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The International Institute for Sustainable Development (IISD) views Canada's 2023 federal budget as a significant step toward a net-zero economy, noting billions for clean energy and CAD 800 million for freshwater protection. However, the IISD warns that the budget maintains loopholes for fossil fuels, specifically through carbon capture and storage (CCS) funding and the inclusion of abated natural gas in clean electricity tax credits, which may undermine commitments to end inefficient fossil fuel subsidies.

The report examines the opportunity to phase out residential central air conditioners in Canada in favor of heat pumps. It argues that because the two technologies are mechanically similar, a market transformation strategy could bypass significant adoption barriers. The authors project that installing heat pumps instead of central air conditioners from 2025 to 2035 would result in C$12.6 billion in net benefits, including C$10.4 billion in energy bill savings and a reduction of 19.6 million tonnes of CO2 equivalents. The document identifies barriers such as low consumer familiarity, high upfront costs, and emergency replacement cycles, and proposes implementation routes including national equipment mandates, building code updates, and upstream incentives for distributors.

The report examines the potential for decarbonizing Canada's residential building sector by replacing central air conditioners with heat pumps. It identifies five primary barriers to adoption—lack of familiarity, the infrequent nature of HVAC replacement, short decision windows during emergencies, limited stock, and higher initial costs. The authors model a scenario where all new central air conditioners are replaced by heat pumps from 2025 to 2035, projecting a net benefit of 12.6 billion CAD, including 10.4 billion CAD in energy bill savings and a reduction of 19.6 million tonnes of CO2 equivalent. The document proposes several policy interventions, including national equipment regulations, updated building codes, and upstream incentives for distributors and manufacturers, while highlighting the importance of energy justice for low-income tenants and vulnerable populations.

The natural infrastructure sector in the Canadian Prairies contributed over CAD 4.1 billion to GDP and employed over 33,000 people directly in 2022. In Manitoba, the sector directly employed over 5,700 people and contributed over CAD 540 million to the provincial economy in 2022. Investment scenarios for Manitoba suggest that annual investments of CAD 10 million or CAD 25 million could increase direct jobs by 8% to 21% and direct GDP by 7% to 17%. Similar growth potentials are identified for Alberta and Saskatchewan, where natural infrastructure is viewed as a means to bridge water infrastructure gaps and increase resilience against floods, droughts, and wildfires.

The document highlights the economic value of natural infrastructure in the Canadian Prairies, noting that in 2022, the sector directly employed over 33,000 people and contributed over CAD 4.1 billion to the region's GDP. In Saskatchewan specifically, the sector directly employed over 5,800 people and contributed CAD 640 million to the provincial economy in 2022. The report argues that increased annual investments—such as CAD 10 million or CAD 25 million in Saskatchewan—could significantly boost direct jobs and GDP while addressing water infrastructure gaps and increasing resilience against climate impacts like floods, droughts, and wildfires.

The document highlights the economic contributions of natural infrastructure in Alberta, Saskatchewan, and Manitoba, noting that the sector provides jobs and GDP growth while increasing resilience to climate-related weather extremes. In Alberta specifically, the sector directly employed over 21,000 people and contributed CAD 2.9 billion to the provincial economy in 2022. The report argues that increased annual investments—such as CAD 20 million or CAD 50 million in Alberta—would further drive job creation and GDP while addressing water infrastructure gaps and buffering against floods, droughts, and wildfires.

The report finds that water retention projects in Manitoba's Seine, Rat, and Roseau watersheds provide significant economic returns, with an average benefit-to-cost ratio of 2.45 over 20 years. For livestock-specific operations, this ratio increases to 3.16, delivering benefits such as flood protection, extended grazing, and improved water quality.

The International Institute for Sustainable Development (IISD) issued a statement mourning the death of James "Jim" Carr, who served as an IISD board member and vice-chair from 2000 to 2008. Carr was a Member of Parliament for Winnipeg South Centre and held several Canadian ministerial roles, including Minister of Natural Resources. He was recognized for his advocacy for sustainability, international cooperation, and the IISD’s Experimental Lakes Area, as well as his contributions to the business and arts communities in Manitoba.

The report advocates for the creation of the Seal River Watershed Indigenous Protected Area (IPA) in northern Manitoba, highlighting its role in biodiversity, carbon storage, and the preservation of Indigenous cultures. It asserts that Canada and Manitoba cannot meet conservation targets without Indigenous involvement and recommends that the Manitoba government implement interim protections and a feasibility study for the IPA.

The document details findings from various water retention sites in the Canadian Prairies, highlighting the effectiveness of small dams and ponds in reducing peak flow and phosphorus. It emphasizes the need for better monitoring, the potential for nutrient reduction optimization, and the challenges of producer adoption due to land devaluation perceptions.

The report evaluates 10 water retention projects in Manitoba's Seine Rat Roseau Watershed District, finding that such projects generally provide positive economic returns, particularly for livestock producers. While upfront construction costs are the primary expense, benefits include flood and drought protection, improved water quality, and operational efficiencies. A cost-benefit analysis indicates an average benefit-cost ratio of 3.16 for livestock producers over a 20-year period, though crop-only operations showed lower returns due to high initial costs and fewer on-farm co-benefits.

