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In 2026, Canada experienced a rapid escalation in wildfire activity, with over 3 million hectares burned, primarily between late June and July. The report finds that human-induced climate change increased the likelihood of extreme fire weather conditions in the Northwest Territories and Ontario, though the degree of attribution varies by region and metric. The fires caused significant public health issues due to smoke exposure affecting over 120 million people in the U.S. and displaced remote and Indigenous communities. While short-term fire weather was linked to warming, the report found no evidence that long-term 24-month drought conditions were driven by human-induced climate change.

Climate change is making heatwaves in Canada more frequent, intense, and prolonged, with the country warming twice as fast as the global average. These events are linked to increased mortality, severe health risks, and the amplification of wildfires, such as the 2021 British Columbia heat dome. The economic burden is significant, with projected annual costs of $3 billion for health-related deaths and quality of life losses by mid-century, alongside billions in infrastructure damage and productivity losses. Adaptation strategies, including indoor cooling and resilient infrastructure, are recommended to mitigate these risks.

Climate change is making heat waves in Canada hotter, longer, and more frequent, with the country warming twice as fast as the global average. These events are linked to increased mortality, severe health issues, and the intensification of wildfires. Economic burdens include billions in healthcare costs, societal losses from premature deaths, and infrastructure damage. Adaptation strategies such as indoor cooling, green infrastructure, and improved urban design are recommended to mitigate these risks.

The document details how climate change intensifies droughts through higher temperatures and altered precipitation, leading to severe economic losses in agriculture and hydropower, increased wildfire risks, and public health threats in Canada.

Climate change is increasing the risk and severity of droughts globally and across Canada, leading to significant economic losses in agriculture and hydroelectricity, increased wildfire risk, and public health threats. In Canada, the southern Prairies and interior British Columbia are particularly vulnerable, with 2025 seeing 85% of the country abnormally dry. The document advocates for proactive drought response plans, water conservation, and strengthened agricultural resilience to mitigate these impacts.

The document examines the gap between corporate ESG reporting and the reality of Indigenous governance in Canada's energy transition. It finds that while many companies disclose Indigenous relations, they rarely integrate Indigenous rights into formal risk assessments or acknowledge the necessity of free, prior and informed consent (FPIC). Through dialogues with over 50 Indigenous leaders and an analysis of S&P/TSX companies, the study concludes that corporate narratives often prioritize regulatory compliance and symbolic transparency over the recognition of inherent Indigenous jurisdiction.

The document examines the gap between corporate sustainability reporting and the jurisdictional realities of Indigenous Peoples in Canada's energy transition. Through an analysis of S&P/TSX Composite Index companies and dialogues with over 50 Indigenous leaders, it finds that disclosures frequently prioritize narrative-based engagement and regulatory compliance over the recognition of inherent rights and Free, Prior and Informed Consent (FPIC). The study concludes that current voluntary frameworks provide an incomplete picture of project risks and governance, suggesting the need for a reporting standard authored by Indigenous rightsholders to ensure credible climate accountability.

The report quantifies how extreme heat and rainfall accelerate the deterioration of Canadian public infrastructure, increasing annual costs by $15.1B on average between 2025 and 2100 if no adaptation occurs. It compares 'reactive' and 'proactive' adaptation strategies, finding that proactive upgrades—implemented at the earliest feasible intervention—reduce average annual climate-related costs to $6.5B, a 57% reduction compared to the no-adaptation scenario. The analysis highlights that municipalities bear the heaviest financial burden, owning over 73% of the infrastructure value. A separate flood-risk assessment indicates that structural protection measures can significantly reduce future damages, though returns vary by region.

The Healthy Energy Homes Network Directory is a database of resources for Indigenous communities and supporting organizations. It lists Canada-wide initiatives and province- or territory-specific programs focused on affordable housing, energy efficiency retrofits, clean energy transitions, and health-related home improvements such as radon mitigation.

Canada possesses significant reserves of six priority critical minerals—cobalt, copper, graphite, lithium, nickel, and rare earth elements—essential for the global energy transition. However, current investment is insufficient to meet a projected domestic demand of over $16 billion per year by 2040. The report identifies three primary risks deterring investors: financial volatility, environmental liabilities, and risks to Indigenous rights. To address these, the authors recommend that the federal government implement financial risk-sharing agreements (such as contracts for difference and equity investments), scale up capacity-building and capital access for Indigenous communities, and mandate global environmental standards for tailings management. The report warns that attempting to speed up project approvals by cutting environmental or consultation requirements is likely to backfire by increasing local opposition and litigation.

The report argues that while Canada has a competitive advantage due to its clean electricity grids, the mining sector's emissions are rising as mines deepen and ore grades decline. It identifies three primary barriers to decarbonization: a lack of market demand for 'green' minerals, fragmented traceability infrastructure, and technological gaps in open-pit mining. The author proposes a policy toolkit including emission-intensity criteria for funding, support for R&D in emerging technologies like direct lithium extraction, and the maintenance of carbon pricing systems to incentivize the transition.

The report argues that Canada has significant potential to become a leading supplier of critical minerals—specifically cobalt, copper, lithium, nickel, graphite, and rare earth elements—to support the global clean energy transition. However, it identifies a substantial investment gap, estimating that $30 billion in additional capital is needed by 2040 to meet domestic demand, which is projected to reach $16 billion annually. The document highlights three primary risks hindering investment: high price volatility in immature markets, environmental hazards such as tailings dam failures and abandoned mines, and the lack of Free, Prior and Informed Consent (FPIC) from Indigenous communities. To address these, the report recommends that the federal government implement financial risk-sharing mechanisms like contracts for difference and equity investments, while provincial governments should tighten mining regulations to align with international standards and provide loan guarantees and capacity-building resources to Indigenous communities to foster genuine partnerships and self-determination.

The 2024 Independent Assessment finds that Canadian carbon pricing systems are effective, delivering between a third and a half of all projected emissions reductions by 2030. While systems have harmonized in coverage and stringency since 2020, some large-emitter trading systems (LETS) in Alberta, British Columbia, and Saskatchewan are at risk of losing effectiveness due to credit oversupply and adverse policy interactions. The report also notes that while LETS generally mitigate competitiveness risks for large emitters, small and medium-sized enterprises (SMEs) face varied exposure, with some sectors like water and truck transportation showing high vulnerability.

The 2024 independent evaluation finds that Canada's carbon pricing systems are effective, contributing between one-third and one-half of all projected emission reductions from climate policies by 2030. While systems are more harmonized than in 2020, the report warns that the rigor of some industrial exchange systems (SEGE) could erode by 2030 due to an oversupply of credits caused by overlapping policies. Coverage is broad, encompassing 77% of national emissions, though gaps remain in heating oil and agricultural fuels. Competitiveness risks for large emitters are generally mitigated through design features and subsidies, while small-to-medium enterprises (SMEs) face varying pressures, partially offset by new federal revenue recycling mechanisms.

The report finds that continuing current housing development patterns in Canada could lead to hundreds of thousands of new homes being built in high-hazard flood and wildfire zones by 2030. This trajectory could increase annual flood losses by up to $2 billion and wildfire losses by $1.1 billion. The analysis highlights significant gaps in provincial and territorial land use policies, which often delegate risk management to under-resourced municipalities. It also identifies moral hazards in disaster assistance programs and a critical lack of up-to-date hazard mapping and real estate disclosure. The report recommends that governments implement nationally consistent risk standards, reform disaster aid to deter risky development, and mandate hazard disclosure in real estate transactions to ensure housing affordability is not undermined by climate-driven destruction.

The Canadian Climate Institute warns that current land-use policies could lead to over 540,000 new homes being built in flood-risk zones and 220,000 in high-wildfire-risk areas by 2030. This trajectory could increase annual flood damages by up to $2 billion and wildfire damages by $1.1 billion. The report identifies critical gaps in provincial regulations, a lack of up-to-date risk mapping, and 'moral hazard' created by disaster assistance programs that encourage risky construction. It recommends strengthening land-use regulations, integrating risk data into housing and infrastructure funding, and mandating risk disclosure during real estate transactions.

The report explains that while provinces have broad authority over natural resources, the Canadian federal government can regulate oil and gas development through various 'heads of power' in the Constitution. It details the legal doctrines used by courts to resolve jurisdictional overlaps, such as 'double aspect' and 'incidental effects,' and analyzes twelve specific federal powers—including criminal law, fisheries, and interprovincial works—that allow the federal government to influence the oil and gas life cycle from production to closure.

The report presents two case studies—one from Zanzibar and one from Canada—to illustrate the practical application of gender equality and social inclusion (GESI) in nature-based solutions (NbS) for climate adaptation. In Zanzibar, the 'Pamoja Voices' toolkit helped cooperatives identify gender-specific climate risks and restructure governance to include women and youth. In Canada, the Dane Nan Yḗ Dāh network demonstrates an Indigenous-led approach to land and wildlife monitoring that integrates traditional knowledge and intergenerational collaboration. Both cases emphasize the necessity of community-led processes, the use of disaggregated data, and the establishment of trust-based local partnerships to ensure that adaptation benefits are equitably distributed.

The report presents two case studies on integrating gender equality and social inclusion (GESI) into nature-based solutions (NbS) for adaptation. The first case study focuses on the Pamoja Voices toolkit used by cooperatives in Zanzibar to ensure women and youth are included in climate-resilience planning. The second case study examines the Dane Nan Yḗ Dāh Network in Canada, where Kaska Dena Land Guardians combine Traditional Knowledge with Western science for land and wildlife monitoring. Both cases emphasize the necessity of community-led approaches, intergenerational knowledge sharing, and the use of disaggregated data in monitoring, evaluation, and learning (MEL) to avoid maladaptation and ensure equitable benefit sharing.

The document describes Canada's dual-track carbon pricing approach, distinguishing between consumer carbon taxes and industrial systems for large emitters. It details two primary industrial models—emissions-intensity based systems and cap-and-trade systems—and compares their application across different Canadian jurisdictions, highlighting the specific frameworks used in Alberta, Quebec, and the federal backstop system.