Emphasis on LNG in new “climate competitiveness strategy” is a troubling contradiction

OTTAWA | TRADITIONAL, UNCEDED TERRITORY OF THE ALGONQUIN ANISHINAABEG PEOPLE — The “climate competitiveness strategy” introduced today with Canada’s 2025 federal budget gets some things right, but Canada won’t meet its climate goals — or build long-term economic resilience — by doubling down on fossil fuels, according to the David Suzuki Foundation. New subsidies announced for LNG expansion and continued hand-outs to oil and gas are a troubling step backwards, after Canada committed to ending fossil fuel subsidies in 2024.

The Foundation is also concerned that legislative changes announced with the budgets will weaken environmental protections and undermine anti-greenwashing rules. Furthermore, significant federal budget envelopes for nature and chemicals management will run out of money in 2026. Today’s budget did not commit to renewing funding for these important mandates. The Foundation is also concerned that cuts to departmental budgets could undermine Canada’s capacity to address environmental threats.

On the need for environmental investments, Pierre Iachetti, executive director of the David Suzuki Foundation, said: 

“Prime Minister Mark Carney knows the risks of deprioritizing investments in planetary health for ostensible short-term economic gain. We can’t ‘build Canada strong’ without protecting the environment. New funding for housing and local infrastructure announced in Budget 2025 presents a generational opportunity to improve climate resilience — if done well. But Budget 2025 comes up short on dedicated investments in nature protection and restoration, building an east-west electricity grid with renewables and pollution prevention measures — a missed opportunity in a budget billed as an ‘investment budget.’ Protecting the environment is an investment in a secure, healthy future.”

On the climate competitiveness strategy announced with the budget, Sabaa Khan DSF climate director said: 

“While the climate competitiveness strategy outlines some important measures to reduce emissions — such as strengthening methane regulations, a commitment to address shortcomings with industrial carbon pricing and sustainable investment guidelines — the strategy misses the plot. Canada can’t build a resilient and competitive economy by doubling down on fossil fuels. Investments that lock us into fossil fuel dependence, such as liquefied natural gas and carbon capture, utilization and storage, and backing away from measures to cut overall emissions from oil and gas, will only deepen the costs for future generations. True generational prosperity demands investments in bold climate action and preparing communities and workers for the worsening impacts of climate change fuelled by oil and gas extraction, which already cost us billions every year.”

On federal funding for nature that will run out next year, Erin Roger, David Suzuki Foundation nature director, said:  

“This budget doesn’t come close to addressing the systemic underinvestment in nature protection. Current funding for nature programs will soon run out, and no new funding has been committed to. Canada made global and domestic nature promises: protecting 30 per cent of land and water and restoring 30 per cent of degraded ecosystems by 2030, halting species extinction and reducing pollution from all sources. Budget 2025 leaves nature commitments in limbo — especially on the heels of Prime Minister Carney’s resource-heavy national interest projects. Nature is inseparable from us and our future; current and future budgets must reflect that.”

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The David Suzuki Foundation is a member of the Green Budget Coalition. We jointly released recommendations for Budget 2025, available here.

For more information or interviews, please contact: 

Brandon Wei, bwei@davidsuzuki.org, 604-732-4228 x333

Stefanie Carmichael, scarmichael@davidsuzuki.org, 416-348-9885 x 1583

Budget highlights:

The David Suzuki Foundation welcomes the following proposals in Budget 2025:

  • Commitment to strengthen Canada’s industrial carbon pricing system, an important policy for cutting emissions.
  • Commitment to implement the clean electricity regulations, with indications of support for building clean power grids for a sustainable future. Additional investments will be needed.
  • Following through with implementing the strengthened methane regulations. Methane is a potent greenhouse gas that, when released in the atmosphere, can worsen asthma, harm lung function and cause premature deaths.
  • Develop sustainable investment guidelines (or taxonomy) that will support climate and nature goals.
  • $40 million over two years for a Youth Climate Corps.

The David Suzuki Foundation is concerned about the following proposals in Budget 2025:

  • Abandoning the oil and gas emissions cap regulation as industry’s emissions continue to grow, while ignoring Canada’s legal commitment to the 2030 and 2035 emissions targets.
  • Contemplates liquefied natural gas expansion, and introduces a new fossil fuel subsidy, which will contribute significantly to climate change and boomerang back on our country in the form of wildfires, smoke and other weather-related extremes.
  • No reinvestment in nature programs or Canada’s Chemicals Management Program when existing funding is about to run out.
  • Boosting resource extraction with identified environmental impact concerns.
  • Proposed legislative rollbacks that would weaken environmental standards for:
    • pesticides,
    • anti-greenwashing requirements under the Competition Act,
    • oversight of provincial implementation of federal standards under the Canadian Environmental Protection Act.