorous equivalency agreements on methane and clean electricity.

“Emissions fall when governments put smart climate policy in place. Today’s report shows the most significant source of risk and uncertainty comes from the oil and gas sector and whether clean electricity and industrial policy can expand fast enough to support investment and electrification. 

“In addition, the government’s lack of support for consumer incentives that support adoption of clean, electric technologies has slowed uptake. Affordability drives adoption—these same technologies lower energy bills and improve comfort. Federal and provincial governments should not be stepping away from affordability measures. They should reintroduce or top-up programs that help Canadians acquire clean technologies like electric vehicles and heat pumps, and maintain the Electric Vehicle Availability Standard.

“The report makes important improvements on transparency and tracking progress, making it easier for Canadians to understand the progress being made across the country. It also introduces a series of indicators that can show a broader picture of climate progress.

“Recognizing that Canada’s 2030 target is out of reach is no reason to give up, it’s a sign it’s time to reboot Canada’s climate approach. In an era of global uncertainty, shifting trade relationships, and an accelerating energy transition, Canada needs an up-to-date, evidence-based climate plan that both aligns with our legislated net zero commitments and contributes to a more secure and affordable future.

“Climate change is already making life across Canada less affordable and hurting companies’ bottom lines, causing more extreme and unpredictable weather that’s disrupting supply chains and driving up costs for materials, insurance, and repairs. That’s why committing to evidence-based climate goals and taking practical, cost-effective steps to achieve them are essential to building a stronger, more competitive Canadian economy.”

Note: The Canadian Climate Institute will release its independent assessment of the 2025 Progress Report on the 2030 Emissions Reduction Plan early in the new year, including independent analysis of emissions-reduction progress to date, priorities for improvement, and policy recommendations to strengthen Canada’s future climate progress.  

RESOURCES

CONTACT

Krystal Northey (Mountain Time)

Lead, Public Affairs

Canadian Climate Institute

(226) 212-9883


About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.

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Canada’s new oil and gas methane rules are a cost-effective policy win that’s long overdue

OTTAWA—Ross Linden-Fraser, Research Lead at the Canadian Climate Institute’s 440 Megatonnes project, made the following statement in response to the federal government’s announcement that it is finalizing regulations that will reduce methane emissions in the oil and gas industry 72 per cent by 2030: 

“Reducing methane emissions from the oil and gas sector is a cost-effective solution and Canada’s new regulations are a climate policy win that supports economic competitiveness. 

“Methane is a powerful greenhouse gas and there are many ways companies can make significant reductions in emissions using existing technologies. In fact, Canada’s oil and gas sector has already made substantial progress cutting methane emissions roughly in half over the past decade. In addition, many Canadian companies are already leaders in methane detection and mitigation.

“We look forward to an effective equivalency agreement being concluded between the federal and Alberta government to ensure the level of reduction committed to by the federal government today—72 per cent by 2030—is achieved.  

“The final rules will also reduce methane emissions from landfills, which is an important additional step forward to address this powerful pollutant.” 

RESOURCES

CONTACT

Krystal Northey (Mountain Time)
Lead, Public Affairs
Canadian Climate Institute
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.

Alberta’s latest changes to industrial carbon pricing make MOU commitments harder to achieve

OTTAWA—Dave Sawyer, Principal Economist at the Canadian Climate Institute, made the following statement in response to the Alberta government’s Order in Council to amend the Technology Innovation and Emissions Reduction (TIER) Regulation

“Just one week after the Alberta-Canada Memorandum of Understanding (MOU), Alberta has introduced regulatory changes that will flood the province’s industrial carbon pricing market with credits and further weaken the carbon price signal for major emitters. This moves the system farther from the improvements both governments committed to.

“By issuing new compliance credits for direct investment and reactivating previously used credits, Alberta is adding more supply to an already oversupplied market. These changes work against the direction set out in last week’s agreement, which included commitments to strengthen Alberta’s industrial carbon pricing system. When Alberta first signalled its intent in September, TIER credit prices crashed to below $20. This change locks in that crash, and puts significant downward pressure on future prices.  

“Establishing credits for direct investment risks compromising the credibility of TIER. It could result in crediting investments without evidence they deliver real emissions reductions, or crediting activities that may not reduce emissions at all, while also increasing the oversupply of credits in the system. The amendment also places no practical limits on how many credits can be issued, which amplifies the oversupply challenge.

“In the MOU, the province and the federal government agreed that TIER would ‘ramp up to a minimum effective credit price of $130/tonne’. Achieving this minimum effective credit price by 2030 would require immediate steps to close loopholes in the credit market and address the oversupply of credits that is driving down the value of credits today and reducing the overall effectiveness of the system. Instead, introducing new investment credits increases oversupply, weakens the price signal, and moves Alberta further away from the path needed to reach $130 per tonne. 

“Billions of dollars of investment in low-carbon projects in Alberta depend on strengthening the province’s carbon credit market. These latest regulatory changes are a big step in the wrong direction.” 

RESOURCES

CONTACT

Krystal Northey (Mountain Time)
Public Affairs Lead
Canadian Climate Institute
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.

Indigenous housing inequality in Canada will drive up costs and health risks without policy changes: report

Unhealthy, substandard housing and high energy costs are among the most urgent challenges facing Indigenous people in Canada, yet current measures to close the housing gap fall short due to siloed, complex policies that favour short-term solutions over long-term resilience. New research from the Canadian Climate Institute and Indigenous Clean Energy recommends governments adopt a new approach to prioritize the development of Indigenous housing that’s energy efficient, resilient to climate-related threats, and supports overall well-being.

The report finds that closing the housing gap in First Nations, Inuit, and Métis communities requires smart, co-ordinated policy developed in partnership with Indigenous people. It proposes an innovative “Healthy Energy Homes” policy lens that can be applied to both new builds and deep retrofits in Indigenous communities. The Healthy Energy Homes approach offers actionable policy recommendations to address housing gaps, reduce energy bills and improve health and wellness, while uplifting Indigenous self-determination and advancing reconciliation.

Currently, Indigenous people are almost three times more likely to live in housing that needs major repairs compared to non-Indigenous Canadians. The impacts of climate change such as extreme heat, wildfire smoke, erosion and flooding, exacerbating the divide and exposing Indigenous people to further health risks. 

To address these underlying challenges in the context of climate change, the new report recommends federal, provincial and territorial governments act together and swiftly to deploy Healthy Energy Homes by: co-ordinating and integrating government action, co-developing policies and programs led by and for Indigenous leadership, committing to long-term investment agreements and flexible funding options, measuring the co-benefits of improved housing including well-being, and ensuring funding programs are accessible and responsive to the capacity needs of communities.

Together, these solutions point to a clear path forward. With the creation of the $13-billion Build Canada Homes agency, governments have a chance to meaningfully improve Indigenous housing, wellness, and climate resilience. While success also requires long-term, flexible funding, estimates suggest every dollar invested in Indigenous housing can provide a social return on investment of around $6.79, including an estimated $3.12 in government savings.

QUOTES

“A home is more than a shelter; it’s a gathering place that’s central to a family’s physical, emotional, spiritual, and cultural well-being. Many First Nations, Inuit, and Métis communities are already creating innovative building projects that are climate resilient, energy efficient and support people’s well-being. What’s needed is for all levels of government to remove barriers and co-develop housing policy led by and for Indigenous people.”

— Maria Shallard, Director of Indigenous Research, Canadian Climate Institute

“This report shows that improving Indigenous housing policy won’t just lead to better shelter, it will prevent hospital visits, save on energy bills, improve mental health, and support community resilience in the face of climate impacts. Put simply, governments will save money and lives if they adopt these policy changes swiftly.”

— Rick Smith, President, Canadian Climate Institute

“Indigenous Peoples and communities are at the forefront of stepping up to accelerate the energy transition in Canada. Yet housing deserves much more attention. Healthy homes are essential for improving health, tackling climate change, reducing energy costs, and enhancing overall community well-being. We hope this report drives policymakers and financial institutions to recognize the interconnectedness of Indigenous health, energy, and housing; and to encourage collaborative solutions that address the challenges communities face.” 

