Appearance before the Committee of the Whole (COW) – June, 9 2025

Overview OF ECCC’S 2025-26 Main Estimates

Issue

• Environment and Climate Change Canada’s (ECCC) reference levels in the 2025-26 Main Estimates total $3,127.3 million, which represents an increase of $366.3 million or 13.3% from the 2024-25 Main Estimates.

Points to register

• The increase in resources is mainly attributable to :
  • new funding for a one-time $300 million payment relating to the Grant to the Our Land for the Future Trust – Northwest Territories Project Finance for Permanence;
  • an increase in the planned statutory spending for returning fuel charge proceeds to Indigenous Communities and for the distribution of revenues from excess emissions charge payments under the Output-Based Pricing System.
    • Although there is no requirement to report on statutory grant and contribution authorities in the Main Estimates, ECCC included planned spending in 2025-26 to align with best practices for transparent reporting to Canadians.
    • This change contributes to the increase in planned spending compared to 2024-25.
• The increase is partially offset by the transfer of resources to the new Canada Water Agency as well as a reduction in some programs due to changes in funding profiles or funding coming to an end including Canada's National Adaptation Strategy $530 million up-front multiyear one-time payment to the Green Municipal Fund which provided funding to the Federation of Canadian Municipalities to support adaptation initiatives in 2024-25.

• With the funding received in these Estimates, ECCC will continue to
  • provide weather and environmental information to make decisions on public health and safety.
  • provide national leadership to reduce Canadian greenhouse gas and short-lived climate pollutant emissions;
  • engage Indigenous peoples in clean growth and climate change as well as nature conservation;
  • prevent pollution in ecosystems, water and air; and
  • conserve and protect Canada’s wildlife and habitat, and recover species at risk.
• It is important to note that the 2025-26 Main Estimates include $63.5M in cumulative reductions as we enter the second year of the 3-year implementation plan with respect to Refocusing Government Spending Exercise. This represents a $20.4M increase in reductions compared to 2024-25. These reductions are attributed across several programs.

2025-26 Main Estimates in comparison to the 2024-25 Main Estimates

• The $366.3 million increase is composed of:
  • A voted spending authority decrease of $30.4 million in operating expenditures (Vote 1);
  • A voted spending authority decrease of $11.5 million in capital expenditures (Vote 5);
  • A voted spending authority decrease of $331.7 million in grants and contributions expenditures (Vote 10); and
  • A funding increase of $739.9 million for statutory authorities.
• 2025-26 Main Estimates include the following increases compared to the 2024-25 Main Estimates:
  • $466.5 million in statutory grant funding to return fuel charge proceeds to Indigenous Communities in recognition of the impacts of climate change on Indigenous communities. This supports the Government of Canada’s broader commitment to return all proceeds collected from the federal carbon pollution pricing system to their jurisdiction of origin;
  • $300.0 million in new funding to sign an agreement with partners including Indigenous governments and organizations, the Government of the Northwest Territories, and philanthropic donors to fund the Northwest Territories “Our Land for the Future (OLF)” Project Finance for Permanence initiative. Funding will be used to support the establishment and ongoing operations of the OLF Trust, and to provide long-term endowment funds for disbursement to protected and conserved area establishment, management, and related nature conservation action while advancing Indigenous-led conservation.
  • $261.2 million in statutory contributions to help fulfill the Government of Canada commitment to return all proceeds collected from federal carbon Output-Based Pricing System pollution pricing system to the jurisdiction of origin while supporting Canada's emissions reduction objectives.
  • $26.3 million to continue Canadaʼs chemicals management regime which helps to reduce risks from harmful chemicals to the environment and Canadians.

• Partially offset by decreases of:
  • $530.2 million reduction in the funding profile for Canada's National Adaptation Strategy which was implemented to respond to urgent climate risks. The reduction is related to the upfront multi-year one-time payment to the Green Municipal Fund in 2024-25 which provided funding to the Federation of Canadian Municipalities to support adaptation initiatives.
  • $70.0 million reduction following the creation of the Canada Water Agency which came into force on October 15, 2024.
  • $26.0 million for the sunsetting of funding for the British Columbia Old Growth Nature Fund, which advanced objectives for urgent protection of vital ecosystems, wildlife habitats and species at risk in these prime threatened lands and protects carbon stores in Old Growth forests.
  • $12.5 million for the sunsetting of funding for the Trans Mountain Expansion Project, which supported ECCC in entering into project funding agreements with eligible Indigenous groups for the delivery of the Terrestrial Cumulative Effects Initiative (TCEI) which addresses the combined effects of past, present, and future human activities and natural processes on mainland freshwater and terrestrial environments.
  • $49.0 million for various smaller initiatives and other technical adjustments.

2025-25 Main Estimates – variances by vote

Vote 1 Operating expenditures: a decrease of $30.4 million compared to 2024-25 Main Estimates

• The decrease in Vote 1 is mainly related:
  • to a permanent transfer of resources of $37.3 million for the creation of the Canada Water Agency which came into force on October 15, 2024.
  • to $5.7 million for the sunsetting of funding for the Implementation of the Fuel Charge Proceeds Return Program, which enables the return of federal fuel charge proceeds to jurisdictions of origin, as required under the Greenhouse Gas Pollution Pricing Act.
  • to $5.6 million for the sunsetting of funding for the Trans Mountain Expansion Project, which supported ECCC in entering into project funding agreements with eligible Indigenous groups for the delivery of the Terrestrial Cumulative Effects Initiative (TCEI).
  • to $5.2 million for a reduction in the funding profile for the ongoing development, implementation and administration of Carbon Pricing and the Clean Fuel Regulations, which supports the implementation of key climate mitigation initiatives outlined in Canada’s 2030 Emissions Reduction Plan.

• Partially offset by increases of:
  • $23.6 million in new funding to support the Chemicals Management Plan which helps to reduce risks from harmful chemicals to the environment and Canadians.

Vote 5 Capital expenditures: a decrease of $11.5 million compared to 2024-25 Main Estimates

• The decrease in Vote 5 is mainly related:
  • to $5.6 million reduction in the funding profile for the land acquisitions to conserve Canada’s land and freshwater, protect species and advance Indigenous reconciliation and increase access to nature, as part of the Enhanced Nature Legacy.
  • to $5.0 million for the sunsetting of funding to address infrastructure integrity issues to complete the transformation of the National Hydrological Services for adapting Canada’s Weather and Water Services to Climate Change.
  • to $2.2 million reduction in the funding profile to strengthen and implement greenhouse gas emissions regulations and zero emission requirements for light- and heavy-duty vehicles, implement zero emission requirements for small off-road equipment and to develop, implement and enforce federal landfill methane regulations, while undertaking additional actions to support food diversion and energy recovery from biodegradable waste.
  • to $1.0 million reduction related to a reprofile received in 2024-25, which was used to renew ECCC's satellite receiving stations for Polar Orbiting Environmental Satellites (POES) to ensure critical access to the next generation of satellite data that will enhance meteorological information available to ECCC’s operational weather forecasting and environmental monitoring programs and increase the network’s resilience and redundancy.
  • to a $0.7 million permanent transfer for the creation of the Canada Water Agency which came into force on October 15, 2024.

• Partially offset by increases of:
  • $2.4 million in new funding to support safe shellfish harvest for food, social and ceremonial (FSC) purposes to communities primarily located in British Columbia, with some in Quebec and the Maritime regions, as part of the renewed Food Policy for Canada.
  • $2.4 million in the funding profile for the Retrofit of the Global Atmosphere Watch Observatory in Alert, Nunavut. The facility is used for monitoring ozone depletion, measuring greenhouse gases, and understanding aerosols, all in support of climate change, air quality, and weather forecasting.

Vote 10 Grants and Contributions expenditures: a decrease of $331.7 million compared to 2024-25 Main Estimates

• The decrease in Vote 10 is mainly related:
  • to $530.0 million reduction in the funding profile for Canada's National Adaptation Strategy which was implemented to respond to urgent climate risks. The reduction is related to the one-time payment to the Green Municipal Fund in 2024-25 which provided funding to the Federation of Canadian Municipalities to support adaptation initiatives.
  • to a $28.4 million permanent transfer for the creation of the Canada Water Agency which came into force on October 15, 2024.
  • to $25.0 million for the sunsetting of funding for the British Columbia Old Growth Nature Fund, which advanced objectives for urgent protection of vital ecosystems, wildlife habitats and species at risk in these prime threatened lands and protects carbon stores in Old Growth forests.
  • to $6.4 million for the sunsetting of funding for the Trans Mountain Expansion Project, which supported ECCC in entering into project funding agreements with eligible Indigenous groups for the delivery of the Terrestrial Cumulative Effects Initiative (TCEI).

• Partially offset by increases of:
  • $300.0 million in new funding to sign an agreement with partners including Indigenous governments and organizations, the Government of the Northwest Territories, and philanthropic donors to fund the Northwest Territories “Our Land for the Future (OLF)” Project Finance for Permanence initiative. Funding will be used to support the establishment and ongoing operations of the OLF Trust, and to provide long-term endowment funds for disbursement to protected and conserved area establishment, management, and related nature conservation action while advancing Indigenous-led conservation.

Grants and Contributions

Environment and Climate Change Canada’s 2025-26 Main Estimates include $1,050.8 million in voted grants and contributions composed of $320.8 million in grants and $729.9 million in contributions.

1. Voted Grants - Total $320.8 million including:

• Grant to the Our land for the Future Trust – Northwest Territories Project Finance for Permanence: $300 million
  

  Funding is provided to sign an agreement with partners including Indigenous governments and organizations, the Government of the Northwest Territories, and philanthropic donors to fund the Northwest Territories “Our Land for the Future (OLF)” Project Finance for Permanence initiative. The one-time $300 million payment will be used to support the establishment and ongoing operations of the OLF Trust, and to provide long-term endowment funds for disbursement to protected and conserved area establishment, management, and related nature conservation action while advancing Indigenous-led conservation.

  This grant agreement is an Indigenous-led conservation initiative that supports long-term, large-scale protection of lands and inland waters in the Northwest Territories. This agreement aims to conserve up to 379,390 square kilometers of lands and inland waters in the Northwest Territories, protecting over 2% of Canada’s land and significantly contributing to national conservation goals. Activities include identifying and establishing new protected areas, investing in ongoing stewardship of lands, environmental monitoring and climate change research, cultural and Indigenous language revitalization, and sustainable community economic developments for conservation-related purposes.

• Grants in support of Canada's International Climate Finance Program: $14.9 million
  

  The purpose of these grants is to promote change towards addressing climate change and policies in developing countries. The overall objective of the Program is to help developing countries transition to low-carbon, climate-resilient, nature positive and inclusive sustainable development.

  The decrease of $8.6 million under Grants in support of Canada’s International Climate Finance Program is mainly due to fluctuations in the International Climate Finance Treasury Board Submission funding profile.

• Grant for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer: $3.6 million
  

  The Montreal Protocol on Substances that Deplete the Ozone Layer is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances that are responsible for ozone depletion. This grant enables Canada to meet up to 20 per cent of its annual obligation to the Multilateral Fund for the Implementation of the Montreal Protocol to support projects that assist developing countries comply with their commitments under the Montreal Protocol.

• Grants in support of Taking Action on Clean Growth and Climate Change: $2.1 million
  

  These grants enable engagement with municipalities, provinces, territories, Indigenous Peoples, other stakeholders to support and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.

  The decrease of $1.6 million under Grants in support of Taking Action on Clean Growth and Climate Change is due to the Refocusing Government Spending exercise (B2023).

• Grants in support of Preventing and Managing Pollution: $0.3 million
  

  These grants enable activities that directly or indirectly contribute to increasing awareness and taking environmental action to reduce GHG emissions and short-lived climate pollutant emissions, divert and/or reduce substances that negatively affect water quality and/or contribute to the conservation and sustainable use of Canada’s fresh water.

• Grants in support of Weather and Environmental Services for Canadians: $44 thousand
  

  This grant supports the continued research and the development of highly qualified experts in the scientific areas related to Environment and Climate Change Canada’s mandate, such as atmospheric study and climate change.

2. Voted Contributions - Total of $729.9 million including:

• Contributions in support of the Canada Nature Fund: $286.6 million
  

  The Canada Nature Fund will support recipients to conserve, establish, and/or expand protected areas, secure private land, support provincial and territorial species protection efforts and help build Indigenous capacity to conserve land and species. It will support and enable others to undertake actions that conserve wildlife and protect and improve their habitat.

  The decrease of $23.0 million under Contributions in support of the Canada Nature Fund is mainly due to the sunsetting of $25.0 million in funding for the British Columbia Old Growth Nature Fund.

• Contributions in support of the Low Carbon Economy Fund (LCEF): $247.1 million
  

  These contributions support incremental actions to current plans that materially reduce greenhouse gas (GHG) emissions and achieve significant reductions within the period of Canada’s first Nationally Determined Contribution under the Paris Agreement. The LCEF will also support the implementation of new technologies and Canada’s long-term transition towards cleaner growth through the decarbonisation of the economy.

  The increase of $20.1 million under Contributions in support of the Low Carbon Economy Fund is mainly due to Treasury Board Submission funding profile changes.

• Contributions in support of Conserving Nature: $97.8 million
  

  The purpose of these contributions is to advance conservation of biodiversity and sustainable development by supporting projects that enable conservation, protection and recovery of Canada’s wildlife including; species at risk and their habitat (including critical habitat) and healthy populations of migratory birds. These contributions will also support Canada’s biodiversity strategy and related domestic and international partnership interests, including the establishment and management of protected areas, Indigenous protected and conserved areas and Indigenous people’s capacity and participation in conservation.

• Contributions in support of Taking Action on Clean Growth and Climate Change: $34.8 million
  

  These contributions support engagement with municipalities, provinces, territories, Indigenous Peoples and other stakeholders to assist and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.

  The increase of $2.6 million under Contributions in support of Taking Action on Clean Growth and Climate Change is mainly due to Treasury Board Submission funding profile changes.

• Contributions in support of Canada's International Climate Finance Program: $22.3 million
  

  The purpose of these contributions is to promote change towards addressing climate change and policies in developing countries. The overall objective of the Program is to help developing countries transition to low-carbon, climate-resilient, nature positive and inclusive sustainable development.

  The increase of $0.3 million under the Contributions in support of Canada’s International Climate Finance Program is mainly due to Treasury Board Submission funding profile changes.

• Contributions in support of the Youth Employment and Skills Strategy: $17.9 million
  

  Environment and Climate Change Canada’s Science Horizons Youth Internship Program (Science Horizons) falls under the Youth Employment and Skills Program led by Employment and Social Development Canada. The objective of Science Horizons is to develop opportunities for youth with post-secondary education by providing eligible employers with wage subsidies to hire youth with a post-secondary education who are eligible to work in science, technology, engineering, or math (STEM) linked to the green economy.

• Contributions in support of Preventing and Managing Pollution: $9.5 million
  

  These contributions support the collaboration with provinces, territories, Indigenous peoples and others to develop and administer environmental standards, guidelines, regulations and other risk management instruments to reduce releases and monitor levels of contaminants in air, water and soil; promote and enforce compliance with environmental laws and regulations; and administer on the ground projects that have positive impact on the environment.

  The decrease of $37.1 million under Contributions in support of Preventing and Managing Pollution is mainly due to the sunsetting of funding for the Trans Mountain Expansion Project.

• Contributions in support of Predicting Weather and Environmental Conditions: $3.6 million
  

  This contribution encourages and supports international capacity building activities to enable access, understanding and use information on changing weather, water, air quality and climate conditions.

• Assessed contribution to the Commission for Environmental Cooperation (CEC): $3.5 million
  

  This contribution supports Canada’s membership to The Commission for Environmental Cooperation (CEC), established by Canada, the United States and Mexico, under the terms of the North American Agreement for Environmental Cooperation. It addresses environmental concerns in North America, helps prevent potential trade and environmental conflicts among the NAFTA partners, and promotes the effective enforcement of domestic environmental laws in the three countries. This agreement is in place since 1994.

• Contributions in support of the Impact Assessment and Regulatory System: $3.4 million
  

  The purpose of these contributions is to support the “Cumulative Effects, Open Science and Evidence” approach which includes the development of an open science and data platform; supporting regional assessments; conducting strategic assessments, including ones on climate change and biodiversity; and coordinating departmental, federal and inter-jurisdictional efforts to implement the proposed approach to addressing the cumulative effects of natural resource development.

• Assessed contribution to the World Meteorological Organization (WMO): $2.6 million
  

  This contribution supports Canada’s membership to the World Meteorological Organization (WMO), a specialized agency of the United Nations and the UN system's authoritative voice on the state and behavior of the Earth's atmosphere, its interaction with the oceans, the climate it produces and the resulting distribution of water resources. This membership allows Canada to selectively participate in and shape areas of the WMO agenda where mutual benefits are derived. This agreement is in place since 1950.

• Assessed contribution to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): $0.2 million
  

  This contribution supports Canada’s membership to CITES which is an international agreement between governments with the aim to ensure that international trade in specimens of wild animals and plants does not threaten their survival. The CITES core programming, as agreed by the Conference of the Parties, contributes to protection and conservation of biodiversity. This agreement is in place since 1975.

• Assessed contribution to the Convention on Wetlands of International Importance (Ramsar Convention): $0.2 million
  

  This contribution supports Canada’s membership to the Convention on Wetlands, known more widely as the Ramsar Convention. The Convention is an intergovernmental treaty that embodies the commitments of its member countries to maintain the ecological character of their Wetlands of International Importance and to plan for the sustainable use of all of the wetlands in their territories. This agreement is in place since 1981.

• Assessed contribution to the Minamata Convention on Mercury: $0.2 million
  

  This contribution supports Canada’s membership to the Minamata Convention on Mercury, a multi-lateral environmental treaty under the United Nations Environmental Programme with the objective of protecting human health and the environment from the adverse effects of mercury. This agreement is in place since 2017.

• Assessed contribution to the Organization for Economic Co-operation and Development (OECD): $0.1 million
  

  This contribution supports Canada’s membership to the Convention on the Organization for Economic Co-operation and Development, an international agreement between governments with the aim to act as a forum for countries committed to democracy ands the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies. ECCC is the lead agency responsible for implementing OECD’s Special Programme on the Control of Chemicals. This agreement is in place since 1978.

• Assessed contribution to the International Network for Bamboo and Rattan (INBAR): $38 thousand
  

  This contribution supports Canada’s membership to the INBAR which is an intergovernmental organization dedicated to improving the social, economic, and environmental benefits afforded to producers and users of bamboo and rattan. INBAR connects a global network of partners from the government, private, and not-for-profit sectors in over fifty countries to define and implement a global agenda for sustainable development through bamboo and rattan. This agreement is in place since 1997.

Part II – Main Estimates

Department of the Environment

Raison d’être

Environment and Climate Change Canada leads and supports a wide range of environmental issues, including taking action on clean growth and climate change, pollution, conserving nature, and predicting weather and environmental conditions. The Department addresses these issues through various actions and initiatives including leading Canada’s efforts to transition to a net-zero economy and strengthening resilience to climate change, protecting more of our lands and waters, strengthening protection and recovery for species at risk and their habitats, and providing environmental and weather information to Canadians. To achieve its mandate, the Department works with provinces, territories, Indigenous peoples, civil society, industry, and international partners, and undertakes monitoring, science-based research, policy and regulatory development, and enforcement of environmental laws and regulations. The Department’s program focus reflects the interdependence between environmental sustainability and economic well-being. Additional information can be found in Environment and Climate Change Canada’s Departmental Plan.

The Department’s program focus reflects the interdependence between environmental sustainability and economic well-being.

Additional information can be found in Environment and Climate Change Canada’s Departmental Plan.

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2025–26 Estimates

Annex

Items for inclusion in the Proposed Schedules to the
Appropriation Bill

Items for inclusion in the Proposed Schedule 1 to the Appropriation Bill
(for the financial year ending March 31, 2026)

Unless specifically identified under the Changes in 2025–26 Main Estimates section, all vote wordings have been provided in earlier appropriation acts.

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2025–26 Estimates

Budgetary Expenditures by Standard Object

This table shows the forecast of total expenditures by Standard Object, which includes the types of goods or services to be acquired, or the transfer payments to be made and the revenues to be credited to the vote.
Definitions of standard objects available .
Interest payments relating to capital leases are included under "Public debt charges". These payments are voted expenditures and are not included under the "Public Debt" heading on the Composition of Estimates and Expenditures table.

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2025–26 Estimates
Statutory Forecasts

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2025–26 Estimates
Expenditures by Purpose

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CSFB–COW 2025–26 ME–QA

A) Grants and Contributions

1. How much of ECCC’s Main Estimates G&C funding if for provinces/territories and Indigenous recipients?

ECCC’s 2025-26 Main Estimates include $1,050.8M in Voted G&Cs, which includes:

• Indigenous recipients: $164.1M (15.6 %), and

• One-time grant payment of $300M (28.5%) to the Our Land for the Future Trust – Northwest Territory Project Finance for Permanence; as well as

• Provinces or territories: $278.9M (26.5%)

2025-26 Main Estimates also include $727.7M in statutory G&Cs

• The Fuel Charge Proceeds Fund for Indigenous Governments ($466.5M) returns a portion of federal fuel charge proceeds to eligible federally recognized Indigenous governments – including First Nations, Inuit and Métis – through grant agreements.

• The OBPS Proceeds Fund ($261.2M) reinvests federal Output-Based Pricing System proceeds. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. Proceeds collected in other backstop jurisdictions (current or past) are returned through the Decarbonization Incentive Program and Future Electricity Fund of the OBPS Proceeds Fund. Recipients include Provinces or territories ($132.7M), For-profit organizations ($122.6M) and Academia institutes ($5.9M).

2. How much G&C funding has ECCC provided to US organizations?

In 2024-25, ECCC had 35 G&C agreements with US based recipients totaling $32.2M and representing 2% of G&C expenditures for the year (excluding statutory). The majority ($26.7M) was related to the International Climate Finance Program where funding was provided to international organizations/initiatives. $3.9M of the funding was for the Montreal Protocol and assessed Minamata agreements to the international organization UNEP. $1.2M was provided to Academia/conservation organizations related to species at risk/migratory birds and air pollution. The remaining $0.4M was for a climate workshop and Atmospheric research education and training.

ECCC currently has 16 signed G&C agreements with US recipients totaling $20.2M and representing 4% of current signed G&C agreements (excluding statutory). The majority ($19.9M) of these agreements are related to the International Climate Finance program and while the recipients are located in the United States, they represent international organizations /initiatives such as the World Bank and United Nations. The remaining $0.3M are agreements with Academia or research facility recipients related to species at risk/migratory birds and air pollution data.

3. How much G&C funding has ECCC provided to other countries including international organizations and what is the objective of this funding?

For 2024-25, ECCC had 98 G&C agreements providing $56.9M (4% of total expenditures excluding statutory) to recipients outside of Canada of which 35 agreements ($32.2M) were provided to recipients located in the US. The majority ($39.2M) of that funding was related to the International Climate Financing program as well as Assessed contributions or other annual contributions (Montreal Protocol, UNEP membership). Other agreements were related to Canada’s contributions to various international or to academia/conservation organizations.

For 2025-26 ECCC currently has 44 G&C signed agreements totaling $29.8M (5% of total agreements) to recipients outside of Canada of which 16 agreements ($20.2M) are with recipients located in the US. The majority ($26.0M) of the agreements are related to the International Climate Financing program. The remainder of the funding is related to Assessed contributions and Canada’s contribution to various international initiatives.

4. What is the difference between Grants and Contributions?

Answer: CFO

The selection of the appropriate transfer payment instrument requires taking into account the public policy issue to be addressed, the specific program objective or outcome, the level of funding, the type of recipients, and the nature and level of risks. 

Grants are subject to pre-established eligibility and other entitlement criteria and are used when the amount of funding to be provided can be determined in advance, and where there is assurance that the grant will be used for the purpose for which it is provided. 

Contributions are subject to performance conditions specified in a funding agreement and are used when the department deems it necessary to monitor progress and results, and receive an accounting of the use of funds from the recipient.

5. What is your approach to distribute G&C funding across provinces?

Answer: CFO

The methodology for determining the distribution of funding by Province/Territory varies by program. 

Some programs determine Province/Territory allocation amounts based on an established formula; for instance, ECCC’s Low Carbon Economy Leadership Fund provided a base-level to each Province/Territory which was supplemented by a per capita allocation. 

The funding distribution by Province/Territory for some programs is dependent on which Province/Territories have shown interest and are willing to commit to key federal priorities. For instance, funding allocations from the Nature Agreements Fund are being negotiated with Nature Agreement Provincial/Territory signatories in which amounts are based on their level of commitment.

Some other programs don’t have established Provincial/Territorial allocation standards; therefore, individual projects are evaluated on their own merits based on established criteria in order to provide the greatest impact on Canada’s natural environment or address areas of concern. 

6. How are funds being distributed between federal departments, provinces, territories, and Indigenous partners?

Of ECCC’s 2025-26 Main Estimates $1,050.8M in G&Cs (excluding statutory), approximately 44.2% ($464.1M) of this funding is for Indigenous recipients, which includes the one-time $300M grant payment to the Our Land for the Future Trust – Northwest Territories Project Finance for Permanence, and 26.5% ($278.9M) for provinces or territories. The remaining funding will be distributed to Not-for profit organizations (19.6%), Academia institutions (1.6%), For-profit (3.8%), International (3.6%) and other (0.7%) contributions including planned transfers to other federal departments, however those funds will be further dispersed to ultimate recipients.

7. How much funding is allocated to Indigenous-led environmental initiatives?

ECCC has several large programs totaling over $420M in 2025-26 that focus on Indigenous-led environmental initiatives.

In 2025-26, ECCC will provide a $300M grant payment related to the ‘Northwest Territories Our Land for the Future’ agreement under the Northwest Territories Project Finance for Permanence program which is an Indigenous-led conservation initiative that supports long-term, large-scale protection of lands and inland waters in the Northwest Territories.  The $300M payment will provide:

• $90M to be invested in an endowment fund for Conservation and Governance Sustainability.

• $210M to be invested in a drawdown fund (The Conservation and Stewardship Fund) to build capacity and substantiate Canada’s commitment to United Nations Declaration Act by enabling upfront investments in guardian and stewardship programs.

ECCC has a $45M budget in 2025-26 for the Indigenous Leadership Fund under the Low Carbon Economy Fund Program. This program supports climate action by Indigenous peoples and funds Indigenous-owned and led renewable energy, energy efficiency and low-carbon heating projects. 

ECCC’s Enhanced Nature Legacy Indigenous stream provides a budget of $77.3M in 2025-26 to support First Nations, Inuit, and Métis leadership in species at risk conservation in the implementation of the Pan-Canadian Approach and SARA as a means to advance reconciliation; and to support conservation planning and action led by Indigenous peoples that reflects their unique priorities, needs, and rights related to lands and wildlife.

Funding from other ECCC programs is also used for Indigenous engagement activities as required.

8. Is there adequate financial support to ensure Indigenous capacity building in environmental governance?

Collaboration with Indigenous Peoples is crucial to ECCC’s work and requires support to enhance the capacity of Indigenous partners to build environmental governance. The department has set aside funds specifically to address new Indigenous engagement requirements that arise through the year and ensures that Indigenous Engagement requirements are considered when costing new Treasury Board submissions. 

While these measures help to enhance capacity and support, Indigenous partners have indicated that further capacity support and changes to federal funding practices are required to develop effective and equal partnerships. Sustained and predictable funding remains a challenge when it comes to ensuring long-term Indigenous capacity building in environmental governance. Many initiatives operate on a year-to-year basis. While ECCC sets aside funds for emerging Indigenous engagement requirements, the ability to scale or support Indigenous-led governance structures depends on continued investment, flexible funding models, and reduction of administrative and structural barriers.

B) US and International

9. Can you provide more information on what contracting activities ECCC conducts with the US, and measures ECCC is implementing to “Buy Canadian”?

• Environment and Climate Change Canada is committed to strengthening corporate governance with respect to its supplier communities. We place a particular emphasis on better understanding the partners with whom we do business, to ensure an equitable distribution of opportunities and maintain public trust. 

• The Department is also committed to supporting Canadian business and Canadian suppliers, wherever possible, while abiding by established rules and regulations that govern federal procurement.

• ECCC implemented additional controls, starting March in 2025, over contracts where the intended supplier is a US-based company. As a result of these controls, ECCC senior management approval is required before awarding a contract to a US-based supplier. These additional controls are meant to ensure that due consideration is given to Canadian-based suppliers and Canadian alternatives, where possible or appropriate to do so.

• It is important to note that historically, ECCC has awarded a small percentage of its contracts to US suppliers. This percentages vary from year-to-year, depending on program priorities and requirements.

To illustrate*:

• For fiscal year 2024/25: Of the 2,666 new contracts awarded by ECCC in fiscal year 2024-25, 145 contracts were awarded to US-based suppliers for a total of $7.8M, which represents approximately 7% of the total value of contracts awarded

• For fiscal year 2023/24: ECCC awarded new 3,018 contracts. Of those contracts, 175 contracts were awarded to US-based suppliers for a total of $4.6M, which represents approximately 4% of the total value of contracts awarded.

• As ECCC continues to promote “Buy Canadian” as part of its purchasing activities, it is important to note that some contracts will continue to be awarded to US Suppliers, whether as the result of a competitive tendering process, or because ECCC must purchase specialized scientific services, laboratory equipment, or software where the only viable alternative is a US-based supplier.

* Note on Statistics provided :

• Note that by “US-based Supplier,” ECCC is referring to a US Company where the origin of delivery is the United States. Per the instructions received from TBS, US Companies (e.g., Microsoft Canada) that are servicing Canadians through a Canadian-based subsidiary are not considered “US-based” for the purposes of this definition.

• Please note the numbers provided reflect contracts awarded by ECCC using its own contracting authorities. The volumes do not include contracts awarded by PSPC or SSC on behalf of ECCC.

• The volumes reflect contracts awarded, and do not include amendments.

10. How much G&C funding has ECCC provided to US organizations?

In 2024-25, ECCC had 35 G&C agreements with US based recipients totaling $32.2M and representing 2% of G&C expenditures for the year (excluding statutory). The majority ($26.7M) was related to the International Climate Finance Program where funding was provided to international organizations/initiatives. $3.9M of the funding was for the Montreal Protocol and assessed Minamata agreements to the international organization UNEP. $1.2M was provided to Academia/conservation organizations related to species at risk/migratory birds and air pollution. The remaining $0.4M was for a climate workshop and Atmospheric research education and training.

ECCC currently has 16 signed G&C agreements with US recipients totaling $20.2M and representing 4% of current signed G&C agreements (excluding statutory). The majority ($19.9M) of these agreements are related to the International Climate Finance program and while the recipients are located in the United States, they represent international organizations /initiatives such as the World Bank and United Nations. The remaining $0.3M are agreements with Academia or research facility recipients related to species at risk/migratory birds and air pollution data.

C) Statutory Funding

11. What is the current balance in the Environmental Damages Fund and Administrative Monetary Penalties SPA accounts?

• The Environmental Damages Fund (EDF) directs money received from environmental fines, penalties, court orders and voluntary payments to projects that help restore the environment and conserve wildlife and habitats. The goal is to ensure that the environmental harm caused by an offense is addressed, and that affected communities see a tangible benefit. EDF funding typically supports activities such as habitat restoration, pollution cleanup at or near where the environmental harm was caused. As well as research and development on environmental damage assessment and restoration methods and environmental damage restoration education, in line with the nature of the original violation.

• There are two main types of funding: court-imposed fines and voluntary settlements, which can range from small amounts (ex. $1,000 for hunting violations) to large penalties (ex. $196 million in the Volkswagen emissions case). Administrative Monetary Penalties (AMPs), which are issued outside of the court system and are generally smaller in dollar value, may also contribute to the fund.

1. There is a total of $235.6 million in the SPAs broken down by fund as follows:

12. How much are the total statutory specifications for Fuel Charge Proceeds?

1. The Minister of Environment & Climate Change is responsible for returning a total of $531.49M in federal fuel charge proceeds to Indigenous governments (FCPFIG), as per the specifications made by the Minister of Finance.
2. The Fuel Charge Proceeds Fund for Indigenous Governments was launched in January 2025 to return these funds through grants to 347 federally recognized Indigenous governments (First Nation, Métis and Inuit), in accordance with the allocation formula approved by the Minister.
3. In 2025-26, it is estimated that ECCC will return $443.42M through the FCPFIG, which represents all remaining funds to be returned under this program. This amount is lower than the $466.5M reflected in the Main Estimates which was based on estimated 2024-25 returns of proceeds at the time the Main Estimates were being developed prior to the end of 2024-25.
4. ECCC returned $88.07M under the FCPFIG in FY 2024-25.

Total fuel charge proceeds to be returned to Indigenous by jurisdiction under the Fuel Charge Proceeds Fund for Indigenous Governments

Note 1: $531.49M in fuel charge proceeds will be returned over the period of 2024-25 to 2025-26 as statutory payments under the Greenhouse Gas Pollution Pricing Act (GGPPA) 

13. How much has been collected from the total proceeds of the federal Output-Based Pricing System?

Answer:

As of March 5, 2025, a total of $917.55 million in proceeds collected for the years 2019 through 2023 has been confirmed, with a breakdown by stream and jurisdiction as follows:

* Following an intake that closed in October 2024, the DIP funding stream will no longer be seeking new projects to return OBPS proceeds to provinces. All remaining and future proceeds collected under the federal system will be expected to be returned to provinces through the Future Electricity Fund.

* Note that these are current proceeds collected and reported for any given compliance year. Amounts per year may change retroactively due to factors such as regulatory compliance adjustments. Following a given compliance year (ending December 31), a full year is provided to regulatees to report on emissions and make payments and total collections are confirmed the following year. For example, for the 2023 federal OBPS compliance year, reports and payments were made throughout 2024, and 2023 amounts were confirmed for return in early 2025. Therefore, 2024 amounts will be confirmed in early 2026.

D) Other

14. How much has ECCC transferred for the creation of the Canada Water Agency and why was an agency created?

• The mandate of the Canada Water Agency is to improve fresh water in Canada by providing leadership, effective collaboration federally, and improve coordination and collaboration with provinces, territories, and Indigenous Peoples to proactively address national and regional transboundary freshwater challenges and opportunities; thus, contributing to keeping fresh water in Canada safe, clean, and well managed.

• Budget 2023 announced $85.1M over 5 years (starting in 2023-24) + $21M ongoing thereafter to support the creation of the Canada Water Agency, which is headquartered in Winnipeg.
  • [Note if asked: this is inclusive of Budget 2022 funding of $8.7M ongoing]
• In total The Government of Canada has provided $102.3M over 7 years (2021-22 through 2027-28) and $21M ongoing for the transition and establishment of the CWA.

• As the CWA became a stand-alone agency on October 15, 2024, funding was transferred to CWA via deemed appropriations of $53.7 million for 2024-25. Spending until October 14 will remain in ECCC financial reports while spending as of October 15, 2024, will be reflected in the CWA financial reports. 

• A permanent transfer of resources including $87.8 million in 2025-26, $82.8 million in 2026-27, $86.3 million in 2027-28, $84.2 million in 2028-29, $80.5 million in 2029-30, $79.5 million in 2030-31, $79.8 million in 2031-32, $79.4 million in 2032-33 and $41.2 million in 2033-34 and ongoing (including EBP) will be processed through the 2025-26 Main Estimates for future years.

• ECCC continues to advance science-based activities in the Freshwater Ecosystem Initiatives and to lead the development of the National Freshwater Science Agenda, as well as provide freshwater quantity monitoring in the Freshwater Ecosystem Initiatives and support for transboundary water boards. 

15. What is Refocusing Government Spending and what does it mean for ECCC?

• In Budget 2022, the Government announced the launch of a comprehensive Strategic Policy Review, with the objective of generating savings of $6 billion from 2024-25 to 2026-27 and $3 billion annually by 2026-27.

• In Budget 2023, the government committed to reducing spending by $15.4 billion over five years, starting in 2023–24, and by $4.5 billion annually after that by refocusing government spending, including spending on travel and professional services. Through this exercise, the government is finding savings from across government that can be directed towards key priorities such as health care and the clean economy.

• In support of this commitment, ECCC will make the following budgetary reductions:
  • 2024-25: $43,061,850
  • 2025-26: $63,482,805
  • 2026-27 and after: $91,008,473 Amounts include EBP

• ECCC will achieve these reductions through the following:
  • Reducing professional services by ensuring greater alignment of contracting to priorities and reducing discretionary spending;
  • Reducing travel through effective planning and use of the hybrid work model;
  • Reducing staffing levels through attrition and vacancy management;
  • Reducing a proportion of grants and contribution expenditures;
  • Leveraging efficiencies in internal management and enabling functions including rationalizing spending on common line items, streamlining processes, adjusting the scale and nature of support functions while leveraging technology.

The following table can't be copy/pasted: Refocusing Governent Spending (B2023 Reductions)

• In Budget 2024, the government announced the implementation of the second phase of refocusing government spending to achieve savings primarily through natural attrition in the federal public service including:
  • Starting on April 1, 2025, federal public service organizations will be required to cover a portion of increased operating costs through their existing resources.
  • Over the next four years, based on historical rates of natural attrition, the government announced that it expects the public service population to decline by approximately 5,000 full-time equivalent positions from an estimated population of roughly 368,000 as of March 31, 2024.

These reductions have not yet been finalized and therefore are not reflected in the 2025-26 Main Estimates.

16. How much carbon offset has been purchased in 2024-25?

The following table can't be copy/pasted: Carbon Offset Purchases

• The 2023-2024 Carbon Offset Purchases amount includes $241,920 related to COP 15.
• Air travel-related greenhouse gas (GHG) data is available on a departmental basis and is published online. Air travel GHG data is generated through the centralized travel booking service and includes departmental public servant travel which is the vast majority of travel. It does not include Ministerial travel as it is not booked through the centralized system. It also does not include disaggregated data by passenger.
• The Greening Government Strategy states that the government will promote and incentivize lower-carbon alternatives to work-related air travel. Departments contribute financially to the Greening Government Fund (GGF) based on their air travel emissions. Federal departments and agencies that generate GHG emissions in excess of 1 kilotonne per year from air travel contribute annually to the Greening Government Fund based on their emissions – the more GHG emissions they generate, the more they contribute. The GGF provides project funding to contributing federal government departments and agencies to reduce GHG emissions in their operations.
• Emissions related to Ministerial travel and other operations, such as major events, may be offset by departments. 

Overview of IAAC's 2025-2026 Main Estimates

Issue

The Impact Assessment Agency of Canada’s (IAAC’s) reference levels for the 2025-2026 Main Estimates are presented at $115.4 million.

Points to register

• IAAC’s total funding in the 2025-2026 Main Estimates is $115.4 million, representing an increase of $8.8 million, or approximately 8.2%, compared to the 2024–2025 Main Estimates.
  • The increase includes operating funds ($6.8 million),
    employee benefits ($2.2 million) and a small reduction in grants and contributions ($0.2 million).

• IAAC’s authorities include up to $8 million in respendable revenues that may be recovered from proponents under existing cost recovery regulations for impact assessments conducted by review panels.

• By Vote: $115.4 million
  • $84.2 million of IAAC’s authorities are allotted from Vote 1: Operating expenditures to conduct assessments;
  • $21.0 million are allotted from Vote 5: Grants and contributions to support public and Indigenous participation in assessments; and
  • The remaining $10.2 million is from a statutory vote for the employee benefit program.

• By Purpose: $115.4 million
  • $92.3 million is devoted to Impact Assessments. This figure includes the Agency’s $8.0 million in vote netted revenue, which is recoverable from proponents; and
  • $23.1 million is devoted to Internal Services.

• The funding levels reflect the Agency’s ongoing contributions to the Government’s initiative on “Refocusing Government Spending to Deliver for Canadians,” The Agencies funding reductions total $3.4 million for this fiscal year, comprised of $2.9 million in operating funding and $0.4 million in grants and contributions. Over the past 3 years, IAAC’s funding has been reduced by a cumulative total of $6.6 million.

• With the funding provided in the 2025-2026 Main Estimates, IAAC will continue to support timely decisions on major projects while advancing “one project, one review” in collaboration with provinces, territories, and Indigenous governing bodies.

Grants and Contributions

• IAAC’s 2025-2026 Main Estimates include $21.0 million for grants and contributions.

• IAAC’s grant and contribution programs provide funding support to individuals, non-profits, and Indigenous groups to improve scientific information and Indigenous knowledge; enhance public participation; contribute to Indigenous reconciliation and build Indigenous capacity; and promote transparency, efficiency, and timeliness.

• The funding is divided among the following programs:

• Contributions: $17.0 million
  • Indigenous Capacity Support Program: The Indigenous Capacity Support Program provides funding to Indigenous communities and organizations to support capacity building in Indigenous communities so they can better participate in current and future assessments. This funding is provided outside the context of specific project reviews.
  • Policy Dialogue Program: The Policy Dialogue Program helps the public and Indigenous Peoples share their expertise or provide Indigenous knowledge relevant to the development of policies, methodologies or tools related to assessments.
  • Participant Funding Program: The Participant Funding Program helps the public and Indigenous Peoples participate and share valuable insight, perspectives and knowledge during an assessment process. Supporting the participation of the public and Indigenous groups by reducing financial barriers means that assessments can be more open, balanced, credible and of higher quality.
  • Contribution to the Province of Quebec – James Bay and Northern Quebec Agreement ($0.5 million): To maintain and provide funding for the secretariats supporting the James Bay Advisory Committee on the Environment and the Kativik Environmental Advisory Committee.
• Grants: $4.0 million
  • Participant Funding Program: The Participant Funding Program helps the public and Indigenous Peoples participate and share valuable insight, perspectives, and knowledge during an assessment process. Supporting the participation of the public and Indigenous groups by reducing financial barriers means that assessments can be more open, balanced, credible and of higher quality.
  • Research Program: The Research Program aims to advance the science of assessments by supporting research on best practices using a multidisciplinary approach, forging partnerships, and sharing ideas. This work helps Canada remain a world leader in conducting robust assessments that support sustainable development.

Background / Current status

• The 2022 Fall Economic Statement proposed funding for IAAC over five years beginning in 2023-2024. The funding will allow full implementation of the objectives of the impact assessment process and enable IAAC to support timely decisions on major projects, advance “one project, one review” in collaboration with provinces and Indigenous governing bodies and uphold environmental protection and Indigenous rights.
• In August 2019, the Impact Assessment Act (the IAA) came into force giving IAAC the mandate to lead federal environmental and impact assessments. On October 13, 2023, the Supreme Court of Canada issued a decision on the constitutionality of the IAA. On June 20, 2024, the Budget Implementation Act, 2024, received Royal Assent and brought into force amendments to the IAA. These changes were made in response to the Supreme Court of Canada's decision on the constitutionality of the IAA.
• See 2025-2026 Main Estimates page attached for more details.

Impact Assessment Agency of Canada–Main Estimates

Raison d’être

The Impact Assessment Agency of Canada (IAAC) delivers high-quality environmental and impact assessments to inform decisions on, and mitigation of, any significant effects in areas of federal jurisdiction that may be caused by major projects supporting sustainable development. Environmental and impact assessments are planning and decision-making tools that: assist with project design, facilitate Indigenous, public, and stakeholder participation, and ensure appropriate measures are identified and implemented to mitigate the adverse effects of designated projects.

Additional information can be found in IAAC’s Departmental Plan.

Organizational Estimates

2025–26 Main Estimates by Purpose

Listing of the 2025–26 Transfer Payments

Listing of Statutory Authorities

Overview of Canada Water Agency’s 2025-26 Main Estimates

Issue

• The Canada Water Agency’s (CWA) reference levels in the 2025-26 Main Estimates total $84.8 million.

Points to register

• The Agency was established in October 2024, therefore, it was not part of the 2024-25 Main Estimates.

• CWA’s Main Estimates and total authorities for 2025-26 are $84.8 million which represents an increase of $84.8 million or 100% from the 2024-25 Main Estimates.

• With the funding received in these Estimates, CWA is:
  • Restoring and protecting Canada’s transboundary and nationally significant freshwater ecosystems. 
  • Anticipating and proactively responding to Canada’s most pressing freshwater challenges and opportunities. 
  • Creating impactful partnerships to responsibly steward and sustainably use Canada’s transboundary freshwater ecosystems. 
  • Cultivating water awareness in Canada. 
  • Translating freshwater science and data into knowledge to inform decision-making.

2025-26 Main Estimates in comparison to the 2024-25 Main Estimates

• The $84.8 million increase is composed of:
  • A voted spending authority increase of $38.1 million in operating expenditures (Vote 1);
  • A voted spending authority increase of $42.8M million in contributions expenditures (Vote 5); and
  • A statutory funding increase of $3.9 million for statutory authorities.

