FINA meeting 33 · 2026-04-16 — Committee Evidence — LegisWatch

Summary

The House of Commons Finance Committee met on April 16, 2026, to study domestic investment conditions, hearing from Michel Leduc, Senior Managing Director and Chief Public Affairs Officer of the Canada Pension Plan Investment Board (CPPIB).

Michel Leduc explained that CPPIB's sole mandate is to maximize returns for CPP contributors and beneficiaries, not to serve as a sovereign wealth fund or development bank. He stressed that diversification outside Canada is essential because non-investment factors affecting the CPP—such as demographics and the economy—are entirely Canadian, creating concentration risk if all assets were domestic. He noted that CPPIB already has $117 billion invested in Canada, making it one of the country's largest investors, and that global investment income is recycled back into the Canadian economy through pension payouts. He recommended that governments make more large-scale, bankable projects available—such as airports—and improve regulatory predictability, permitting efficiency, and the credibility of approval processes to attract capital. He disagreed with calls for forced domestic investment, arguing that would undermine CPPIB's independence and access to global markets. He also stated that climate change is a major long-term risk and that CPPIB supports global standards for climate disclosures and taxonomies to improve transparency, while noting that divestment from high-emitting sectors would hinder the transition to a low-carbon economy.

A Conservative motion was moved recommending that the government suspend all federal taxes on gasoline and diesel, including the excise tax and GST, for the remainder of 2026, and eliminate the clean fuel standard charge and industrial carbon pricing as they apply to fuel costs. The committee agreed to proceed with the motion.

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Witnesses · 1

Michel Leduc

Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board

Opening remarks

Thank you very much. Thank you for inviting me to testify today on behalf of CPP Investments. Policy-makers are understandably focused on how pension funds can support prosperity at home. The job Parliament and the provinces gave us to help secure the retirement income of the Canada pension plan's contributors and beneficiaries defines our role in this discussion. While Canada is a core market for CPPIB, it represents about 3% of global investable markets. Still, the size of our Canadian holdings is many times that share. It's relevant to note how CPPIB was born out of a crisis. In 1995, the chief actuary of Canada reported that the CPP was no longer financially sustainable. Canada was an aging society with longer lifespans and fewer children. Combined with weak investment returns, the fund would be depleted within two decades. Federal and provincial governments acted decisively. They established the CPPIB to deliver the highest possible rate of return without taking excessive risk. In doing so, we must also consider the factors affecting the funding of the CPP. Today, the CPP is sustainable for at least the next 75 years. The CPPIB is one of the world's best performing…

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Finance

Summary

Witnesses · 1

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