The Government of Canada has launched its new Climate Competitiveness Strategy, positioning climate action as both an environmental imperative and an economic opportunity. The strategy aims to attract investment, create jobs, and maintain Canada’s competitive edge in the global transition to a low-carbon economy.
Announced by Health Minister Marjorie Michel, Parliamentary Secretary to the Minister of Energy and Natural Resources Claude Guay, and Member of Parliament Emmanuella Lambropoulos, the strategy outlines a coordinated plan to strengthen carbon pricing, boost clean energy investment, and support the development of critical minerals projects.
The Climate Competitiveness Strategy focuses on six key priorities:
- Strengthening industrial carbon pricing mechanisms.
- Providing regulatory clarity for reducing greenhouse gas emissions.
- Expanding tax credits to encourage clean economy investment.
- Supporting critical minerals projects vital to clean technologies.
- Mobilising capital for Canada’s net-zero transition.
- Developing new metrics to track progress and accountability.
The plan builds on Canada’s existing competitive strengths — from abundant natural resources to innovation in clean technology — and seeks to ensure long-term economic resilience by aligning climate action with industrial growth.
Prime Minister Mark Carney said the new approach is about investing in Canadian ingenuity and long-term prosperity.
“Budget 2025 delivers a plan for Canadians – one that invests in our people, our industries, and our future. The Climate Competitiveness Strategy is about betting on ourselves: on Canadian ingenuity, clean energy, and the workers and businesses that will drive the next generation of growth and prosperity.”
Environment and Climate Change Minister Julie Dabrusin said the initiative reflects a shift from viewing climate policy as a cost to recognising it as a driver of competitiveness.
“We have a choice: lead and seize the opportunities of the energy transition – or get left behind. With this strategy, we are positioning climate action and economic growth as inseparable,” she said.
The government said the strategy will help build the strongest economy in the G7 by attracting investment in clean growth technologies, scaling home-grown innovation, and supporting communities through new employment opportunities in the green economy.
“By investing in clean energy and innovation, we’re strengthening our economy, creating good jobs, and taking real action on climate change,” said Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources.
Canada’s economy is now 34% less carbon-intensive than in 2005, according to government data. Between 2005 and 2023, national greenhouse gas emissions fell 8.5%, while GDP grew 38%, showing that economic growth has been decoupled from emissions.
The government highlighted that global investment in clean energy exceeded US$2.8 trillion in 2024, nearly double the amount directed to fossil fuels, and the global clean technology market is expected to triple by 2035.
“Canada must act with urgency, unity and determination,” Minister Dabrusin added. “Our response to the challenge of climate change will determine our economic competitiveness and global standing for generations to come.”
The strategy also acknowledges the rising costs of climate impacts. The average annual cost of weather-related disasters has risen to the equivalent of 5–6% of Canada’s annual GDP growth, with 2024 marking the country’s most destructive year on record for insured losses from severe weather events, totalling C$9.2 billion.
The Climate Competitiveness Strategy will work alongside the 2030 Emissions Reduction Plan and the Canadian Net-Zero Emissions Accountability Act. It aims to mobilise both public and private capital, finalise new investment tax credits, and advance Carbon Contracts for Difference through the Canada Growth Fund to de-risk investments in clean technology.
The government will collaborate with provinces, territories, and Indigenous partners to align shared economic and climate goals.
“The strategy provides a roadmap to strengthen Canada’s industrial advantage and build a more resilient economic and environmental future,” Minister Michel said.