— James Jenkins, Executive Director, Indigenous Clean Energy

“As the impacts of climate change intensify—and disproportionately impact Indigenous communities—climate resilience and energy-efficiency considerations can no longer be treated as ‘add-ons’ to housing. Closing the housing gap will require governments to support these approaches in new builds and retrofits, while also improving policy co-ordination with Indigenous Peoples.”

— Kayla Fayant, Energy Efficiency Projects Manager, Indigenous Clean Energy

“From Shelter to Strength affirms the Métis Nation’s belief that energy-efficient homes create healthy and safe environments that are essential to the well-being and self-determination of all Indigenous Peoples. By elevating community-led solutions, you are charting a path toward lasting wellness, resilience, and equity. The MNC strongly support the report’s recommendations and congratulates Indigenous Clean Energy, Canadian Climate Institute and the Indigenous Research team, and Shared Value Solutions on this excellent achievement.”

— Métis National Council (MNC)

“A healthy home provides the foundation for health and well-being, yet across Canada people do not have equal access to safe housing. This report is a critical tool for policy makers and an important addition to the body of research that demonstrates the links between housing, health, Indigenous rights and climate.”

— Geri Blinick, RentSafe Project Manager, Canadian Partnership for Children’s Health and Environment

“Across Canada, too many Indigenous children are growing up in homes, schools, and child care settings that undermine their health. This report provides the policy direction governments need to ensure Indigenous children have access to a safe, healthy, and climate-resilient home. It provides an invaluable roadmap to advance health equity and housing justice while honouring commitments to reconciliation and integrating Indigenous knowledge and leadership.”

— Erica Phipps, Executive Director, Canadian Partnership for Children’s Health and Environment

“This report reinforces the principle that housing is healthcare and advocates for holistic, culturally-grounded solutions. It reinforces AHMA’s mission to provide a ‘For Indigenous, by Indigenous’ approach to housing. The report provides evidence that long-term, flexible investments in energy-efficient, climate-resilient homes deliver health, social, and economic co-benefits. By framing housing as a determinant of health and linking it to climate resilience and self-determination, the report strengthens the case for policy reform and funding models that prioritize Indigenous voices, needs, and sovereignty.”

— Sara Fralin, Manager, Engagement and Technical Services, Aboriginal Housing Management Association (AHMA)

Resources

Contacts

Claudine Brulé (Eastern Time)
Lead, Communications and External Affairs
Canadian Climate Institute
(226) 212-9883

Krystal Northey
Lead, Public Affairs
Canadian Climate Institute
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute’s Indigenous Research stream develops sound climate policy that is consistent with self-determination by centring Indigenous-led research. The team pursues this work through partnerships with Indigenous-led organizations, such as Indigenous Clean Energy, to amplify Indigenous expertise and knowledge.

About Indigenous Clean Energy

Indigenous Clean Energy (ICE) is an independent, non-profit organization that advances broad, sustainable prosperity by amplifying First Nation, Inuit, and Métis leadership in clean energy projects. Through high-quality, hands-on capacity building, career training, and mentorship, ICE supports Indigenous people in their clean energy journeys while promoting meaningful collaboration with energy companies, utilities, governments, development firms, clean tech innovators, the academic sector, and capital markets.

Federal-Alberta MOU risks unravelling Canada’s climate policy

TORONTO—Rick Smith, President of the Canadian Climate Institute, made the following statement in response to the Memorandum of Understanding (MOU) announced today between Alberta and the Government of Canada:  

“At a time when Canadian climate change policy needed increased certainty, today’s MOU does the opposite. Investor certainty drops when rules become negotiable. Carve-outs for Alberta invite copycat demands from other provinces and territories, and could trigger more policy fragmentation across Canada. 

“With this agreement, the federal government risks doing significant damage to minimum national standards that will have broader impacts on Canada’s climate change efforts. Such standards are essential to maintain economic cohesion and avoid a dysfunctional patchwork of provincial policies with conflicting market signals. Minimum standards also help ensure that provincial efforts add up to shared objectives, such as Canada’s emissions goals.   

“The MOU includes a carve-out for Alberta on the Clean Electricity Regulations and slow walks previous commitments on methane rules. That could trigger a race to the bottom on climate policy where other provinces seek special treatment and side deals over federal laws or regulations they object to. It increases uncertainty for investors looking to electrify their businesses and invest in low-carbon projects, and risks deepening the current fragmentation within the federation. 

“While there are positive elements of this agreement, particularly fixing Alberta’s market for industrial emissions trading, today’s MOU is inconsistent with the federal Climate Competitiveness Strategy released just a few weeks ago. 

“Getting the details right in forthcoming negotiations will be fundamentally important. It is critical that minimum national standards for coal phase-out, clean electricity, enhanced methane limits, and industrial carbon pricing are reinforced or much of Canada’s climate change policy architecture is at risk.

On clean electricity 

“Clean electricity is a major competitive advantage for Alberta and Canada. The Clean Electricity Regulations were already designed to provide the flexibility necessary to account for different provincial realities—reducing emissions while helping to ensure low-carbon electricity remains abundant and affordable as demand grows. 

“Applying the regulations everywhere except in Alberta through a carve-out based on politics rather than evidence is a shortsighted compromise that will increase harmful greenhouse gas emissions. Rather than a formal equivalency agreement, this approach invites other jurisdictions to ask for their own special treatment. It also sets a damaging precedent for other policies where federal minimum standards apply, and risks such policies becoming mired in negotiated exemptions, court challenges, and the erosion of policy coherence and certainty. 

On industrial pricing 

“The commitment to strengthen Alberta’s industrial carbon pricing system and establish a minimum credit price of $130 per tonne is a significant step forward. Doing so would increase and stabilize incentives for reducing emissions and investing in low-carbon projects. It also establishes a precedent for carbon market transparency. Alberta’s industrial pricing system, called TIER (Technology Innovation and Emissions Reduction Regulation), covers roughly 25 per cent of Canada’s total greenhouse gas emissions and modernizing this system is one of the most important and cost-effective steps the province can take to reduce emissions. 

“Yet by framing these elements as part of a negotiated deal with Alberta, the MOU also undermines the credibility of the federal benchmark and backstop as an objective, consistent minimum standard across all provinces. In parallel, the federal government should move quickly to fix the federal benchmark that defines minimum standards for all provincial systems, strengthen the federal backstop, apply it decisively in jurisdictions that do not meet the benchmark, and work with provinces to develop a long-term price trajectory and a nationally consistent price ‘floor’ for industrial emissions credits.

“These changes are essential to bring greater credibility and certainty to carbon markets both now and beyond 2030, so that businesses can make big investments in low-carbon projects. Modernizing industrial pricing systems in these ways would ensure the biggest polluters pay to reduce emissions, while keeping costs low for businesses and having virtually no impact on the cost of living.

On methane emissions

“Delaying the deadline for stronger limits on methane pollution is unnecessary. If there is one no-brainer of climate change policy, it is enhanced reduction of methane emissions from oil and gas. Toughening methane limits represents one of the lowest-cost options available to fight climate change. Stronger methane regulations can build on Alberta’s already impressive record of success, while creating new opportunities for Canadian companies that have been leaders in commercializing technologies to manage methane. Slowing down this important and cost-effective measure risks putting LNG exports and broader trade diversification efforts in jeopardy, as Japan contemplates methane-performance standards and the EU implements them.” 

RESOURCES

CONTACT

Julia Kilpatrick (Mountain Time)
Vice-President, External Affairs
Canadian Climate Institute
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.

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Review of CleanBC provides realistic path to strengthen economy, cut emissions

VANCOUVER — Kate Harland, Research Lead of Clean Growth at the Canadian Climate Institute, made the following statement in response to the release of the CleanBC review by independent experts:

“The CleanBC review offers a clear path forward for British Columbia—and for Canada—to build a cleaner, more competitive economy while driving down emissions and improving affordability. The recommendations in the review  can help B.C. ramp up clean power and electrification through a renewed approach to climate policy that makes it easier for people and businesses to adopt practical solutions. 

“B.C. is not starting from scratch and has a strong policy foundation on which to build. The next step in building B.C.’s clean competitiveness can be a roadmap for B.C. as well as other provinces and territories. 

“For more than a decade, B.C. has taken action to fight climate change, all while building one of the strongest economies in the country. Without smart climate policy, B.C. risks undercutting its goals of building a cleaner, more competitive economy. The CleanBC review offers a range of policy choices the government can take to create a better path ahead for people and communities across the province.”

