FACT SHEET: Climate change and wildfires

Accelerating climate change, largely from the burning of fossil fuels, makes wildfires bigger, hotter, and more frequent (Climate Atlas of Canada n.d.). With Canada warming twice as fast as the global average (Government of Canada 2019), and home to more than a quarter of the world’s boreal forests, the country is experiencing this consequence of global heating firsthand. Canada experienced its most destructive wildfire season ever in 2023, with fires consuming 16.5 million hectares—more than double the previous record and nearly seven times more than the historical average (Natural Resources Canada 2024). 

Our research finds that to keep Canadians safe, governments must play both defence and offence—protecting people and ecosystems while accelerating the transition away from fossil fuels to limit further heating (Sawyer et al. 2022).

Climate change makes wildfires worse

  • While forest fires are naturally occurring disturbances that contribute to the health and renewal of many forest ecosystems (Canadian Council of Forest Ministers 2019), fires are burning hotter and wilder as the climate warms, causing much greater destruction. 
  • Wildfire activity is increasingly frequent across Canada (Hanes et al. 2018). The area burned in 2023 was more than six times the historical average (Canadian Interagency Forest Fire Centre 2024).
  • Climate change more than doubled the likelihood of extreme fire weather conditions in Eastern Canada in 2023 (World Weather Attribution 2023). 
  • An overheating climate is making Canadian summers hotter and windier, with more erratic rainfall, including less summer rain in some regions (Bush and Lemmen 2019; Gifford et al. 2022). 
  • Fire season is starting earlier, is lasting longer, and is harder to contain (Climate Atlas of Canada n.d.; Natural Resources Canada 2024b; Natural Resources Canada 2022). Zombie fires are even beginning to smoulder through the winter (Shingler 2024).
  • Lighting strikes become more frequent as the climate warms (McKabe 2023). Ninety-three per cent of the area burned in Canada in 2023 was from fires ignited by lightning; only 7 per cent by human-ignition (Jain et al. 2024).
  • Elevated wildfire risk means that, whatever the cause, fires catch, spread, and get out of control much more easily.

Wildfires are damaging people’s health and wellbeing 

  • The smoke from wildfires can spread thousands of kilometres (NASA Earth Observatory 2015), requiring school closures and causing other disruptions while threatening the health of millions of people (Lin 2023), particularly children, seniors, and people with heart or lung disease. 
  • Hot-burning wildfires release dangerous levels of particulate matter into the air, which is associated with an increased risk of issues like heart disease, cardiovascular disease, lung cancer, and brain cancer (Egyed et al. 2022; Korsiak et al. 2022).
  • Heavy smoke takes a significant toll on the Canadian healthcare system. A single week of wildfire smoke in June 2023 was estimated to have cost Ontario over $1.2 billion (Sawyer et al. 2023) in health impacts such as premature deaths, increased hospital visits, and health emergencies.
  • Poor air quality from smoke hits the most vulnerable the hardest (Government of Canada, 2022). The impacts of smoke are even more serious for groups like children, seniors, pregnant people, and those who work outdoors. 
  • Smoke from larger and more frequent wildfires is exacerbating asthma across parts of Western Canada (Matz et al. 2020), and the aftermath of climate-related fires and floods takes a significant toll on mental health (Belleville et al. 2019). 
  • Wildfires can destroy homes and communities, devastate fragile ecosystems, and threaten economic security. These effects have been linked to post-traumatic stress disorder, depression, anxiety, and suicidal thoughts (Hayes et al. 2022).

Worsening wildfires are making life more expensive

  • Wildfires can destroy property, homes, and entire communities, driving up insurance costs and making life more expensive (Gerety 2024; Vaillant 2024). 
  • The cost of wildfire protection has risen by about $150 million per decade since the 1970s (Government of Canada 2024). These costs exceeded $1 billion for six of the last 10 years.
  • The 2016 wildfire in Fort McMurray, Alberta, cost an estimated $9 billion in direct and indirect physical, financial, health, and environmental impacts (Alam et al. 2019). It triggered the largest evacuation in Canadian history, destroying more than 2,400 structures and displacing 85,000 people.
  • Wildfires impact key sectors of the economy, including the forest industry, one of Canada’s largest employers (Lindsay and Pelai 2024). Wildfires can disrupt forestry operations and reduce the amount of timber available, hurting workers and forest-dependent communities in the process. During the 2017 wildfires in British Columbia, 40 forestry companies were temporarily shut down (Ministry of Environment and Climate Change Strategy 2019).
  • The accumulating impacts of global heating, including bigger and more frequent wildfires, are raising the cost of living in Canada from lost jobs, reduced economic activity, and tax hikes to pay for disaster recovery and infrastructure repairs. The additional climate change impacts between 2015 and 2025 alone will cost the average household $700 per year, and will continue to increase moving forward (Sawyer et al. 2022).

