DAMAGE CONTROL

The report finds that climate change acts as a significant drag on Canada's economy, reducing GDP growth, causing job losses, and increasing fiscal pressure on governments. It highlights a 'broken window fallacy' where spending on repairs masks deeper losses in household income and productive investment. The analysis indicates that Northern Canada and Alberta are particularly vulnerable, and that a combination of proactive adaptation and low global emissions could reduce total real GDP losses by 75%.

• Climate change is projected to cause substantial national income losses in Canada, starting at $25 billion in 2025 (representing 50% of projected GDP growth for that year) and rising to between $391 billion (low-emissions) and $865 billion (high-emissions) annually by the end of the century.
• Labor productivity and workforce size will decline due to premature deaths and heat-induced productivity losses, with job losses potentially reaching 500,000 by mid-century and 2.9 million by the end of the century.
• Household income will decline more severely than topline GDP due to the 'broken window fallacy,' where resources are diverted to repair damaged assets rather than productive investments. By the end of the century in a median high-emissions scenario, GDP may fall by 12%, while household income falls by 18%.
• Low-income households will be disproportionately affected by affordability pressures; by the end of the century in a high-emissions scenario, they face income cuts of 23%, compared to 19% for the median income group.
• Geographic and sectoral impacts vary, with Northern Canada and Alberta facing the most significant losses. Northern Canada's losses are primarily driven by permafrost thaw, with potential GDP losses reaching $26,060 per capita by the end of the century in a high-emissions scenario.
• Climate change creates a fiscal risk for governments, requiring tax increases to cover rising costs for disaster response, infrastructure, and healthcare. By the end of the century, tax rate increases of 1.4% (low-emissions) or 2.7% (high-emissions) would be needed to maintain services.
• Combining proactive adaptation with global emissions reductions is the most effective strategy, potentially reducing Canada's total real GDP losses by 75%. Proactive adaptation offers a high return on investment, with every $1 spent yielding $13-$15 in total benefits.

APA

Canadian Climate Institute (n.d.). DAMAGE CONTROL. https://climateinstitute.ca/wp-content/uploads/2022/09/Executive-summary-damage-control.pdf

Chicago

Canadian Climate Institute. DAMAGE CONTROL. n.d. https://climateinstitute.ca/wp-content/uploads/2022/09/Executive-summary-damage-control.pdf.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=DAMAGE CONTROL |url=https://climateinstitute.ca/wp-content/uploads/2022/09/Executive-summary-damage-control.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitutenddamage, author = {{Canadian Climate Institute}}, title = {{DAMAGE CONTROL}}, institution = {Canadian Climate Institute}, url = {https://climateinstitute.ca/wp-content/uploads/2022/09/Executive-summary-damage-control.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }