The committee studied the 2025-26 supplementary estimates (B) for the Minister of Environment and Climate Change’s portfolio, which includes Environment and Climate Change Canada, the Impact Assessment Agency of Canada and the Canada Water Agency. Appearing were Minister Julie Dabrusin, Deputy Minister Mollie Johnson, Impact Assessment Agency President Terence Hubbard, Assistant Deputy Minister Megan Nichols, Assistant Deputy Minister Alison McDermott and Assistant Deputy Minister Linda Drainville.
Minister Dabrusin stated that the climate competitiveness strategy in budget 2025 provides certainty for businesses to invest and reduce emissions, and that the government is committed to meeting ambitious 2030 targets, though she acknowledged the work is difficult. She declined to say whether she supports a new oil sands pipeline, arguing that provincial and indigenous agreement is needed, and she would not commit to removing the electric vehicle mandate, saying the policy is under review after consultations. She disagreed with former minister Steven Guilbeault’s view that Canada cannot meet its 2030 targets, and she offered to provide studies showing the industrial carbon price does not increase food costs.
Terence Hubbard explained that the Impact Assessment Agency has a well-defined process for fulfilling its legal duty to consult indigenous peoples and commitments under the UN declaration, and that it aims for a two-year service standard for all major project assessments, including consultation obligations. He noted that the agency works nation by nation to develop meaningful consultation approaches, and that the two-year target is a service standard, not a legislative timeline, so deviations may occur in some situations.
Mollie Johnson said the department will table an emissions reduction plan progress report by the end of the year that will show where Canada stands on its 2030 targets, and that the government is working with Alberta to find a pathway on clean electricity regulations. She noted that the impacts of the clean electricity regulations are laid out in the regulatory impact analysis statement, and she could not provide specific emissions numbers for a potential pipeline expansion or for Alberta’s electricity sector without the data at hand. She also stated that the 15% reduction in departmental spending will focus on core mandate activities, with details to come in the main estimates.
Megan Nichols said the chemical management plan, in conjunction with Health Canada, provides a risk management framework for substances like PFAS, and that a new state-of-the-science report will enable a phased approach to addressing forever chemicals. She noted that the electric vehicle mandate is under review to ensure it remains fit for purpose, and that while more EV models are available, they are not yet present in all consumer segments.
Alison McDermott explained that the National Strategy Respecting Environmental Racism and Environmental Justice Act aims to prevent and address environmental racism, and that engagement and studies are under way, with a draft strategy expected by spring or summer. She said the clean electricity regulations are not binding on provinces until 2035, so their current impact is zero, and that it is impossible to know the effect of any changes before an agreement with Alberta is reached. She also stated that the department cannot isolate greenhouse gas reduction impacts of individual measures due to interactive effects, but that collective package estimates will be released in the projections at year-end.
Linda Drainville confirmed that none of the 371 grants and contributions from Environment Canada in 2025 went to Brookfield or its subsidiaries, and that about $40 million was spent on projects abroad last year, with details to be tabled. She said the department would need to follow up on whether funds have been redirected from American universities to Canadian ones.
Procedurally, the committee adopted the supplementary estimates (B) on division.
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