Canada needs to attract $140 billion in annual investment to reach net zero

The authors argue that Canada requires $140 billion in annual investment to reach net zero, but attracting this private capital requires greater policy certainty. They propose three specific measures: establishing a green and transition taxonomy, providing confidence in the industrial carbon price through carbon contracts for difference, and developing a clean electricity grid as envisioned by the Clean Electricity Regulations to remain competitive against other jurisdictions and avoid carbon-related border adjustments.

• The federal government estimates that Canada requires up to $140 billion in annual investment to achieve its net zero goals.
• The authors identify three policy actions necessary to unlock private capital: the implementation of a green and transition taxonomy for institutional due diligence, the use of carbon contracts for difference to protect investments from industrial carbon price fluctuations, and the development of a clean electricity grid aligned with the Clean Electricity Regulations.
• Canada's export-driven economy faces risks from international carbon-related border adjustments, particularly in markets like Europe, and competition from countries offering stronger tax incentives and regulatory support for low-carbon energy.

APA

Thomas, K., & Smith, R. (2024). Canada needs to attract $140 billion in annual investment to reach net zero. Canadian Climate Institute. https://climateinstitute.ca/canada-needs-to-attract-140-billion-in-annual-investment-to-reach-net-zero/

Chicago

Thomas, Kevin, and Rick Smith. Canada needs to attract $140 billion in annual investment to reach net zero. Canadian Climate Institute, 2024. https://climateinstitute.ca/canada-needs-to-attract-140-billion-in-annual-investment-to-reach-net-zero/.

Wikipedia

{{cite press release |last1=Thomas |first1=Kevin |last2=Smith |first2=Rick |title=Canada needs to attract $140 billion in annual investment to reach net zero |publisher=Canadian Climate Institute |date=26 April 2024 |url=https://climateinstitute.ca/canada-needs-to-attract-140-billion-in-annual-investment-to-reach-net-zero/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{thomas2024canada, author = {Thomas, Kevin and Smith, Rick}, title = {{Canada needs to attract \$140 billion in annual investment to reach net zero}}, publisher = {Canadian Climate Institute}, year = {2024}, month = apr, url = {https://climateinstitute.ca/canada-needs-to-attract-140-billion-in-annual-investment-to-reach-net-zero/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }