Clean Economy Is Here to Stay, Canada Must Position Itself to Lead: Report

Even in a “noisy” environment of tariffs and other economic chaos, Canada can still seize a “golden opportunity to attract new investments, boost its clean economy, and get things built”—as long as we don’t waste any time getting there, New Economy Canada (NEC) concludes in a new report.

With global energy transition investment at nearly C$3 trillion last year, and rising at a brisk rate of 22% per year over the last four years, “the global marketplace’s fundamental drivers are sending the same clear signal: the clean economy is here to stay, and growth will continue to be in its forecast for the foreseeable future,” writes NEC. The organization describes itself as a non-partisan initiative that brings together more than 60 companies, sector associations, labour, and Indigenous organizations that employ or represent more than 410,000 workers and generate more than $200 billion in annual revenue.

“The pace of adoption continues to vary from country to country, but the opportunities remain significant—including for Canada, which has already made substantial investments in its own transition,” the report adds. The country’s clean energy investments have more than doubled since 2020 and “are already creating benefits for workers, communities, and the country’s economic bottom line.”

But even if fraught international trade and geopolitics seem to dictate caution, the present moment “is also amplifying the global push for clean growth,” with countries “racing to secure energy needs,” NEC says.

“When trade is under threat in this way, clean energy fares much better than other sources, owing to the decentralized and localized nature of renewable energy—which is abundant the world over—and other key technologies,” the report adds, citing a March, 2025 study [pdf] by the Carlyle Group.

The noise and distraction of Donald Trump’s tariff wars might also obscure a whole other reality: Canada’s 10 biggest trading partners apart from the United States are all setting policy preferences for low-carbon products, creating a “new paradigm” in which  only the clean economy can offer real stability and long-term value.”

The report calls on Canada to:

• Read the strong market signals that the clean economy is here to stay;

• Embrace the “big value” in equity partnerships with Indigenous communities;

• Get serious about reducing embedded carbon in building materials like steel and concrete;

• Take advantage of the country’s past investments in the building blocks of a clean economy;

• Position itself as a top destination for investment by setting clear, ambitious clean economy goals, ensuring “policy certainty and durability” for federal and provincial industrial carbon pricing systems, and “simplifying and accelerating” the introduction of various clean energy tax credits at the federal level.

“Through the noise the signals are clear: markets, suppliers, companies continue to advance towards a clean energy economy,” states Privy Council Clerk Michael Sabia, in the closing quote in the report. “By continuing to advance in Canada, we’ll be aligned with the rest of the world. It’s the United States that will be offside. And that’s our opportunity. It’s the moment to cement our competitive advantage, to take the lead.”

Cover photo:  pxfuel