Policies in place could deliver nearly 200 Mt of CO2e reductions compared to 2005 levels—but only if capital and action follow suit^{Endnote 1}. An additional 100 Mt CO2e cuts could be achieved through announced measures, putting Canada on track towards its 440 Mt target, but by 2035—five years later than planned^{Endnote 2}.

Governments have earmarked $109 billion in funding over the next decade^{Endnote 3}. Its impact will largely depend on the corporate uptake of investment tax credits and other direct subsidies. However, setbacks have emerged as Alberta’s shifting attitude towards renewables led to the cancellation of 7 gigawatt of renewable capacity this year^{Endnote 4}. Progress with large-scale carbon capture projects, has been stagnant with only 1 megatonne of annual sequestration capacity for nearly a decade^{Endnote 5}.

Nearly 6 out of 10 the biggest publicly-listed firms have emissions targets^{Endnote 6}. A third of Canadian businesses have created new executive level roles for climate change^{Endnote 7}. However, access to capital, technology and regulatory uncertainties are among top challenges businesses face in executing their decarbonization strategy^{Endnote 8}.

Nearly 350 climate-related emerging technology projects are underway in Canada^{Endnote 9}. Many are near demonstration stage, a critical step before achieving full operational capacity. Projects focused on small modular reactors (SMRs) in Ontario, methane capture projects in B.C, and alternative fuel projects in heavy industries in Quebec and the Atlantic, highlight the scale of innovation across the country.