LIMITER LES DÉGÂTS : réduire les coûts des répercussions climatiques au Canada
Summary
The report quantifies the economic burden of climate change on Canada, predicting significant GDP losses, job reductions, and decreased household income by the end of the century. It highlights a 'broken window fallacy' where spending on repairs masks the opportunity cost of lost productive investment. The analysis finds that the North and Alberta are most vulnerable, and that combining proactive adaptation with global emission reductions could eliminate 75% of real GDP losses, with adaptation investments yielding a return of $13 to $15 for every dollar spent.
Key insights
- Climate change is projected to cause substantial annual GDP losses for Canada, starting at $25 billion in 2025 (representing 50% of that year's projected growth) and rising to between $391 billion and $865 billion by the end of the century, depending on emission scenarios.
- Labor force losses due to heat-related productivity declines and premature deaths could increase from current levels to 500,000 by mid-century and reach 2.9 million by the end of the century.
- Household incomes will decline across all scenarios, with the most vulnerable populations suffering the most; by the end of the century in a high-emissions scenario, the lowest-income group could see a 23% loss in income compared to a 19% loss for the median group.
- The 'broken window fallacy' describes how spending on repairing climate-damaged assets creates a misleading economic stimulus in sectors like construction while diverting resources from productive investments that would generate long-term wealth.
- Geographic vulnerability varies, with Northern Canada and Alberta facing the highest losses; the North is particularly affected by permafrost thaw damaging infrastructure, with potential GDP losses of $26,060 per person by the end of the century in high-emission scenarios.
- Climate change creates a fiscal risk for governments, requiring tax increases to maintain services and fund disaster recovery; for example, a 2.7% tax increase for individuals and businesses may be needed by the end of the century under high-emission scenarios to cover annual costs of $55 billion.
- Combining proactive adaptation and global emission reductions can reduce real GDP losses in Canada by 75%. Proactive adaptation specifically offers a high return on investment, yielding $13 to $15 for every dollar spent.
Cite the original document
- APA
- Canadian Climate Institute (n.d.). LIMITER LES DÉGÂTS : réduire les coûts des répercussions climatiques au Canada. https://institutclimatique.ca/wp-content/uploads/2022/09/Macro-French-FINAL-ES-0927.pdf
- Chicago
- Canadian Climate Institute. LIMITER LES DÉGÂTS : réduire les coûts des répercussions climatiques au Canada. n.d. https://institutclimatique.ca/wp-content/uploads/2022/09/Macro-French-FINAL-ES-0927.pdf.
- Wikipedia
- {{cite report |author=Canadian Climate Institute |title=LIMITER LES DÉGÂTS : réduire les coûts des répercussions climatiques au Canada |url=https://institutclimatique.ca/wp-content/uploads/2022/09/Macro-French-FINAL-ES-0927.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{canadianclimateinstitutendlimiter, author = {{Canadian Climate Institute}}, title = {{LIMITER LES DÉGÂTS : réduire les coûts des répercussions climatiques au Canada}}, institution = {Canadian Climate Institute}, url = {https://institutclimatique.ca/wp-content/uploads/2022/09/Macro-French-FINAL-ES-0927.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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