• 2025-26 Main Estimates include the following increases compared to the 2024-25 Main Estimates:
  • $84.8 million to establish the first Main Estimates for the Canada Water Agency, since inception in October 2024.
  • The Canada Water Agency was not part of the 2024-25 Main Estimates. The Agency’s spending authorities were deemed to CWA based on Orders in Council (OICs).

Grants and Contributions

Canada Water Agency’s 2025-26 Main Estimates include $42.8 million in voted contributions, including:

• Contributions in support of Freshwater Stewardship: $42.8 million
  The purpose of these contributions is to protect, restore, strengthen governance and collaboration and have a positive impact on the fresh water in Canada.
  The overall objectives of these contributions are to:
  • address freshwater challenges and opportunities in Canada through improved coordination, management, protection, and restoration of fresh water for the benefit of current and future generations.
  • develop and administer on-the-ground projects that positively impact fresh water by collaborating with provinces, territories, Indigenous peoples, community-based groups and other stakeholders.
  • support the inclusion and participation of Indigenous peoples in freshwater protection, restoration, and governance.

Canada Water Agency–Main Estimates

Raison d’être

The Canada Water Agency improves federal collaboration on fresh water in Canada and develops and coordinates whole-of-government approaches for Freshwater Stewardship; advances the protection and restoration of freshwater ecosystems, as informed by science and Indigenous knowledges; and proactively collaborates on freshwater opportunities and challenges. This will be achieved by building relationships and working closely with partners (e.g. other federal departments and agencies, provinces, territories, and Indigenous peoples) and stakeholders to carry out these responsibilities. 

Additional information can be found in Canada Water Agency’s Departmental Plan.

Organizational Estimates

2025–26 Main Estimates by Purpose

Listing of the 2025–26 Transfer Payments

Listing of Statutory Authorities

Question Period Card Minister of Environment and Climate Change–Climate Change Adaptation

Issue

Climate Change Adaptation

New

May 14, 2025

Source

N/A (not applicable)

Synopsis

People in Canada are experiencing record-breaking climate events—from wildfires to extreme heatwaves to floods. Along with reducing the emissions that fuel climate change, we must also adapt to its resulting impacts.

Recommended

• Canada’s climate has changed and will continue to change. Canada’s National Adaptation Strategy sets out a vision for safer communities, stronger infrastructure and a more resilient economy.  
• Building long-term and sustainable climate resilience requires a whole-of-society effort. The Government of Canada is working closely with domestic, global and Indigenous partners to better prepare for and prevent the impacts of extreme weather events.
• The Government of Canada has invested more than $6.6 billion to address the climate risks that matter most to Canadians such as wildfires, floods and extreme heat. This is money well spent. According to the Canadian Climate Institute, $1 spent on adaptation measures can generate between $13 and $15 in total benefits.

Background

• Climate change is impacting the safety of people across Canada. It’s also affecting our food supply and overall well-being. Many Canadians have experienced extreme events firsthand, like the major hailstorm in Calgary in 2024 and the extreme wildfire season in 2023 and 2024.  In 2024 alone, wildfires burned more than 30,000 hectares of forest in Jasper National Park, and in 2023 wildfire smoke spread across the country. The Insurance Bureau of Canada says that extreme weather caused $8.9 billion in insured losses last year alone, making 2024 the most destructive year in Canadian history.
• Preparing properly and adapting to climate change will make Canadians and their communities safer and healthier. It will also protect our economy from shocks and help to reduce the high costs of extreme weather events.
• The National Adaptation Strategy was developed in collaboration with provincial and territorial governments, Indigenous partners, the private sector, non-governmental organizations, adaptation experts, and youth. Its goal is to guide actions across five key areas: disaster preparedness, health and well-being, nature and biodiversity, infrastructure, and the economy and workers.
• The Government of Canada Adaptation Action Plan was released alongside the strategy. It outlines over 70 actions to guide federal contributions to achieving Canada’s adaptation goals. The Government of Canada has invested more than $6.6 billion to help Canadians prepare for and prevent the impacts of climate change.
• For example, in June 2024, the Government of Canada invested $530 million in the Local Leadership for Climate Action Initiative. The funding is delivered through the Federation of Canadian Municipalities’ Green Municipal Fund. The program provides funding and training to help local governments develop long-term, proactive climate adaptation plans and projects in their communities.
• An audit report on the National Adaptation Strategy will be tabled by the Commissioner of Environment and Sustainable Development in spring 2025. The Government of Canada will work to improve the effectiveness of federal adaptation action.

Approved by Assistant Deputy Minister: Alison McDermott, Strategic Policy and International Affairs Branch (613-293-0291)
Public Affairs and Communications Branch Head and Director General of Communications: 
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Climate Change Adaptation–Financial Overview

Financial Summary

• CCA: 2023-24 to 2027-28 (5 years)
  • Total Allocation: $644.4M
    • V1: $94.3M (15%)
    • V5: $758K (0.1%)
    • V10: $541.9M (84%)
    • Central costs (SSC & PSPC) & EBP: $7.5M (1%)
  • FY 2025-26: $25.1M
    • V1: $20.5M (82%)
    • V5: $0 (0%)
    • V10: $3M (12%)
    • Central costs (SSC & PSPC) & EBP: $1.6M (6%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Question Period Card Minister of Environment and Climate Change–Cap and Cut Emissions from Oil and Gas Sector

Issue

Cap and Cut Emissions from Oil and Gas Sector

Update

May 14, 2025

Source

N/A (not applicable)

Synopsis

The Government published draft regulations to implement the oil and gas emissions cap in fall 2024.

Recommended response

• We are committed to positioning Canada as an energy and clean energy superpower. Canada’s leadership in decarbonizing oil and gas production will help us continue supplying fossil fuels globally in a future that prioritizes lower-carbon sources of production.
• Canada’s largest oil and gas companies are already committed to achieving net-zero emissions by 2050.
• The Government will work with the sector and with provinces and territories to promote clean innovation and the adoption of technologies to reduce emissions, including carbon capture, utilization, and storage.

Background

• The proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations were published November 9, 2024, in Canada Gazette Part 1 for a 60-day public consultation period. The government received significant feedback from provinces and territories, industry, and other stakeholders. The government received significant feedback from provinces and territories, industry, and other stakeholders. The government is reviewing these inputs and engaging responsively.
• Although the world is on a low-carbon trajectory, fossil fuel demand is expected to continue for several years, with reputable forecasts suggesting it could peak within a decade. With the right investments, and a clear focus on avoiding the lock-in of emitting technologies, Canada can produce the cleanest oil and gas products in the world and capitalize on its reputation as a nation committed to both decarbonization and social license in order to diversify markets and support the energy transition.

Approved by Associate Assistant Deputy Minister: Judy Meltzer, Environmental Protection Branch (613-808-1768)
Director General, Branch Head of Public Affairs and Communications Branch: Katie Donnelly O’Neill (343-552-8339)

Cap and cut emissions from oil and gas

Q1.
What is the approach to cap and cut oil and gas sector emissions?

• Canada is committed to work with industry, provinces and territories to make Canada a conventional and clean-energy superpower, so that we can provide secure, low-emission energy to diverse partners around the world.
• The sector is the largest source of emissions in Canada producing 30% of national emissions in 2023. It is also a major employer and contributor to Canada’s GDP.
• There are a range of measures and investments designed to reduce emissions and stimulate investment in sector decarbonization, along the full lifecycle. This includes industrial carbon pricing, methane regulations and the Clean Fuel Regulations, as well as incentives such as Investment Tax Credits.
• We will continue to look at what additional actions may be needed to reduce emissions and unlock investments in clean technologies that will be critical to positioning Canada as a low-carbon energy supplier.
• Canada is committed to fighting climate change and building the strongest economy in the G7. As the government considers the path forward, we will continue to work with industry, provinces and territories, and Indigenous peoples to promote clean innovation, secure new economic opportunities in low-carbon industries and position Canada as leading global supplier of conventional and clean energy. 

Q2.
Is the oil and gas sector target achievable? If it costs too much, won’t it just scare investment away from Canada?

• The Government has made a clear commitment to becoming an energy superpower, including for clean energy.
• Decarbonizing oil and gas production will position Canada as a supplier of choice for fossil fuels in a future that prioritizes lower-carbon sources of production.
• To remain competitive in the emerging net-zero global economy, it is important that Canada’s oil and gas sector reduces its emissions from production by deploying clean technologies. A strong oil and gas sector is expected to play a key role during Canada’s transition to a low-carbon economy and be a source of low carbon oil and gas for the global market.

Q3.
What are the most promising decarbonisation pathways for the oil and gas sector?

• Large-scale deployment of multiple technologies are required for oil sands and other oil and gas producers to reduce GHG emissions.
• Some key mitigation pathways include carbon capture, utilization and storage (CCUS), steam displacement (which includes solvent injections), electrification, fuel switching and energy efficiency applications.
• CCUS can help us tackle emissions from tough-to-abate but crucial sectors of Canada’s economy (such as oil and gas and heavy industry); enable low-carbon pathways like hydrogen; and deliver negative emissions to support carbon dioxide removal.
• We will continue to work with industry, provinces and territories, and Indigenous Peoples to promote clean innovation, secure new economic opportunities in low-carbon industries, and encourage the adoption of technologies to reduce emissions.

Question Period Card Minister of Environment and Climate Change–Canada’s Progress on Emissions Reductions

Issue

Canada’s Progress on Emissions Reductions

Update

March 10, 2025

Source

Key messages regarding Canada’s Progress on Emissions Reductions (from Canada’s 2024 Biennial Transparency Report)

Synopsis

In December 2024, Canada submitted its first Biennial Transparency Report to the United Nations Framework Convention on Climate Change Secretariat, developed in accordance with the Paris Agreement’s Enhanced Transparency Framework.

Recommended response

• Canada has successfully bent its emissions trajectory and is now consistently below 2005 emissions levels and tracking towards significant emissions reductions by 2030. Canada’s emissions are projected to continue to decline as policies and measures are implemented across the country.
• Canada is on track to make significant progress towards its legislated targets, while recognizing that additional efforts will be required to build the net-zero economy of tomorrow.
• Canada has a strong policy ecosystem to continue to advance emissions reductions while growing the economy. The Government of Canada will continue to support households and the economy on the path to net-zero.
• Planned legislation to support projects of national interest does not alter existing environmental protections in federal legislation. This should also allow us to move forward with projects that will advance our clean growth objectives. Measures to promote free trade and labour mobility will continue to protect the environment.

Background

• Canada submitted its First Biennial Transparency Report (BTR1) under the Paris Agreement on December 30, 2024. The BTR replaces the Biennial Report, which Canada last submitted in 2022.
• BTRs include information on the latest National Inventory Report (NIR), progress towards achieving Nationally Determined Contributions (NDCs), policies and measures, climate change impacts and adaptation, and levels of financial, technological, and capacity-building support provided to developing countries.
• BTR1 was developed following adopted guidelines and processes of the Enhanced Transparency Framework of the Paris Agreement, with a focus on reporting on progress to achieve Canada’s Nationally Determined Contribution for 2030. It includes a summary of the most recent National Inventory Report released in May 2024, which includes historical emissions up to 2022, and also updated emissions projections extending to 2040.
• Development of BTR1 involved input from across Environment and Climate Change Canada, 18 other government departments, provinces and territories, and National Indigenous Organizations.
• As noted in the BTR1, in 2022, Canada’s total national greenhouse gas (GHG) emissions excluding Land Use, Land Use Change and Forestry (LULUCF) were 708 Mt or 7.1% below 2005 levels. This was an increase from 2021, for which emissions were 698 Mt or 8.3% below 2005 levels. With the LULUCF accounting contribution, Canada’s emissions were 5.5% below 2005 levels compared to 12.1% in 2022. This represents an increase of 50 Mt in 2022 from 2021.
• While the LULUCF accounting contribution is typically a net credit (sink) for Canada, the accounting contribution was a net debit (source) in 2022. This was mainly due to a significant one-year change in LULUCF owing to a significant drop in carbon input from crop production in 2021 due to the drought in the Canadian prairies, which in turn led to a large increase in cropland emissions in the following year.
• This is not expected to be a trend that continues, and the LULUCF accounting contribution is expected to return to being a net credit in future years. Despite the increase in emissions in 2022 relative to 2021, emissions did remain below pre-pandemic (2019) emissions levels by 6.7 Mt.

Approved by Assistant Deputy Minister: Alison McDermott, Strategic Policy & International Affairs Branch (613-293-0291)
Public Affairs and Communications Branch Head and Director General of Communications:
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Question Period Card Minister of Environment and Climate Change–Carbon Pollution Pricing

Issue

Carbon Pollution Pricing

Update

May 14, 2025

Synopsis

The Government has eliminated the federal fuel charge and announced that it will refocus its approach to carbon pricing on industrial emissions.

Recommended response

• Meaningfully addressing Canada’s carbon emission requires action by large emitters. The Government of Canada is committed to making sure our industrial pricing system drives emissions reductions and investment and allows our companies to remain competitive in the global marketplace.
• Providing long-term certainty and predictability of our system is crucial to maintaining investor confidence in decarbonization projects.
• As Canada looks to expand its trading relationships around the world, including with Europe and the UK, it is more important than ever to maintain strong carbon markets as those partners move forward with their own carbon border measures.

Background

In March 2025, the government announced it was refocusing carbon pricing on a broad range of greenhouse gas emissions from industry and removed the federal fuel charge as of April 1, 2025 (i.e., federal fuel charge rates were set to zero). It committed to engage provinces, territories, Indigenous Peoples and stakeholders on changes to the minimum national stringency standards for carbon pollution pricing, known as the federal ‘benchmark’ criteria. It indicated that changes would focus the benchmark on ensuring industrial pricing systems continue to maximize emissions reductions and encourage the transition to low carbon technologies, while protecting industry against competitiveness and carbon leakage impacts. The Liberal campaign platform also committed to strengthening carbon pricing systems in Canada. *redacted*.

Approved by  Assistant Deputy Minister: Megan Nichols, Environmental Protection Branch (613-790-8782)
Director General, Branch Head of Public Affairs and Communications Branch: Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Carbon Pollution Pricing–HPEC Input

Q1. What is carbon pricing and why is it important?

• Carbon pollution pricing is widely recognized as the most efficient way to reduce greenhouse gas (GHG) emissions while driving innovation.

• Carbon pollution pricing is central to Canada’s climate plan and is critical to delivering on Canada’s targets of reducing GHG emissions to 40-45% below 2005 levels by 2030 and reaching net-zero emissions by 2050.

• In March 2025, the Government of Canada removed the requirement for provinces and territories to have a consumer-facing carbon price effective April 1, 2025 and announced that federal carbon pollution pricing standards will refocus on ensuring carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry.

Q2. What are the government’s plans for the future of industrial carbon pricing?

• Meaningfully addressing climate change requires action by large emitters. A price on pollution for large emitters is a pillar of Canada’s plan to build a strong economy and greener future. It is a system that is fair and effective. Carbon pricing systems for industry are designed to keep costs low to protect against competitiveness risks.

• While the Government of Canada has removed the requirement for provinces and territories to have a consumer-facing carbon price in place, the requirement to maintain industrial carbon pricing systems that meet the federal minimum national stringency standards – the federal 'benchmark' – remains.

• The Government of Canada will engage provinces, territories, Indigenous Peoples and stakeholders on the goal of strengthening industrial carbon pricing. The Government of Canada is committed to ensuring industrial pricing systems are stringent to drive emissions reductions and investment while enabling our companies to remain competitive in the global marketplace. Providing certainty and predictability is crucial to maintaining investor confidence in decarbonization projects.

• As Canada looks to expand its trading relationships around the world, including with Europe and the UK, it is more important than ever to maintain strong carbon markets as those partners move forward with their own carbon pricing mechanisms and border measures.

Q3. What is the federal benchmark and what does it do? Why not let provinces and territories decide for themselves how to price carbon pollution?

• The Government’s approach to pricing carbon pollution gives provinces and territories the flexibility to implement the type of system that makes sense for their circumstances as long as they align with minimum national stringency standards, or benchmark criteria.

• The federal benchmark ensures that carbon pricing systems are at a similar level of stringency across Canada (2023-2030) and that they continue to drive low-cost emissions reductions required for Canada to build a cleaner, more prosperous economy.

• The federal carbon pollution pricing system applies in provinces and territories that request it or that choose not to adequately price carbon pollution.

Q4. How does carbon pricing impact competitiveness, and what is the impact on Canadian industries?

• Canada’s approach to carbon pollution pricing is designed to mitigate risks of adverse competitiveness impacts.

• Under the federal approach, the Output-Based Pricing System (OBPS) is designed to put a price on the carbon pollution of large industrial facilities, while limiting the impacts of carbon pricing on their ability to compete in the Canadian market and abroad. Carbon costs can affect businesses that conduct activities that are emissions-intensive and highly internationally traded if they compete with similar businesses in countries that do not have carbon pricing in place.

• Industrial facilities in the federal OBPS face a compliance obligation on the portion of emissions that exceed an annual limit. Covered facilities are required to provide compensation for GHG emissions that exceed their emissions limit and are issued surplus credits if their emissions are lower than the applicable emissions limit. Facilities can provide compensation by paying the carbon price to the government, by remitting surplus credits, and/or by remitting eligible offset credits. Facilities can sell surplus credits or bank them for use in future years.

• Provincial and territorial carbon pollution pricing systems have similar designs to protect against carbon leakage and adverse competitiveness impacts.

Q5. Has the federal government considered implementing border carbon adjustments to help mitigate carbon leakage?

• Avoiding carbon leakage is key to good climate policy. Carbon leakage occurs when companies move to countries with lower climate ambition to avoid carbon costs. The result is that emissions shift from one place to another rather than decline. Canada’s carbon pricing systems are designed to address this risk. The federal Output-Based Pricing System and similar provincial systems are designed to minimize the risk of carbon leakage.

• Another way to address the risk of carbon leakage is with a border carbon adjustment. This can help level the playing field between domestic and foreign producers.

Q6. What is the Government of Canada doing with the revenues it collects through carbon pollution pricing?

• All proceeds from the federal carbon pollution pricing system are returned to the province or territory of origin. Jurisdictions that requested or accepted the application of the Output-Based Pricing System (OBPS) can choose to have these proceeds returned directly.

• Past backstop jurisdictions where the federal OBPS system was applied but not requested included Saskatchewan, Ontario, and New Brunswick, as well as current backstop jurisdictions where the federal OBPS system is currently applied, namely Manitoba, will see proceeds retuned through the OBPS Proceeds Fund to further support industrial decarbonization and clean electricity initiatives.

• Proceeds from industrial carbon pricing are driving innovative, job-creating Canadian technology projects across regions and sectors. To date, the Decarbonization Incentive Program has supported total investments of over $874 million in 53 clean energy projects.

Q7. What is the OBPS Proceeds Fund?

• Launched in February 2022 and funded from proceeds collected through the federal OBPS in provinces where the federal system has been applied and not requested (SK, MB, ON, NB), the OBPS Proceeds Fund is designed to reduce industrial greenhouse gas emissions and support clean electricity projects through its two program streams:
  • The Decarbonization Incentive Program (DIP) stream is a merit-based program that incentivizes the long-term decarbonization of Canada’s industrial sectors by supporting clean technology projects to reduce greenhouse gas emissions in OBPS regulated facilities.
  • The Future Electricity Fund stream is designed to support provincially managed clean energy projects and/or programs.

Q8. How much funding is available under the OBPS Proceeds Fund and how much has been returned?

Available funding depends on the amount of proceeds collected from OBPS regulated facilities during a given compliance period. Since its implementation in 2019, the federal OBPS has collected approximately $917 million. That amount represents collections from 2019 to 2023. The amount collected in 2024 will be confirmed in early 2026.

• Through the OBPS Proceeds Fund, as of March 31, 2025, the Government of Canada has committed approximately $816 million to provincial and industry-led clean technology and clean energy projects.
• As of 2023, Manitoba is the sole jurisdiction that remains regulated by the federal OBPS that did not request its application. The OBPS Proceeds Fund will continue to support projects in all applicable jurisdictions until all proceeds are returned.
• The following table shows the total funds collected and committed through the OBPS Proceeds Fund as of March 31, 2025: 

Q9. How will the Government of Canada return proceeds to provinces or territories that have transitioned out of the federal OBPS and implemented their own carbon pollution pricing system for industrial emitters?

• If a province or territory implements its own carbon pollution pricing system that meets the federal benchmark and transitions away from the federal OBPS, the OBPS Proceeds Fund would continue to support projects in those jurisdictions until all proceeds have been returned.

• New Brunswick implemented its own system as of 2021. Ontario implemented its system as of 2022, and Saskatchewan, as of 2023. Manitoba is the sole jurisdiction that remains regulated by the federal OBPS that did not request its application.

Q10. Can you provide examples of OBPS Proceeds Fund supported projects?

• Under the Decarbonization Incentive Program the Government of Canada helps regulated Canadian companies and organizations deploy clean technologies which cut pollution and enhance energy efficiency. For example, Canada is providing over $5.8 million to the University of Toronto to replace natural gas equipment with high efficiency electric alternatives.

• Through the Future Electricity Fund, the Government of Canada will support advancing provincial clean energy priorities and grid greening initiatives. For example, Canada is working with the Sasktchewan Government to invest over $22 million in the province’s Northern Indigenous Retrofit and New Construction Housing Program which supports energy efficiency improvements, saving energy costs and reducing GHG emissions.

Additional examples include:

Q11. How will the Government of Canada return proceeds to Indigenous governments?

• In 2020, Canada committed to work on a distinctions-basis to jointly develop the mechanisms by which 1% of fuel charge proceeds would be returned to Indigenous governments in jurisdictions where the federal fuel charge applies. The purpose of this approach is to provide flexible transfer payment mechanisms that better support investments in self-determined priorities, including Indigenous-led climate action.
• Beginning in 2021, officials from Environment and Climate Change Canada have engaged with First Nations, Inuit and Métis in the provinces where the federal fuel charge is in effect on the path forward for returning fuel charge proceeds. Inuit partners began being engaged in 2023.
• The Minister of Finance has specified the Minister of Environment and Climate Change as responsible for returning over $531M of net fuel charge proceeds for the period of 2020-21 to 2024-25 to Indigenous governments in each province where the federal fuel charge applies.
• December 2023: specification of $282.19M, representing 1% of net fuel charge proceeds collected from 2020-21 to 2023-24,
• February 2024: specification of $249.3M, representing 2% of net fuel charge proceeds for the period of 2024-25.
• In February 2024, the Government of Canada announced that, in recognition of the impacts of climate change on Indigenous communities, starting in 2024-25, the share of fuel charge proceeds returned to Indigenous governments will increase from 1% to 2%. The government intends to return 2% of fuel charge proceeds to Indigenous governments in subsequent years.
• Environment and Climate Change Canada is working to complete engagement with Indigenous partners on the approach for returning the proceeds that have been specified thus far, and to announce programing as soon as possible.

