2026 Spring Economic Update confirms Canada’s commitment to climate competitiveness, with important work ahead

OTTAWA— Rick Smith, President of the Canadian Climate Institute, made the following statement in response to the federal government’s 2026 Spring Economic Update:

“Decarbonization is an enormous driver of global market trends as countries pursue economic security and stability. An historic buildout of clean electricity, and increased consumer uptake of low-emitting technologies such as electric vehicles and heat pumps, has been accelerated by the blockade of the Strait of Hormuz and the resulting volatility of oil and gas prices.

“This is the backdrop for the Spring Economic Update’s focus on building economic competitiveness and increasing trade. The Update’s recognition of the continuing importance of Budget 2025’s Climate Competitiveness Strategy is welcome. Following through with implementation remains the urgent priority.

“The Climate Competitiveness Strategy explicitly committed, for example, to strengthening industrial carbon pricing. This remains critical to ensure Canada is positioned to compete and win in a global economy increasingly focused on low-carbon pathways. Stronger industrial carbon pricing can deliver coherent, robust, and co-ordinated carbon markets across Canada, aligning with the government’s goal of a unified Canadian economy.

“Additional commitments to develop a post-2030 carbon pricing trajectory, fix the carbon pricing benchmark, and improve the backstop are all critically important as the federal government works to finalize its memorandum of understanding (MOU) with Alberta. As the Institute’s research has shown, getting industrial carbon market design right will make or break the emission outcome of the Canada-Alberta MOU.

“The federal government has also yet to launch its promised national electricity strategy to make good on the Prime Minister’s commitment of doubling clean electricity supply and better connecting and aligning provincial electricity grids.

“Some additional commitments, including a new electric vehicle strategy, have moved forward. The Climate Institute awaits the details of the new policy package to put Canada on a path to what the Prime Minister has promised as a goal of the equivalent of 75 per cent new car sales being electric vehicles by 2035.

“The federal government’s support for a sustainable investment taxonomy and sustainable finance conference are important contributions to ensuring Canada succeeds in attracting new investment for green and transition projects.

“In addition, the government’s move to scale up and reorient $13 billion in international climate finance is also welcome, helping emerging economies cut emissions while opening markets for Canadian clean technologies and crowding in private investment.

“Finally, investing $6 billion over 10 years to support climate change adaptation for infrastructure and buildings, among other priorities, is a necessary and overdue measure to improve communities’ resilience. Yet a more comprehensive and sustained approach will be required in the years ahead to manage the rising costs of extreme weather and climate disruption.”

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 an independent climate policy research organization that produces rigorous research, analysis, and economic modelling, drawing on experts and leaders across the country. Our work focuses on: accelerating clean growth and low-carbon competitiveness; measuring progress in Canada’s clean energy transition; amplifying Indigenous perspectives and climate solutions; unlocking sustainable investment; and making our economy and infrastructure more resilient to a warming climate.

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FACT SHEET: Climate change and flooding

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In August 2024, the remnants of Hurricane Debby brought record-breaking floods to Quebec, inundating 55 communities. Just a month before, nearly 10 centimetres of rain fell in Toronto in three hours, overwhelming the city’s infrastructure and flooding many homes and businesses. In November 2021, an atmospheric river unleashed record-breaking rain in British Columbia, triggering landslides and floods that caused extensive damage, cutting off main access routes to several areas of the province, severely impairing the economy.

As climate change worsens, Canadians will experience a significant increase in the frequency and intensity of these kinds of flood events. Warmer air, caused by increasing concentrations of heat-trapping gases in the atmosphere, holds more moisture, leading to heavier rainfall and more intense storms. This, combined with melting snow packs, rising sea levels, and changing weather patterns, has created the conditions for more severe and unpredictable flooding. These floods are devastating for communities, economies, and livelihoods.

Climate change is driving increasingly severe and frequent floods

Because of climate change, most regions in the country will experience increased rainfall, higher extreme rainfall, and increased severity in coastal storms (Vasseur et al. 2017; Zhang et al. 2019).
Research shows that climate change intensifies many contributing factors that combine to elevate flood risk, including heavier rainfall and storm surges amplified by sea level rise (Denchak 2023; Greenan et al. 2019).
Climate heating means that warmer air can hold more water than cooler air, increasing the risk of heavier and more extreme rainfall events. More rain is likely to fall in short, intense bursts rather than being spread out over a longer period (Westra et al. 2014).
Increasingly frequent and severe short-duration rainfall events increase the likelihood of flash floods, especially in urban areas, by overwhelming storm sewers and drainage systems (Brown et al. 2021; Sandink 2015; Westra et al. 2014).

Explore the climate costs tracker to visualize climate-fuelled weather events in Canada.

Parts of southern British Columbia, Ontario, Quebec, and the Atlantic provinces have seen an increase of two to three heavy rainfall days per year on average (Vincent et al. 2018; Zhang et al. 2019).
Climate models project that by the end of the century, an extreme rainfall event that now occurs once every 20 years in Canada could happen every five years, and the amount of 24-hour extreme precipitation that occurs once in 20 years, on average, is projected to increase by 12 per cent (Zhang et al. 2019).

Floods can severely damage homes and infrastructure, costing billions of dollars

Flooding is the most common and costly disaster in Canada. In the past decade, floods have averaged nearly $800 million in insured losses annually (Insurance Bureau of Canada 2024).
Insurers estimate that for every dollar in insured losses from flooding, there are two dollars in uninsured damage that are borne directly by households and taxpayers (Honegger and Oehy 2016).
Over 1.5 million homes across the country are located in areas of high flood risk (Ness and Florez Bossio 2024). Eighty per cent of Canadian cities are built, in whole or in part, on floodplains (Public Safety Canada 2022).
As extreme rainfall and coastal flooding increase, the annual costs of flood damage to homes and buildings in Canada could grow three to five times by mid-century—amounting to over $5.5 billion—and reach as high as $13.6 billion by the end of the century (Ness et al. 2021).
On July 16, 2024, in Toronto, nearly 10 centimetres of rain fell in three hours, leading to massive flooding across the city. The costs of this flooding reached nearly $900 million in insurable losses, with the total costs likely several times higher (Pereira 2024; Musselwhite 2025).
Between August 8 and 10, 2024, the remnants of Hurricane Debby brought widespread flooding to southern Quebec and eastern Ontario. Insured losses from this event are roughly $2.8 billion, making it the costliest extreme weather event in Quebec’s history (CatIQ 2025).
Canada has experienced five billion-dollar-plus flood events since 2011 (Insurance Bureau of Canada 2023; Manitoba Flood Review Task Force 2013; Insurance Bureau of Canada 2024; Public Safety Canada 2023).
Many Canadian homeowners believe they have insurance that will pay for repairs and rebuilding after overland flooding, but only about 10 to 15 per cent of households are actually covered (Posadzki 2017).
The households facing the highest flood risk in Canada either can’t get flood insurance or can’t afford it because the rates are so high (Public Safety Canada 2022).

More frequent and intense floods put people and communities at risk

Heavy rainfall events can overwhelm small drinking water treatment systems, degrading water quality and increasing the risk of waterborne disease outbreaks (Wang et al. 2018).
Over half of the waterborne disease outbreaks in the past 50 years in the United States occurred after episodes of extreme rainfall (Charron et al. 2011).
Floods can be fatal, as people drown while wading or driving through flood waters or are trapped in flooded buildings (Government of Canada 2021).
Injuries are common during and after floods due to swiftly moving heavy objects, damaged electrical wiring and appliances, and the risk of hypothermia from cold floodwater (Government of Canada 2021).
The psychosocial impacts of flooding are significant, increasing family conflicts, financial stress, and feelings of isolation. In some cases, flooding can trigger or exacerbate mental health conditions such as depression and post-traumatic stress disorder (Glenn and Myre 2022).
A few months after the Quebec floods of 2019, 44 per cent of those affected had moderate to high symptoms of post-traumatic stress, 21 per cent had symptoms of anxiety disorders, and 20 per cent had developed mood disorders (Institut national de santé publique du Québec 2024).
Flooded buildings are quickly colonized by mold, fungi, and bacteria, which can cause or aggravate skin, allergy, eye, respiratory, and gastrointestinal problems such as asthma, conjunctivitis, and otitis (Institut national de santé publique du Québec 2024).

Governments can act to protect communities from worsening flood risk

Flooding will only get worse as the concentration of heat-trapping gases in the atmosphere continues to increase. Government action to manage this growing risk and limit further emissions is essential.
Because the impacts of climate change on flooding are already here and getting worse from the emissions that have already occurred, communities and governments must work together to adapt and prepare for increased risk of floods today and into the future.
Some of the key adaptation actions governments can take to reduce flood risk and protect communities include:
- Shifting development away from high-risk flood zones: To prevent placing more homes in harm’s way, provincial and municipal governments could restrict building in areas with high flood risk. Research from the Canadian Climate Institute shows that steering development away from high-hazard areas in the next decade can prevent between $340 million and $2 billion per year in new flood losses without limiting housing growth (Ness et. al 2025).
- Enhancing flood protection infrastructure at the community level: Investing in new and improved flood protection infrastructure, such as levees, floodwalls, and nature-based solutions, can cost-effectively safeguard communities at risk of flooding (Ness et al. 2021).
- Support proactive relocation from high-risk areas: In a few areas where flood risk is too high to provide adequate protection, governments should engage with homeowners and communities to consider proactive relocation, offering appropriate assistance and incentives for moving to safer areas (Public Safety Canada 2022).

References and resources

Three things governments need to do to protect homeowners and renters from the insurance industry’s perfect storm (Bourque 2022)
Reporting Extreme Weather and Climate Change: A Guide for Journalists (Clark and Otto 2024)
Under Water: The Costs of Climate Change for Canada’s Infrastructure (Ness et al. 2021)

Experts available for comment and background information on this topic:

Ryan Ness is Director of Adaptation Research at the Canadian Climate Institute and the lead researcher on the Institute’s Costs of Climate Change series (Eastern Time, English and French).
Zach Carriere is Research Associate in Adaptation at the Canadian Climate Institute (Eastern Time, English).