KEY FACTS

Several specific recommendations from the CleanBC review emerge as priorities:  

  • The review rightfully highlights strengthening industrial carbon pricing, as a priority. Addressing oversupply of carbon credits is a necessary step to creating strong incentives for investment in low-carbon projects.
  • It also recommends strengthening targets for methane reductions, a sensible approach for more low-cost reductions from a growing source of emissions.    
  • Recommendations to expand the low carbon fuel standard and introduce more stringent rules around renewable natural gas can improve the effectiveness and credibility of an existing policy that is already working to reduce emissions and attract investment. 
  • B.C. also has an enormous advantage with its clean and affordable hydro-electric grid and is taking big steps to expand its supply of low-cost renewable power. The report recommends building on this critical asset as the province electrifies more of its economy in the near future. 
  • Utilities and their regulator (the BC Utilities Commission) need clear policy and integrated, forward-looking energy planning that treats electricity and gas as parts of a connected system. The report outlines how this can be accomplished in a more co-ordinated manner across BC Hydro, gas utilities, and the BC Utilities Commission. Research from the Canadian Climate Institute has shown that planning for the transition away from gas heating in buildings can reduce risks of leaving utility customers on the hook for higher costs in the future.
  • The panel’s recommended changes to the electric vehicle mandate are also practical and would continue to support the increase of EV model options for lower cost for more people across the province. 
  • Recommendations to track a broad set of real-world metrics can also help the province navigate a path for net zero by 2050. 
  • Giving new resources and accountabilities to the independent Climate Solutions Council could likewise improve public transparency and accountability. 

RESOURCES

CONTACT

Krystal Northey
Lead, Public Affairs
Canadian Climate Institute
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.

Swift follow-through on climate policy is key to unlock investment in nation-building projects

OTTAWA — Dale Beugin, Executive Vice President of the Canadian Climate Institute, made the following statement in response to the federal government’s latest additions to the list of nation-building projects: 

“The latest round of major projects signals the federal government aims to compete in the global energy transition by supporting industrial electrification and expanding critical minerals mining in partnership with Indigenous peoples. As Canada looks to reduce its domestic emissions and grow its exports in markets beyond the United States, aligning robust climate policy with emerging economic opportunities is essential for Canada’s future competitiveness.

“To realize the low-carbon growth potential of several projects announced today, the federal government should move swiftly to implement the core policies underpinning its climate competitiveness strategy—such as strengthening industrial carbon pricing, finalizing methane regulations for oil and gas, and putting clean electricity tax incentives and regulations on the books. Prioritizing implementation of these policies can create the certainty required to mobilize private investment into major projects and will help align economic development with Canada’s climate goals. 

“In particular, building out bigger, cleaner, smarter electricity systems across the country will be necessary to deliver on Canada’s emissions goals and to attract investment in large projects looking for access to abundant clean power. 

“Today’s announcement, combined with the recent commitment to the Critical Minerals Sovereign Fund, offers significant potential to accelerate critical minerals development in the country, which is a multi-billion dollar economic opportunity. Canada has the raw materials the world needs to transition to cleaner, electric technologies and these actions show the government is serious about positioning Canada as a leader in this sector. 

“Moving forward with the North Coast Transmission Line, in partnership with First Nations, marks a significant investment in connecting industry across northern B.C. with the clean electricity they need to grow. On a cautionary note, however, recent commitments to expand Canadian liquefied natural gas (LNG) production will increase domestic emissions with no guarantees that LNG exports will reduce emissions abroad. The exact size and scope of these impacts will be determined by the stringency of climate policies that have yet to be finalized, which further underlines the urgent need for policy implementation.” 

 – 30 – 

Resources

MEDIA CONTACTS

Claudine Brulé (Eastern Time, English / français)
Lead, Communications and External Affairs
(226) 212-9883

Krystal Northey (Mountain Time, English)
Lead, Public Affairs
(226) 212-9883

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate. 

climateinstitute.ca

Canadian climate policy experts available for interviews at COP30 in Brazil

The Canadian Climate Institute’s President, Rick Smith, is attending the 30th United Nations climate change conference (COP30) in Belém, Brazil, from November 13 to the 19.

Institute spokespeople will be available in Brazil and Canada to provide analysis and commentary for media on a range of topics including:

  • Canada’s climate policy progress and its role at COP30
  • Canada’s climate competitiveness strategy and how climate policies position the country in the global race towards decarbonization
  • International metrics of success in the energy transition
  • Global decarbonization efforts reshaping trade and investment
  • The Canadian Climate Institute’s participation in the International Climate Councils Network (ICCN)
  • The impact of climate change on extreme weather and disasters affecting communities and infrastructure across Canada

-30-

About the Canadian Climate Institute

The Canadian Climate Institute is the country’s leading climate change policy research organization. We produce rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s energy transition, and making our economy and infrastructure more resilient to a warming climate. 

Additional Resources

Media Contacts 

For an interview request or for background information, please contact: 

FACT SHEET: Why industrial carbon pricing costs consumers next to nothing

Download the fact sheet

Industrial carbon pricing systems are Canada’s most important policy lever for cutting carbon pollution and creating a competitive clean economy with low costs for businesses and big incentives for investment in low-carbon projects. These systems are also designed to cost next to nothing for Canadian consumers. 

The Canadian Climate Institute has done extensive research and modelling quantifying the effects of this policy. This fact sheet outlines how and why industrial carbon pricing has virtually no impact on the day-to-day expenses of average Canadians: 

  1. Industrial carbon pricing costs Canadian consumers next to nothing—and in some cases even provides benefits.
    • Our research shows that industrial carbon pricing systems have an impact of around zero per cent on household consumption, a measure of income, in 2025. These costs are projected to remain very low and reduce consumption by just a tenth of one per cent by 2030.
    • In some cases, industrial carbon pricing—also called large-emitter trading systems—provides small net benefits for consumers, largely because of provisions in Alberta’s system that can reduce the cost of electricity.
This graph shows that industrial carbon pricing systems have negligible or even positive effects on household consumption.
  1. Industrial carbon pricing applies to goods sold on international markets where most price increases aren’t passed on to consumers.
    • Most companies that participate in industrial carbon pricing systems sell a significant portion of their products in other countries. 
    • About 50 per cent of the output of Canada’s large emitters is exported, and some industries export much more, which lowers costs on consumers. For example, the oil sands send closer to 80 per cent of production abroad. 
    • In addition, these exported products are sold on global commodity markets, which set the price paid and further limits the amount passed on to consumers.
  2. Industrial carbon pricing has essentially no impact on the price of food and the agricultural sector. 
    • Our modelling, done in partnership with Navius Research for the Independent Assessment of Carbon Pricing Systems shows that industrial carbon pricing has near zero overall impact on households’ spending on food. 
    • The same analysis projects that the cumulative GDP impact on the agricultural sector would be 0.08 per cent by 2030.
    • Farmers don’t directly pay the industrial carbon price and there are almost no costs to pass through the supply chain on to consumers. 
  3. Costs for consumers are virtually nothing, because industrial goods have only a small impact on the price of finished consumer products.
    • Industrial carbon pricing does not apply directly to individual consumers—only to the largest emitters of greenhouse gases in the country, like oil sands facilities, steel mills, and cement plants. 
    • Industrial carbon pricing has modest or negligible increases in the cost of industrial goods such as steel, which represent only a small portion of the final cost of consumer products people buy in Canada.
    • For example, research finds that industrial carbon pricing that applies to the highest emitting steel plants in the country would still only add $0.12 to the cost of a refrigerator, and under $3 to the cost of a pickup truck.  
  4. Industrial carbon pricing is low-cost for businesses, which also limits costs passed on to consumers.
    • Industrial carbon pricing is designed to contain costs because industries only pay for emissions that exceed a specified limit, and if they outperform the limit they earn credits that they can sell for cash.
    • Industrial carbon pricing imposes much lower costs on total emissions than consumer carbon pricing, around $10 or less per tonne of emissions against a carbon price of $95 per tonne. At worst, these costs add roughly the price of a Timbit per barrel of oil, while some industries are even able to earn money, on average.

Additional Resources