Third annual report highlights progress and pitfalls as Canada strives for 2050 net-zero emissions target
TORONTO, Jan. 13, 2026 /CNW/ - As Canada navigates a complex landscape of policy shifts, technological advancements, and evolving consumer priorities, the RBC Climate Action Institute (the 'Institute') today released its third annual report, Climate Action 2026: Retreat, Reset or Renew (the 'Report') that shows despite the impact of changes in the climate policy landscape and the rollback of incentives on business and consumer sentiment-action continues to take place across business, government and the public.
The Report captures the country's climate progress according to our analysis outlined in our methodology, revealing a mix of persistent challenges and encouraging:
- Total national emissions in 2025 are projected to have declined 7% from 2019, but further progress is challenged.
- Several sectors have reduced their emissions intensity, according to our estimates, with reductions in the electricity (-27%), buildings (-19%), and oil and gas (-19%) sectors leading the way1.
- Climate capital flows stand at around $20 billion annually
- Nearly $100 billion worth of incentives for clean-tech and climate programs and initiatives budgeted for deployment between now and 2035
- Climate action is losing momentum but remains elevated to 2019: The Climate Action Barometer, the Institute's flagship index that measures climate action, fell for the first time in six years.
- A quarter of Canadians still care about climate: But cost of living issues, healthcare access and strengthening the economy were the top priorities.
(Refer to the Methodology section of the Report and relevant endnotes for further details.)
The Institute's 2026 'Idea of the Year' focuses on Canada's building sector, where emissions jumped 15% between 1990 and 2023, now making up a bigger share of national emissions than those produced by heavy industry2. It highlights a potential transformative opportunity through the Responsible Buildings Pact (launched in 2024 under the Climate Smart Buildings Alliance). The Responsible Buildings Pact aims to accelerate deployment of low-carbon designs and materials, such as mass timber3 and low-carbon concrete, steel and aluminum within the group., and steel--sectors currently constrained by U.S. tariffs
"Climate action is among the biggest collective needs humanity has faced," says John Stackhouse, Senior Vice-President, Office of the CEO, RBC. " With 25 years until Canada's 2050 net-zero target, we're at a critical moment. This is not just about emissions--it's also about harnessing the technology, funding, innovation, and collective action required to carve out pathways to a low-emissions future."
The Report also features a series of case studies of Canadian companies and communities tackling challenges with innovative solutions in areas including prefabricated buildings, agriculture skills, battery storage, electrical vehicles and certified natural gas.
The Report combines proprietary data on investment trends and tech adoption, feedback from over 2,000 Canadian consumers and 150 business leaders, and a deep dive into federal and provincial policy priorities. It also takes an updated look at Canada's climate capital flows, covering federal and provincial incentives, private investments, and market activity. The full Report is available for download here.
About the Institute: The Institute is a dedicated hub of policy experts in economics, energy, clean tech, agriculture, and materials. Through annual reports, sector analyses, and broad stakeholder engagement, the Institute aims to explore ideas that contribute to conversations regarding Canada's climate progress.
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1 We track climate related funding and expenditures announced in the budgets of the federal government and the four largest provincial governments (British Columbia, Alberta, Ontario and Quebec). This includes announced plans towards climate- and environment-related initiatives focused on decarbonization, innovation, energy efficiency, fuel switching, clean and low-carbon technology manufacturing and deployment, skills, research and planning. It also includes transfer payments, program spending, tax expenditures, and select public financing. Total expenditure amounts are equally spread over timeframe announced in the budgets. For select items, expenditure amounts are distributed over the years as prescribed in the budgets. |
2 Greenhouse gas emissions - Canada.ca |
Caution Regarding Forward-Looking Statements and Important Notice Regarding this Press Release
This press release and the RBC Climate Action Institute 2026 Report referenced herein ("Report") may contain forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Information in this press release and the Report may be based on assumptions, estimates and judgments. All expressions of opinion in the Report reflect the judgment of the contributors as of the date of publication and are subject to change. We do not guarantee the accuracy of the information or expressions of opinion presented in the Report and they should not be regarded as a complete analysis of the subjects discussed. The content of any websites referred to in this press release or the Report, including via website link, and any other websites they refer to are not incorporated by reference in, and do not form part of, this press release or the Report. For additional cautionary statements relating to the information in this press release and Report, refer to the "Caution Regarding Forward-Looking Statements" and "Important Notice Regarding this Report" sections of the Report. Except as required by law, we do not undertake to update any forward-looking statement.
About RBC
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Media Contact:
Sarah Kennedy, Senior Director Corporate Communications, RBC Thought Leadership
[email protected]
SOURCE RBC
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