Canada’s 2025 Budget: Piecemeal Progress on Climate

The International Institute for Sustainable Development (IISD) evaluates Canada's 2025 federal budget, noting a contradiction between investments in clean energy and critical minerals and the continued subsidization of the oil and gas sector.

• The 2025 budget includes positive steps toward climate ambition by recommitting to stricter methane regulations for the oil and gas sector and strengthening industrial carbon pricing to encourage low-carbon investment.
• The budget contradicts its climate goals by increasing fossil fuel production subsidies through 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 has established a Critical Minerals Sovereign Fund and the Critical Minerals Production Alliance to foster domestic resilience and sustainable supply chains, though the IISD notes success depends on sustainability and transparency standards.
• The budget lacks dedicated funding for climate adaptation and disaster risk reduction, although the Build Communities Strong Fund allows for some climate adaptation projects and improved weather forecasting.
• Canada plans to cut international development assistance by CAD 2.7 billion, which the IISD suggests could harm the country'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} }