COW Financial Overview for Carbon Pollution Pricing

Financial summary

• CPP & CPPR: 2021-22 to 2027-28 & Ongoing
  • Total Allocation: $991.8M
    • V1: $176.2M (17.8%)
    • V5: $2.3M (0.2%)
    • V10: $1.9M (0.2%)
    • Statutory Contribution: $771.4M (77.8%)
    • Central costs (SSC & PSPC) & EBP: $40.0M (4.0%)
  • FY 2025-26: $299.6M
    • V1: $30.6M (10.2%)
    • V5: $0.2 (0.1%)
    • V10: $0.2M (0.1%)
    • Statutory Contribution: $261.2M (87.2%)
    • Central costs (SSC & PSPC) & EBP: $7.4M (2.4%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation 

Climate Change Mitigation (CCM)–Financial Overview

Financial Summary  

• CCM: 2023-24 to 2028-29 (6 years)
  • Total Allocation: $2,529.1M
    • V1: $389.3M (15.4%)
    • V5: $4.8M (0.2%)
    • V10: $1,255.2M (49.6%)
    • Statutory G&Cs: $759.3M (30%)
    • Central Costs (SSC & PSPC) and EBP: $120.5M (4.8%)
  • FY 2025-26: $613.4M
    • V1: $79.1M (12.9%)
    • V5: $1.2M (0.2%)
    • V10: $247.9M (40.4%)
    • Statutory G&Cs: $261.2M (42.6%)
    • Central costs (SSC & PSPC) & EBP: $24.0M (3.9%)

Some initiatives in the Climate Change Mitigation Horizontal Reporting Framework were previously included in the former Clean Growth and Climate Change Horizontal Reporting Framework for which reporting was until 2022-23. Reporting on Climate Change Mitigation only began in 2023-24.

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation 

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation 

Question Period Card Minister of Environment and Climate Change–Clean Electricity Regulations

Issue

Clean Electricity Regulations

Update

May 14, 2025

Source

N/A (not applicable)

Synopsis

In December 2024, the Government of Canada published the final Clean Electricity Regulations. The Clean Electricity Regulations are an integral part of the Government of Canada’s Clean Electricity Strategy and puts the electricity sector on a path to net-zero by 2050.

On May 1, 2025, the Province of Alberta announced their intention to challenge the constitutionality of the Clean Electricity Regulations in the Alberta Court of Appeal.

Recommended response

• Clean electricity saves businesses and households money and reduces emissions and air pollution. It also makes Canada a more competitive and attractive place to invest since clean power is increasingly the lowest-cost electricity option.

• Demand for electricity is expected to double in Canada by 2050. Ensuring the coming grid expansion is clean is crucial to Canada’s competitive advantage. The Clean Electricity Regulations will enable a reliable and affordable transition to a net-zero grid by 2050.

Background

• In December 2024, the Government of Canada published Powering Canada’s Future: A Clean Electricity Strategy, which brings together significant measures that the federal government is taking to help support the build-out of a clean, reliable, and affordable electricity sector while articulating the federal government’s role in growing the grid and managing demand, providing policy certainty, and collaborating on tailored approaches for every region. 

• The Clean Electricity Regulations (CER), which were finalized in December 2024 are an important element of the Strategy. The CER provides an early signal, and policy certainty for investing towards a net-zero transition.

• The CER is complemented by over $60 billion in funding over the next 10 years to support the electricity sector in their transition to net-zero by 2050, even as demand for electricity grows. This includes a series of investment tax credits and concessional loans and funding programs.

• The Clean Electricity Regulations were developed under the long-established federal authority to prohibit releases of harmful pollution, including greenhouse gas emissions. The Supreme Court of Canada has recognized that the federal government has constitutional jurisdiction to enact prohibitions for the purpose of preventing the releases of toxic substances into the environment.

• Following feedback during the regulatory development process, a significant number of regulatory compliance flexibilities have been provided in the final regulations to enable electricity providers to continue to deliver reliable and affordable power for Canadians, recognizing unique regional circumstances.

• Under CEPA, equivalency agreements may be negotiated with interested provinces to stand down the federal regulations where provincial rules, tailored to regional considerations, can ensure equivalent or better environmental outcomes.

• Demand for electricity is expected to double over the coming 25 years due to increasing demand from a growing population and new drivers like artificial intelligence and data centres.

• Global clean energy investment reached $2.1 Trillion in 2024—nearly double that of fossil fuels—with Canada ranking 8th at $35 Billion. Canadian jobs in clean energy are set to grow 7% a year from 509,000 in 2025 to 2.7 million in a net-zero 2050.

Approved by Assistant Deputy Minister: Megan Nichols, Environmental Protection Branch (613-790-8782)
Public Affairs and Communications Branch Head and Director General of Communications: Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Clean Electricity Projects

Q1: What kinds of clean electricity projects have been funded by the government Canada?

Oneida energy storage project in Ontario

• In 2023, NRCAN announced $50 million to support the Oneida energy storage project, developed in partnership with the six nations of the grand river development corporation, northland power, Nstor and Aecon group. this built on investments from the Canada infrastructure bank as well.

• The project is located in Haldimand County, Ontario and had a total cost of about $700 million.

• Oneida is a 250-megawatt (mw) grid-scale battery storage project – the largest in Canada – and can provide enough power to meet the peak demand of a city the size of Oshawa.

• The Oneida energy storage project will support the operation of Ontario’s clean electricity grid by drawing and storing electricity off-peak when power demand is low, and returning the power to the system at times of higher electricity demand.

• The project has now finished construction and began operations in May 2025. it was completed ahead of schedule and under budget.

Bekevar wind power project in Saskatchewan

• In 2023, NRCAN announced a $50-million contribution to the Bekevar wind power project in Saskatchewan, delivered in partnership with the Cowessess First Nation and Innagreen investments.

• The project began construction in 2023 and was completed in November 2024.

• The project’s total costs are estimated to be about $365 million, and the investment by NRCAN built on a $173-million federal investment from the Canada infrastructure bank.

• The project supplies over 200 megawatts (mw) of zero-emissions power, reducing ghg emissions by approximately 130,000 tonnes per year, enough to serve up to 100,000 homes annually.

• The Bekevar project includes 36 wind turbines, and a 10-km long transmission line to connect the project to the provincial grid.

• Electricity generated at Bekevar will be purchased by SaskPower through a 25-year power purchase agreement. it will provide Cowessess First Nation with a significant annual return, as they have 17% ownership of the project.

Question Period Card Minister of Environment and Climate Change–International Climate Finance

Issue

International Climate Finance 

Update

May 14, 2025

Source

N/A (not applicable)

Synopsis

Canada’s $5.3 billion climate finance commitment (2021-2026) supports developing countries in their transition to low-carbon, climate-resilient, nature-positive and inclusive development. Meeting the New Collective Quantified Goal agreed at the 29th United Nations Climate Change Conference (COP29) requires scaling up ambition and convening multiple actors, including the private sector.

Recommended response

• Climate change is threatening food security, supply chains, and worsening affordability in Canada and around the world. International climate finance is essential to reduce future costs and support the most vulnerable.

• At COP29 in 2024, countries set a target of $300 billion USD per year by 2035 to help developing countries adapt to the effects of climate change.

• Canada will engage all sectors, including financial, private, and bilateral donors, to scale up and improve climate finance.

Background

• Under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, developed countries committed to mobilizing USD 100 billion per year in international climate finance by 2020 and through 2025. Canada is a leader internationally on climate finance and has worked closely with other contributors to mobilize effort toward the delivery of the $100 billion goal, improve the effectiveness of climate finance and enhance transparency. As a result of these efforts, in 2024 the Organization for Economic Co-operation and Development (OECD) confirmed that the $100 billion goal was met and exceeded for the first time in 2022 with USD $116 billion provided and mobilized.

• At COP29 countries agreed to establish a New Collective Quantified Goal on climate finance consisting of an investment target of at least USD $1.3 trillion per year by 2035 to developing countries from all actors and sources (public and private), with a goal for developed countries to take the lead on mobilizing at least USD $300 billion per year by 2035. The USD $300 billion goal replaces the current climate goal of USD $100 billion when it concludes at the end of 2025.

• While the new climate finance goal puts added pressure on developed countries to increase their climate finance ambition, there is no legal obligation for Canada to increase its climate finance commitment in direct proportion to the new goal given it is a political commitment and a collective goal. To support the delivery of the collective goal of USD $100 billion per year, Canada announced, in 2021, a doubling of its international climate finance commitment, to $5.3 billion over the

2021-2026 period. This commitment builds on Canada’s previous $2.65 billion climate finance commitment and supports developing countries, particularly low and middle-income countries, to combat climate change and biodiversity loss by supporting their transition to sustainable,

low-carbon, climate-resilient, nature-positive and inclusive development. Canada’s current

$5.3 billion climate finance commitment will sunset in March 2026.

• Canada is warming at twice the global rate, and three times the global rate in the Arctic. Domestic impacts are already severe and costly with the wildfire season in 2023 alone costing Canada over $2 billion. These impacts are posing increasingly severe threats to the Canadian economy by slowing economic growth, increasing costs to cope with disasters, and raising the cost of food and other goods as supply chains face more disruptions. Accelerating international action to help slow and reverse these threats is an impactful and efficient way to reduce future costs for the Government of Canada and Canadians.

Approved by Assistant Deputy Minister: Alison McDermott, Strategic Policy and International Affairs Branch (613-293-0291)
Public Affairs and Communications Branch Head and Director General of Communications:
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

International Climate Finance–QA

Q1. What are the main objectives of Canada’s climate finance?

• Climate finance is a critical part of Canada’s efforts to support climate mitigation and adaptation action in developing countries in line with the objectives of the Paris Agreement.
• In 2021, Canada doubled its climate finance commitment to $5.3 billion (B) over 5 years to support developing countries to transition to sustainable, low-carbon, climate-resilient, nature-positive and inclusive development.
• To support developing countries in combating the dual crises of climate change and biodiversity loss, a minimum of 20% of the $5.3B is being allocated to projects that leverage nature-based climate solutions and projects that contribute to biodiversity co-benefits.
• Canada’s climate finance envelope is comprised of 40% grants and 60% loans, having increased its provision of grants up from 30% under the previous five-year commitment to provide more funding to the poorest and most vulnerable.
• As part of its $5.3B climate finance commitment, Canada also increased its funding for adaptation to 40%, which represents more than a doubling of  adaptation finance from 2019 levels by 2025, in line with the Glasgow Climate Pact.
• Canada’s climate finance is aligned with our Feminist International Assistance Policy and will continue to support women’s leadership and decision-making in climate action. To this end, we are on track to achieve the target for 80% of climate finance projects to integrate gender equality.
• During the five years of the commitment, Canada has been focusing its international climate finance on four main thematic areas:  clean energy transition and coal phase-out, climate-smart agriculture and food systems, nature-based solutions and biodiversity, and climate governance.
• Canada’s climate finance contributes to a collective goal committed to by donors, to provide $100 billion annually in climate finance through 2025.

Q2. What results has Canada achieved from its international climate finance?

• To date, Canada’s $2.65B and $5.3B climate finance commitments are expected to reduce or avoid over 234 megatonnes of greenhouse gas (GHG) emissions cumulatively, and help over 10.5 million (M) people increase their resilience to climate change. The impacts of Canada’s climate finance will continue to fluctuate over time as results of the investments materialize in the long-term.
• Canada’s climate finance has other impacts that are harder to quantify. For example, Canada’s contribution to the National Adaptation Plan (NAP) Global Network has enabled developing countries to build capacity and adopt best practices in developing and implementing NAPs, as well as strengthening gender considerations in NAPs.
• To achieve results, Canada works with partners that have clear accountability frameworks and closely monitors the progress of our support through rigorous performance measurement at the programmatic level.
• Results from Canada’s climate finance investments are published on a regular basis, notably through our Departmental Results Reports, Canada’s National Communications and Biennial Transparency Reports to the UNFCCC, the Annual Synthesis Report on the Status of Implementation of the Pan-Canadian Framework, and on our climate finance website.

Q3. Is Canada contributing its fair share of climate finance?

• Yes, Canada recognizes that developing countries are the hardest hit by climate change and that transformational financial investments are needed to help vulnerable communities better address climate change. Canada’s $5.3B climate finance commitment builds on the previous $2.65B commitment (2015-16 to 2020-21) and the $1.2B Fast Start Finance (2010-11 to 2012-13). As such, Canada’s $5.3B commitment is a significant increase compared with previous levels and continued progression towards meeting the collective goal of U.S. $100 billion per year through 2025.
• Canada’s total climate finance contribution goes much further than its core commitment. It includes climate finance mobilized from a variety of sources beyond Canada’s climate finance pledge such as private finance mobilized through blended finance, additional international assistance with a climate component, core contributions to multilateral development banks, and climate relevant financing by Export Development Canada and FinDev Canada. Canada has provided and mobilized over $8.7 billion in climate finance from all sources from 2015-2022, which far exceeds the baseline amount pledged through its public climate finance commitment.

Q4. Are we on track to meet the collective $100 billion goal?

• Canada has been steadfast in its efforts to meet the $100 billion collective goal and has been working with Germany to build trust and increase ambition among contributor countries.
• Based on data from the Organization for Economic Cooperation and Development (OECD), climate finance provided and mobilized towards the $100 billion goal surpassed earlier projections in 2021, 2022, and 2023. The OECD confirmed that the goal was met, and exceeded, in 2022, when contributors provided and mobilized $115.9 in climate finance.

Q5. What is Canada doing to support Small Island Developing States (SIDS)?

• One of the key objectives of Canada’s climate finance is to support the climate resilience of the poorest and most vulnerable countries, including SIDS.
• In addition to scaling up support for adaptation finance in its current $5.3B commitment, Canada is working to bolster efforts to address the barriers to accessing climate finance faced by SIDS, which compound the issue of vulnerability.
  • For example, Canada supported the creation of the Climate Finance Access Network (CFAN) initiative that supports developing countries build their capacity to structure and secure finance for priority climate mitigation and adaptation investments. Canada is providing a renewed contribution of $5.25M in funding to support CFAN expand its work with climate-vulnerable countries. Canada is also providing $7.5M in bilateral support to Caribbean and Pacific Island SIDS to assist in the implementation and achievement of nationally determined contributions (NDCs) through methane reductions.

Q6. How is Canada addressing the issue of loss and damage?

• Canada is taking concrete measures to address loss and damage in developing countries and to build resilience to safeguard future generations. Loss and damage can result from adverse climate events and can, for example, include damage to infrastructure due to hurricanes or the loss of territory due to sea-level rise to which SIDS are particularly vulnerable.
• Previous measures to address loss and damage include Canada’s $10 million contributions to Climate Risk Early Warning Systems (CREWS), and $1 million contribution to the Systematic Observation Funding Facility (SOFF), to help build early warning systems in developing countries to strengthen the resilience of the most vulnerable.
• At COP28, Canada announced a $16 million contribution to the start-up cost of a global fund to address loss and damage. This contribution will support the fund as it starts to provide vulnerable countries and communities with the resources they need to respond to the worst impacts of climate change.
• Canada has a seat on the Board of the global fund to address loss and damage and will continue to shape the Fund’s strategic direction emphasizing the importance of sound governance, the prioritization of the most vulnerable countries and inclusion.

Q7. How much of the $5.3B climate finance envelope is ECCC implementing?

• Over 5 years, ECCC will implement at least $160M in grants and contributions in 3 thematic areas: Clean Energy and Coal Phase-Out ($50M), Nature-based Solutions ($15M) and Climate Governance ($90M). An Emerging Priority Fund sets aside $5M to retain flexibility to support Canada’s international climate change priorities and allow for responsive and opportunity-driven participation in key initiatives, in particular international events such as the G7/G20 and UNFCCC conferences.
• ECCC’s funding will support developing countries’ transition to clean energy primarily by phasing out coal-fired electricity and promoting equitable access to reliable and cost-effective clean energy solutions and energy efficient technologies, complementing Canada's leadership through the Powering Past Coal Alliance.
• The funding will also support initiatives that catalyze the private sector’s role in the blue economy, coastal resilience and coral reef conservation to help advance ocean health, reduce vulnerability and build resilience in the most vulnerable coastal regions and communities.
• ECCC will also support projects that strengthen the enabling environments for effective climate governance in developing countries at the global, national and subnational levels.
• For 2025-26, ECCC is allocating a total of $37M in grants and contributions. This includes over $6M in support for clean energy and coal phase-out, $3M in funding for nature-based solutions and biodiversity, over $22M for climate governance, and $1.25M allocated for the emerging priorities fund.

Q8. What is next for climate finance?

• Last November, at COP29, countries agreed to a new climate finance goal of $300 billion USD from developed countries and a global target of $1.3 trillion USD from all sources per year by 2035.
• This will reduce emissions and help the most vulnerable in developing countries adapt to the impacts of climate change, and increase private sector involvement.

International Climate Finance (ICF)–Financial Overview

Financial Summary

• ICF: 2021-22 to 2025-26 (5 years) including transfers from GAC
  • Total Allocation: $182.5M
    • V1: $1.3M (0.7%)
    • V10: $181M (99.2%)
    • Central costs (SSC & PSPC) & EBP: $0.2M (0.1%)
  • FY 2025-26: $38.2M
    • V1: $0.2M (0.6%)
    • V10: $37.9M (99.2%)
    • Central costs (SSC & PSPC) & EBP: $0.06M (0.1%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation
Includes transfers from GAC

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Question Period Card Minister of Environment and Climate Change–Low Carbon Economy Fund

Issue

Low Carbon Economy Fund

Update

June 4, 2025

Synopsis

The Low Carbon Economy Fund is part of Canada’s clean economic growth and climate action plans. The program supports projects that reduce Canada’s greenhouse gas (GHG) emissions, generate clean growth, build resilient communities, and create good jobs for Canadians.

Recommended response

• The Low Carbon Economy Fund invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians.
• The Government of Canada is investing approximately $2.1 billion through the Low Carbon Economy Fund towards more than 370 projects from coast-to-coast-to-coast.
• It is anticipated that these completed and ongoing projects would cumulatively achieve 108 megatonnes of greenhouse emissions reductions by 2050.

Background

• Under Budget 2017, the Government of Canada announced $2 billion for the Low Carbon Economy Fund over five years, starting in 2017-18.
• Through Canada’s 2030 Emissions Reduction Plan and Budget 2022, the Government of Canada announced $2.2 billion in additional funding to the Low Carbon Economy Fund (LCEF), extending the program through to 2028-29.
• Beginning with Budget 2023, LCEF underwent a fundamental reset after a series of decisions reduced available funding by $1.3 billion to $822 million. 
• The Low Carbon Economy Fund is part of Canada’s clean economic growth and climate action plans. There are four funding streams: the Leadership Fund, the Challenge Fund, the Indigenous Leadership Fund, and the Implementation Readiness Fund

• All streams, except the Indigenous Leadership Fund, absorbed portions of the funding reductions.
• Some funds reduced from the Low Carbon Economy Fund were reinvested to support other Government of Canada programs, including:
  • Natural Resources Canada’s Oil to Heat Pump Affordability program, which helps low- and median-income households make the switch from home heating oil to electric heat pumps.
  • Natural Resources Canada’s Canada Greener Homes Grant program, which helps Canadians save money by making their homes more energy efficient.

Approved by:
Ramsey Wright, A/DG, Program, Operations and Regional Affairs (343-542-3816)
Michael Zink, Assistant Deputy Minister, Programs, Operations, and Regional Affairs Branch (PORAB)
Public Affairs and Communications Branch Head and Director General of Communications:
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Low Carbon Economy Fund

Q1. What is the Low Carbon Economy Fund (LCEF)?

• The Low Carbon Economy Fund is a part of Canada’s clean growth and climate action plans. It supports projects that help to reduce Canada’s greenhouse gas (GHG) emissions, generate clean growth, build resilient communities, and create jobs for Canadians.
• The Low Carbon Economy Fund was first funded in Budget 2017. The up to $2 billion of federal funding announced in 2017 was recapitalized through Budget 2022 and continues to leverage investments in projects from coast-to-coast-to-coast.
• The original Low Carbon Economy Fund had two parts: the Low Carbon Economy Leadership Fund, leveraging provincial and territorial investments to deliver on their climate action priorities to reduce carbon pollution and contribute to meeting Canada’s 2030 climate targets, and the Low Carbon Economy Challenge, including both Champions and Partnerships streams, leveraging investments in projects that reduce carbon pollution from a range of stakeholders, including Indigenous partners.
• There are four parts to the recapitalized Low Carbon Economy Fund:
  1. The recapitalized Leadership Fund continues to provide support to stimulate provincial and territorial climate action, with a focus on deploying proven low-carbon technologies that will result in GHG emissions reductions in 2030 and align with Canada’s net-zero by 2050 goals.
  2. The recapitalized Challenge Fund continues to support the low-carbon economy transition of provinces and territories, municipalities, universities/colleges, schools, hospitals (MUSH), businesses of all sizes, not-for-profit organizations, and Indigenous governments, communities and organizations. The recapitalized Challenge Fund supports the deployment of proven, low-carbon technologies that will result in GHG emissions reductions in 2030, align with Canada’s net-zero by 2050 goals, and generate economic benefits such as job creation.
  3. The Indigenous Leadership Fund provides dedicated funding for climate action by Indigenous peoples. This stream funds renewable energy, energy efficiency and low-carbon heating projects owned and led by First Nations, Inuit, and Métis governments, communities and organization.
  4. The Implementation Readiness Fund provides funding for activities and investments that increase the readiness to deploy GHG emissions reduction projects and remove barriers to low-carbon technology adoption and 2030 climate mitigation action. Projects funded through the program focus on developing and enhancing human and/or institutional resources through activities that facilitate the deployment of GHG emissions reduction technology.

Q2. How much funding is available under the recapitalized LCEF?

