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The Canadian Climate Institute argues that current federal diagnostic tests for industrial carbon pricing systems primarily measure market liquidity rather than regulatory rigor, leading to 'false positives' where systems appear compliant but fail to provide sufficient investment signals. Based on modeling of 57 scenarios for Alberta's TIER system, the Institute recommends anchoring equivalence to an Effective Marginal Credit Price (EMCP) of $130 per tonne by 2030. It identifies benchmark tightening as the primary driver of rigor, while noting that direct investment tax credits systematically dilute the price signal. The Institute calls for transparent, ongoing performance monitoring and the inclusion of non-negotiable design elements, such as evolving price floors and ceilings, to ensure provincial systems meet national climate goals.

The Canadian Climate Institute argues that current federal benchmark tests for large-emitter trading systems (LETS) create 'false positives' by verifying market liquidity without ensuring the price signals are strong enough to drive decarbonization. Through modelling of 57 scenarios for Alberta's TIER system, the Institute found that 77% of systems passing federal tests failed to meet the $130-per-tonne stringency target. The report recommends anchoring equivalency to the Effective Marginal Credit Price (EMCP) and prioritizing benchmark tightening while limiting dilution mechanisms like direct investment credits.

The report argues that flexible demand—the ability to shift or reduce electricity use during peak periods—can significantly lower system costs and defer expensive infrastructure upgrades in Canada. While some provinces like Ontario, Quebec, and British Columbia are implementing demand-side management (DSM) programs, the report finds that these resources remain under-deployed due to outdated regulatory frameworks, misaligned financial incentives for utilities and consumers, and a tendency for planners to treat DSM as a passive load reduction rather than an active grid resource.

The Canadian government has provided initial two-year funding to create a sustainable investment taxonomy. This framework, developed by an independent Taxonomy Council supported by the Canadian Climate Institute and Tomorrow's Business Path, aims to establish a common language for 'green' and 'transition' investments. The goal is to mobilize private capital for clean growth and decarbonize high-emission sectors. The Council intends to finalize guidelines for three priority sectors by late 2026 and an additional three by autumn 2027, ensuring alignment with international taxonomies and science-based targets.

The author contends that Alberta's TIER carbon market is currently broken, with credit prices hovering below $20 a tonne despite a headline price of $95. To align with the Alberta-Canada Memorandum of Understanding (MOU) goal of a $130 per tonne minimum price by 2030, the document proposes reducing the 48 million surplus credits through a revenue-recycling procurement fund and tightening performance standards to limit the supply of new credits and offsets.

The document analyzes the failure of Alberta's TIER system, where carbon prices remain below $20 per tonne despite a $95 reference price, due to an excess of 48 million credits. It proposes a memorandum of understanding between Canada and Alberta to target a $130 per tonne price by 2030, suggesting the creation of a procurement fund to retire at least 10 million tonnes of excess credits by 2030 and the tightening of performance standards to reduce future credit supply.

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.

The report argues that inadequate housing is a critical determinant of health for Indigenous peoples in Canada, exacerbating respiratory illnesses and mental distress. It introduces the concept of 'Healthy Energy Homes'—dwellings that are energy-efficient, climate-resilient, and supportive of holistic well-being. The authors identify systemic institutional barriers, including fragmented government responsibilities, rigid and insufficient funding models (described as 'firefighting'), and significant capacity gaps within communities. To address these, the report recommends a coordinated 'single-window' government approach, the co-development of policies with Indigenous leaders, long-term investment agreements, and flexible funding models that prioritize holistic outcomes over prescriptive activities. It highlights successful community-led initiatives and international models from Ireland and New Zealand as evidence that integrated housing and health policies can generate significant social and economic returns.

The report advocates for 'Indigenous Healthy Energy Homes'—housing that is energy-efficient, climate-resilient, and supportive of occupant well-being—as a means to improve health outcomes for First Nations, Inuit, and Métis people while contributing to Canada's net-zero goals. It identifies current government solutions as fragmented and disconnected from local realities, often failing to account for long-term health costs and greenhouse gas emissions associated with inadequate housing. The authors call for a shift from one-time project funding to long-term, flexible, and self-determined financial partnerships. Key recommendations include the creation of intergovernmental coordination mechanisms, the co-design of policies with Indigenous leaders, and the implementation of holistic measurement tools to track social, cultural, and environmental impacts of housing projects.

The report argues that inadequate housing for First Nations, Inuit, and Métis people in Canada creates severe health burdens and climate vulnerabilities, which are exacerbated by fragmented government accountability and rigid funding models. It introduces the 'Healthy Energy Homes' concept—housing that is energy efficient, climate resilient, and supports well-being—as a way to achieve co-benefits for public health and Canada's net-zero goals. The authors recommend a shift toward long-term, flexible, and Indigenous-led investment agreements, the creation of interdepartmental coordination mechanisms, and the adoption of outcomes-based procurement to replace current 'firefighter' funding approaches.

The report advocates for 'Healthy Energy Homes'—housing that is energy efficient, climate resilient, and supports inhabitant well-being—as a way to simultaneously improve Indigenous health outcomes and contribute to Canada's net zero goals. It argues that current government approaches are fragmented and siloed, failing to value the long-term health costs and emissions associated with inadequate housing. The authors recommend a shift toward co-developed, long-term, and flexible financial partnerships between governments and Indigenous rights holders to overcome capacity constraints and ensure cultural relevance in housing solutions.

The document examines the role of Internationally Transferred Mitigation Outcomes (ITMOs) as a cost-effective tool for Canada to achieve its Nationally Determined Contributions (NDCs). It highlights that internal decarbonization, particularly in heavy industry, is increasingly expensive, whereas ITMOs allow Canada to account for verified emissions reductions achieved abroad. The author suggests that by integrating ITMOs into its trade and financial strategies, Canada can open new markets for its clean technologies, such as methane reduction and advanced manufacturing. Using Japan's Joint Crediting Mechanism (JCM) as a model, the briefing recommends that Canada establish a national coordination mechanism involving multiple government departments to manage bilateral agreements and mobilize private investment.

The Canadian Climate Institute argues that Canada's upcoming progress report on its 2030 emissions targets will likely show the country is off track. To make the report a useful tool for correction, the Institute recommends including detailed policy implementation updates, rigorous and recent emissions projections based on real policies rather than backcasting, specific details on additional measures to close the emissions gap, and new progress indicators beyond simple emission reductions.

The Canadian Climate Institute argues that Canada is currently off track to meet its 2026 and 2030 emissions targets. To make the upcoming federal progress report useful, the Institute recommends providing detailed policy implementation updates, using rigorous and recent emissions projections based on actual policy rather than backcasting, offering a substantive assessment of additional measures to close the emissions gap, and introducing new progress indicators beyond simple emissions reductions.

The Canadian Climate Institute asserts that the Clean Electricity Regulations (CER) are critical for providing the long-term predictability needed by risk-averse utilities and regulators to invest in clean energy. By setting emission limits for fossil fuel-burning generation that reach zero tonnes per gigawatt hour by 2050, the CER complements industrial carbon pricing and Investment Tax Credits to lower the cost of capital for decarbonization. The author emphasizes that while the CER allows for provincial flexibility and equivalency agreements, a stable federal standard is necessary to prevent provincial rollbacks—such as Saskatchewan's decision to extend coal plant life—from undermining Canada's overall emissions targets.

The Canadian Climate Institute asserts that the Clean Electricity Regulations (CER) provide a critical foundation of certainty for utility providers and regulators, encouraging the massive capital investments required to decarbonize Canada's power grids. The document highlights how the CER complements other policies, such as industrial carbon pricing and investment tax credits, to lower costs for consumers and ensure a competitive advantage for industries seeking clean energy. It emphasizes that while the CER sets national goals—including a target of zero tonnes of emissions per gigawatt-hour by 2050—it maintains flexibility for provinces to implement equivalent solutions and manage their own resource planning.

The Canadian Climate Institute evaluates the federal government's new climate competitiveness strategy, highlighting the strengthening of industrial carbon pricing and methane regulations as promising steps. While the strategy includes investments in the electrical grid and critical minerals, the Institute notes a lack of detail on electric vehicle standards and a significant omission regarding climate adaptation infrastructure.

Expanding Canadian LNG capacity is projected to increase domestic emissions, potentially raising British Columbia's total emissions by nearly 20% by 2035. The impact on global emissions is described as ambiguous, as there are no guarantees that Canadian LNG will displace higher-emission fuels like coal or other LNG sources, especially given the rapid growth of renewables in key markets like China, India, and Japan. The author argues that LNG exports should not be viewed as a substitute for domestic climate policy and recommends stringent methane regulations, transparent industrial carbon pricing, and the avoidance of public subsidies for LNG projects.

The Canadian Climate Institute proposes six key policy improvements to enhance Canada's climate competitiveness: modernizing industrial carbon pricing, expanding clean electricity grids, finalizing methane regulations for the oil and gas sector, maintaining electric vehicle sales requirements, establishing a national climate investment taxonomy, and deploying the National Adaptation Strategy.

The Canadian Climate Institute proposes six policy priorities for Canada's upcoming climate competitiveness strategy: modernizing industrial carbon pricing, expanding clean electricity grids, finalizing methane emission rules for oil and gas, maintaining the electric vehicle mandate, establishing a national climate investment taxonomy, and implementing the National Adaptation Strategy.