Governments can act to protect communities and slow further heating

  • Scientists have warned that the consequences of climate change will only get worse as the concentration of heat-trapping gases in the atmosphere increases (IPCC 2022). Governments around the world, including Canada’s, must act immediately to reduce greenhouse gas emissions and limit global warming.
  • Because the impacts of climate change are already here and getting worse, communities and governments must work together to adapt and prepare for increased fire risks today.
  • Federal and provincial governments can promote fire resilience by limiting development in areas at high risk of wildfires, strengthening building codes and regulations (for example, building with fire-resistant materials), and improving forest and vegetation management through prescribed burns and other measures to help reduce fuel available to burn near at-risk communities (Bénichou et al. 2021).
  • Alberta and British Columbia’s FireSmart programs are examples of initiatives that help communities and individuals reduce their fire risk (FireSmart Alberta 2024; FireSmart B.C. 2024).

Indigenous Peoples are disproportionately impacted, and leading on solutions

  • Indigenous communities in Canada have used controlled fire as traditional land management practice since time immemorial. Supporting these cultural burning practices can help reduce the risk of out-of-control wildfires (BC Wildfire Service 2022). 
  • Eighty per cent of majority-Indigenous communities in Canada are located in fire-prone regions (Asfaw et al. 2019).
  • More than 42 per cent of wildfire evacuations have been from majority-Indigenous communities (Webber and Berger 2023).
  • Between 1980 and 2021 in Canada, 16 communities (Christianson et al. 2024) were evacuated five or more times, and all but two of those were First Nations reserves.

Resources

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).
  • Sarah Miller is Research Lead in Adaptation at the Canadian Climate Institute (Pacific Time, English).

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

Claudine Brulé
Communications and Media Relations Specialist
cbrule@climateinstitute.ca
(514) 358-8525 

References

Alam, Rafat, Shahidul Islam, Eric Mosely, Sean Thomas, Virginia Dowdell, Dawn Doel. 2019. Rapid Impact Assessment of Fort McMurray Wildfire. Institute for Catastrophic Loss Reduction and MacEwan University. https://www.iclr.org/wp-content/uploads/2019/08/Rapid-Impact-Assessment-of-Fort-McMurray-Wildfire.pdf

Asfaw, Henok Workeye, Sandy Lake First Nation, Tara K. McGee, and Amy Cardinal Christianson. 2019. “A qualitative study exploring barriers and facilitators of effective service delivery for Indigenous wildfire hazard evacuees during their stay in host communities.” International Journal of Disaster Risk Reduction, 41, 101300. https://doi.org/10.1016/j.ijdrr.2019.101300

BC Wildfire Service. 2022. “How cultural burning enhances landscapes and lives.” May 5. https://blog.gov.bc.ca/bcwildfire/how-cultural-burning-enhances-landscapes-and-lives/ 

Bénichou, Noureddine, Masoud Adelzadeh, Jitender Singh, Islam Gomaa, Nour Elsagan, Max Kinateder, Chunyun Ma, Abhishek Gaur, Alex Bwalya, and Mohamed Sultan. 2021. National Guide for Wildland-Urban Interface Fires. National Research Council Canada. https://doi.org/10.4224/40002647

Belleville, Genevieve, Marie-Christine Ouellet, and Charles M. Morin. 2019. “Post-traumatic stress among evacuees from the 2016 Fort McMurray wildfires: exploration of psychological and sleep symptoms three months after the evacuation.” International Journal of Environmental Research and Public Health, 16(9), 1604. https://doi.org/10.3390/ijerph16091604

Bush, E., and D. S. Lemmen, editors. 2019. Canada’s Changing Climate Report. Government of Canada. https://changingclimate.ca/CCCR2019/chapter/4-0/ 

Canadian Council of Forest Ministers. 2019. “Natural Disturbances.” https://www.ccfm.org/healthy-forests/natural-disturbances/ 

Canadian Interagency Forest Fire Centre. 2024. “Wildfire Graphs: Annual area burned in Canada.” https://ciffc.net/statistics 

Canadian Wildland Fire Information System. 2024. “Monthly and Seasonal Forecasts.” Natural Resources Canada. https://cwfis.cfs.nrcan.gc.ca/maps/forecasts 

Christianson, Amy Cardinal, Lynn M. Johnston, Jacqueline A. Oliver, David Watson, David Young, Heather MacDonald, John Little, Bruce Macnab, and Noemie Gonzalez Bautista. 2024. “Wildland fire evacuations in Canada from 1980 to 2021.” International Journal of Wildland Fire, 33(7). https://doi.org/10.1071/WF23097

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/ 

Climate Action Against Disinformation. Flame Wars: Misinformation and Wildfire in Canada’s Climate Conversation. June 11. https://caad.info/analysis/reports/flame-wars-misinformation-and-wildfire-in-canadas-climate-conversation/ 

Climate Atlas of Canada. n.d. “Forest Fires and Climate Change.” https://climateatlas.ca/forest-fires-and-climate-change 

Egyed, Marika, Phil Blagden, et al. 2022. “Air Quality.” In P. Berry & R. Schnitter (Eds.), Health of Canadians in a Changing Climate: Advancing our Knowledge for Action. Government of Canada.