• Through Canada’s 2030 Emissions Reduction Plan and Budget 2022, the Government of Canada announced a $2.2 billion recapitalization of the LCEF.
• Beginning in 2023, a series of decisions reduced available LCEF funding by $1.3 billion, leaving $822 million in contribution funding available for investing in projects.
• Some funds reduced from the LCEF were reinvested to support other Government of Canada programs, including:
• Natural Resources Canada’s Oil to Heat Pump Affordability program, which helps low- and median-income households make the switch from home heating oil to electric heat pumps.
• Natural Resources Canada’s Canada Greener Homes Grant program, which helps Canadians save money by making their homes more energy efficient.

Q3. How will Indigenous communities and organizations benefit from the Indigenous Leadership Fund?

• The Indigenous Leadership Fund (ILF) stream of the LCEF was designed with First Nations, Inuit and Métis representatives, Indigenous clean energy experts and other federal departments. It recognizes the unique rights, interests, and circumstances of First Nations, Inuit, and Métis governments, communities, and organizations.
• With the creation of the ILF, there are opportunities to better support Indigenous-led projects that will reduce GHG emissions, while reducing the administrative burden for applicants.
• The ILF stream supports Indigenous climate change mitigation leadership including through the deployment of renewable energy, energy efficiency, and low-carbon heating projects across Canada. Additionally, the ILF has the potential to deliver numerous co-benefits ranging from environmental protection and economic prosperity to the advancement of Indigenous climate priorities and self-determination.

Q4. What are the achievements and expected results of the Low Carbon Economy Fund?

• Since 2017, LCEF has committed $2.1 billion towards more than 370 projects from coast-to-coast-to-coast.
• It is anticipated that these completed and ongoing projects would cumulatively achieve approximately 108 megatonnes of greenhouse emissions reductions by 2050.
  1. The Leadership Fund is investing through the provinces and territories to support more than 60 programs that contribute to climate action and energy affordability. These investments are expected to cumulatively reduce GHG emissions by approximately 75 megatonnes by 2050.
  2. The Challenge Fund is investing more than $320 million in funding towards over 100 low-carbon technology projects that are expected to cumulatively reduce GHG emissions by approximately 33 megatonnes by 2050. As of March 2025, 48 projects had been completed across Canada and more than 60 others were still ongoing.
  3. As of March 2025, the Indigenous Leadership Fund is investing approximately $74 million in 20 ongoing projects. These projects include solar panels, wind turbines, heat pumps and building retrofits to improve energy performance and reduce greenhouse gas emissions.
  4. Through the Implementation Readiness Fund, approximately 380 courses, tools, and resources relating to greenhouse gas mitigation are expected to be developed to support capacity building in this sector, reaching over 18,000 participants.

Q5. Can you provide examples of Low Carbon Economy Fund Projects?

Leadership Fund

• An example of our partnership on joint climate action priorities with provinces and territories under the Leadership Fund stream is the $60.5 million received by the Province of Nova Scotia for the HomeWarming program.

• This program helps make the transition of home heating oil more affordable for low-income households while driving down GHG emissions.

Challenge Fund

• An example of a project funded under the Challenge Fund stream is the $2.7 million that the Town of Petawawa received to upgrade its wastewater treatment facility.

• This project is upgrading the town’s digesters to divert waste from the landfill and boost biogas production for use as electricity.

Indigenous Leadership Fund

• Collaboration with the Métis Nation of Alberta is an example of Canada’s commitment to Indigenous-led climate mitigation under the Indigenous Leadership Fund stream.
• This $9 million project seeks to retrofit the homes of 500 citizens of the Métis Nation of Alberta and to help decrease the risk of energy poverty amongst low-income households while also creating jobs within the energy sector.

Implementation Readiness Fund

• An example of funding provided under the Implementation Readiness Fund stream is the $1 million that the Climate Challenge Network received to scale up capacity for emissions reduction projects in hospitals across Canada.

• This project will help more than 120 hospitals to receive training to rapidly increase capacity and knowledge to deliver deep energy and emissions reductions projects.

Additional LCEF examples:

Low Carbon Economy Fund (LCEF)–Financial Overview

Financial Summary

• LCEF I: 2017-18 to 2021-22 (5 years)
• LCEF II: 2022-23 to 2028-29 (7 years)
  • Total Allocation: $2.8B from 2017-18 to 2028-29
    • V1 $121.7M (4.3%)
    • V5 $0.6M (0.0%)
    • V10 $2.7B (94.6%):
    • Central costs (SSC & PSPC) & EBP: $31.6M (1.1%)
  • 2025-26:
    • V1 $12.7M (4.8%)
    • V5 $0.1M (0.0%)
    • V10 $246.7M (95.4%):
    • Central costs (SSC & PSPC) & EBP: $4.5M (1.7%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Question Period Card Minister of Environment and Climate Change–Return of Revenues from Carbon Pricing

Issue

Return of Revenues from Carbon Pricing – Environment and Climate Change Canada

Update 

June 4, 2025

Synopsis

The Government of Canada has committed to returning all proceeds collected under its federal Carbon Pollution Pricing System back to the jurisdictions of origin. Environment and Climate Change Canada is responsible for returning certain proceeds collected under the federal system to support Indigenous governments (Fuel Charge) as well as Canada’s heavy industry (Output-Based Pricing System).   

Recommended response

• The Government of Canada is committed to returning all proceeds collected under the Carbon Pollution Pricing System to the jurisdiction of origin.
• Environment and Climate Change Canada is responsible for returning carbon pricing proceeds to provincial and industry partners from the federal Output-Based Pricing System, which has resulted in over $800 million being re-invested in clean technology and clean energy projects.  
• Environment and Climate Change Canada is returning $531.49M in fuel charge proceeds collected from 2020-21 to 2024-25 to federally-recognized Indigenous governments in eight provinces. This funding can be used for self-determined priorities, including climate action. To date, 241 grant agreements have been fully signed, representing $409.54M in committed funds. The Department is working to return all remaining proceeds as quickly as possible.

Background

Output-Based Pricing Proceeds Return

• Canada’s Carbon Pollution Pricing System is made up of two parts: a regulatory charge on fossil fuels (The Fuel Charge) and a performance-based system for industry (the Output-Based Pricing System, OBPS).  On March 15, 2025, the Government of Canada stood down part 1, the Federal Fuel Charge. 
• The federal OBPS applies to any province or territory that requests it or that does not implement its own system that meets the federal benchmark requirements. In 2019, the federal OBPS was applied but not requested in Saskatchewan (SK), Manitoba (MB), Ontario (ON), and New Brunswick (NB). As of 2023, only Manitoba remains regulated by the federal OBPS.
• OBPS Proceeds collected under the federal system in provinces where it was applied and not requested (SK, MB, ON, NB) are returned through the federal government’s OBPS Proceeds Fund, which is comprised of two funding streams: the Decarbonization Incentive Program and the Future Electricity Fund.
• Launched in February 2022, the OBPS Proceeds Fund has resulted in the re-investment of more than $800 million from industrial pollution pricing proceeds in approved projects that will grow Canada's clean economy.  The Government of Canada will continue to invest in projects until all OBPS proceeds are returned to their jurisdictions of origin.&
• As of March 31, 2025, the Program has invested in more than 60 projects that will support the decarbonization of Canada’s heavy industry and advance large-scale clean energy initiatives resulting in an estimated 20 Mt GHGs emissions reductions cumulatively by 2050.
• The OBPS Proceeds Fund is mobilizing further investment from Canada's heavy industry emitters as well as provincial partners toward projects that are decarbonizing our country's industrial sectors and cleaning provincial energy grids, as well as creating and maintaining jobs.

Fuel Charge Proceeds to Indigenous Governments

• Environment and Climate Change Canada (ECCC) launched the Fuel Charge Proceeds Fund for Indigenous Governments (FCPFIG) in early 2025. This fund was established to return $531.49M in fuel charge proceeds specified to Indigenous governments by the Minister of Finance for the 2020-21 to 2024-25 period. The proceeds are being transferred through grant agreements with 347 eligible Indigenous governments in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
• Informed by feedback from Indigenous partners, the FCPFIG is intended to support Indigenous Peoples who are disproportionately impacted by climate change and offers maximum flexibility for Indigenous governments to manage and use their share of fuel charge proceeds for self-determined priorities, including climate action. It also helps to fulfill the Government of Canada’s commitment to return all remaining federal fuel charge proceeds collected from 2020-21 to 2024-25 to the jurisdiction of origin.
• >There are 347 federally-recognized Indigenous governments that are eligible to receive proceeds under the FPCFIG. To date, 241 grant agreements have been signed by both parties, representing $409.54M in committed funds. As of June 3, 2025, ECCC has disbursed $163.33M in fuel charge proceeds to 52 Indigenous governments.
• The Government of Canada remains committed to implementing the FCPFIG program in partnership with Indigenous governments and issuing the remaining payments as soon as possible.
• The Government of Canada issued regulations that ceased the application of the federal fuel charge, effective April 1, 2025. As such, there are no additional fuel charge proceeds to be returned to Indigenous governments from 2025-26 onwards.

Approved by:
Ramsey Wright, A/DG, Program, Operations and Regional Affairs Branch (343-542-3816)
Assistant Deputy Minister: Name/Branch (XXX-XXX-XXXX)
Director General of Communications: Name (XXX-XXX-XXXX)
Director General of Corporate Secretariat: Name (XXX-XXX-XXXX
Assistant Deputy Minister of PACB: Name (XXX-XXX-XXXX)

Fuel Charge Proceeds Fund for Indigenous Governments (FCPFIG)–Financial Overview

Environment and Climate Change Canada is returning $531.49M in fuel charge proceeds collected from 2020-21 to 2024-25 to federally recognized Indigenous governments in eight provinces. This funding can be used for self-determined priorities, including climate action. 

To date, 241 grant agreements have been fully signed, representing $409.54M in committed funds. As of June 3, 2025, ECCC has disbursed $163.33M in fuel charge proceeds to 52 Indigenous governments. The Department is working to return all remaining proceeds as quickly as possible. 

Financial Summary

• Fuel Charge Proceeds Return: 2024-25 to 2025-26 (2 years)
  • Total: $531.49M
    • Statutory Grant $531.49M (100%)

Unlike Voted authorities, statutory authorities are not allocated by fiscal year and unspent amounts don’t lapse to the Fiscal Framework. Spending estimates by fiscal year are included in the Estimates for information only. 

The $466.5M planned spending in the 2025-26 Main Estimates was based on estimated spending of $65M in 2024-25. Since 2024-25 expenditures were $88.1M, the remaining $443.4M is forecasted to be returned to Indigenous recipients by the end of 2025-26. 

Additional Context

Environment and Climate Change Canada (ECCC) launched the Fuel Charge Proceeds Fund for Indigenous Governments (FCPFIG) in early 2025. This fund was established to return $531.49M in fuel charge proceeds specified to Indigenous governments by the Minister of Finance for the 2020-21 to 2024-25 period. The proceeds are being transferred through grant agreements with 347 eligible Indigenous governments in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. 

While ECCC is responsible for the Fuel Charge Proceeds Fund for Indigenous Governments (FCPFIG), Canadian Revenue Agency is responsible for the return of the Carbon Rebate for individuals, including the Supplement for residents of small and rural communities, and the Carbon Rebate for Small Businesses.    

Question Period Card Minister of Environment and Climate Change Canada–Zero-Emission Vehicles 

Issue

Zero-Emission Vehicles

Update 

May 27, 2025

Source

N/A (not applicable)

Synopsis

Canada’s Electric Vehicle Availability Standard was published on December 20, 2023, in the Canada Gazette, Part II. The United States is taking steps to roll back vehicle emissions standards, and there is ongoing uncertainty for Canada’s auto sector due to the threat of tariffs and countertariffs.

Recommended Response

• The global auto market is transitioning to an electric vehicle future.  Global EV sales continue to rise year over year. Like the European Union, the United Kingdom, China and 40% of the American auto market, Canada has committed to achieve 100% EV sales by 2035.
• Putting more electric vehicles on the roads is a crucial part of Canada’s approach to tackling climate change, and EVs save consumers money in the long term.
• The Government has supported the transition to ZEVs through investment in critical minerals, EV battery  production and EV purchase incentives.

Background

• The transportation sector accounts for 27% of Canada’s GHG emissions. On-road transportation accounts for 66% of the emissions from the sector in 2023. Accelerating the transition from internal combustion engine vehicles to zero-emission vehicles (ZEVs) is therefore critical to meeting Canada’s climate targets and achieving net-zero by 2050. The Government is supporting the transition to EVs through a range of measures, including investments and regulations for both light and heavy-duty vehicles.
• The Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations establishes progressively more stringent GHG emission standards for new light-duty vehicles in alignment with the U.S. national standards. Light-duty EV sales continue to rise. Since the introduction of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, the volume of EVs reached 13.4% for the 2023 model year and approximately 15.3% in 2024 Despite strong continued global sales growth, some softening in Canadian sales is expected in 2025 due to the pause of Transport Canada’s consumer rebate program. The Government announced the Electric Vehicle Availability Standard in December 2023, requiring all new light-duty cars and passenger truck sales to be zero-emission by 2035. The regulation includes interim targets of 20% by 2026 and 60% by 2030 with flexibility provisions.
• Since 2020, Canada has secured more than $34 billion in investment in the battery and automotive supply chain. To date, the Government has invested over a billion dollars to support the ZEV transition, including consumer rebates, charging infrastructure, procurement of zero-emission buses, support for ZEV manufacturing and batteries, and consumer awareness. Transport Canada paused the iZEV consumer rebate program this January due to high demand leading to a fully drawn down funding envelope. The Liberal government 2025 platform commitments includedexpanding Canada’s electric vehicle (EV) charging network and exploring ways to reintroduce a purchase incentive that supports Canadian workers and strengthens domestic supply chains.
• Heavy-duty vehicles and engines in Canada are currently regulated by the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations and the standards are aligned with U.S. Phase 2 standards. These vehicles are composed of a diverse variety of vehicles that are used across a wide range of activities and includes local delivery vehicles, garbage trucks, buses, long-haul tractor-trailers, and others.
• The U.S. Environmental Protection Agency (EPA)  published a series of rulemakings in recent years. A first rule, finalized in December of 2022, applies to heavy-duty vehicles beginning in 2027 setting new standards for criteria pollutants. The U.S. EPA finalized two additional rules in 2024, with new GHG and air pollutant standards for light-, medium- and heavy-duty vehicles beginning in 2027. Work to amend the relevant Canadian regulations to align with these new U.S. standards is underway. However, the U.S. Congress voted on May 22, 2025 to strike down the California waiver on vehicle regulations, and the House of Representatives voted to repeal the EPA GHG and air pollutant regulations for vehicles on May 21, 2025 in the Big Beautiful Bill that still must be approved by the Senate.  Some of these changes are expected to result in protracted litigation, and/or to require regulations to implement. In addition, sustained tariffs and countertariffs on Canadian automotive exports and imports could impact the competitiveness of the Canadian auto sector and make it more costly for them to meet Canada’s ZEV sales targets.

Approved by Assistant Deputy Minister: Megan Nichols, Environmental Protection Branch (613-790-8782)
Director General, Branch Head of Public Affairs and Communications Branch: Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Zero-Emission Vehicles

Q1. What is the role of zero-emission vehicles in GHG emissions reduction?

• Canada is taking action across all sectors to meet its commitment under the Paris Agreement to reduce GHG emissions by 40% to 45% below 2005 levels by 2030 and to reach net-zero emissions by 2050.
• Recognizing that the transportation sector accounts for about 27% of Canada’s GHG emissions, the Government is taking multiple actions to reduce these emissions including expanding the number of ZEVs on Canadian roads.
• The Electric Vehicle Availability Standard requires 100% ZEV sales by 2035. This builds on existing GHG performance standards for light duty vehicles in place since 2011. The gradual transition to ZEVs is key to helping Canada achieve its economy-wide net zero emission targets by 2050.
• The Government has also invested in key areas such as consumer rebates for ZEV purchases, expanding charging infrastructure, etc.

Q2. Is Canada’s ZEV target too ambitious?

• Since 2019, Global and North American EV sales have witnessed steady increases in sales.
• Canada’s targets are below those of the United Kingdom, the European Union and 11 states representing 40% of the U.S. auto market as well as BC and Quebec. Canada’s regulations also include a series of flexibilities for auto companies.
• We continue to monitor EV sales in the context of developments including the impact of U.S. tariffs.

Q3. How are GHGs from passenger automobiles and light trucks currently regulated?

• GHGs from new passenger automobiles and light trucks are regulated federally, with progressively more stringent GHG emission standards over the 2011 to 2026 model years that are aligned with the standards in the U.S.
• Heavy-duty vehicles have been regulated under separate regulations since 2014.
• In 2024, the U.S. released new GHG emission standards for light-, medium- and heavy-duty vehicles for model years 2027 to 2032. Recent U.S. policy developments including auto sector tariffs has created significant uncertainty for the Canadian auto industry.
• The Department continues monitoring U.S. developments to ensure continued effective implementation of the current regulations and inform future regulatory decisions.

Q4. What are the programing actions and results from the implementation of the vehicle and engine emissions regulations by the Department?

• Canada has experienced increasingly improved emissions performance for vehicles per year since 2011
  • The average emissions for the fleet of new passenger automobiles has decreased from 255 g/mi to 128 g/mi, representing a 49.8% reduction.
  • The average emissions for light trucks decreased by 30.7%, from 349 g/mi to 242 g/mi.
  • For 2023 model year, 13.4% of the light-duty vehicle fleet sales were ZEVs, with battery electric vehicles representing 10.8%, and plug-in hybrid, 2.6% of the total fleet.
• For air pollutants, the data reported under the regulations demonstrate continued industry improvements in emission performance since 2004.

Q5. How are electric vehicle (EV) batteries being managed at end of life?

• Management of EV batteries at their end-of-life would fall under provincial and territorial jurisdictions. In addition, their management is dependent on the available infrastructure and capabilities, such as appropriate recycling facilities of the respective jurisdiction.
• Given the size and weight of EV batteries, and the value of the minerals and metals they contain, such batteries are not expected to be disposed in landfill; rather they would be recovered through various stakeholders (e.g. automotive recyclers, dealerships) at the end of their useful life. Some batteries would go on to be refurbished, so functioning components could be re-combined into batteries and reused as electric vehicle batteries or repurposed as batteries in other applications (wheelchairs, e-bikes, or energy storage solutions). Other batteries, or no longer viable components, would be sent to a recycling facility for electric vehicle batteries for material recovery.
• While on-going initiatives demonstrate effort in moving towards minimizing waste and creating a circular economy in Canada, we acknowledge that there are ongoing focus areas, including the collection/analysis of data concerning the complete lifecycle of EV batteries in Canada and potential policy implications for various levels of government.

Question Period Card Minister of Environment and Climate Change–Nature-Based Climate Solutions

Issue

Nature-based climate solutions

Update

May 14, 2025

Source

N/A (not applicable)

Synopsis

Canada is investing over $5 billion in nature-based climate solutions to help tackle the dual crises of climate change and biodiversity loss. The Natural Climate Solutions Fund is helping to plant two billion trees and restore and improve the management of wetlands, grasslands, forests and agricultural lands.

Recommended response

• Nature is core to our identities as Canadians, and it is essential to address challenges like climate change and pollution.
• Canada is investing in nature-based solutions to help tackle the triple crises of climate change, biodiversity loss and pollution.
• Nature-based solutions reduce greenhouse gas emissions, protect and recover biodiversity, and make us more resilient to the impacts of climate change, all while enhancing human health and well-being. These investments will help to conserve and restore wetlands, peatlands, grasslands, and forests, and improve management practices on agricultural lands and forests.

Background

• To address climate change and biodiversity loss, the Government of Canada has established the Natural Climate Solutions Fund that will invest over $5 billion from 2021-2031. The Natural Climate Solutions Fund consists of three distinct, but related programs: 2 Billion Trees Program led by Natural Resources Canada ($3.19 billion); the Nature Smart Climate Solutions Fund led by Environment and Climate Change Canada ($1.41 billion); and the Agricultural Climate Solutions led by Agriculture and Agri-Food Canada ($889 million). As part of the 2030 Emissions Reduction Plan, these programs aim to provide substantial emissions reductions (7 to 10 Mt of CO2e annually in 2030 and 16-20 Mt of CO2e annually in 2050) while also providing important co-benefits for human well-being and biodiversity.
• The Natural Climate Solutions Fund also supports Indigenous Nations, communities, and organizations to engage as leaders in natural climate solutions. Indigenous-led projects are meant to build capacity and undertake on-the-ground activities for ecological restoration, improved land management, and conservation. These activities aim to effectively sequester carbon and maximize co-benefits for biodiversity, climate resiliency, and human well-being. This fund has allocated over $26.5 million, and also further supports the Government of Canada’s commitment to Reconciliation.
• The Nature Smart Climate Solutions Fund led by Environment and Climate Change Canada is a $1.4 billion, ten-year fund to reduce annual greenhouse gas emissions in 2030 by 5-7 megatonnes and continue this reduction to 2050. The fund will achieve this by supporting projects that reduce the loss, restore, or improve the management of ecosystems such as forests, wetlands, peatlands, and grasslands. The fund started in 2021 and has already allocated over $362 million to partners in contribution agreements.
• The Nature Smart Climate Solutions Fund further aligns with and contributes to Canada’s international goals and commitments, including the Paris Agreement (Nationally Determined Contributions) under the United Nations Framework Convention on Climate Change and the Kunming-Montreal Global Biodiversity Framework under the Convention on Biological Diversity.

Approved by Assistant Deputy Minister: Tara Shannon, Canadian Wildlife Service (613-617-2528)
Public Affairs and Communications Branch Head and Director General of Communications:
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

CWS Nature-Based Climate Solutions

Q1. What action is Canada taking to address the dual crises of biodiversity loss and climate change?

• Canada is investing over $5 billion over ten years (2021-2031) to deliver nature-based climate solutions in forests, grasslands, wetlands, and agricultural lands. This investment includes planting 2 billion trees, restoring degraded ecosystems, improving land management practices, and conserving land at risk of conversion to other uses. These efforts will benefit biodiversity, build resilience in our ecosystems and nature-based economic sectors, create green jobs, and contribute to Canada’s 2030 and 2050 climate goals. This work will build on existing successful initiatives, complement other federal programs, and draw on strong partnerships to ensure its effectiveness.
• Environment and Climate Change Canada (ECCC), Agriculture and Agri-food Canada, and Natural Resources Canada are working together to deliver on the Natural Climate Solutions Fund. In addition to tree planting, working to restore, better manage, and conserve ecosystems, and promoting the adoption of environmentally-friendly farming practices, the Fund includes investments in research, monitoring, science, and reporting to better understand and track greenhouse gas (GHG) reductions from funded activities.