For more information or to interview an expert, please contact:

Claudine Brulé (Eastern Time, English, French)
Lead, Communications and External Affairs
cbrule@climateinstitute.ca
(226) 212-9883

Krystal Northey (Mountain Time, English)
Lead, Public Affairs
knorthey@climateinstitute.ca
(226) 212-9883

References

Bourque, Julien. 2021. “Three things governments need to do to protect homeowners and renters from the insurance industry’s perfect storm.” December 13. Canadian Climate Institute. https://climateinstitute.ca/three-things-governments-need-to-do/

Brown, Craig, Ewa Jackson, Deborah Harford, and David Bristow. 2021. “Cities and Towns” Chapter 2. In Canada in a Changing Climate: National Issues Report, F.J. Warren and N. Lulham (Eds). Government of Canada. p. 26

Catastrophic Indices and Quantification Inc.. 2025. “CAD 2.806 B – CatIQ Discloses Updated Industry Loss for the Flooding from the Remnants of Hurricane Debby in August 2024” CatIQ. https://public.catiq.com/2025/08/12/cad-2-806-b-catiq-discloses-updated-industry-loss-for-the-flooding-from-the-remnants-of-hurricane-debby-in-august-2024/

Charron, Dominique F., M. Kathleen Thomas, David Waltner-Toews, Jeffery J. Aramini, Tom Edge, Robert A. Kent, Abdel R. Maarouf, and Jeff Wilson. 2004. “Vulnerability of waterborne diseases to climate change in Canada: A review.” Journal of Toxicology and Environmental Health, Part A 67(20–22): 1667–1677. https://www.tandfonline.com/doi/10.1080/15287390490492313

Clarke, Ben, and Friederike Otto. 2024. “Reporting extreme weather and climate change: A guide of journalists.” World Weather Attribution. https://www.worldweatherattribution.org/reporting-extreme-weather-and-climate-change-a-guide-for-journalists/

Denchak, Melissa. 2023. “Flooding and Climate Change: Everything You Need to Know.” Natural Resources Defense Council, November 3. https://www.nrdc.org/stories/flooding-and-climate-change-everything-you-need-know#facts

Glenn, Nicole, and Maxine Myre. 2022. “Post-Flooding Community-Level Psychosocial Impacts and Priorities in Canada: A Preliminary Report.” National Collaborating Centre for Environmental Health, November 22. https://ncceh.ca/resources/evidence-reviews/post-flooding-community-level-psychosocial-impacts-and-priorities-canada

Government of Canada. 2021. “Climate Change and Public Health Factsheets.” Public Health Agency of Canada, February 1. https://www.canada.ca/en/public-health/services/health-promotion/environmental-public-health-climate-change/climate-change-public-health-factsheets-floods.html

Greenan, Blair J. W., Thomas S. James, John W. Loder, Pierre Pepin, Kumiko Azetsu-Scott, Debby Ianson, Roberta C. Hamme, Denis Gilbert, Jean-Éric Tremblay, Xiaolan L. Wang, and Will Perrie. 2019. “Changes in oceans surrounding Canada”; Chapter 7 in E. Bush and D. S. Lemmen (Eds.) Canada’s Changing Climate Report. Government of Canada. p. 343-423. https://changingclimate.ca/CCCR2019/chapter/7-0/

Honegger, Caspar, and Christoph Oehy. 2016. The road to flood resilience in Canada. Swiss Re. https://www.preventionweb.net/files/49295_theroadtofloodresilienceincanada.pdf

Institut national de santé publique du Québec. 2024. “Inondations.” Institut national de santé publique du Québec, April 3. https://www.inspq.qc.ca/changements-climatiques/menaces/inondations

Insurance Bureau of Canada. 2024. “Severe Weather in 2023 Caused Over $3.1 Billion in Insured Damage”. January 8. https://www.ibc.ca/news-insights/news/severe-weather-in-2023-caused-over-3-1-billion-in-insured-damage

Musselwhite, Beth. 2025. “CatIQ reduces 2024 Ontario flash flooding loss estimate by 9% to CAD 899m” Reinsurance news, July 16. https://www.reinsurancene.ws/catiq-reduces-2024-ontario-flash-flooding-loss-estimate-by-9-to-cad-899m/

Ness, Ryan, Dylan G. Clark, Julien Bourque, Dena Coffman, and Dale Beugin. 2021. Under Water: The Cost of Climate Change for Canada’s Infrastructure. Canadian Climate Institute, September. https://climatechoices.ca/wp-content/uploads/2021/09/Infrastructure-English-FINAL-jan17-2022.pdf

Ness, Ryan, and Camila Florez Bossio. 2024. “High and dry: The rising tide of flood risks and the insurance dilemma.” Canadian Climate Institute. March 18. https://climateinstitute.ca/flood-insurance-risks-canada/

Ness, Ryan, Sarah Miller, Camila Flórez Bossio, Ricardo Pelai and Zacharie Carriere. 2025. Close to Home: How to build more housing in a changing climate. Canadian Climate Institute. https://climateinstitute.ca/reports/close-to-home/

Pereira, Ana. 2024. “Toronto’s ‘After’ Math: Total Damage from Flash Flood Could Surpass $1 Billion. Here’s How Much Floods Cost Homeowners Every Year.” Toronto Star, July 17. https://www.thestar.com/business/toronto-s-after-math-total-damage-from-flash-flood-could-surpass-1-billion-here-s/article_091766d4-4447-11ef-a1ea-eb24413392a4.html

Posadzki, Alexandra. 2017. “Majority of Canadian homeowners not insured for flooding: experts.” The Globe and Mail, May 8. https://www.theglobeandmail.com/news/national/majority-of-canadian-homeowners-not-insured-for-flooding-experts/article34925679/

Public Safety Canada. 2022. Adapting to Rising Flood Risk: An Analysis of Insurance Solutions for Canada. Public Safety Canada, November 10. https://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/dptng-rsng-fld-rsk-2022/index-en.aspx#s3.2

Sandink, Dan. 2015. “Urban Flooding and Ground‐related Homes in Canada: An Overview.” Journal of Flood Risk Management 9(3): 208–23. https://onlinelibrary.wiley.com/doi/epdf/10.1111/jfr3.12168

Vasseur, Liette, Mary Thornbush, and Steve Plante. 2017. “Climatic and Environmental Changes Affecting Communities in Atlantic Canada.” Sustainability 9(8): 1293. https://www.mdpi.com/2071-1050/9/8/1293

Vincent, L.A. X. Zhang, É. Mekis, H Wan, and E.J. Bush. 2018. “Changes in Canada’s Climate: Trends in Indices Based on Daily Temperature and Precipitation Data.” Atmosphere-Ocean 56(5): 332–49. https://www.tandfonline.com/doi/full/10.1080/07055900.2018.1514579#abstract

Wang, Yi, Edward McBean, and Bahram Gharabaghi. 2018. “Increased Risks of Waterborne Disease Outbreaks in Northern Ontario Due to Climate Change.” Journal of Water Management Modeling. https://doi.org/10.14796/jwmm.c436

Westra, Seth., H.J. Fowler, J. P. Evans, L.V. Alexander, P. Berg, F. Johnson, E. J. Kendon, G. Lenderink, and N. M. Roberts. 2014. “Future Changes to the Intensity and Frequency of Short-Duration Extreme Rainfall.” Reviews of Geophysics 52: 522–555. doi:10.1002/2014RG000464. https://agupubs.onlinelibrary.wiley.com/doi/10.1002/2014RG000464

World Weather Attribution. 2023. “Climate change more than doubled the likelihood of extreme fire weather conditions in Eastern Canada.” August 22. https://www.worldweatherattribution.org/climate-change-more-than-doubled-the-likelihood-of-extreme-fire-weather-conditions-in-eastern-canada/

Zhang, Xuebin, Greg Flato, Megan Kirchmeier-Young, Lucie Vincent, Hui Wan, Xiaolan L. Wang, Robin Rong, John Fyfe, Guilong Li, and Viatchelsav V. Kharin. 2019. “Changes in Temperature and Precipitation Across Canada”. Chapter 4. in E. Bush, and D. S. Lemmen (Eds.) Canada’s Changing Climate Report. Government of Canada. pp 112-193. https://changingclimate.ca/CCCR2019/chapter/4-0/

Canada-Alberta methane agreement shows promise, with success riding on equivalency details and transparency

OTTAWA—Rick Smith, President of the Canadian Climate Institute, made the following statement about the agreement-in-principle on the Canada-Alberta methane equivalency agreement:

“Today’s announcement that Canada and Alberta have reached an agreement-in-principle on reducing methane emissions is a positive step forward. The final details of the equivalency agreement, and follow-through on the commitment to independent and transparent verification of outcomes, will be critical to determine the agreement’s success.

“Reducing methane is one of the lowest-cost emission-reduction options for the oil and gas sector and can support Canadian companies that find innovative solutions to market beyond national borders. In fact, the industry has already shown encouraging progress reducing these emissions, thanks in large part to joint federal-provincial action.

“Today’s commitment to jointly select an independent third party to model and assess emissions reductions is an important approach to reinforce policy ambition and integrity, and help ensure the regulations cover the true extent of methane pollution levels from Alberta’s oil and gas sector.

“While this agreement-in-principle matches the commitment in the Canada-Alberta MOU, that commitment is a step back from Canada’s stated goal of reducing methane emissions by 75 per cent below 2012 levels by 2030. By delaying this target, Canada is giving up an estimated 53 Mt of carbon dioxide equivalent of feasible and cost-effective emissions reductions over the next decade. This agreement leaves many important details to be decided, including the role of offsets, which must be carefully defined to avoid double counting.”

“We look forward to providing further comment on the details of the equivalency agreement once it is posted for public consultation, and will work to ensure the final equivalency agreement between the two parties is rigorous, transparent and aligned with evidence and best practices to be as effective as possible.”

RESOURCES

MEDIA CONTACTS

Claudine Brulé (Eastern Time)
(226) 212-9883
cbrule@climateinstitute.ca

Krystal Northey (Mountain Time)
(226) 212-9883
knorthey@climateinstitute.ca

ABOUT US

Data show stronger industrial carbon pricing would cost oil sands producers just a Timbit a barrel in 2030 on average

OTTAWA — Strengthening industrial carbon markets to meet the terms of the Canada-Alberta Memorandum of Understanding (MOU) would have minimal cost impact on the oil sands sector’s bottom line, according to new research from the Canadian Climate Institute.

Specifically, the Institute’s latest analysis of project-by-project compliance costs and profits found that oil sands producers would pay on average less than 50 cents a barrel in 2030, up from 9 cents a barrel today, if the minimum price of carbon credits rose to $130 a tonne by the end of the decade. That’s roughly equivalent to the cost of a Timbit, after accounting for inflation.

The Institute’s 440 Megatonnes project released a new cost calculator that allows users to explore the costs or benefits that specific oil sands projects are estimated to face under current and future industrial carbon prices. It shows that the cost of industrial carbon pricing today represents less than 1 per cent of the value of a barrel of oil—0.5 per cent of the price of Western Canadian Select at C$100 per barrel.

The new research comes in the wake of recent public comments and media reports stating that industrial carbon pricing hurts the competitiveness of Canada’s oil and gas sector—which is not supported by evidence.

On the contrary, carbon pricing protects competitiveness by design. Programs such as Alberta’s Technology Innovation and Emissions Reduction (TIER) system rely on emissions thresholds that limit costs for trade-exposed industries while still encouraging emissions reductions. Firms only pay the carbon price on the portion of emissions that exceed a performance benchmark, and can make money if their emissions are below that mark by selling carbon credits on the market or banking them for future use.

The Climate Institute also examined nearly two decades of data to assess how industrial carbon pricing has impacted the competitiveness of oil sands facilities. The analysis found no statistically significant evidence of export contraction linked to carbon pricing using 17 years of provincial trade data covering 10 provinces and 19 industrial sectors, and after accounting for commodity cycles and U.S. demand, oil prices, and provincial trends. The average estimated effect was essentially zero.

Industrial carbon pricing is the most important climate policy in Canada to reduce emissions, drive innovation, and maintain economic competitiveness, all while costing consumers next to nothing. Maintaining the planned trajectory to $130 per tonne for minimum carbon credit prices by 2030 will provide long-term certainty to the business community and help reduce carbon pollution across diverse industries.

QUOTES

“The evidence shows stronger industrial carbon pricing will cost oil sands companies just a Timbit a barrel by the end of the decade. It’s unclear how any project could claim to be uneconomical as a result of such a negligible cost—especially considering it makes up less than one per cent of the cost of a barrel of oil. Alberta and Canada have committed to strengthen industrial carbon markets; closing loopholes and raising the price of carbon credits are non-negotiable if this important policy aims to reduce emissions, while keeping costs low for industry.”

— Rick Smith, President, Canadian Climate Institute

“Our new analysis and online calculator show how low the costs are for oil sands producers from industrial carbon pricing. If carbon markets are strengthened in line with what Alberta and Canada have committed to in the MOU, industrial carbon pricing would add less than 50 cents to a barrel of oil. That’s a rounding error on balance sheets, not a competitiveness threat. If Canadian oil sands producers are truly so vulnerable to such minor costs, then they have much bigger structural competitiveness problems.”

— Dale Beugin, Executive Vice President, Canadian Climate Institute

RESOURCES

Analysis | Industrial carbon pricing will cost just a Timbit per barrel for the oil sands sector
Industrial carbon price calculator for oil sands producers | Facility Carbon Cost & Credit Revenue
Insight | Why industrial carbon pricing costs the oil sands a Timbit per barrel
Fact sheet | How industrial carbon pricing reduces emissions at minimal cost
Insight | Industrial carbon pricing has negligible impacts on household costs – and in some cases is a benefit

CONTACTS

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.

climateinstitute.ca

FACT SHEET: How industrial carbon pricing reduces emissions at minimal cost

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 and keeps costs low for businesses:

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.

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.
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.
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.
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 make money by selling credits for cash.
- Data shows that industrial carbon pricing currently only adds an average of 9 cents per barrel to oil sands producer costs.
- Our research shows that if industrial carbon pricing is strengthened in line with the Canada-Alberta MOU, oil sands producers would still only be paying 50 cents per barrel in 2030—roughly the cost of a Timbit, after inflation is factored in.
- 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.

Additional Resources

Insight | Industrial carbon pricing has negligible impacts on household costs—and in some cases is a benefit
Op-ed | New analysis: industrial carbon pricing will cost just a Timbit per barrel for Canada’s oil sands sector
Resource page | Industrial Carbon Pricing
Media Backgrounder | About Carbon Pricing in Canada
Explainer | The differences between industrial and consumer carbon pricing
Insight | New analysis shows how Canada’s industrial carbon pricing protects competitiveness and profitability
Video | Ask Me Anything: Industrial carbon pricing webinar

Canada off course for climate targets, with more riding on fewer policies: expert report

OTTAWA — An independent review of the federal government’s progress report on its climate plan confirms that the country requires policy reform and provincial co-operation to get closer to its climate goals while spurring innovation and building a more affordable, competitive economy.

The Canadian Climate Institute released its independent assessment of the 2025 Progress Report on the 2030 Emissions Reduction Plan, which the federal government was legally required to publish, outlining progress made on the country’s emissions goals. The Institute finds that the federal report offers a credible picture of Canada’s progress, but does not offer an adequate policy response to the growing gap between the country’s emissions and its climate targets.

While Canada has policies to reduce emissions, the country is not on track to meet any of its climate goals, including its 2035 target and net zero emissions by 2050, according to modelling the Institute conducted with Navius Research. Instead, national emissions are on course to be roughly half way to the 2030 emissions goal.

The report also recommends ways to accelerate Canada’s progress. Much depends on how the federal government follows through on commitments from its budget and the Canada-Alberta Memorandum of Understanding (MOU), particularly those concerning co-operative action with the provinces including industrial carbon pricing and oil and gas methane regulations.

Crucially, the Institute’s analysis shows that if the federal government gets the details right on industrial carbon pricing, and the provinces implement strengthened systems, it can roughly double the additional emissions reductions from this policy, compared to a scenario where systems largely continue as they stand today.

While better industrial climate policies will speed up Canada’s progress, they are not enough to reach the country’s goals: more policy effort will be needed. The Institute’s report includes recommendations to inform the development of additional policy options to get closer to Canada’s climate and clean economy goals. In the months ahead, the Canadian Climate Institute will be developing a more detailed assessment of potential policy options governments can implement to make deeper emissions reductions and bolster low-carbon growth.

QUICK FACTS

Canada’s emissions reduction targets are: 40 to 45 per cent below 2005 levels by 2030, 45 to 50 per cent by 2035, and net zero emissions by 2050.
Canada’s 2030 target requires reducing emissions to approximately 440 megatonnes by the end of the decade. National emissions were estimated at 694 megatonnes of carbon dioxide-equivalent (Mt) in 2024, or 8.5 per cent below 2005 levels.
The Institute’s analysis shows Canada’s emissions are projected to be between 18 and 22 per cent below 2005 levels by 2030, depending on the final design of key policies—roughly half way to the 2030 target.
Estimates for 2024 show emissions from oil and gas up 9 per cent since 2005, while emissions from transport (+0.2 per cent) and buildings (-3.5 per cent) have been largely flat. Emissions from electricity (-59 per cent) and heavy industry (-11 per cent) have fallen significantly.

QUOTES

“The further Canada veers away from its climate targets, the steeper the path forward. That puts critical economic opportunities at risk—especially as our non-U.S. trading partners are rapidly decarbonizing their economies and looking for solutions. There is no shortage of policy tools that can accelerate climate progress while strengthening Canada’s economy and making life more affordable—but our assessment clearly shows that governments need to work together to put better policies in place for the country to reach its goals.”

— Rick Smith, President, Canadian Climate Institute

“The data leave no doubt that Canada’s climate progress is off track. Fortunately, governments have options to put well-designed climate policy in place that can reduce emissions, make life more affordable, and unleash economic growth. Smart, cost-effective climate solutions can help Canada diversify trade, attract new investment, and make the economy stronger and more resilient in the face of an uncertain future.”

— Dave Sawyer, Principal Economist, Canadian Climate Institute

RESOURCES

MEDIA CONTACTS

Claudine Brulé (Eastern Time)
(226) 212-9883
cbrule@climateinstitute.ca

Krystal Northey (Mountain Time)
(226) 212-9883
knorthey@climateinstitute.ca

About the Canadian Climate Institute

Climate-proofing infrastructure today will save taxpayers billions annually

TORONTO—Climate change is already wreaking havoc on the country’s aging roads, bridges, storm sewers, and water treatment systems—but new research finds that by investing upfront in adapting public infrastructure, governments could limit those impacts and save billions of dollars each year.

A new report by the Canadian Climate Institute, Prepare or Repair: How climate-proofing public infrastructure pays off, finds that taxpayers will pay a steep and growing price if governments delay or fail to adapt public infrastructure to our changing climate. On the other hand, proactive investment in resilience can sharply reduce infrastructure damage and long-term repair bills.

The analysis shows that governments could save between $4 and $9 billion each year to 2100 by preparing public infrastructure for select climate risks. Investing about $4 billion per year in proactive adaptation would prevent most of the infrastructure damage caused by rising heat and heavier rainfall—freeing up public dollars for other priorities.

The true costs of not adapting are likely even higher: the analysis does not account for the impacts of all climate-driven hazards—such as wildfires, certain types of flooding, permafrost thaw, and coastal erosion—or for the broader economic impacts of infrastructure damage, including disruptions to essential services, business, and trade, and damage to private property.

While proactive adaptation minimizes the costs of climate change, it does not eliminate them. Even in a best-case scenario, the analysis finds that total infrastructure costs—of both adaptation investments and unavoidable climate damage—would still increase by $6 billion per year on average until 2100.

Municipalities would bear most of these costs, even though the benefits have a broad reach across the economy. This mismatch between who pays and who benefits underscores the need for stronger financing and revenue tools to support municipal adaptation.

To close this gap and bolster the resiliency of infrastructure in Canada’s changing climate, federal, provincial, and territorial governments should:

Expand funding for infrastructure adaptation and modernize financial tools available to municipalities and other infrastructure owners—including Indigenous governments—to finance resilience upgrades.
Plan, operate, maintain, and renew public infrastructure so it continues to function safely and reliably under future climate conditions.
Strengthen climate hazard data and mapping nationwide to support consistent, risk-informed infrastructure decision-making.
Accelerate updates to infrastructure codes and standards so that new and renewed infrastructure is built to withstand Canada’s changing climate.
Ensure all public infrastructure spending consistently accounts for climate risk and supports infrastructure owners in reducing long-term vulnerability.
Tailor programs to support the most vulnerable communities and critical infrastructure.

The report’s findings are clear: every year of delay increases future costs. Without proactive adaptation investment, the toll of climate change on public infrastructure is expected to rise sharply across the country.

Investing now in resilient roads, bridges, sewers, and water infrastructure will protect families, communities, businesses, and the economy from escalating climate threats.

QUOTES

“Canadians are caught in a perfect storm of aging infrastructure and rising climate risks that are already disrupting our daily lives. This isn’t a tomorrow problem; it’s happening now. The research leaves no doubt: adapting public infrastructure will save Canadians billions of dollars down the road, limiting the cascading impacts of extreme weather, and building a stronger, safer, more prosperous country.”

— Rick Smith, President, Canadian Climate Institute

“The evidence is clear: any delay in adapting our roads, bridges, sewers, and water systems to climate-driven extremes will cost Canadians dearly. Our report offers a clear playbook for action. Now it’s up to governments to collaborate and move forward.”

— Ryan Ness, Director, Adaptation, Canadian Climate Institute

“Severe weather is increasingly impacting Canadians—over the past decade it caused a total of $37 billion in insured damage, up from only $14 billion between 2006 and 2015. Making smart investments in infrastructure ensures our communities can better withstand climate risks. Canada can be a global leader in disaster resilience. Now is the time for concerted action to protect Canadians from the growing risks from a changing climate.”

— Maximilien Roy, Vice President Strategy, Insurance Bureau of Canada

“Local governments are already feeling the strain as climate‑driven floods, heat, and heavy storms wear down the infrastructure Canadians rely on every day. This report reinforces what municipalities have been raising for years: investing early in resilient roads, water systems, and public assets protects families from the effects of climate change, strengthens local economies, and saves taxpayers significant costs in the long run. Through initiatives like the Disaster Mitigation and Adaptation Fund, we have seen how early, targeted investment helps communities put proven solutions in place. With the right tools and strong collaboration across all orders of government, we can help every community build resilience and stay prepared for the climate challenges ahead.”

— Rebecca Bligh, President, Federation of Canadian Municipalities

“The decisions we take today will determine how prepared Canada will be in the face of increasingly severe weather. This research makes it clear that delaying action comes at an enormous cost. Ensuring the infrastructure backbones of our communities—such as roads, public buildings, and water networks—are adapted to our climate should be a top priority for every order of government. Now is the time for concerted action to protect Canadians from the growing risks from a changing climate.”

— Liam McGuinty, Chair, Climate Proof Canada

RESOURCES

Report | Prepare or Repair: How climate-proofing public infrastructure pays off

CONTACTS

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

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

About the Canadian Climate Institute

climateinstitute.ca

Funding acknowledgement

This work was supported by funding from Insurance Bureau of Canada, the Federation of Canadian Municipalities, and Climate Proof Canada. The Canadian Climate Institute undertook the project in alignment with its core research priorities and maintained full independence over the research design, methods, results, recommendations, and external communications.

New federal auto strategy positions auto sector and Canadians to benefit from electric future

OTTAWA—Rick Smith, President of the Canadian Climate Institute, made the following statement about the federal government’s new automotive strategy:

“The new auto strategy announced today is a positive step toward a more affordable future powered by clean electricity. By replacing electric vehicle (EV) sales targets with updated tailpipe regulations, investing in new EV charging infrastructure, spurring new investment in auto manufacturing and innovation, and launching new consumer EV purchase incentives, the new federal strategy aims to reduce transportation emissions and strengthen Canada’s auto sector, while making it easier and more affordable for people and businesses to go electric.

“Whether this policy package ultimately delivers cost-effective climate benefits and leads to more high-quality, affordable electric vehicles in Canadians’ garages will be determined by how—and how quickly—these policies are finalized and implemented. For instance, while the improved vehicle efficiency standards provide manufacturers with greater compliance flexibility, they don’t guarantee more EVs will be available to Canadians.

“This strategy aims to accelerate investment in Canadian manufacturing of EVs and batteries, with over $3 billion in support and investment incentives throughout the value chain to help Canada’s auto sector diversify, innovate and compete in the rapidly changing trade environment. With EVs making up more than a quarter of vehicles sold globally last year, strategic investments to expand Canadian production of EV components and vehicles will help the auto sector seize a critical growth opportunity in response to U.S. tariffs and trade disruption.

“Targeted consumer purchase incentives are a proven way to spur EV sales: data shows that every $1,000 drop in price increases EV demand by more than 11 per cent nationally. The $2.3 billion EV Affordability Program takes a cost-effective and equitable approach by limiting incentives to models costing under $50,000 unless they’re made in Canada.

“To complement the new consumer incentives, the government should also continue pursuing agreements, like the recent EV import deal with China, to ensure more affordable options are available at dealerships across Canada. While there are currently more than 20 EV models selling for under C$40,000 in Europe, only one of them is available in Canada.

“Shifting away from sales targets to stronger tailpipe emissions standards echoes the approach taken in other major markets like the European Union. If this approach delivers emissions results equivalent to a 75 per cent EV sales target by 2035, it would be less than what was expected under the electric vehicle availability standard, but offers a path forward for steady, ongoing incentives for lower-emissions vehicles and more electric-powered vehicles. We look forward to examining the proposed regulation in detail to verify if this is a credible outcome and approach.

“Electric vehicles are picking up speed in markets around the world because of their superior technology and consumer benefits—but because of confusing and shifting policy signals, Canada is virtually alone in the world in seeing EV adoption flag recently. The federal government should move quickly to implement this new strategy, and ensure the details of how the policy and regulations are designed deliver the results promised.”

QUICK FACTS

More than one in four cars sold globally was electric in 2025, according to global energy think tank Ember.
Electric vehicle sales in Canada grew at a staggering annual rate of 45 per cent between 2017 and 2024, increasing more than thirteenfold.
Following the removal of federal and provincial consumer incentives, EV market share in Canada fell from 15 per cent in 2024 to 9 per cent in the first three quarters of 2025.
Passenger transport is the second highest-emitting sub-sector in Canada, making up 13 per cent of Canada’s national emissions or nearly 94,000 tonnes of emissions in 2024.

RESOURCES

Insight | What is driving electric vehicle sales in Canada?
Insight | Gas-powered vehicle sales have peaked in Canada
Insight | Why are Canada’s passenger vehicle emissions stuck in neutral?
Insight | EV charging infrastructure is spreading rapidly across Canada

MEDIA CONTACTS

Claudine Brulé (Eastern Time)
(226) 212-9883
cbrule@climateinstitute.ca

Krystal Northey (Mountain Time)
(226) 212-9883
knorthey@climateinstitute.ca

ABOUT US

The Canadian Climate Institute is Canada’s leading climate change policy research organization. We produce rigorous analysis, economic modelling, and in-depth research, and have experts available to comment on topics including: carbon pricing, the costs of climate-related disasters in Canada, and Canada’s progress in reducing emissions, and policy priorities for the incoming federal government.

Federal proposal to fix industrial carbon pricing not effective without improvement: new research

OTTAWA — The federal government’s latest proposal to strengthen Canada’s industrial carbon pricing systems falls short of what is needed to ensure the policy works to reduce emissions, drive low-carbon investment, and maintain competitiveness, according to new research from the nation’s leading independent climate policy think tank.

The Canadian Climate Institute’s formal submission to the federal call for feedback on the proposal—titled Outcomes Not Optics: Canadian carbon markets need bold reform to be effective—includes detailed new modelling to assess whether proposed provincial and territorial changes to industrial carbon pricing would deliver the investment signals federal policy is aiming for.

The government’s proposed changes would update the minimum national standards that provincial and territorial industrial carbon pricing systems must meet, also known as the federal benchmark. Getting the proposed changes right will be critical for the proper functioning of industrial carbon pricing systems: the benchmark sets the conditions used to assess whether provincial and territorial systems are equivalent to the federal system, including which large emitters are covered and whether system rules deliver incentives consistent with the federal standard.

Industrial carbon pricing is Canada’s most important policy lever to reduce climate pollution and maintain economic competitiveness, all while having virtually no impact on consumers. Central to these systems are carbon credit markets, which help incentivize billions of dollars in low-carbon investment.

Yet the future of the policy is uncertain: Alberta’s provincial system is the most significant in the country, covering roughly a quarter of national emissions, and is currently tied up in negotiations as part of the recent Canada-Alberta Memorandum of Understanding (MOU), which agreed to increase the minimum effective carbon credit price to $130 per tonne of emissions.

According to the Climate Institute’s modelling, the federal government’s proposed changes to the benchmark could allow industrial carbon pricing systems to pass federal tests but fail to deliver on the emissions and investment outcomes the federal government is counting on.

To improve the federal proposal, the Climate Institute provided four recommendations.

The federal benchmark should ensure systems deliver a minimum effective carbon credit price of $130 per tonne by 2030 consistent with the Canada-Alberta MOU. This carbon credit price reflects the incentives firms actually face in practice, rather than the current federal headline price of $170 that applies only in limited circumstances.
Provinces and territories should retain flexibility in how they reach the minimum price, subject to non-negotiable conditions such as tightening performance standards, a carbon price floor and ceiling that increase over time, and limits on compliance pathways that dilute incentives for emission-reducing technologies.
To determine whether systems deliver on an effective $130 per tonne carbon price, federal assessments should be based on transparent and credible data on how emitters comply, which compliance paths they have used, and the carbon prices they have paid.
The federal government should require ongoing performance tracking using transparent data on compliance outcomes and costs including credit market activity to assess whether systems continue to conform with minimum national standards.

Industrial carbon pricing is a critically important policy lever, but on its own is not a silver bullet and needs to be complemented with other policies as part of a comprehensive climate and low-carbon competitiveness plan.

QUICK FACTS

Industrial carbon pricing only applies to industrial facilities with large emissions that rely on international trade for a substantial part of their profitability.
Under federal law, every province and territory can choose to develop their own carbon pricing system, or to have a federal system, known as the backstop.
Each of these systems create carbon credit markets for facilities to buy and sell credits for their excess emissions above a defined limit.
Industrial carbon pricing systems are very low-cost for businesses, with oil and gas emitters paying roughly 30 cents per barrel of oil in compliance costs—the cost of a Timbit.
Research from the Canadian Climate Institute shows industrial carbon pricing systems have an impact of around zero per cent on household consumption in 2025. These costs are projected to remain very low and reduce consumption by just a tenth of one per cent by 2030.

QUOTES

“Industrial carbon pricing can be a magnet for investment in technologies that reduce emissions, and an important policy tool to help businesses remain competitive in a rapidly changing world. But those outcomes require the policy to work as intended. The federal government’s proposal needs substantial improvement—and our research points to clear actions government can take to make that happen.”
— Dale Beugin, Executive Vice President, Canadian Climate Institute

“Canada has a critical opportunity to modernize industrial carbon pricing to ensure that it’s working to its full potential moving forward. This policy can drive huge investments in low-carbon technologies, but only if the government gets the design details rights. Our submission to the government lays out exactly what needs to be done and is backed up by detailed modelling and analysis to ensure this policy is evidence-based.”
— Dave Sawyer, Principal Economist, Canadian Climate Institute

RESOURCES

Federal submission | Outcomes Not Optics: Canadian carbon markets need bold reform to be effective
Resource page | Industrial carbon pricing
Fact sheet | Why industrial carbon pricing costs consumers next to nothing
Op-ed | The federal government should act decisively to modernize industrial carbon pricing
Op-ed | One simple fix for Canada’s industrial carbon pricing systems
Explainer | Five characteristics of effective industrial carbon pricing

MEDIA CONTACTS

Claudine Brulé (Eastern Time)
(226) 212-9883
cbrule@climateinstitute.ca

Krystal Northey (Mountain Time)
(226) 212-9883
knorthey@climateinstitute.ca

About the Canadian Climate Institute

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.