RBC research shows Canada must cut emissions faster to meet climate goals by 2035, not 2030
New research from the RBC Climate Action Institute highlights the importance of decarbonizing Canada’s electricity grids to significantly reduce emissions over the next decade.
The research notes that achieving this would not only cut emissions but also bring economic benefits and bolster energy security.
Despite progress over the past five years driven by policy, capital, and consumer actions, the pace of climate progress is slowing.
As the 10th anniversary of the 2015 Paris Agreement nears, the report stresses the need for new models and paradigms to drive meaningful change.
The findings are detailed in the Institute's annual report, ‘Climate Action 2025: A Year for Rewiring,’ which combines new survey and interview data to assess Canada’s progress.
The report questions whether Canada is on track to meet its climate commitments while identifying promising developments in several sectors.
“2025 is shaping up to be a year of climate uncertainty,” said John Stackhouse, senior vice-president, Office of the CEO at RBC.
He added that political changes and economic challenges are reshaping how businesses and governments approach climate action while presenting opportunities for new strategies.
Key findings from the report:
- Increased climate action: Over the past five years, climate action in Canada has nearly doubled, according to the Institute’s Climate Action Barometer.
- Missed climate targets: Emissions declined by 0.8 percent in 2023, primarily due to progress in the electricity sector. However, current projections indicate Canada will not meet its 2030 Emission Reduction Plan goals until 2035.
- Decline in climate investments: Cleantech investments in heavy industry dropped significantly in 2024. Venture capital financing fell to $158m compared to an average of $650m in the previous two years, reflecting global investment slowdowns and reduced investor confidence in cleantech.
- Alberta leads emissions reductions: Alberta eliminated over six megatonnes of coal-based emissions, helping to reduce national electricity emissions by 12 percent. The province became coal-free six years ahead of schedule.
- Decreasing public concern: Only 14 percent of Canadians ranked climate change among their top three concerns in 2024, a decline from 26 percent in 2019, raising questions about its political prominence.
- Business-led action: More than half of surveyed executives identified government subsidies (55 percent), internal funding (53 percent), and executive buy-in (50 percent) as critical to reducing emissions within their organizations.
The Institute developed the Climate Action Barometer, a tool tracking progress through policy, capital, emissions, technology, and sentiment metrics. The research is based on a survey of 2,000 Canadians and 100 business leaders, offering a comprehensive view of attitudes toward climate action.
The report also includes case studies of companies, such as Canada Nickel and Semex, contributing to emissions reduction through innovative practices.