Under this initiative, ECCC manages the Nature Smart Climate Solutions Fund,   a $1.4 billion fund ending in 2031 that aims to reduce GHG emissions by 5 to 7 megatons annually by 2030. Specifically, funding will support projects that conserve, restore and enhance wetlands, peatlands, and grasslands to store and capture carbon, with direct benefits for migratory birds, species at risk and other species of cultural and/or socio-economic importance to local communities. The initiative also supports Indigenous organizations and communities to undertake Indigenous-led, on-the-ground projects for ecological restoration that result in reduced and captured GHG emissions.

• As of June 2025, ECCC has supported 84 projects across Canada contributing toward Canada’s 2030 Emissions Reduction Plan and area-based conservation objectives, with an additional 49 projects supporting implementation of Indigenous-led natural climate solutions. Together these projects have the potential to conserve over 1 million hectares and contribute over 1 Mt in greenhouse gas emission reductions.

Q2. How is Canada encouraging Nature-Based Climate Solutions globally? 

• Canada is advocating for coordinated global action to address both climate change and biodiversity loss. Canada’s $5.3-billion climate finance commitment includes an allocation of at least 20% to nature-based climate solutions and biodiversity co-benefits in developing countries. This represents more than CA$1 billion.
• For example, Canada has supported nature based solutions projects in Africa focused on watershed restoration, urban tree planting and conservation efforts to reduce flood risks.

Canada is proud that its efforts to highlight the vital role of nature-based solutions were successfully reflected in the new Kunming-Montreal Global Biodiversity Framework, which aims to tackle the interconnected crises of biodiversity loss and climate change. 

Examples of nature-based solutions projects

From: Environment and Climate Change Canada

Backgrounder

On July 18, 2024, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, announced $89.1 million for 10 greenhouse gas emissions reduction projects funded through the Nature Smart Climate Solutions Fund.

Alberta

Recipient: Métis Nation of Alberta 
Approved funding: $4,831,200 
Project description: This Indigenous-led project will protect approximately 450 hectares of lands that are at high risk of conversion and support the development of a management plan focusing on improving biodiversity and carbon sequestration potential. The activities will take place in priority habitats, including native grassland, aspen parkland forest, wetlands, and riparian areas.

British Columbia

Recipient: BC Parks Foundation 
Approved funding: $37,000,000 
Project description: This project will protect approximately 4,000 hectares of private land and implement natural climate solutions, avoiding the conversion of carbon-rich ecosystems across British Columbia. The activities will take place in priority habitats, including grasslands, forests, riparian areas, and wetlands in multiple locations, including Vancouver Island, the Southern Interior, and Northern British Columbia. This will also benefit several species at risk, such as the Salmon species (Chum and Coho), the Marbled Murrelet, the Great Blue Heron, and other migratory birds at risk.

Recipient: Nature Trust of British Columbia 
Approved funding: $8,365,375 
Project description: This project will secure 552 hectares of carbon-rich ecosystems and provide benefits for multiple species at risk, including the Western Toad, the Grizzly Bear, and the Southern Mountain Caribou, among others. This project will result in the creation of 11 new protected areas, including forest, wetland, and grassland habitats on Vancouver Island, the Gulf Islands, the East Kootenays, and in the Cariboo Region. The project will help to mitigate climate change and will provide co-benefits for biodiversity.

Recipient: Nuxalk Nation 
Approved funding: $4,455,000 
Project description: This Indigenous-led project will protect private land and implement natural climate solutions, avoiding the conversion of carbon-rich ecosystems by halting activities that would result in greenhouse gas emissions, through land acquisition. The activities will take place in priority habitats, including forests in the Great Bear Rainforest near Bella Coola. Species that will benefit include the Marbled Murrelet, the Northern Goshawk, and the Grizzly Bear.

Manitoba

Recipient: Fisher River Cree Nation 
Approved funding: $5,192,700 
Project description: This Indigenous-led project will focus on preventing land conversion and loss of carbon from peat harvesting in the Interlakes region of Manitoba. The project will take place in carbon-rich peatlands and will provide connectivity within a migratory bird flyway. The project will help mitigate climate change and provide co-benefits for biodiversity and human well-being while also supporting Indigenous reconciliation.

Recipient: Manitoba Habitat Conservancy 
Approved funding: $6,152,640  
Project description: This project focuses on securing approximately 1,200 hectares of privately held carbon- and biodiversity-rich lands. The activities will take place in priority habitats, including grasslands, forests, riparian areas, and wetlands. The project will help to mitigate climate change and will provide co-benefits for biodiversity.

New Brunswick

Recipient: Community Forests International
Approved funding: $9,000,000             
Project description: This project will implement natural climate solutions by focusing on protecting land in New Brunswick and Nova Scotia on the traditional territory of the Wabanaki Nations. This collaboration among Mi’kmaq, Peskotomuhkati, and Wolastoqey organizations, alongside non-Indigenous conservation groups, follows long-standing Indigenous conservation policies and practices. Activities include avoiding conversion of carbon-rich ecosystems through land acquisition and protecting carbon stores through conservation and care. This project will preserve habitat for species at risk in high-priority areas, including the Sikniktewaq/Chignecto Isthmus and Wolastoq/Saint John River Priority Places and preserve diverse and culturally important forests and forested wetlands within the Wabanaki-Acadian forest region.

Ontario

Recipient: Kawartha Land Trust 
Approved funding: $7,000,000 
Project description: This additional support for this existing project will help to advance conservation efforts underway and wrap up elements related to land acquisition and greenhouse gas reporting. This includes securing an additional 566 hectares of intact temperate forest and freshwater coastal habitat at an immediate high risk of development and subsequent loss of in-situ carbon. The project is located along the eastern shore of Pigeon Lake in the Kawartha Lakes region of southern Ontario. The property supports 28 species at risk, including the Blanding's Turtle, the Bobolink, and the Eastern Whip-poor-will.

Recipient: Conservation Ontario 
Approved funding: $1,586,343 
Project description: This additional support for this existing project will help fund activities which focus on the protection, restoration, and enhanced land management of wetlands, grasslands, and riparian areas in Ontario to implement nature-based climate solutions. This will include securing an additional 79 hectares of land at immediate high risk of conversion and subsequent loss of in-situ carbon. The new lands support multiple Species at Risk Act-listed species, including the Snapping Turtle, the False Hop Sedge, and the Chimney Swift.

Quebec

Recipient: Canadian Parks and Wilderness Society – Quebec Chapter (CPAWS Quebec) 
Approved funding: $5,535,577 
Project description: This project will initiate and support activities to create protected areas south of the 49th parallel in Quebec, and in the Eeyou Istchee region and the Nitassinan region of Pessamit, in northern Quebec, in order to implement natural solutions to combat climate change. These activities will help prevent the conversion of carbon-rich ecosystems and sequester carbon in priority habitats such as old-growth forests, riparian zones, and wetlands, including peatlands.

* For some projects, final sizes and boundaries of the areas being protected are still being negotiated with the proponents.

The Government of Canada invests in nature-based solutions to help fight climate change and protect biodiversity across the country - Canada.ca

Natural Smart Climate Solutions Fund (NSCSF)–Financial Overview

Financial Summary

• NSCSF: 2021-22 to 2030-31 (10 years)
  • Total: $1.4B (initial funding $631M, additional funding $780M)
    • V1: 168.3M (11.9%)
    • V5: $2.5M (0.2%)
    • V10: $1,191.9M (84.4%)
    • Central costs (SSC & PSPC) & EBP: $48.4M (3.5%)
  • FY 2025-26: $159.8M
    • V1: $19.9M (12.4%)
    • V5: $0.3M (0.2%)
    • V10: $134M (83.9%)
    • Central costs (SSC & PSPC) & EBP: $5.6M (3.5%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation
*There was a lapse in another program which allowed the additional funding to move to NSCSF.
** Lapse mainly due to transfer to ENL for Quebec Nature agreement.

Question Period Card Minister of Environment and Climate Change–Enhanced Nature Legacy

Issue

Enhanced Nature Legacy

Update 

June 5, 2025

Source

Synopsis

Canada is the steward of 24% of the world’s boreal forest, 37% of lakes, 25% of wetlands, and approximately 80,000 species. Budget 2021 provided $2.3 billion over five years, starting in 2021‒22, with $100.5 million in remaining amortization, to Environment and Climate Change Canada, Parks Canada, and the Department of Fisheries and Oceans, to create new protected areas, protect important species at risk, and support Indigenous-led conservation.

Recommended response 

• Enhanced Nature Legacy (ENL) is a major initiative aimed at protecting Canada’s biodiversity, conserving ecosystems, recovering species at risk, and supporting Indigenous leadership in conservation.
• The program provides significant federal investments of $2.3 billion over 5 years (2021-2026) to support Canada’s nature commitments on protected areas, and recovering species at risk and conserving their habitats.

Background

• Budget 2021 provided funding in support of this initiative of $2.3 billion over five years, starting in 2021‒22, with $100.5 million in remaining amortization, to Environment and Climate Change Canada, Parks Canada, and the Department of Fisheries and Oceans, to:
  • conserve up to 1 million square kilometers (km2) of additional lands and inland waters to achieve Canada’s target of 25% protected area by 2025, including through National Wildlife Areas (NWAs), and Indigenous Protected and Conserved Areas (IPCAs);
  • create thousands of jobs in nature conservation and management;
  • accelerate new provincial and territorial (P/T) protected areas;
  • support Indigenous Guardians; and
  • take action to prevent priority species at imminent risk of disappearing, including through partnerships with Indigenous peoples.
• This funding built on the $1.3 billion over five years for Canada’s Nature Legacy, announced in Budget 2018.

ENL funding has resulted in significant gains for conservation, including:

• Since nature investments began in 2018, more than 370,000 km² of land has been conserved (3.7% of Canada).
  • As of the end of 2024, Canada is at 13.8% protection of lands and inland waters.
  • Making further progress requires collaboration and partnerships. To advance additional areas the support of provinces, territories and Indigenous partners is essential, as they control or have interest in the vast majority of lands in Canada.
• Over 250 other effective area-based conservation measures (OECMs), covering over 90,000km2, have been recognized in the Canadian Protected and Conserved Areas Database (CPCAD).
• Some of Canada’s largest conservation gains to date have come from Indigenous-led conservation including Edéhzhíe Dehcho Protected Area in the Northwest Territories - the first Indigenous Protected and Conserved Area (IPCA) reported in CPCAD and also co-designated as a ECCC National Wildlife Area (NWA) (14,218 km²).
• Collaborative Nature Agreements have been signed with 5 PT governments: British Columbia (tripartite with British Columbia First Nations), Yukon, Northwest Territories, Nova Scotia and Quebec.
• Seven section 11 agreements under the Species at Risk Act for the conservation of boreal caribou were concluded (Yukon, Northwest Territories, Alberta, Saskatchewan, Manitoba, Ontario, and Newfoundland and Labrador).  
• Implementation of conservation actions by over 300 partners benefiting over 300 species at risk have occurred in 29 priority places.
• The completion of a Strategic Conservation Framework for Species at Risk in the agricultural sector. 

Financial Overview for Enhanced Nature Legacy for Canada (ENL)

Financial Summary

• ENL: 2021-22 to 2025-26 (5 years)
  • Total Allocation: $1,458.7M
    • V1: $363M (24.9%)
    • V5: $36.8M (2.5%)
    • V10: $1,035M (71.0%)
    • Central costs (SSC & PSPC) & EBP: $23.9M (1.6%)
  • FY 2025-26: $402.6M
    • V1: $95.6M (23.8%)
    • V5: $8.5 (2.1%)
    • V10: $292.3M (72.6%)
    • Central costs (SSC & PSPC) & EBP: $6.2M (1.5%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Question Period Card Minister of Environment and Climate Change–Indigenous-Led Conservation

Issue

Indigenous-Led Conservation

New 

June 5, 2025

Source

Synopsis

The Government of Canada has partnered with First Nations, Inuit and Métis to plan for and establish several protected areas with Indigenous leadership, supporting employment positions through initiatives like Indigenous-Led Area-Based Conservation, Indigenous Guardians and the Project Finance for Permanence model (PFP), and contributing to reconciliation objectives.

Recommended response

• Indigenous communities are deeply connected to and reliant on nature, but also disproportionately impacted by climate change and biodiversity loss.
• Their traditional knowledge and active use of land, water, and ice make them leaders in conservation and adaptation, including in the Arctic.
• Funding provided through Indigenous Guardians, Indigenous Protected and Conserved Areas and Project Finance for Permanence help Indigenous communities advance new protected areas, promote social and community well-being, and support local economies.

Background

• Since 2018, the government invested in programs to support nature conservation objectives through Indigenous-led projects that advance Indigenous self-determined nature conservation outcomes and reconciliation objectives in tandem.
• The Indigenous-Led Area-Based Conservation Program provides funding to Indigenous Peoples to lead or co-lead the establishment and recognition of protected areas or other effective area-based conservation mechanisms (OECMs) across Canada. This includes Indigenous Protected and Conserved Areas that can contribute to Canada’s conservation targets.
• The Indigenous Guardians program provides funding to Indigenous communities to undertake conservation activities (e.g. monitoring and restoring species, participating in impact assessments, and monitoring illegal hunting) according to their local priorities. These initiatives support the exercise of Indigenous rights as well as the development and maintenance of sustainable local economies.
• The Project Finance for Permanence (PFP) initiative is an innovative conservation financing model that leverages government and private funding to support the long-term protection of lands and waters; PFPs prioritize Indigenous-led conservation efforts, recognizing the deep connection Indigenous peoples have with Canada’s lands and waters. In 2022, the government announced $800M to support four PFP initiatives in Canada: 
  • Great Bear Sea (BC) with an investment of $200 million that will contribute to conserving 0.3% of Canada’s oceans (signed in June 2024);
  • Northwest territories (NWT) with an investment of $300 million that will contribute up to 2% of Canada’s lands (signed in November 2024);
  • Sinaa (NU) with an investment of $200 million that will contribute to conserving 3.68% of Canada’s oceans and 0.04% of lands (signed in March 2025);
  • Omushkego Wahkohowin (ON) would invest up to $100 million and is still under negotiation. 
• Since 2018, federal nature investments have enabled:
  • The development of Indigenous Protected and Conserved Areas, restoration of ecosystems, and implementation of recovery actions for species at risk; 
  • Between 2018 and 2023, Canada added 11 million hectares of conserved lands through Indigenous-led programs (about 31% of all gains since 2018);
  • $125 million to support Indigenous Guardians initiatives supporting over 240 community-led initiatives. Of this, $25 million was directed to 23 Inuit-led stewardship initiatives in the Arctic, and another $5.4 million to support 32 First Nations Guardians initiatives in the Northwest Territories and the Yukon;
  • $61.7 million to support more than 40 Indigenous Guardian programs at Parks Canada-administered places that advance understanding of cultural identities, engaging with visitors about the diversity of Indigenous cultures and fostering awareness and understanding of Indigenous peoples’ role as stewards of the land;
  • Engagement of First Nations as partners through the tri-partite Nature Agreement with the Governments of Canada and British Columbia; and
  • establishment of distinctions-based nature tables with First Nations, Inuit and Métis Nation.
• Indigenous-led programs have successfully attracted matching funding from the private sector and there are also broader economic spinoffs of federal and private investments.
• Many of these initiatives attracted matching funding from the private sector, helping advance both Canada’s conservation and reconciliation goals by empowering Indigenous peoples and providing them with the resources needed to exercise their stewardship role toward the land, ice and waters. Program evaluations have found that the Indigenous Guardians generate a return of investment of $3 for every federal dollar invested.
• Indigenous leaders have also been heavily involved in Canada’s international leadership on nature, participating actively in meetings of the United Nations Convention on Biological Diversity (CBD), through which Canada has showcased innovative, local Indigenous-led conservation solutions to international audience.

Question Period Card Minister of Environment and Climate Change–Indigenous-Project Finance for Permanence

Issue

Project Finance for Permanence

New 

March 10, 2025

Source

At the United Nations Biodiversity Conference of the Parties (COP) 15 in December 2022, the Prime Minister announced funding of $800 million to support up to four Indigenous-led Project Finance for Permanence initiatives.

Synopsis 

Canada, Indigenous partners, provinces and territories, and philanthropic organizations collaborate to advance four large-scale Indigenous-led conservation initiatives across Canada. These initiatives will use an innovative Project Finance for Permanence funding model.

Recommended response

• Project Finance for Permanence is a long-term funding model bringing together government, community, and philanthropic support for sustainable conservation.
• These Indigenous-led initiatives will help protect some of Canada’s ecosystems.
• Project Finance for Permanence initiatives contribute to protecting nature, strengthening communities, and supporting local economies for generations to come.

Background

• Federal departments, Indigenous communities, provinces and territories, and the philanthropic organizations have negotiated Project Finance for Permanence (PFP) agreements with the shared goal of conserving nature and supporting local economies.
• Progress to date on these four initiatives includes:
  • Project Finance for Permanence of SINAA/ Qikiqtani: On February 27, 2025, the Qikiqtani Inuit Association (QIA), the Government of Canada, the Pew Charitable Trusts, and the Aajuraq Conservation Fund Society announced the signing of the SINAA Agreement. This initiative in the Qikiqtani Region of Nunavut includes a network of proposed protected and conserved areas that will ensure the long-term health and sustainability of the marine and terrestrial environment, while protecting the health and culture of Inuit communities in the region.
  • Northwest Territories (NWT): Our Land for the Future: In November 2024, partners signed an agreement that outlines the shared vision for NWT: Our Land for the Future, including the terms, activities, and expected outcomes of the initiative. In the coming months, partners will work toward implementing the agreement to deliver the initiative’s full vision of conservation, stewardship, and economic development benefits that last now and into the future.
  • Great Bear Sea Project Finance for Permanence: In June 2024, 17 partner First Nations, the Government of Canada, the Province of British Columbia, and Coast Funds launched the Great Bear Sea PFP. The Great Bear Sea, also referred to as the Northern Shelf Bioregion, is home to endangered whales, ancient corals, salmon, sea birds, and many other ecologically, culturally, and economically important species. The initiative advances and supports the implementation of the Northern Shelf Bioregion Marine Protected Area Network Action Plan, which was endorsed in 2023 as a blueprint to guide implementation of a network of marine protected areas in the region.
  • Omushkego Wahkohtowin Project Finance for Permanence: As of March 2025, Parks Canada is continuing to work in partnership with the Mushkegowuk Council and First Nations communities to conserve the Omushkego Homelands along the western James Bay and southwestern Hudson Bay coasts and advance local economic growth.

    Approved by Assistant Deputy Minister: Tara Shannon, Canadian Wildlife Service (613-617-2528)
    Public Affairs and Communications Branch Head and Director General of Communications:
    Katie Donnelly O’Neill (343-552-8339)
    Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Committee of the Whole–Additional CWS Information

Q: Why is your government restricting access to and taking away land from Canadians and sectors that support economic development through Indigenous Protected and Conserved Areas and Projects for Finance Permanence?

A:

• Indigenous Protected and Conserved Areas (IPCAs) in Canada are a vital part of reconciliation and environmental stewardship 
• Initiatives like Indigenous Protected and Conserved Areas are about restoring stewardship to Indigenous peoples over lands they have cared for since time immemorial—not about taking land from others. 
• Indigenous Protected and Conserved Areas are typically established through negotiation and consent, not unilateral action.  
• These initiatives can also bring a range of economic benefits, both directly to Indigenous communities and more broadly to surrounding areas through ecotourism, effectively balancing conservation and economic development objectives.
• Since 2018, ECCC has supported 246 Indigenous Guardians initiatives, which have contributed to the creation of over 1500 culturally meaningful employment opportunities.
• In 2024, a Socio-Economic Return on Investment analysis of the Indigenous Guardians Pilot (2018-22) estimated that the ratio of resources to benefits is $1.00: $2.83.
• Canada has committed $800 million to support four PFP initiatives. The federal allocation of funding for PFP initiatives is based on commitments made in PFP agreements to:
  1. Support and meaningfully advance Indigenous leadership in conservation,
  2. Contribute to meeting Canada’s protected area commitments for 2025 and/or 2030, and
  3. Realize other benefits recognized by all parties to the agreement as mutually beneficial.

Q: With regard to the Project Finance for Permanence, can the government share any details on the Indigenous-led conservation initiatives?

A:

• Canada has reached final agreement on three of the four PFPs announced by the PM in December 2022. The fourth PFP is still being negotiated.
  • Great Bear Sea PFP in British Columbia, led by DFO, reached final agreement in June 2024. A $200M Grant Agreement was signed and the funds transferred to “Coast Fund”, the recipient and independent fund manager for the GBS PFP, on January 27, 2025. This PFP will contribute to conserving 0.3% of Canada’s oceans.
  • Our Land for the Future PFP in the Northwest Territories, led by ECCC, reached final agreement in November 2024 and is awaiting appropriation via Parliamentary Estimates to sign the grant agreement and transfer $300 million to “Our Land for the Future Trust”, an Indigenous-led not-for-profit organization and independent fund manager for the PFP. This PFP will contribute up to 2% of Canada’s lands.
  • The Sinaa PFP in Nunavut, led by DFO, reached final agreement in February 2025 and is awaiting appropriation via Parliamentary Estimates to sign the grant agreement and transfer $200 million to “Aajuraq Conservation Fund Society”, an Indigenous-led not-for-profit organization and the independent fund manager for the PFP. This PFP will contribute to conserving 3.68% of Canada’s oceans and 0.04% of lands.
  • Parks Canada is in ongoing discussions with partners and Ontario on the development of the Omushkego Wahkohtowin PFP in northern Ontario. Should negotiations be successful, $100 million has been set aside for this PFP. The area conserved will be determined after negotiations are complete.
• PFPs being Indigenous-led, detailed information on how PFP funding was used will be made available in annual reports issued by the independent fund administrator for each PFP.

