Economic Pressures Slow Canada’s Climate Progress, RBC Warns
Efforts in Canada to address climate change are losing momentum amid wider concerns about the economy, according to a report out Tuesday from the RBC Climate Action Institute.
The report said the country has made progress since 2019, but the institute’s climate action barometer — which it uses to try to quantify efforts — fell in 2025 for the first time since it began measuring six years ago.
The end of the consumer carbon tax, removal of electric vehicle incentives, Alberta’s restrictions on new renewables and flatlining government funding were pointed to as some examples of stalled progress or retreat.
The pullback comes as U.S. President Donald Trump’s destabilizing actions in trade and other areas create tremendous uncertainty, pushing down climate as a key concern.
A poll of 2,000 Canadians commissioned by RBC found that affordability, health care and the economy were the top three concerns, while only 12 per cent of respondents identified climate change as the most important priority. A third of respondents ranked climate among the top three priorities.
“As the economy is slower, and there’s more anxieties over things like U.S. trade, it’s not surprising that there would be less of a public commitment to climate action,” said John Stackhouse, senior vice-president in the office of the CEO at RBC.
He noted, however, that despite the pullback in new government commitments, there is still nearly $100 billion worth of incentives for cleantech and climate programs budgeted through to 2035. About $20 billion is flowing into Canadian climate efforts annually, the report found.
The lower, or more stabilized interest rate environment should also be helpful to cleantech investing, which has shown to be challenged by rising rates, he said.
A survey of 150 executives found that a lack of access to capital was the biggest barrier to reducing emissions, though the report noted companies are also in “course-correction” mode as Trump steers a dramatic shift away from climate efforts.
Nearly three out of five senior leaders said their companies are planning to, or have already, scaled back climate targets and commitments. A quarter cited the changes from the U.S. as a key reason, while about 20 per cent also pointed to shifting sentiment in Canada for the move.
The survey also found 71 per cent of companies expect to reach their 2030 climate targets, down from 81 per cent a year earlier.
While climate efforts are struggling to get the resources needed, it could be a good year to optimize what’s already happening and prepare for the growth ahead, said Stackhouse.
“There’s plenty of evidence across the board from investors, from policy-makers, and from business leaders that there is interest still in investing in the long term in these issues.”
This article was first reported by The Canadian Press