FireSmart Alberta. 2024. “About FireSmart Alberta.” https://firesmartalberta.ca/about/

FireSmart B.C. 2024. “About FireSmart B.C.” https://firesmartbc.ca/

Gerety, Rowan Moore. “How does a tiny mountain town, burned to the ground, come back.” New York Times, March 12. https://www.nytimes.com/2024/03/12/travel/lytton-fire-canada.html 

Gifford, Robert, Craig Brown, Carrie Baron, Denni Clement, Natalya Melnychuk, Harry Nelson, Luke Sales, and Dave Spittlehouse. 2022. British Columbia Chapter in Canada in a Changing Climate: Regional Perspectives Report. Government of Canada. https://changingclimate.ca/regional-perspectives/chapter/5-0/ 

Government of Canada. 2019. “Canada’s climate is warming twice as fast as global average.” Press release. April 2. https://www.canada.ca/en/environment-climate-change/news/2019/04/canadas-climate-is-warming-twice-as-fast-as-global-average.html 

Government of Canada. 2024. “Cost of Wildland Fire Protection.” May 13. https://natural-resources.canada.ca/climate-change/climate-change-impacts-forests/forest-change-indicators/cost-fire-protection/17783 

Hanes, Chelene C., Xianli Wang, Piyush Jain, Marc-André Parisien, John M. Little, and Mike D. Flannigan. 2019. “Fire-regime changes in Canada over the last half century.” Canadian Journal of Forest Research, November 16. https://doi.org/10.1139/cjfr-2018-0293

Hayes, Katie, Ashley Cunsolo, et al. 2022. “Mental Health and Well-Being.” In P. Berry & R. Schnitter (Eds.), Health of Canadians in a Changing Climate: Advancing our Knowledge for Action. Government of Canada.

IPCC, 2022. Climate Change 2022: Impacts, Adaptation, and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press. https://dx.doi.org/10.1017/9781009325844 

Jain, Piyush, Quinn E. Barber, Steve Taylor, et al. 2024. Canada Under Fire: Drivers and Impacts of the Record-Breaking 2023 Wildfire Season. ESS Open Archive, February 28.

Korsiak, Jill, Lauren Pinault, et al. 2022. “Long-term exposure to wildfires and cancer incidence in Canada: A population-based observational cohort study.” The Lancet, May. https://doi.org/10.1016/S2542-5196(22)00067-5 

Lin, Elizabeth Ziying. 2023. “Canadian Wildfire Smoke Associated with Increased Asthma Cases in NYC.” Yale School of Public Health, October 5. https://ysph.yale.edu/news-article/canadian-wildfire-smoke-associated-with-increased-asthma-cases-in-nyc/

Lindsay, Kate, and Ricardo Pelai. 2024. “Canada needs to get ready for a future fraught with fire: How can the forest sector respond?” Canadian Climate Institute, January 31. https://climateinstitute.ca/canada-fires-forest-sector/ 

Matz, Carlyn J., Marika Egyed, Guoliang Xi, Jacinthe Racine, Radenko Pavlovic, Robyn Rittmaster, Sarah B. Henderson, and David M. Stieb. 2020. “Health impact analysis of PM2. 5 from wildfire smoke in Canada (2013–2015, 2017–2018).” Science of The Total Environment, 725, 138506. https://doi.org/10.1016/j.scitotenv.2020.138506

McKabe, Kirsty. 2023. “How does climate change affect thunderstorms?” Royal Meteorological Society, July 20. https://www.rmets.org/metmatters/how-does-climate-change-affect-thunderstorms 

Ministry of Environment and Climate Change Strategy. 2019. Preliminary Strategic Climate Risk Assessment for British Columbia. Report prepared for the Government of British Columbia. https://www2.gov.bc.ca/gov/content/environment/climate-change/adaptation/riskassessment 

NASA Earth Observatory. 2015. “Canadian Wildfires Produce River of Smoke.” June 29. https://earthobservatory.nasa.gov/images/86151/canadian-wildfires-produce-river-of-smoke 

Natural Resources Canada. 2022. “Climate Change and Fire.” https://natural-resources.canada.ca/our-natural-resources/forests/wildland-fires-insects-disturbances/climate-change-fire/13155 

Natural Resources Canada. 2024a. “Canada’s record-breaking wildfires in 2023: A fiery wake-up call.” May 21. https://natural-resources.canada.ca/simply-science/canadas-record-breaking-wildfires-2023-fiery-wake-call/25303 

Natural Resources Canada. 2024b. “Fire Weather.” https://natural-resources.canada.ca/climate-change/climate-change-impacts-forests/forest-change-indicators/fire-weather/17776 

Natural Resources Canada. 2024c. “Cost of WIldland Fire Protection.” May 13. https://natural-resources.canada.ca/climate-change/climate-change-impacts-forests/forest-change-indicators/cost-fire-protection/17783 

Public Health Agency of Canada. 2023. “Public Health Risk Profile: Wildfires in Canada, 2023.” July 23. https://www.canada.ca/en/public-health/services/emergency-preparedness-response/rapid-risk-assessments-public-health-professionals/risk-profile-wildfires-2023.html 

Sawyer, Dave, Ryan Ness, Caroline Lee, and Sarah Miller. 2022. Damage Control: Reducing the costs of climate impacts in Canada. Canadian Climate Institute. https://climateinstitute.ca/reports/ damage-control 

Sawyer, Dave, Seton Stiebert, and Colin Welburn. 2023. “With the Forest Ablaze, the Health Costs Hit Home”. Canadian Climate Institute, June 26. https://climateinstitute.ca/with-the-forest-ablaze-the-health-costs-hit-home/

Shingler, Benjamin. 2024. “It’s the middle of winter, and more than 100 wildfires are still smouldering.” CBC, February 21. https://www.cbc.ca/news/climate/wildfires-zombie-fires-canada-bc-alberta-1.7119851 

Vaillant, John. 2024. Fire Weather: The Making of a Beast. Vintage Canada. 

Webber, Tammy, and Noah Berger. “Canadian wildfires hit Indigenous communities hard, threatening their land and culture.” Associated Press, July 19. https://apnews.com/article/canada-wildfire-indigenous-land-first-nations-impact-3faabbfadfe434d0bd9ecafb8770afce 

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/ 

Green Buildings Strategy takes steps forward, but no substitute for provincial action

HALIFAX — Sachi Gibson, Research Director for Mitigation at the Canadian Climate Institute, made the following statement in response to the federal government’s release of the Green Building Strategy:  

“The new federal Green Buildings Strategy takes worthwhile steps to cut carbon pollution from Canada’s buildings, reduce energy costs for people and businesses, and improve efficiency overall. These are priorities because emissions from Canada’s building sector continue to rise, making it one of only a handful of sectors to see carbon pollution increase since 2005. Yet more is needed, including stronger provincial policy and coordinated effort across jurisdictions, to reduce pollution from the buildings sector in line with Canada’s goal of net zero emissions by 2050. 

“As our Heat Exchange report indicates, provinces and territories hold important responsibilities to reduce emissions and support affordable energy in the buildings sector. In particular, they should accelerate investments in energy efficiency and building electrification, and stop expanding gas infrastructure for new development. Our research has found that energy-efficient heat pumps are already the lowest-cost option for heating and cooling many homes in Canada today, and can help reduce pollution while saving people money. 

“This federal strategy includes some positive steps forward, but in the race to decarbonize Canada’s buildings, it’s time for the provinces and territories to take the baton and run with it.” 

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(226) 212-9883
ctunnacliffe@climateinstitute.ca

New approach to Indigenous housing can address health and climate risks

VANCOUVER / Unceded xʷməθkʷəy̓əm, Sḵwx̱wú7mesh and səlilwətaɬ territories, 27 JUNE 2024—A scoping paper released today explores a new approach to address a concern Indigenous Peoples have been raising for decades: poor quality homes are causing severe health impacts in Indigenous communities across Canada. The paper is the first in a series that is part of the Healthy Energy Homes project, a partnership between the Canadian Climate Institute’s Indigenous Research stream and Indigenous Clean Energy.

The scoping paper, Beyond Sustainability: The Power of Indigenous Healthy Energy Homes, shows that current approaches to housing in Indigenous communities are rooted in a colonial legacy that has resulted in unhealthy housing conditions that include poor ventilation, overcrowding, and homes that are unsuitable for their location or environment. This has led to a variety of severe health challenges—thousands of people in communities suffer from respiratory, cardiovascular, and mental illnesses that are either aggravated or directly caused by inadequate and unsafe housing. For example, tuberculosis transmission is at least 20 times higher among Indigenous people than non-Indigenous people. These unsafe housing conditions and related health challenges are also made worse by climate change impacts such as heat waves. 

Investing in Healthy Energy Homes that are energy-efficient, climate resilient, and support the well-being of inhabitants could address many of these challenges and unlock multiple benefits including reduced healthcare costs, emissions reductions, and savings for households. The paper finds that doing this will require a new approach in which housing strategies—and funding decisions—take a holistic view of housing issues and are developed in partnership with Indigenous communities.” 

Beyond Sustainability is the first part of a larger project—undertaken in collaboration between the Climate Institute’s Indigenous Research stream and Indigenous Clean Energy—that focuses on policy changes for unlocking positive interconnections between Indigenous housing, energy, and health. This first scoping paper, which draws upon findings from literature and dialogue with experts and Indigenous rightsholders, sets the foundation for the broader project and provides important context to both the challenges and innovative solutions linked to housing in Indigenous communities.

QUOTES

“This collaborative paper has brought together experts from across sectors and communities to work together to show how interconnected Indigenous housing and health outcomes are. Building Healthy Energy Homes for communities could deliver nested benefits that help address poor health outcomes in Indigenous communities, reducing emissions, and building climate resilience.”

—Janna Wale, Policy Advisor, Indigenous Research, Canadian Climate Institute

“Proactively investing in Indigenous housing that is climate resilient and energy efficient can offset health costs later down the road. Investing in long-term solutions that take a different approach to housing will benefit both those who are living in healthier homes and communities as a whole. Healthy Energy Homes can help relieve the pressure on overburdened healthcare systems and, if led by and done in partnership with Indigenous communities, support the process of reconciliation.”

Maria Shallard, Director, Indigenous Research, Canadian Climate Institute

“Healthy Energy Homes is a new concept in housing, one that is centered on the people and community, as well as delivering on energy efficiency, cultural values, and greenhouse gas reduction. The housing situation in Indigenous communities has been a long-standing problem that will continue unless all orders of government not only provide further investments of time and money but, most importantly, take a different and more coordinated, holistic approach to address this issue, one that is informed by an Indigenous-led approach to Indigenous housing.”

—Ian Scholten, Director of Efficiency and Transportation, Indigenous Clean Energy

“In almost every Indigenous community, housing remains a major issue, if not the most pressing one. Unfortunately, many homes are built inefficiently, leading to poor health outcomes and shorter building lifespans, exacerbating the housing crisis. This report highlights how promoting sustainable Indigenous housing can offer a high return on investment by reducing greenhouse gas emissions and fostering healthier communities. We hope this scoping paper sparks broader discussions about mobilizing capital to seize this opportunity. Finding solutions will require creativity and bravery, but the urgency and potential impact are too significant to ignore.”

—James Jenkins, Executive Director, Indigenous Clean Energy

Contact

Janina Stajic
Communications Manager
250-618-2360
jstajic@climateinstitute.ca

Planned shift from gas to electric heat required to avoid high costs and emissions: report

13 June 2024, OTTAWA—New research published today by the Canadian Climate Institute finds that a system-wide shift from gas to electric heat is the lowest-cost path through the clean energy transition. The report, Heat Exchange: How today’s policy choices will drive or delay Canada’s transition to clean, reliable heat, concludes that provincial government action will be necessary to protect reliability and avoid high costs for consumers as the energy transition accelerates.

The report finds that changing the energy mix for building heat in both homes and businesses—and changing energy infrastructure to support the shift from gas to electricity—will be necessary to reduce emissions from buildings and meet Canada’s climate goals while also minimizing costs. If investment in the gas network continues to grow and gas connections continue to be the default for new buildings, then governments, shareholders, and remaining gas consumers could find themselves on the hook for the costs of overbuilt and underused gas infrastructure, as more people switch to cleaner options.

Heat Exchange presents a case for provinces taking a new approach in planning  and regulating electric and gas utility infrastructure to better protect the public interest, now and in the future. 

FACTS FROM HEAT EXCHANGE

  • In all provinces and scenarios the Climate Institute examined, the lowest-cost pathway to net zero by 2050 for the economy results in electricity becoming the dominant energy supply for building heat. 
  • Reaching net zero emissions in residential, commercial and institutional buildings means substantial declines in gas use in every province—in places like Ontario, gas usage drops between 89 to 98 per cent from today’s levels. In Alberta, demand drops between 70 and 87 per cent. 
  • Today, more than five million homes in Canada (34 per cent) already heat with electricity, mostly baseboards. To meet net zero, 99 per cent of home heating in 2050 is projected to be entirely or mostly powered by electricity, including, in some cases, heat pumps backed up by gas in a hybrid system.
  • Our research found that a cost-effective energy transition in buildings will mean heat pumps are used to heat the vast majority of homes by 2050. While scarce low-carbon gases like biomethane and hydrogen will likely see some use in industrial buildings,they are expected to play only a marginal role in heating commercial and residential buildings.

QUOTES

“Protecting consumers in the energy transition means making electricity the default in new buildings in most cases, instead of gas. While the infrastructure we’re building today will be with us for 40 to 60 years, this research shows that achieving climate goals will mean a shrinking role for gas well before then. A manageable transition that protects affordable and reliable building heating requires provinces to stop expanding gas networks now, and start planning for the future.”
— SACHI GIBSON, RESEARCH DIRECTOR, MITIGATION

“Expanding gas infrastructure to heat buildings today would be like investing heavily in a chain of video rental stores 15 years ago. Energy systems need to plan for the reality that is arriving on our doorstep. The smart approach to protect consumers and ensure affordable, reliable energy in the future is to grow the electricity system—not lock in more dependence on gas.”
— JASON DION, SENIOR RESEARCH DIRECTOR

“Right now, regulators make choices about infrastructure that will affect ratepayers’ costs for decades—but those decisions are not required to factor in climate goals, including reaching net zero emissions. That big disconnect could drive up energy bills in the decades ahead. Provinces need to make forward-looking decisions about energy system investments, and they need to make plans and policies today to protect consumers in the economy-wide energy transition that’s underway.”
— KATE HARLAND, RESEARCH LEAD, MITIGATION

RESOURCES 

ReportHeat Exchange: How today’s policy choices will drive or delay Canada’s transition to clean, reliable heat

ReportHeat Pumps Pay Off: Unlocking lower cost heating and cooling in Canada (September 2023)

Case studiesHeat Pumps Are Hot in the Maritimes (April 2023), Hybrid Heat in Quebec (April 2023), St Laurent Denied (April 2023)

BlogChange is in the pipeline: will expanding gas networks leave ratepayers on the hook? (March 2024)

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(226) 212-9883
ctunnacliffe@climateinstitute.ca

Evidence of progress: Canadian emissions down from peak as economy decouples emissions from growth 

OTTAWA—Dave Sawyer, Principal Economist for the Canadian Climate Institute, issued the following statement in response to the latest greenhouse gas emissions numbers from the federal government’s National Inventory Report (NIR)

“While 2022 emissions are up slightly from the previous year, don’t miss the big picture: national emissions remain 5.9 per cent lower than pre-pandemic in 2019. The economy has grown 3.2 per cent since then, which is clear evidence that Canada continues to decouple emissions from economic growth. Decoupling now needs to accelerate further—more than double—if Canada is to hit its 2030 target.  

“National emissions are now 7.1 per cent below 2005, the baseline year for Canada’s official target of at least 40 per cent reduction by 2030. 

“Today’s NIR is close to the Canadian Climate Institute’s Early Estimate of National Emissions, released last September, which estimated that emissions in 2022 were 6.4 per cent below 2005 levels. 

“The latest national inventory is largely positive, but a few sectors do reveal themselves as a drag on progress. Sectors like electricity lead the pack in terms of reducing emissions. But sectors like oil and gas, heavy-duty vehicles, buildings, and agriculture continue to increase emissions, which offset some of the big gains since 2005. 

“The NIR methodologies are routinely updated with improvements in data and science. This year’s updates led to a significant increase in the scale of methane emissions in Canada. This analytical change coupled with increased oil and gas production means that emissions from this sector are now more significant than ever—31 per cent of the total, almost a third of Canada’s emissions. The importance of cutting methane emissions in the oil and gas sector, a no-brainer for cost-effective climate action, is clear.

“The NIR also holds a warning of climate change variability to come, with agriculture croplands releasing 22 Mt in 2022 due to drought, which limits the ability of soils and crops to sequester carbon. The previous high was 8 Mt released in 2003. The average since 1990 has been -14 Mt, indicating croplands have typically sequestered more carbon than they have released.  

“With eight reporting years remaining before the end of 2030, the clock is ticking loudly in terms of implementing the policies needed to achieve the deep emissions cuts required.”

CONTACT

Catharine Tunnacliffe
Director of Communications
ctunnacliffe@climateinstitute.ca
(226) 212-9883

KEY FACTS

  • The official numbers for 2022 show emissions in Canada were 708 megatonnes (Mt)—7.1 per cent below 2005 levels. 
  • Some of the sectors that have seen emissions reductions compared to 2005 levels included the electricity sector (-59.4 per cent), waste (-3.6 per cent), and heavy industry (-11.5 per cent). Sectors that have increased emissions since that time included oil and gas (+11 per cent), buildings (+4.5 per cent),  and agriculture (+7 per cent). In 2022, transportation emissions increased, bringing them back in line with 2005 levels. 
  • The 2024 NIR introduced several methodological improvements, including how methane is calculated, which led to a significant increase in the scale of methane emissions in Canada. As a result of the methodological changes and recalculations, Canada’s 2030 target is now higher, as the 2005 emissions on which the 2030 target is calculated were revised upwards.
  • The Canadian Climate Institute will release its Early Estimate of National Emissions for 2023 in September 2024. 

RESOURCES

Database: 2022 Early Estimate of National Emissions  (September 2023)
Insight: Emissions from oil and gas, buildings undercut Canada’s climate progress (September 2023)

Insight: Which Canadian climate policies will have the biggest impact by 2030 

Report: Independent assessment shows Canada on track to achieve 85-90 per cent of its 2030 emissions target

Budget 2024 advances climate and clean growth priorities, but risks missing opportunities

TORONTO — Rick Smith, President of the Canadian Climate Institute, made the following statement in response to the release of the 2024 federal budget: 

“The commitments outlined in Budget 2024 will continue to advance climate progress in ways that drive growth and economic competitiveness while keeping energy affordable.  In particular, this budget confirms the federal government is working to implement a range of measures to unlock clean growth and help companies invest in low-carbon innovation, such as investing in critical minerals development, renewable energy, carbon contracts for difference, and various investment tax credits (ITCs).

“While we welcome additional detail on the coverage, timelines, and conditions for accessing the Clean Electricity ITCs, the proposed conditions for access represent a significant missed opportunity. Making access to these ITCs conditional on provincial energy roadmaps—as the Canada Electricity Advisory Council has called for—represents a pragmatic path forward that we hope the government considers as it consults on the final design in the coming months. 