Example of Indigenous Guardians

The Indigenous Guardians program provides funding to Indigenous communities to undertake conservation activities (e.g. monitoring and restoring species, participating in impact assessments, and monitoring illegal hunting) according to their local priorities. These initiatives support the exercise of Indigenous rights as well as the development and maintenance of sustainable local economies. Program evaluations have found that the Indigenous Guardians generate a return of investment of $3 for every federal dollar invested. Examples of projects and their outcomes follow:

Tŝilhqot’in Nation (British Columbia)

• The Tŝilhqot’in Nation in British Columbia has created a model that integrates land protection with sustainable resource development.
• Following a historic Supreme Court ruling affirming their land title, they established a Guardian program and land use plans that designate areas for conservation, cultural use, and economic activity.
• $500,000 over two-years (2022-23 to 2023-24) to support sustainable forestry, eco-tourism, and carefully negotiated resource projects like mining, ensuring all development aligns with their environmental and cultural values.
• This approach demonstrates how Indigenous-led stewardship can support both economic growth and ecological integrity.

Dehcho K’éhodi Stewardship Program (Northwest Territories)

• The Dehcho K’éhodi Stewardship Program, meaning “Taking care of the Dehcho” in the Dene Zhatié language, is an Indigenous-led initiative by the Dehcho First Nations in the Northwest Territories. It focuses on land-based monitoring, cultural revitalization, and youth engagement.
• $500,000 over two-years (2022-23 to 2034-24) to support Guardians patrol and observe the land, collect environmental data, and document traditional knowledge, all while fostering intergenerational learning.
• The program plays a crucial role in maintaining the health of the Dehcho region’s ecosystems and in strengthening Dene governance and cultural identity through active stewardship.

Example of Projects Nature Smart Climate Solutions Fund

As of June 2025, ECCC has supported 84 projects across Canada contributing toward Canada’s 2030 Emissions Reduction Plan and area-based conservation objectives, with an additional 49 projects supporting implementation of Indigenous-led natural climate solutions. Together these projects have the potential to conserve over 1 million hectares and contribute over 1 Mt in greenhouse gas emission reductions. Examples of these projects and their expected outcomes include:

• $10 million over 5 years to the Province of Nova Scotia to secure 26,000 hectares of high-carbon, old forest ecosystems on private lands in southwest Nova Scotia. This project targets species listed under the Species at Risk Act such as Chimney Swift and additionally benefits species of interest to the province such as mainland moose.
• $15 million over 3 years to the Mowachaht/Muchalaht First Nation in British Columbia to secure 62,000 hectares of high carbon old growth forest in core salmon watershed and support the designation of the Salmon Park Indigenous Protected and Conserved Area. This project is intended to benefit species including Pacific salmon, Marbled Murrelet, Northern Goshawk, and Wandering Salamander.
• $750,000 over three years to the Province of British Columbia to develop and pilot test property tax shifting and other fiscal measures for private land conservation. Activities will take place on private and public lands with high carbon sinks at risk of degradation or clearing. This project targets 15 species listed under the Species at Risk Act including Pacific Water shrew, Oregon Forest snail, Phantom Orchid, and Western Painted Turtle.
• $13 million over 4 years to the Nature Conservancy of Canada to conserve over 5,000 hectares and restore up to 200 hectares of carbon- and biodiversity-rich forests, grasslands and wetlands in New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Ontario, and Quebec. This project is intended to benefit species at risk and migratory birds occurring on private land.

COW Financial Overview for SAR

Financial Summary

Species at Risk Renewal: 2023-24 to 2025-26 (3 years)

Species at Risk Act (Ongoing)

• Total: $248.2M
  • V1: $188.9M (76.1%)
  • V5: $3.9M (1.6%)
  • V10: $16.4M (6.6%)
  • Central Costs (SSC & PSPC) & EBP: $39.0M (15.7%)
• FY 2025-26: $82.5M
  • V1: $63.8M (77.3%)
  • V5: $0.8M (1%)
  • V10: $5.3M (6.4%)
  • Central Costs (SSC & PSPC) & EBP: $12.6M (15.3%)

Species at Risk is a long-standing ECCC initiative. Amounts shown reflect total funding since SAR renewal funding was received starting in 2023-24.

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation 

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation 

Foundational Brief: Fresh Water State of Play

State of Fresh Water in Canada

• A secure, clean fresh water supply is foundational to Canada’s economy, communities, human health and well-being, and the environment.
• Fresh water is an economic driver: the Great Lakes basin generates 40% of Canada’s economic activity, and the Fraser River basin has a Pacific salmon industry that contributes nearly $1B to Canada’s GDP annually.
• In 2021, the main water users by sector in Canada were electric power generation, transmission and distribution (63%); manufacturing (11%); agriculture – including crop and animal production – (10%); and mining and oil and gas extraction (2%). These industries contributed 17% of total GDP and 12% of employment in 2024, highlighting the significance of fresh water to Canada’s economic security.
• Fresh water is also an integral part of Canada’s national identity, and is sacred to Indigenous partners: in 2021, Canadians travelling domestically reported close to 6.3 million canoeing or kayaking excursions, 11.6 million visits to beaches, and nearly 6.5 million boating trips to Canadian rivers and lakes.
• Healthy freshwater ecosystems are essential for the environment: as of 2023, freshwater quality in Canadian rivers was generally assessed as fair to excellent, however water issues vary significantly by region, requiring targeted responses based on local needs and conditions (e.g., drought in Western Canada, pollution in Great Lakes and St. Lawrence River, coastal erosion in Atlantic Canada, permafrost thaw in the North). Watersheds are under high stress, especially in regions along the border with the U.S. (see figure in bottom-left corner).
• A common misconception is that Canada has an abundant supply– although Canada holds 20% of the world's surface freshwater, only7% of that is renewable and more than half drains northward away from the country’s most populous regions. Freshwater resources are not limitless and require careful stewardship as a result. Fresh water in Canada flows to three coasts, crossing traditional territories of First Nations, Inuit, and Métis, provincial and territorial boundaries, and the Canada-U.S. border. It is also stored in groundwater, ice, snow, and permafrost.

Key issues

• Water security requires having the right amount of water of the right quality in the right place and the right time to meet economic, social and environmental needs. Sustainable freshwater quality and quantity and Canada’s economic security are intrinsically linked.
• Freshwater quantity challenges
  • There is significant regional and seasonal variation related to freshwater availability across Canada; and Canadians are among the highest water consumers in the world. Per-capita water use exceeds 220L/day in the average household.
  • Flooding causes the most common and costly disasters in Canada. In the past decade, flooding resulted in nearly $800M/year on average in insured losses. Over 1.5M homes are in high flood risk areas, and 80% of Canadian cities are built, in whole or in part, on floodplains.
  • Between 2010 and 2022, irrigation water use has increased by 90% in Canada. Alberta accounts for almost ¾ of irrigated land.
  • Droughts can cost Canada billions; the 2001-02 drought led to a $6B drop in GDP. The Prairies lost almost $3B in agricultural production.
  • Total electricity generated in Canada fell 3.9% in 2023 due to the impact of drought on hydroelectric generation.
• Freshwater quality challenges
  • Resource extraction, climate change, urban intensification, and agricultural land use are key stressors on freshwater quality.
  • Point source and emerging contaminants (PFAS, microplastics) have significant impacts on aquatic ecosystems and human health.
  • Access to clean water remains an urgent issue for many Indigenous communities, with 37 long-term drinking advisories in 35 communities.
• Freshwater governance challenges
  • Ensuring freshwater security is complex, cutting across federal government, provinces and territories, Indigenous peoples, the U.S., and local organizations. Water can be a unifier and collaboration is key.

Healthy freshwater ecosystems are essential to Canadians, communities, and businesses across the country.

Roles and responsibilities

Shared Jurisdiction for Fresh Water

• Freshwater management in Canada is complex, often involving multiple jurisdictions.

Areas of jurisdiction

• Federal
  • Seacoast and inland fisheries, legislative and regulatory protection against water pollution to protect fisheries resources, shipping and navigation, waters on federal lands and First Nations communities, inter-jurisdictional and international transboundary waters, and international processes/treaties.
• Provincial/ Territorial (PTs)
  • Surface and groundwater within their borders, including water allocation and use, drinking water and wastewater services, source water protection, and thermal and hydroelectric power development.
  • PT governments often delegate some authority to municipalities, particularly in relation to drinking water treatment and distribution, and wastewater treatment.
• Indigenous peoples
  • Many modern treaties and self-government agreements include rights to use and to make laws or certain decisions related to water. Indigenous peoples are also involved in transboundary water management, including through some water management boards.
  • Drinking water and wastewater in First Nations reserves is a shared responsibility between First Nations and the Government of Canada.
  • Indigenous peoples commonly seek greater recognition of their role and rights in relation to water and water governance. 

Federal roles and activities

• 26 departments and agencies have freshwater-related responsibilities and coordinate their efforts through the Federal Freshwater Committee.
• Minister of Environment is the federal lead on fresh water. Environment and Climate Change Canada (ECCC) and the Canada Water Agency (CWA) discharge the Minister's responsibilities.
• CWA: mandate to improve freshwater management in Canada by providing federal leadership and improved coordination and collaboration with provinces, territories, and Indigenous peoples to proactively address national, and regional transboundary freshwater challenges and opportunities. Delivers on-the-ground action to restore and protect waterbodies of national significance; supports domestic and international water boards; and advises on freshwater policy, governance, and data.
• ECCC: roles related to preservation and enhancement of the quality of the natural environment, including water (Department of the Environment Act); biodiversity conservation; enforcement of rules and regulations made by the International Joint Commission; implementation of the Canadian Environmental Protection Act and administration of pollution prevention provisions of the Fisheries Act; lead on water quality and quantity science, water monitoring and surveillance, modelling and predictions.
• Other examples of federal freshwater-related activities include (non-exhaustive):
  • Natural Resources Canada: geoscience activities that support the protection and sustainable use of groundwater, which includes characterizing the main aquifer systems.
  • Agriculture and Agri-Food Canada: monitoring drought and supports farming practices and technologies that reduce the impact of agriculture on freshwater quality.​
  • Fisheries and Oceans Canada: manages fisheries and aquaculture (including in freshwater ecosystems).
  • Indigenous Services Canada: First Nations drinking water and wastewater capacity.
  • Public Safety Canada: emergency management and response (including for flooding).
  • Global Affairs Canada: foreign policy lead on fresh water.

Federal and International Landscape

Recent Federal Action related to Fresh Water

• Budget 2023: provided $650M over 10 years (CWA-ECCC) for a strengthened Freshwater Action Plan to protect and restore water quality and ecosystem health in eight major watersheds across the country, and $85M over five years and $21M ongoing thereafter for the creation of CWA.
  • $162.4M over five years to support continuation of the federal Flood Hazard Identification and Mapping Program, led by NRCan.
  • $15.3M over three years to Public Safety Canada to create a publicly accessible online portal where Canadians can access information on their exposure to flooding.
• Budget 2024:
  • $6.9M over five years, with $1.4M ongoing to ECCC for an early warning system for extreme weather events, with a focus on floods and storm surges.
  • $50M over two years to ISC for Bill C61* (First Nations Clean Water Act).
    • * Bill C61 was introduced in Dec. 2023 but was not passed before Jan. 2025 prorogation.
• October 2024: Canada Water Agency Act established the CWA as a standalone agency.
• 2023/24, ECCC invested $25.3M in the National Hydrometric Program, a cost-shared and collaborative program between ECCC and all 13 PT governments, which monitors and provides essential observations for water management.

Freshwater Ecosystem Initiatives (FEIs)

Canada-U.S. Context

• Shared waters comprise more than 40% of the Canada-U.S. border. Priority issues include transboundary water pollution and nutrient management, flood risk management, extreme water levels, aquifer depletion and aquatic invasive species.
• Boundary Waters Treaty, 1909 established the principles and mechanisms for addressing Canada-U.S. boundary and transboundary water issues, and created the International Joint Commission (IJC), a binational body to prevent and resolve disputes on shared waters.
• Canada provides technical expertise on 15 binational transboundary water boards, committees, and task forces of the IJC supported by the CWA and ECCC.
• "redacted"

International Context

• Canada’s multilateral environment commitments on wetlands, biodiversity, marine protection, and sustainable development include obligations on water.
• Water addressed in fora such as the G7, G20, International Maritime Organization and United Nations (UN)-led initiatives.
• Discussion of water in the context of climate mitigation, adaptation and resilience increasing at the UNFCCC: COP26 (2021) through to COP31 (2026).
• Under the UN Convention on Biological Diversity, Canada has committed to conserve 30% of terrestrial and inland water areas by 2030.

Federal Tools & Levers

Legislative and Regulatory Actions pertinent to Minister of ECCC

• ECCC leads implementation and enforcement of regulatory protections for water from pollutants including industrial sources and municipal wastewater.
• Authorities derived from federal legislation including:
  • Canada Water Act
  • Department of the Environment Act
  • Fisheries Act
  • Migratory Birds Convention Act, 1994
  • International River Improvements Act
  • Canada Wildlife Act
  • Species at Risk Act
  • Impact Assessment Act
  • Canadian Environmental Protection Act, 1999
• Authorities derived from Orders-in-Council
  • Agreements between Canada, PTs, and Indigenous governments.

Policy tools

• Federal policies related to fresh water include:
  • 1987 Federal Water Policy recognizes the need for co-operative governance and encourages sustainable water management.
  • The Federal Policy on Wetland Conservation applies to all federal programs which may have an impact on wetland function.
  • National Adaptation Strategy (2023) lays out a framework to reduce the risk of climate-related disasters for Canadians, such as floods and droughts.

Federal Investments (Grants and Contributions – G&C’s)

• G&C’s provide federal funding for freshwater-related action and leverage financial and in-kind support from others. For example, CWA delivers contribution funding through Freshwater Ecosystem Initiatives and EcoAction.

Cross-Country Collaboration

• Partnerships and formalized agreements with federal, provincial, and territorial (FPT) governments, Indigenous organizations and communities, non-governmental organizations, the private sector, and academia to collaboratively address freshwater challenges.
• Canadian Council of Ministers of the Environment (CCME) is a ministerial led FPT intergovernmental forum to collaborate on environmental priorities, including water.
• FPT and Indigenous participation on domestic and international water boards ensures collaboration on water quality, quantity, and dam operations efforts.

Foundational Science and Data

• ECCC manages Canada-wide, integrated long-term water quality monitoring networks to enhance availability of key data and information for Canadians.
• ECCC water science contributes knowledge and advice to many ECCC initiatives (Canadian Environmental Sustainability Indicators, Chemicals Management Plan, administration of Fisheries Act, and CWA programs (FEIs).
• ECCC is leading development of a National Freshwater Science Agenda, in coordination with CWA, to enhance alignment of freshwater science.
• ECCC’s National Hydrological Service leads on water level and streamflow monitoring and provides scientific and engineering expertise.
• CWA is developing a National Freshwater Data Strategy with partners and stakeholders to make it easier for Canadians to find and access freshwater data.
• CWA is piloting an Indigenous Grassroots Water Circle to engage directly with grassroots individuals and providing financial support for Indigenous-led actions through FEIs.
• NRCan leads the collaborative Flood Hazard Identification and Mapping Program

Policy Questions

How can the federal government’s freshwater-related work support economic growth and competitiveness?

What are the priority freshwater challenges and opportunities that the federal government should work on with PT, Indigenous, and binational partners over the next five to ten years?

How does the federal government, together with other orders of government, Indigenous governments, communities, academia, among other partners, guide the science needed to support positive freshwater outcomes? 

"redacted"

Foundational Overview–Canada-U.S. Boundary and Transboundary Waters Placemat

Overview of Canada-U.S. Freshwater Governance

Freshwater is vital to Canada’s economy, environment, and quality of life. The sustainable management and protection of these shared waters requires ongoing collaboration with the U.S., the federal government, provinces and territories, Indigenous peoples and local organizations, as shaped by the 1909 Boundary Waters Treaty (BWT) and Canada’s Constitution Act. The BWT created the International Joint Commission (IJC), a binational body to prevent and resolve disputes on water quantity and quality. Since 1909, over 100 issues have been jointly referred to the IJC for non-binding recommendations.

All provinces restrict bulk water removals to varying degrees. Federally, the International Boundary Waters Treaty Act (IBWTA) prohibits bulk removal from boundary and transboundary waters.

Definitions

• Boundary waters: Waters that form part of the Canada-U.S. boundary (main shores, lakes, rivers and connecting waterways, including bays, arms, inlets; excludes tributaries).
• Transboundary waters: Waters that naturally flow across the Canada-U.S. boundary (e.g. rivers crossing the border).

Key Federal Roles

• Global Affairs Canada (GAC): Leads international relations relating to transboundary waters (including treaty negotiations) and manages Canada’s formal relationship with the IJC, ensuring effective diplomatic coordination on shared waters.
• Environment and Climate Change Canada (ECCC): Leads Canada’s international transboundary water resources management services (including science, policy, and monitoring support for water quality and quantity in transboundary waters), chairs and supports IJC boards and acts as the department’s lead liaison with the IJC.
• Canada Water Agency (CWA): Leads and supports federal coordination on freshwater, including co-chairing and supporting IJC boards, binational engagement, and integrated watershed initiatives across departments, including through leadership roles and delivery of freshwater ecosystem programs.

Transboundary Water Challenges

• Climate extremes, shifting hydrological patterns, population growth, and rising sectoral demands (e.g., agriculture, energy) are intensifying strain on shared water resources such as the Great Lakes and Milk River.
• “redacted”
• Aging water monitoring infrastructure and uneven coverage of Canada’s hydrometric network reduce forecasting capacity, especially under climate extremes and in remote or northern regions.
• Water quality is threatened by nutrient pollution, invasive species, industrial and municipal discharge, legacy toxic chemicals and emerging contaminants (e.g., per- and polyfluoroalkyl substances (PFAS), microplastics). Land use change, and climate stressors.
• Limited access to clean water in some Indigenous communities is a significant challenge.
• Infrastructure expansion, resource development (including in northern Canada), and accelerated projects will present new pressures on water ecosystems.
• “redacted”

Key Federal Water Legislation

• The Constitution Act (Section 91)
• International Boundary Waters Treaty Act (IBWTA) (R.S.C. 1985) - Minister of Global Affairs; Minister of the Environment
• Canada Water Act (R.S.C. 1985) - Minister of the Environment
• Canadian Environmental Protection Act (1999) - Minister of the Environment
• Fisheries Act (R.S.C. 1985) - Minister of Fisheries and Oceans
• Department of the Environment Act (R.S.C. 1985) - Minister of the Environment
• Lake of the Woods Control Board Act (1921) - Minister of the Environment
• International River Improvement Act (R.S.C 1985) - Minister of the Environment
• Canadian Navigable Waters Act (R.S.C. 1985) - Minister of Transportation

Key Transboundary Watershed Facts

Columbia River:

• With its tributaries (e.g. Kootenay), the Columbia is the largest river system in the U.S. Pacific Northwest, supplying one third of U.S. and half of British Columbia’s hydroelectric power.
• The Canada–U.S. Columbia River Treaty (CRT) (1964) enables coordinated power generation and flood control; modernization negotiations, led by GAC, are ongoing.
• The IJC has a minimal role in the CRT but supports separate efforts on Elk–Kootenay water quality through a governance body and study board. [NOTE: This information is not considered correct but is being released for transparency under the Access to Information Act.]

St. Mary and Milk Rivers:

• Prairie river system critical to Alberta irrigation, supporting over 8,000 km of canals and infrastructure.
• Administered under the BWT by IJC Accredited Officers, who manage apportionment between Canada and the U.S.
• “redacted”

Souris River:

• Crosses Saskatchewan, Manitoba, and North Dakota; supports both flood control and municipal/agricultural water supply.
• Governed by the 1989 Canada–U.S. Souris River Agreement under the BWT. [NOTE: This information is not considered correct but is being released for transparency under the Access to Information Act.]
• “redacted”

Red River Basin:

• Flows through Minnesota, North Dakota, Manitoba; supports over six million people across the basin.
• Managed under the IJC Red River Watershed Board; no formal treaty but strong bilateral cooperation.
• “redacted”

Lake of the Woods & Rainy River:

• Shared by Ontario, Manitoba, and Minnesota; important for fisheries, recreation, and Indigenous cultural values.
• Governed under the Lake of the Woods Convention (1925) and managed by the IJC’s Rainy–Lake of the Woods Watershed Board. [NOTE: This information is not considered correct but is being released for transparency under the Access to Information Act.]
• Nutrient pollution and algal blooms are recurring issues and a priority area for government attention; Indigenous engagement and binational science collaboration are also priorities.

Great Lakes:

• Home to over 30% of Canadians and 10% of Americans, holds approximately 20% of the world’s surface freshwater. The region supports $8 trillion CAD in cross-border trade.
• Water quality and ecosystem health issues managed under the Canada – U.S. Great Lakes Water Quality Agreement, 2012 (GLWQA) supported by domestic federal provincial agreements and federal and provincial programs. Great Lakes water levels and flows managed by various IJC Boards.
• “redacted”

Wolastoq/Saint John River:

• Largest river system in Atlantic Canada; originates in Maine and flows through New Brunswick into the Bay of Fundy.
• No active formal Canada–U.S. governance agreement; previous IJC studies completed in the 1970s.
• Limited current binational coordination; growing interest in renewed collaboration due to Indigenous interests, water quality concerns, climate and flood risk.

St. Croix River:

• Forms part of the boundary between Maine and New Brunswick; historically significant for fisheries and log transport.
• Managed under the IJC St. Croix River Watershed Board since 2007; one of the earliest designated international watershed boards.
• Key focus areas include aquatic invasive species (e.g., alewife migration), water quality monitoring, and Indigenous collaboration.

Key Canada-U.S. Transboundary Watersheds

Key Canada-U.S. Freshwater Facts

• Water makes up 40% of the Canada-U.S. border, “redacted”.
• Transboundary waters provide drinking water, hydropower, navigation, recreation, irrigation, and support for biodiversity in both Canada and the U.S.
• Tens of millions live and work along these shared waters, influencing flood mitigation, management, and response.
• Canada and the U.S. are parties to over a dozen freshwater agreements, including the 1909 Boundary Waters Treaty, which underpins most bilateral water cooperation and includes provisions on equal access, water levels and flows, pollution, and use hierarchy.
• Changing climate conditions and weather patterns, including intensifying drought and flood conditions, are placing increased strain and pressure on water resources in both Canada and the U.S.
• Water governance in Canada is shared across jurisdictions: provinces/territories lead on water within their borders, while the federal government has authority over boundary and transboundary waters, pollution prevention, fisheries, navigation, federal lands, and international treaties.
• Indigenous peoples have a great interest in water stewardship, are engaged in federal and provincial activities, and are actively engaged in some boards and committees formed under the IJC.
• “redacted”

Key Canada-US bilateral water agreements

• The Boundary Waters Treaty (BWT) (1909)
• Canada-U.S. Great Lakes Water Quality Agreement (first signed in 1972; amended 2012)
• Columbia River Treaty (1964)
• Agreement between Canada and the United States for Water Supply and Flood Control in the Souris River Basin (1989)
• Niagara River Treaty (1950)
• Agreement between Canada and the United States to Regulate the Level of Lake of the Woods (1925)
• Treaty between Canada and the United States of America relating to the Skagit River and Ross Lake, and the Seven Mile Reservoir on the Pend d’Oreille River (1984)

Question Period Card Minister of Environment and Climate Change–The Canada Water Agency and the Freshwater Action Plann

Issue

The Canada Water Agency and the Freshwater Action Plan

Update 

May 14, 2025

Source

N/A (not applicable)

Synopsis

Established as a standalone entity in October 2024, the Canada Water Agency works in collaboration with partners and stakeholders to keep Canada’s freshwater safe, clean, and secure. The Freshwater Action Plan (FWAP) is a signature federal program and a major funding initiative, primarily led by the Canada Water Agency, which manages, restores and protects fresh water in Canada. 