The Seal River Watershed in northern Manitoba is a 50,000 km2 area that is 99.97% intact and serves as one of Canada's largest free-flowing drainage basins. The report highlights its critical role in biodiversity, storing 1.7 billion tonnes of carbon and supporting species at risk such as polar bears and barren-ground caribou. Economically, the watershed provides at least CAD 214 million in annual ecosystem goods and services (EGS), including ecotourism and caribou harvesting, while the stored carbon is valued at CAD 314.5 billion. The document advocates for the creation of an Indigenous Protected Area (IPA) led by the Sayisi Dene, Northlands Denesuline, Barren Lands First Nation, and O-Pipon-Na-Piwin Cree Nation to prevent threats from mining, hydroelectricity, and road development. It suggests the Manitoba government implement interim protections, establish a feasibility committee, and provide technical support for Indigenous Guardians programs.

The document asserts that Canada's reliance on oil, gas, and coal leaves it vulnerable to global market volatility and geopolitical shocks, despite being a major producer. It argues that renewable energy sources like wind and solar are now more cost-effective than fossil fuels and can provide long-term price stability because they do not require input fuels. The brief highlights Canada's existing hydroelectric capacity as a key asset for balancing variable renewables and suggests that electrifying transport and heating will further reduce exposure to fossil fuel price spikes. It concludes that prioritizing investments in flexible, integrated electricity grids and energy efficiency is essential for achieving a non-emitting electricity grid by 2035 and ensuring affordable energy security.

The document asserts that Canada's reliance on oil, gas, and coal exposes it to global market volatility and geopolitical risks, as evidenced by record-high fuel prices in 2022. It argues that renewable energy sources like wind and solar are now more cost-effective than fossil fuels and provide long-term price stability because they do not require input fuels. The brief highlights Canada's existing hydroelectric capacity and transmission infrastructure as key assets for integrating variable renewables. It recommends accelerating the electrification of transportation and heating, improving interprovincial grid connectivity, and investing in energy storage to achieve a non-emitting electricity grid by 2035.

The 2022 Canadian Prairie Water Retention Monitoring and Modelling Workshop, hosted by the International Institute for Sustainable Development (IISD), convened experts to discuss the optimization of water retention systems. Key outcomes include an agreement on the necessity for more comprehensive monitoring in the Canadian Prairies and the identification of spectral sensors as a tool for advancing monitoring and modelling. The workshop featured nine presentations, including a valuation of ecosystem services in Manitoba's Stephenfield Reservoir and Pelly's Lake, a pilot project for adaptive monitoring on the Winnipeg River using high-frequency sensors, and a demonstration of targeting 'hotspots' for environmental benefits in Manitoba's agricultural regions.

The document outlines a pilot project in the Winnipeg River basin that employs 'adaptive monitoring'—combining high-frequency in situ sensors, satellite telemetry, and AI-driven modelling—to address data gaps in water quality. By deploying sensors at the Pinawa Marina and the Powerview-Pine Falls Drinking Water Treatment Facility, the project aims to provide near real-time data on parameters such as total phosphorus and nitrate nitrogen to inform local decision-making and develop predictive surrogate models.

The executive summary outlines a strategy for Canada to reach carbon neutrality by shifting from fossil fuels to clean electricity. It emphasizes the need for a massive expansion of electricity production capacity, the acceleration of wind and solar deployment, and the implementation of 'electro-federalism'—a coordinated policy approach across all levels of government to manage the transition and ensure equity.

The report analyzes how Canadian provinces are positioned to navigate the net zero transition, focusing on 'demand-creation' sectors. It identifies a performance gap between the four largest provinces—British Columbia, Quebec, Ontario, and Alberta—which are leading in innovation and investment, and smaller provinces that are just beginning to develop these markets. The document provides five strategic recommendations for provincial and federal governments to build investor confidence, connect innovators with buyers, support rural and Indigenous communities, leverage high-potential companies, and increase R&D investment.

The report analyzes how Canadian provinces are positioned to benefit from the global shift toward a net-zero economy, identifying leaders and laggards in the creation of clean-growth enterprises. It highlights that while Ontario, Quebec, British Columbia, and Alberta lead in company creation and investment, other provinces show varying levels of progress. The document outlines ten promising transition markets—including clean electricity, batteries, and hydrogen—and provides five strategic recommendations for provincial and federal governments to enhance competitiveness, attract private investment, and ensure a just transition for vulnerable rural and Indigenous communities.

The report identifies that reaching Canada's 2050 net-zero target requires the electricity share of C&I building heating to rise from less than 15% to at least 75%. It highlights barriers such as cheap natural gas, knowledge gaps in the HVAC workforce, and financing constraints. To address these, the authors propose five catalysts: developing near-term electrification plans, integrating electricity and natural gas regulation, aligning utility planning with net-zero pathways, implementing building performance standards, and leveraging public-private financing to crowd in private investment.