“We’re also pleased to see continued support for electric vehicle charging infrastructure and energy-saving retrofits—investments that will help make life more affordable as Canadians make the switch to cleaner, more efficient energy. However, other measures—such as the commitment to continue working to establish a climate investment taxonomy—are long overdue, and we urge the federal government to move swiftly to implementation. 

“This budget commits the federal government to implement a low-cost national flood insurance program within the next 12 months and invests $175 million over five years in First Nations emergency preparedness for wildfires and other climate disasters. These commitments will boost capacity to address acute climate-related threats to communities across the country. 

“Yet helping communities prepare for escalating climate damages requires sustained focus and investment. Unfortunately, this budget continues a trend of under-investing in crucial preventative measures, such as delivering on federal responsibilities under the National Adaptation Strategy. And despite the significant funding committed to addressing Canada’s housing crisis, this budget misses an opportunity to ensure new homes are built to be more resilient to climate hazards, which will drive up the costs of home ownership over time as climate-fuelled disasters escalate.”

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(416) 527-1777
ctunnacliffe@climateinstitute.ca

RESOURCES

Industrial carbon pricing the top driver of emissions reductions, new analysis shows

OTTAWA—Climate policies are reducing Canada’s greenhouse gas emissions, and industrial carbon pricing is the single biggest driver, according to new analysis by the Canadian Climate Institute. 

The paper, Which Canadian climate policies will have the biggest impact by 2030?, features the first rigorous analysis attributing emissions reductions to collective and individual climate policies. It examines, first, how policies implemented to date have affected Canada’s emissions trajectory and, second, how major climate policies are expected to impact emissions between 2025 and 2030. 

By 2030, industrial carbon pricing (which includes various types of large-emitter trading systems) is projected to contribute between 23 and 39 per cent (or 53 to 90 Mt) of avoided emissions from all policies implemented to date. And between now and 2030, these large-emitter trading systems—such as Ontario’s emissions performance standard or Alberta’s TIER system—will do more than any other policy to cut emissions, delivering between 20 and 48 per cent of emissions reductions expected from Canada’s Emissions Reductions Plan moving forward. 

Based on modelling by Navius Research, the analysis found that, by 2030, all existing climate policies in Canada combined will prevent 226 megatonnes of carbon pollution—roughly equal to the total annual emissions of Ontario and Quebec. In other words, without the various climate policies provincial, territorial, and federal governments have legislated to date, Canada’s emissions would be more than 40 per cent higher in 2030 than they are currently on track to be. 

Accounting for and addressing counterproductive policy interactions could drive additional emissions reductions. In particular, strengthening large-emitter trading systems can deliver deeper emissions reductions while protecting industrial competitiveness.

QUOTES

“This analysis clearly demonstrates that climate policy is delivering results—with industrial carbon pricing leading the pack. Robust large emitter trading systems are fundamental to any credible climate policy package in Canada.”

Rick Smith, President, Canadian Climate Institute 

“Any constructive assessment of Canada’s options in tackling climate change should be grounded in credible numbers—and for the first time, it’s clear how individual policies are contributing to Canada’s climate goals. While there’s still work ahead to reach Canada’s 2030 climate target, any backtracking or failure to implement measures that are working today will set back Canada’s progress unless they’re replaced by robust, evidence-based alternatives.” 

Anna Kanduth, Director, 440 Megatonnes 

“Large emitter trading systems are already the single biggest driver of emissions reductions between now and 2030. Strengthening these systems will reduce emissions even more while protecting investment and jobs in industries competing in a global market moving to net zero emissions.” 

—Dale Beugin, Executive Vice President, Canadian Climate Institute 

Resources

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(416) 527-1777
ctunnacliffe@climateinstitute.ca

Alberta’s renewable energy restrictions will throttle a booming industry and drive away investment

Rick Smith, President of the Canadian Climate Institute, made the following statement on the Government of Alberta’s new rules and restrictions for renewable energy development: 

“Today the Alberta government announced sweeping rules and restrictions on future renewable energy development that will throttle a booming industry, increase electricity rates, and drive away investment — both from renewable energy developers and from companies looking to set up shop in provinces with abundant, low-cost, clean electricity. 

“While due diligence is always necessary in regulating energy development, the restrictions announced today are not proportionate to the risks and are at odds with regulations currently applied to other industries in Alberta.

“The 35-kilometre ‘buffer zone’ appears to put a significant constraint on where new renewable energy projects can be located. This new rule will exclude new wind power development in many of the best locations around the province—including areas where wind projects already exist. Further, outlawing renewable energy development on potential agricultural land impedes the rights of rural landowners and municipalities seeking new economic opportunities. Evidence indicates renewable energy and agricultural activities can coexist and help farmers diversify their income.  

“Today’s announcement also puts Alberta’s commitment to net zero emissions by 2050 in question. By severely limiting its options to develop new renewable power, Alberta has chosen a much more difficult and costly path to reducing emissions from its electricity sector.   

“Renewable energy is the cheapest form of power available today, and is expected to continue to grow at a breakneck pace worldwide. By adding significant new red tape and creating unprecedented levels of investor uncertainty to new renewable energy development, Alberta is passing up the opportunity to cut electricity rates and support rural economic development, while tilting the scales in favour of more costly, volatile, and polluting fossil fuel power. 

“This decision will cost Albertans in terms of lost jobs, forfeited investment, and higher electricity rates for decades to come.” 

Quick Facts: 

  • The renewable energy sector is an important growth industry for Alberta and Canada’s clean economy. Last year alone, the sector in Alberta accounted for more than 92 per cent of Canada’s overall growth in renewable energy and storage capacity.
  • As of last year, there were 118 renewable projects in Alberta representing $33 billion of investment and 24,000 job-years that were at some stage of development, according to the Pembina Institute.
  • Reaching Canada’s emissions targets requires a big switch from fossil fuels to clean electricity. The Institute’s research has shown that electrification is core to every conceivable pathway to Canada’s emissions reduction targets. 
  • The International Energy Agency has said that renewable capacity needs to triple worldwide to limit global temperature rise to 1.5° Celsius. At COP28 in December, Canada and other signatories agreed to work toward achieving that goal.   

Resources: 

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(226) 212-9883
ctunnacliffe@climateinstitute.ca

Changes to regulations add flexibility to build cleaner electricity without bending on reliability

OTTAWA — Jason Dion, Senior Research Director for the Canadian Climate Institute, made the following statement on the federal government’s revised design of the Clean Electricity Regulations: 

“The revised design for the draft Clean Electricity Regulations is a welcome change that will deliver more flexibility for grid operators in order to protect reliability and support affordability for people and businesses. Finalizing the regulations as early as possible would give policy certainty to grid operators, which would help with planning and investment.

“Electrification is critical to Canada’s climate progress and economic competitiveness in the global race to a net zero emissions. In short, Canada needs bigger, cleaner, smarter electricity systems. Businesses are already demanding clean electricity as a prerequisite for investments. 

“The federal government has proposed a new approach to address the feedback and concerns of many stakeholders. A number of experts and organizations, including the Canadian Climate Institute and the Canada Electricity Advisory Council, have called for changes to the existing regulations to add more flexibility. The government’s proposed changes offer a pragmatic balance that will reduce carbon pollution and ensure electricity systems are reliable over time, as more of the national economy electrifies. 

“Now the revised policy design has been released, government should finalize the regulations as early as possible. Time is of the essence: the government should expedite other important pieces of the puzzle, like a shift away from output-based carbon pricing in the sector toward full pricing with revenues returned to ratepayers, as well as finalizing the Clean Electricity Investment Tax Credit.” 

Resources: 

CONTACT 

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(226) 212-9883
ctunnacliffe@climateinstitute.ca

Clean growth and climate policy experts available to comment at GLOBE Forum 2024

VANCOUVER, February 12, 2024 —Experts from the Canadian Climate Institute are available to speak with media during GLOBE Forum 24 .

WHAT: Institute experts will participate in plenary sessions and panels. They are also available to comment on Canada’s climate policy progress and issues such as:

  • Incentivizing clean economic growth and low-carbon competitiveness
  • Reducing emissions and accelerating Canada’s net zero energy transition
  • Making our economy and infrastructure more resilient to a warming climate.

Please see our web page for additional resources and details. The Canadian Climate Institute will also be present in the Reaching Destination Net Zero Hub Space, where media are welcome to drop by throughout GLOBE Forum.

WHEN: February 13-15, 2024.

Note: Climate Institute experts are also available for interviews before or after these dates, and with journalists not accredited to GLOBE Forum 24.

WHO:

Rick Smith, President, Canadian Climate Institute
Areas of expertise: Canada’s progresstoward net zero emissions, affordability and the energy transition, clean growth and competitiveness, and general climate policy priorities.

Dale Beugin, Vice President
Areas of expertise: clean growth, carbon pricing, contracts for difference, clean electricity, Canada’s progress towards net zero, and affordability and the energy transition.

Jonathan Arnold, Acting Clean Growth Director
Areas of expertise: clean growth, Canada’s response to the U.S. Inflation Reduction Act, and competitiveness in the global energy transition.

Jason Dion, Senior Research Director
Areas of expertise: the switch from fossil fuels to clean power, inter-governmental cooperation to expand and upgrade electricity systems, and net zero pathways for Canada. 

Kate Harland, Research Lead, Mitigation
Areas of expertise: climate policy and responsible innovation, economic analysis, building heat.

Sarah Miller, Research Lead, Adaptation
Areas of expertise: the costs of climate change in Canada, the National Adaptation Strategy and Action Plan, climate-related disaster response, building heating and cooling.

RESOURCES

Globe Forum 24 program

CONTACT

Janina Stajic
Communications Manager
Canadian Climate Institute
250-618-2360
jstajic@climateinstitute.ca