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
- Insight | New analysis shows Canada-Alberta MOU treatment of industrial carbon pricing will make or break emissions outcome
- Blog | How governments can help Canadian households electrify with cleaner and more cost-stable energy
- Blog | Global carbon markets are Canada’s next clean energy advantage
- Op-ed | Canada needs the Clean Electricity Regulations to cut emissions and invest in low-cost, clean power
- Blog | How Canada can build electricity transmission to unlock nation-building projects
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.
