COSTS OF POLLUTION IN CANADA

The report finds that pollution costs Canada tens of billions of dollars annually, though full costs are obscured by data gaps. Urban smog is the most quantified pollutant, costing $36 billion in 2015. Other significant impacts include the $12.2 billion in combined current and future liabilities for contaminated sites, the $1.6 billion cost of climate-related heat waves in 2015, and substantial ecosystem and property value losses in Lake Erie due to algal blooms. The document highlights critical data gaps regarding persistent organic pollutants (POPs), heavy metals, and greenhouse gas emissions.

• Pollution costs in Canada are estimated at tens of billions of dollars annually, categorized into health and well-being impacts, direct income costs, and lost asset wealth. Health and well-being costs alone were estimated at at least $39 billion in 2015, or approximately $4,300 for a family of four, though this is likely an underestimate due to unmeasured pollutants.
• Urban smog is the most extensively studied pollutant in Canada and had the highest recorded health and well-being costs, estimated at $36 billion in 2015. This was linked to 7,712 deaths in 2015, primarily caused by fine particulate matter (PM2.5).
• Persistent organic pollutants (POPs), including flame retardants, plastic additives, and pesticides, are suspected to cause significant health issues such as diabetes, obesity, and cancer. While their exact costs are unknown, they could potentially cost Canadians tens of billions of dollars annually.
• The management of contaminated sites, such as abandoned mines and industrial facilities, represents a significant financial burden. The federal government's recognized future liability for cleanup was $5.8 billion in 2015, with provincial governments recognizing an additional $6.4 billion. The Giant gold mine in Yellowknife is cited as a major example, with total remediation costs expected to reach $1 billion.
• Climate change is increasing the frequency and intensity of extreme weather. In 2015, heat waves attributable to climate change cost Canada $1.6 billion. Additionally, the 2016 Fort McMurray wildfire resulted in $3.58 billion in insured property losses, the largest single payout for a natural disaster in Canada.
• Algal blooms, driven by fertilizer runoff and exacerbated by climate change, have caused severe economic losses in Canadian lakes. In 2015, Lake Erie experienced a $3.8 billion loss in ecosystem value and a $4 billion loss in market goods and services, while shoreline property values dropped 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 73 per cent of INAC-funded water systems inspected in 2011 were at medium or high risk for producing unsafe water.

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} }