Clean Energy Canada | Budget 2025 has the right signals on the importance of the clean economy but fails to connect its benefits to everyday Canadians
November 4, 2025

OTTAWA — Rachel Doran, executive director of Clean Energy Canada, made the following statement in response to the federal government’s Budget 2025.

“Today’s much-anticipated budget was billed as setting a clear, consequential direction for Canada. But while Budget 2025 has some important signals, there is still work to be done to ensure Canada will reap the broader economic benefits of the energy transition and that Canadians will stand to benefit.

“In what was billed as a competitiveness budget, it is clear that the government recognizes the importance of low-carbon industries and the clean economy to drive Canada’s economic future and ensure continued access to international markets. At a high level, the climate competitiveness strategy rightly focuses on offering regulatory certainty, crowding in private capital, and incentivizing clean technologies, alongside a key promise to develop new metrics to track success.

“To that end, it’s helpful to have regulatory certainty around important policies that are driving down emissions while equipping Canada and Canadian industries for the future, like the commitment to not only keep but strengthen industrial carbon pricing alongside plans to maintain the Clean Electricity Regulations with the possibility of negotiated agreements with provinces. The budget also maintains and expands effective supports for the clean economy, like the existing clean technology investment and manufacturing tax credits, while confirming plans to finalize the new Clean Electricity tax credit.

“A big focus on critical minerals is one particularly exciting part of this budget, with the Critical Minerals Sovereign Fund helping to derisk investments and ensure supply is available for strategic industries. Critical minerals are the lifeblood of clean technologies and of realizing stronger energy security for Canada, not only through the adoption of those technologies but also by giving Canada leverage with its international trade partners.

“However, absent today is a focus on the benefits for individual Canadians and households in the energy transition. The ending of the Greener Homes Grant and Loan, combined with uncertainty around the EV Availability Standard and no recapitalization of the federal EV rebate program, will make life less affordable for many Canadians whose monthly energy bills remain tethered to fossil fuel prices set outside of Canada. Without these programs, it is critical for the sake of consumer affordability that Canada improves market conditions through competition, namely by keeping in place an effective EV Availability Standard, lowering the tariff on Chinese EVs, and easing the way for more European EVs.

“Also missing are concrete nationbuilding efforts to build out the clean electricity supply needed to meet the demands of the future. While tax credit finalization is important in what has been called the “Age of Electricity,” a more ambitious focus on clean electricity projects, including renewables, transmission, and energy efficiency needs to be at the centre of Canada’s industrial strategy. Similarly, any new conditions introduced to the Clean Electricity and Clean Technology investment tax credits must help accelerate the build-out of our electricity system, not hinder it.

“Much remains to be seen in the details. There will still be work to ensure changes to industrial pricing are strengthened, that agreements with provinces on clean electricity are robust, that the EV Availability Standard is maintained at a consumer-benefiting level, and that the new framework proposed to regulate oil and gas emissions will be effective. 

“Major new investments in infrastructure, housing, and defence offer a real opportunity to create the markets and expectations for clean industrial products and processes in Canada, but work remains around implementation to turn this possibility into a reality. While there is mention of lowering emissions by 20% in construction, it’s disheartening to see a lack of clarity and specificity, especially given that effective policies like Buy Clean could be leveraged to achieve this goal and provide a clear market signal to Canadian producers. New investments in training and reskilling should also aim to set Canadian workers up with job security for the long term by focusing on the industries and skill sets of the future.

“So, is Budget 2025 a shift in the right direction? Or as Prime Minister Mark Carney put it today, does it help Canada take control of its future? To a degree, but there are important missing pieces. 

“Thankfully, it is not the only critical decision point before this government, and we look forward to more announcements for projects of national significance, a hopefully productive update to the EV Availability Standard, and a meeting of provincial ministers later this month to discuss overcoming internal barriers in the way of realizing a more united Canadian economy. 

“When the prime minister talks about Canada writing its own future, we should ensure such a future includes an economy that both meets this moment and tangibly benefits the everyday Canadians who not only work but live in that economy.”