COSTS OF POLLUTION IN CANADA

This executive summary, published by the International Institute for Sustainable Development (IISD) in June 2017, synthesizes existing studies to estimate the economic and health costs of pollution in Canada. It highlights that while some pollutants like urban smog are well-documented, significant data gaps exist for others, such as persistent organic pollutants and greenhouse gas emissions, meaning the total annual costs likely reach tens of billions of dollars.

• Pollution costs in Canada are estimated to be at least tens of billions of dollars annually, though the full amount is unknown due to missing data. Health and well-being costs alone were estimated at at least $39 billion in 2015, which equates to approximately $4,300 for a family of four. Direct income costs to families, businesses, and governments were measured at $3.3 billion in 2015, but likely reached upwards of 3 per cent of combined net income.
• Urban smog is the most thoroughly studied pollutant in Canada and had the highest measured health and well-being costs, estimated at $36 billion in 2015. The primary driver is fine particulate matter (PM2.5), which can penetrate deep into the respiratory tract and cause cardiovascular and respiratory illnesses; in 2015, 7,712 deaths in Canada were attributed to PM2.5 and other smog components.
• Persistent organic pollutants (POPs), including flame retardants, plastic additives, and pesticides, are linked to serious health issues such as cancer, diabetes, obesity, and endocrine disruption. While their exact costs are unknown, the report suggests they could cost Canadians tens of billions of dollars annually given the prevalence of the associated diseases.
• Canada faces significant financial liabilities from contaminated sites, including abandoned mines, gas stations, and industrial facilities. As of 2015, the federal government recognized $5.8 billion in future cleanup liabilities, while provincial governments recognized an additional $6.4 billion. The average annual cost for managing federal sites between 2005/06 and 2014/15 was $283 million.
• Climate change is increasing the frequency and intensity of extreme weather, with heat waves costing Canada an estimated $1.6 billion in 2015. Insured losses from natural disasters have risen sharply; for example, the 2016 Fort McMurray wildfire resulted in $3.58 billion in insured property losses, more than double the $1.74 billion from the 2013 Alberta floods.
• Algal blooms caused by nutrient runoff from sewage and fertilizers have severely impacted Canadian freshwater lakes, particularly those along the Canadian Shield. In 2015, Lake Erie suffered an estimated $3.8 billion loss in ecosystem value and a $4 billion loss in market goods and services value, with shoreline property values dropping by over $700 million.
• Water pollution from pathogens poses significant risks, particularly in First Nation communities. Between 2004 and 2014, 400 out of 618 First Nations had water problems, and two-thirds had been under at least one drinking water advisory in the last decade. In Ontario, the Neskantaga First Nation has been under a boil-water advisory for 20 years.

APA

International Institute for Sustainable Development (2017). COSTS OF POLLUTION IN CANADA. https://www.iisd.org/system/files/publications/costs-of-pollution-in-canada-highlights-en.pdf

Chicago

International Institute for Sustainable Development. COSTS OF POLLUTION IN CANADA. 2017. https://www.iisd.org/system/files/publications/costs-of-pollution-in-canada-highlights-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=COSTS OF POLLUTION IN CANADA |date=June 2017 |url=https://www.iisd.org/system/files/publications/costs-of-pollution-in-canada-highlights-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2017costs, author = {{International Institute for Sustainable Development}}, title = {{COSTS OF POLLUTION IN CANADA}}, institution = {International Institute for Sustainable Development}, year = {2017}, month = jun, url = {https://www.iisd.org/system/files/publications/costs-of-pollution-in-canada-highlights-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }