Canada has launched its Climate Competitiveness Strategy, positioning climate action as central to economic growth amid extreme weather that is driving insurance losses to record levels.
Prime Minister Mark Carney unveiled the strategy as part of Budget 2025, describing it as “betting on ourselves: on Canadian ingenuity, clean energy, and the workers and businesses that will drive the next generation of growth and prosperity.”
The strategy targets six key areas: strengthening industrial carbon pricing, clarifying greenhouse gas emission regulations, expanding clean economy tax credits, supporting critical minerals projects, mobilising capital for the net-zero transition, and developing new success metrics.
In 2024, extreme weather events caused $9.2 billion in insured losses, the most destructive season in Canadian history, according to the Insurance Bureau of Canada. Over the past decade, the average yearly cost of weather-related disasters has risen to 5% to 6% of Canada’s annual GDP growth.
Minister of Environment and Climate Change Julie Dabrusin said the nation faces a pivotal choice.
“At this critical moment, we have a choice: lead—and seize the opportunities of the energy transition—or get left behind,” Dabrusin said. “With the Climate Competitiveness Strategy, we are positioning climate action and economic growth as inseparable.”
The government highlighted Canada’s progress in reducing emissions intensity. Since 2005, the economy has become 34% less carbon-intensive through energy efficiency improvements, electricity grid decarbonization, and structural shifts. During the same period, greenhouse gas emissions decreased by 8.5% while GDP grew by 38%.
Global clean energy investment reached over $2.8 trillion in 2024 (nearly double fossil fuel investment levels), and the global clean technology market is projected to triple by 2035.
Minister of immigration, Refugees and Citizenship Lena Metlege Diab said the strategy will “support Canada’s transition toward a low-carbon economy while unlocking the full potential of our natural wealth.”
The strategy complements Canada’s 2030 Emissions Reduction Plan and the Net-Zero Emissions Accountability Act. Implementation will include finalizing investment tax credits, launching sustainable investment guidelines, and offering Carbon Contracts for Difference through the Canada Growth Fund.
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