Key Takeaways:
- Climate efforts in Canada are losing momentum, according to a new report from the RBC Climate Action Institute.
- The institute’s climate action barometer fell in 2025 for the first time since it began measuring six years ago.
- Economic and trade uncertainty, along with policy changes, are souring business and consumer sentiment on climate action.
- A poll of 2,000 Canadians found that only 12% of respondents identified climate change as the most important priority.
- Businesses are in "course-correction" mode, with a quarter of Canadian executives citing the change in U.S. climate policy as a key reason for scaling back climate commitments.
Introduction to the Report
The RBC Climate Action Institute has released a new report that highlights a concerning trend in Canada’s climate efforts. Despite progress made since 2019, the report finds that momentum is being lost in the fight against climate change. The institute’s climate action barometer, which measures the country’s progress on climate action, fell in 2025 for the first time since it began tracking six years ago. This decline is attributed to various factors, including the end of the consumer carbon tax, removal of electric vehicle incentives, and Alberta’s restrictions on new renewables. Additionally, government funding for climate initiatives has remained flat, further contributing to the stalled progress.
Reasons for Stalled Progress
The report identifies several reasons for the loss of momentum in Canada’s climate efforts. One major factor is economic and trade uncertainty, which has led to a decline in business and consumer sentiment on climate action. The removal of the consumer carbon tax and the elimination of electric vehicle incentives have also had a significant impact. Furthermore, Alberta’s restrictions on new renewables have hindered the growth of the renewable energy sector. The report also notes that government funding for climate initiatives has not increased, despite the growing need for climate action. These factors combined have created a perfect storm that has stalled Canada’s progress on climate change.
Public Perception of Climate Change
A poll of 2,000 Canadians commissioned by RBC found that climate change is no longer a top priority for many Canadians. The poll revealed that affordability, healthcare, and the economy are the top three concerns for Canadians, while only 12% of respondents identified climate change as the most important priority. Additionally, only a third of respondents ranked climate change among their top three priorities. This shift in public perception is likely due to the current economic and trade uncertainty, which has led many Canadians to focus on more immediate concerns. The report notes that this decline in public concern for climate change is a worrying trend, as it may lead to further inaction on climate initiatives.
Business Response to Climate Change
The report also examines the response of businesses to the changing climate landscape. According to the report, businesses are in "course-correction" mode, as they adjust to the dramatic shift away from climate efforts in the United States. The election of U.S. President Donald Trump has led to a significant change in climate policy, with the U.S. withdrawing from the Paris Agreement and rolling back climate regulations. As a result, a quarter of Canadian executives have cited the change in U.S. climate policy as a key reason for scaling back their own climate commitments. This trend is concerning, as businesses play a critical role in reducing greenhouse gas emissions and transitioning to a low-carbon economy.
Conclusion and Future Outlook
The report’s findings highlight the need for urgent action to address the stalled progress on climate change in Canada. The decline in public concern for climate change, combined with the shift in business sentiment, has created a challenging environment for climate action. To reverse this trend, the report recommends that the government increase funding for climate initiatives and implement policies that support the growth of the renewable energy sector. Additionally, businesses must prioritize climate action and invest in low-carbon technologies to reduce their greenhouse gas emissions. Ultimately, addressing climate change will require a collective effort from governments, businesses, and individuals to prioritize climate action and work towards a sustainable future.