Recommended response

• Freshwater is an irreplaceable natural resource that is fundamental to our economy, human health and well-being, and the environment. It sustains life! 
• The Canada Water Agency, formally launched in October 2024, is bringing all levels of government, Indigenous partners and key sectors together to ensure Canada’s major freshwater ecosystems are safe, clean and well-managed – today and for the future.
• To support the Agency’s mandate, the Government of Canada, is investing $650 million in the Freshwater Action Plan, a signature federal program to manage, protect and restore major freshwater ecosystems across the country, from the Great Lakes and the St. Lawrence River to the Lake Winnipeg and Fraser River basins. 

Background

Canada Water Agency

• The Canada Water Agency was created in October 2024. The Agency is headquartered in Winnipeg with regional offices across the country. 
• The Agency delivers its mandate through five interconnected workstreams: 
  • Service to Canadians focuses on restoring and protecting Canada’s transboundary freshwater ecosystems. 
  • Policy Leadership is used to analyze freshwater issues and create forward-looking policies that strengthen water security and resilience.
  • Cross-Country Collaboration brings together federal partners, Indigenous peoples, provinces and territories, and stakeholders to address freshwater challenges and opportunities through joint efforts.
  • Water Literacy improves Canadians’ awareness of the value of fresh water through reporting and increased accessibility of federal water information.
  • Foundational Data and Science underpins all workstreams. Freshwater science will inform decision-making and lead to the development of a National Freshwater Data Strategy.
• The Agency works closely with other federal departments and agencies because a whole-of-government approach is required to address freshwater challenges and harness opportunities.
• The Agency collaborates with the United States on transboundary waterbodies such as the Great Lakes. 

Freshwater Action Plan (FWAP) 

• The FWAP funds actions that protect and restore transboundary and nationally significant freshwater ecosystems through Freshwater Ecosystem Initiatives (FEIs) in the Great Lakes, Lake Winnipeg, Lake of the Woods, St. Lawrence River, Fraser River, Wolastoq/Saint John River, Mackenzie River, and Lake Simcoe. The FEIs cover approximately 90% of Canada's population and 40% of Canada's surface area. The majority of FEI funding runs from 2023 to 2033. 
• Complementary to the FWAP, the EcoAction program is a funding initiative that focuses on freshwater sustainability and innovation across Canada, by funding community-led actions, clean technology, and innovation. 
• Call for Applications timelines:
  • The Call for Applications for the 2025-26 fiscal year for Freshwater Ecosystem Initiatives in the Great Lakes, Lake Winnipeg Basin, Wolastoq/Saint John River, Fraser River, Mackenzie River, and EcoAction Streams is closed. Applications are under review.
  • The Call for Applications under the St. Lawrence Action Plan is managed with Quebec and the next call for applications is anticipated in fall 2025. 
  • The next Call for Applications for Lake Simcoe and Lake of the Woods is expected in fall 2026.  
• Engagement with Indigenous peoples, provinces, territories, and stakeholders is a critical component of implementing the strengthened Freshwater Action Plan. 

Approved by President: Mark Fisher, Canada Water Agency (343-573-1686)
Director General of Freshwater Policy and Engagement: Gemma Boag (613-552-0806) 

COW Financial Overview for CWA-FWAP

Financial Summary

• FWAP & CWA: 2023-24 to 2032-33 (10 years) and Ongoing
  • Total: $712.4M (for first 10 years)
    • V1: $359M (50%)
    • V5: $6M (1%)
    • V10: $254M (36%)
    • Central costs (SSC & PSPC) & EBP: $93M (13%)
  • FY 2025-26: $85.1M
    • V1: $39.5M (46%)
    • V5: $2.8M (3%)
    • V10: $32.6M (38%)
    • Central costs (SSC & PSPC) & EBP: $10.2M (12%)
• The CWA was launched in October 2024 and funds were transferred from ECCC to the CWA for freshwater programs that now fall under the mandate of the CWA, along with the operating budgets designated for the CWA.

With the launch of the CWA in October 2024, ECCC transferred budget to the CWA to reflect the shift in programs and initiatives now falling under the mandate of the Agency.

The remaining ECCC funding under the FWAP-CWA initiative is:

Note: this table only reflects ECCC’s spending. The CWA will report on their spending separately.

Canada Water Agency & Freshwater Action Plan

Q1. What is the mandate of the Canada Water Agency and where is it located?

• The mandate of the Canada Water Agency is to improve freshwater management in Canada by providing leadership, effective collaboration federally, and improved coordination and collaboration with provinces, territories, and Indigenous peoples to proactively address national and regional transboundary freshwater challenges and opportunities.
• The Agency was established as a standalone entity in October 2024, headquartered in Winnipeg with regional offices across the country. The Agency’s presence across Canada helps us to better understand and respond to freshwater challenges and opportunities in each region.
• The Agency’s integrated policy and program approach aims to improve freshwater management and stewardship in Canada to meet economic, social, and environmental needs – today and for the future.
• The Agency directly responds to Canada’s freshwater challenges and opportunities across five categories including:
  • Service to Canadians focused on restoring and protecting significant freshwater ecosystems;
  • Policy Leadership that responds to Canada’s most pressing freshwater challenges and opportunities;
  • Cross-Country Collaboration, which involves creating partnerships to protect nationally significant freshwater ecosystems;
  • Freshwater Literacy that cultivates a water aware Canada;
  • And lastly, Foundational Science and Data focused on translating freshwater science and data to inform decision-making.

Q2. What is the Agency doing to support the government’s goal of protecting water sovereignty?

• Canada–United States freshwater collaboration, including through the International Joint Commission, is a globally recognized model of effective cooperation, covering 13 transboundary watersheds.
• Canada remains committed to the protection of freshwater resources and to working collaboratively with the United States, given the importance of fresh water to our bilateral relationship, for which water makes up 40% of the Canada-US border.
• For example:
  • The Agency is leading delivery of Freshwater Ecosystem Initiatives to restore, protect, and manage waterbodies of national and transboundary significance including in the Great Lakes, Lake Winnipeg, the St. Lawrence River, the Wolastoq/Saint John River, Mackenzie River, the Fraser River and Lake Simcoe.
  • The Great Lakes are shared waters and require cooperation with many partners in Canada and the United States. For over 50 years, agreements with the United States and the Province of Ontario have been important mechanisms for advancing shared priorities and ensuring collaboration with all levels of government, local authorities, Indigenous peoples, industry, non‑governmental organizations and the public.

Q3. *redacted*

• *redacted*
• *redacted*
• *redacted*
• *redacted*

Q4. What is the Agency doing to support the government’s goal of protecting Arctic sovereignty?

• The Arctic and northern Canada face critical water security pressures due to climate change and other pressures.
• The Canada Water Agency is leading the implementation of the Mackenzie River Freshwater Ecosystem Initiative. This Freshwater Ecosystem Initiative supports local actions to improve freshwater outcomes related to science and knowledge; Indigenous Knowledges, capacity building, and engagement; as well as resiliency and adaptation.

Q5. What is the Agency doing to support First Nations access to clean drinking water?

• The Canada Water Agency supports Indigenous Services Canada in their work to address clean and safe drinking water for First Nations on reserve, such as by providing advice on best source water management and protection practices.

Q6. What is the Canada Water Agency doing on the international stage?

• The Canada Water Agency works closely with other government departments and agencies, such as Environment and Climate Change Canada and Global Affairs Canada, to align the international freshwater agenda with Canadian values and priorities.
• To date, the Agency has led Canadian representation at several major multilateral water events, including the 2023 United Nations Water Conference, at World Water Week, the World Water Forum and the World Water Congress and Exhibition.
• Looking ahead, the Agency is preparing to lead Canadian representation at World Water Week and the upcoming 2026 United Nations Water Conference.

Q7. How will the Canada Water Agency work with provinces and territories, Indigenous peoples, and stakeholders?

• Freshwater management in a country as vast as Canada is complex. Challenges vary by region and addressing them can involve multiple jurisdictions.
• The Canada Water Agency engages with provinces and territories on water issues through the Canadian Council of Ministers of the Environment, interjurisdictional water basin boards, and through Freshwater Ecosystem Initiatives across the country.
• The Agency is advancing participation of First Nations, Inuit, and Métis in freshwater management in a number of ways, including through Freshwater Ecosystem Initiatives, review of the Canada Water Act, and development of the National Freshwater Data Strategy.

Q8. How will the Canada Water Agency work to modernize the Canada Water Act?

• The Government of Canada is committed to working with Indigenous peoples and provinces and territories as it explores modernization of the Canada Water Act.
• The Canada Water Agency has spent the past year initiating discussions with provinces, territories, and Indigenous partners on how best to engage with them on review of the Act.

Q9. What is the Freshwater Action Plan and how is the Agency delivering it?

• The Freshwater Action Plan is a signature federal program and a major funding initiative, primarily led by the Canada Water Agency, which manages, restores and protects fresh water in Canada.
• The Freshwater Action Plan funds actions that protect and restore transboundary and nationally significant freshwater ecosystems through Freshwater Ecosystem Initiatives in the Great Lakes, Lake Winnipeg, Lake of the Woods, St. Lawrence River, Fraser River, Wolastoq/Saint John River, Mackenzie River, and Lake Simcoe. The Freshwater Ecosystem Initiatives cover approximately 90% of Canada's population and 40% of Canada's surface area.
• Complementary to the Freshwater Action Plan, the EcoAction program is a funding initiative that focuses on freshwater sustainability and innovation across Canada, by funding community-led actions, clean technology, and innovation.

Q10. What investments will be made with CWA’s 2025-26 fiscal year reference levels?   

• The Canada Water Agency’s reference levels of $84.8 million will invest in: 
• The Freshwater Management program ($59.5 million) captures work to support reduced loading of phosphorus to priority water bodies, and provides information to support decision-making and the restoration of priority ecosystems.
  • $20.0 million for operating expenditures
  • $39.5 million in contribution expenditures for the following freshwater ecosystem initiatives and the EcoAction program:
    • Great Lakes:  $27.9 million
    • Lake Winnipeg: $1.9 million
    • St. Lawrence River: $2.4 million
    • Lake of the Woods:  $0.5 million
    • Lake Simcoe: $0.6 million
    • Wolastoq / Saint John River:  $1.2 million
    • Mackenzie River:  $0.5 million
    • Fraser River:  $0.7 million
    • EcoAction Program:  $3.8 million
• The Freshwater Policy and Engagement program ($10.4 million) is focused on developing integrated, proactive policy and program responses to freshwater challenges and opportunities in collaboration with partners and stakeholders ($7.1 million in operating expenditures and $3.3 million in contribution expenditures).
• Enabling Services for Freshwater Stewardship (Internal Services) of $11.0 million.   
• Statutory authorities for employee benefit plan costs $3.9 million.

Q11. How does the Canada Water Agency’s work relate to major project approvals and infrastructure investment?   

• Other federal departments and agencies lead on major project reviews, such as the Impact Assessment Agency of Canada.
• Water fuels Canada’s economy and is key to economic growth and development.
• The Canada Water Agency-led Freshwater Ecosystem Initiatives support sustainable development in transboundary and nationally significant freshwater ecosystems.

Question Period Card Minister of Environment and Climate Change–Indigenous-Federal Government Action on Plastic Waste and Pollution

Issue

Federal Government Action on Plastic Waste and Pollution

Update

May 20, 2025

Source

N/A (not applicable)

Synopsis

The Government of Canada is delivering an evidence-based, comprehensive plan to tackle plastic waste and pollution and move towards a circular economy for plastics.

Recommended response

• The science is clear: plastic pollution is everywhere in the environment, harming wildlife and damaging their habitats and burdening Canadian communities that bear the cost of dealing with plastic waste and pollution.
• Canadians are concerned about the health and environmental impacts of plastics and expect governments to take action to address plastic pollution. Plastics also provides us with an opportunity. An area where we can innovate, where we can support new technologies and grow new industry.
• The Government of Canada will continue to address pollution, protect Canadians’ health and environment, and promote clean, sustainable growth while working with domestic and international partners to keep plastics in the economy, and out of the environment.

Background

• Due to their low cost, high functionality, lightweight and versatile properties, plastics are an important element of the Canadian economy, representing an over $35 billion plastic production industry and a $540M recycling industry. Plastics are a part of nearly every sector of the economy, and they are a part of the daily lives of Canadians.
• However, plastics function in a linear, take-make-dispose, economy. Plastics are generally made and used for their one intended purpose and are then disposed of as waste. In Canada, almost 5 million tonnes of plastic waste is produced annually, and only roughly 7 percent is recycled. The rest ends up in landfills, incinerators or is released as pollution and impacts Canadian beaches, rivers, parks and oceans, harming wildlife and damaging habitats, burdening communities, and represents a significant lost economic opportunity estimated to be worth nearly $8B in 2016, and this value could reach $11 billion by 2030.
• The issues are the same at the global level. Global plastic production and waste is set to triple by 2060, with plastic pollution projected to grow 2.5 times from 2015 levels by 2040. Internationally, the world has recognized the urgent need to address this problem. Work is underway to develop a new international legally binding instrument on plastic pollution that addresses the full lifecycle of plastics with the aim of concluding negotiations in 2025.
• Canada is working with its partners to implement an evidence-based and comprehensive plan to reduce plastic waste and pollution and move towards a circular plastics economy through a range of complementary actions across the plastics lifecycle.
• Improving how plastics are made, used and managed is important to prevent plastic pollution and waste, build economic opportunities, recuperate lost value, create jobs, spur innovation and drive investment by governments and businesses.

Approved by Associate Assistant Deputy Minister: Judy Meltzer, Environmental Protection Branch (613-808-1768)
Director General, Branch Head of Public Affairs and Communications Branch: Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

Environmental Protection Branch

Q. What is the Government of Canada doing to address plastic waste and pollution?

• Canadians are concerned about the health and environmental impacts of plastics and expect governments to take action to address plastic pollution. A recent poll conducted by Pollara, indicated that 88% of Canadians believe it is important that the Government of Canada take action on plastic waste and pollution.
• The Government of Canada will continue to address pollution, protect Canadians’ health and environment, and promote a clean and sustainable economy.
• We are implementing an evidence-based and comprehensive plan to reduce plastic waste and pollution and move towards a circular plastics economy through a range of complementary actions across the plastics lifecycle.
• The approach is grounded in evidence. The Government continues to conduct and invest in science to inform actions and measure progress over time, including requiring companies to report through the Federal Plastics Registry on the plastic products they place on the Canadian market and how they are managed at end-of-life.
• The Government is also taking targeted action, in alignment with the waste hierarchy, to keep plastics in the economy and out of the environment. This includes banning harmful plastic products; enabling innovations and solutions for a systematic shift towards a circular economy; greening operations and procurement; and addressing plastic pollution, including through the prevention and removal of lost fishing gear.
• The federal, provincial and territorial governments are working together, through the Canadian Council of Ministers of the Environment, to implement the Canada-wide Strategy on Zero Plastic Waste and Action Plan.
• Internationally, Canada will continue to work with its partners to conclude negotiations of a new ambitious and effective global treaty on plastic pollution at the upcoming resumed fifth session of the intergovernmental negotiating committee (INC-5.2) in August in Geneva.
• Improving how plastics are made, used and managed is important to prevent plastic pollution and waste, build economic opportunities, recuperate lost value, create jobs, spur innovation and drive investment by governments and businesses.

Reactive Points – If asked about plastics regulations and the related legal challenge

• In December 2023, the Government of Canada filed an appeal to the Federal Court ruling against the 2021 Order adding “plastic manufactured items” on Schedule 1 to the Canadian Environmental Protection Act, 1999. 
• The Federal Court of Appeal’s decision has not yet been released and the timing of the decision is unknown.
• The Single-use Plastics Prohibition Regulations remain in force, and the Government continues to implement initiatives to reduce plastic waste and pollution.
• The Government will continue to work with partners and consider the breadth of options, including regulatory approaches, to reduce plastic waste and pollution, and build a strong, green economy.

Question Period Card Minister of Environment and Climate Change–Impact Assessment Act: Amendments, Regulatory Efficiency, and Provincial Cooperation

Issue

Impact Assessment Act: Amendments, Regulatory Efficiency, and Provincial Cooperation

New

May 26, 2025

Source

Ongoing stakeholder interest and media coverage on major project development in Canada.

Synopsis

The Impact Assessment Agency of Canada (IAAC) is seizing every opportunity to increase efficiency and accelerate the pace of federal impact assessments and permitting, while ensuring major projects are built responsibly.

Recommended response

• Impact assessments provide a clear and open process to ensure major projects get built responsibly, minimize harm to the environment, and protect Indigenous rights.
• Assessments are not about whether projects should be built, but how best to build them. 
• Our government is committed to advancing nation-building projects of national interest, including conventional energy projects, to grow our economy and diversify our markets, while we continue to protect the environment and ensure our commitments to Indigenous reconciliation are respected.
• We will do this in collaboration with willing provincial partners to ensure a timely and efficient regulatory process that respects the jurisdiction of each level of government and achieves the objective of one project, one review. 

Background

Supreme Court of Canada (SCC) Decision and Impact Assessment Act (IAA) Amendments

• In October 2023, the SCC issued a decision that the IAA was partially unconstitutional and must focus on areas of federal jurisdiction. The decision underscores the need for federal and provincial governments to work together on impact assessment in the spirit of cooperative federalism.
• The SCC majority confirmed that there is “no doubt” Parliament can enact impact assessment legislation to “minimize the risks that some major projects pose to the environment.” It also confirmed that the overall structure of the IAA and process steps (e.g., early planning and transparent decision-making) and designating projects via the Physical Activities Regulations (Project List) remain sound.
• The Government of Canada tabled meaningful and targeted amendments to the IAA to respond to the decision, ensure the IAA is constitutionally sound, and restore regulatory certainty. Those amendments received Royal Assent and came into force on June 20, 2024.
• On October 3, 2024, Alberta Premier Danielle Smith sent a letter, including proposed amendments to the IAA to the Prime Minister requesting that these amendments be brought forward within four weeks to avoid another reference question to the Court of Appeal of Alberta. On November 20, 2024, Alberta’s Lieutenant Governor referred a new reference question on the constitutionality of the amended Impact Assessment Act and the Project List to the Court of Appeal of Alberta.

Regulatory Efficiency

• Budget 2024 included several commitments related to enhancing regulatory efficiency for major projects, including: enhancing coordination across orders of government to reduce duplication and minimize burden; establishing a Crown Consultation Coordinator to ensure efficient and meaningful Crown consultation with Indigenous peoples; establishing a new Federal Permitting Coordinator in the Privy Council Office; and building a Federal Permitting Dashboard that reports on the status of large projects requiring permits, to improve predictability for project proponents.
• The Ministerial Working Group on Regulatory Efficiency for Clean Growth Projects (MWG) released Building Canada's Clean Future (Action Plan) in June 2024. It outlines the Government's roadmap to improve regulatory and permitting efficiencies and accelerate clean growth projects. Furthermore, on July 5, 2024, the Government issued a new Cabinet Directive on Regulatory and Permitting Efficiency for Clean Growth Projects that will help clean growth projects get built faster by providing whole-of-government direction to federal officials to accelerate decision-making.
• Canada also launched a new permitting coordination support initiative for those clean growth projects requiring multiple federal permits, licenses or other authorizations prior to starting construction. Proponents of clean growth projects not subject to federal impact or environmental assessment legislation can submit an expression of interest through the Impact Assessment Agency of Canada's proponent portal to determine whether they are eligible for permitting coordination. Proponents of projects that are subject to a federal impact or environmental assessment will be included in the permitting coordination initiative and do not need to submit a separate request via this portal.

Federal-Provincial Cooperation

• The Government of Canada strives for efficient assessments by working with provinces and territories to provide transparency and predictability for investors, proponents, Indigenous peoples and the public, and reduce duplication and the burden for those who participate in impact assessments.
• Where there is a provincial assessment on major projects primarily regulated under provincial jurisdiction, the federal government will recognize these processes to meet requirements of the IAA, to the extent possible. Where a provincial assessment does not cover all federal requirements, IAAC works closely with willing provinces to integrate these requirements into the provincial process to achieve a single assessment. Where federal matters are not incorporated, the federal government will work in a collaborative manner to advance a parallel assessment process that is focused on these residual issues to avoid duplication and overlapping.
• IAAC continues to engage provinces to go further on streamlining and coordinating assessments and integrating and coordinating federal and provincial permitting requirements.

Approved by Vice-President: Patricia Brady, Strategic Policy and Programs Sector, Impact Assessment Agency of Canada (613-790-7126)
Director General of Strategic Integration Directorate: Stéphanie Johnson (343-574-8002)
Director of Policy Integration Division: Tara Frezza (613-948-1942)
Public Affairs and Communications Branch Head and Director General of Communications:
Katie Donnelly O’Neill (343-552-8339)
Director General of Parliamentary Affairs, Information and Privacy: Hilary Humphrey (343-552-7968)

COW Financial Overview for Impact Assessment (IA)

FInancial Summary

• Impact Assessment: 2023-24 to 2027-28 (5 years)
  • Total: $183.1M
    • V1: $126.7M (69%)
    • V5: $0.3M (0%)
    • V10: $16.2M (9%)
    • Central costs (SSC & PSPC) and EBP: $39.9M (22%)
  • FY 2025-26: $35.8M
    • V1: $24.5M (69%)
    • V10: $3.4M (9%)
    • Central costs (SSC & PSPC) and EBP: $7.9M (22%)

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation

Including Employee Benefit Plans, SSC IT costs and PSPC accommodation