Canada’s 2025 Budget: Piecemeal Progress on Climate

The International Institute for Sustainable Development (IISD) describes Canada's 2025 budget as providing mixed signals. While it praises the commitment to critical minerals and industrial carbon pricing, it criticizes the expansion of fossil fuel subsidies for LNG and carbon capture, as well as cuts to international development assistance.

• The 2025 budget includes positive measures to drive low-carbon investment, specifically through a recommitment to more stringent methane regulations for the oil and gas sector and a commitment to strengthen industrial carbon pricing.
• The budget contradicts climate goals by increasing fossil fuel production subsidies via tax breaks for new liquefied natural gas (LNG) facilities and extending an investment tax credit for carbon capture and storage, which the IISD argues locks in fossil fuel production.
• Canada is establishing a new Critical Minerals Sovereign Fund and strategic partnerships through the Critical Minerals Production Alliance to build domestic resilience and sustainable supply chains.
• The budget lacks dedicated funding for climate adaptation and disaster risk reduction, though the Build Communities Strong Fund allows for some eligible climate adaptation projects and weather forecasting support.
• The federal government plans a CAD 2.7 billion cut to international development assistance, which the IISD suggests could harm Canada's international standing.

APA

International Institute for Sustainable Development (2025). Canada’s 2025 Budget: Piecemeal Progress on Climate. https://www.iisd.org/articles/statement/canadas-2025-budget-piecemeal-progress-climate

Chicago

International Institute for Sustainable Development. Canada’s 2025 Budget: Piecemeal Progress on Climate. 2025. https://www.iisd.org/articles/statement/canadas-2025-budget-piecemeal-progress-climate.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Canada’s 2025 Budget: Piecemeal Progress on Climate |date=4 November 2025 |url=https://www.iisd.org/articles/statement/canadas-2025-budget-piecemeal-progress-climate |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2025canadas, author = {{International Institute for Sustainable Development}}, title = {{Canada’s 2025 Budget: Piecemeal Progress on Climate}}, publisher = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/articles/statement/canadas-2025-budget-piecemeal-progress-climate}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }