The committee has heard a consistent message that Canada’s industrial carbon pricing system, while widely regarded as the country’s most important climate policy tool, is underperforming due to weak effective prices, an oversupply of credits, and fragmentation across provincial regimes. Witnesses from the Canadian Climate Institute, the Pembina Institute, Clean Prosperity, and the International Institute for Sustainable Development all argued that the system drives innovation and emissions reductions when properly designed, but that recent changes—particularly the Alberta MOU and regulatory shifts—have diluted its impact. In contrast, industry representatives from the Cement Association of Canada, Fertilizer Canada, and the Oil and Gas Corporation of Newfoundland and Labrador warned that the system undermines competitiveness against jurisdictions like the United States that lack comparable carbon pricing, and called for harmonization, competitiveness reviews, and relief for emissions-intensive, trade-exposed sectors. A minority of witnesses, including the Canadian Taxpayers Federation and the Macdonald-Laurier Institute, argued for eliminating or significantly weakening the system altogether, with one witness stating they do not believe climate change is human-caused.

On the broader climate policy landscape, the committee heard from two former members of the Net-Zero Advisory Body who resigned, testifying that the government has abandoned key policies—including the consumer carbon price, the oil and gas emissions cap, and clean electricity regulations—without seeking expert advice, and that Canada is not on pace to meet its 2030 or 2035 targets. They described the advisory process as performative and warned that the Canada-Alberta MOU is incompatible with net-zero by 2050. Officials from Environment and Climate Change Canada, appearing on main estimates, defended the government’s trajectory, noting progress in methane regulations and the national electricity strategy, while acknowledging that comprehensive modelling of recent policy decisions is still underway. The committee also studied the government’s automotive strategy, where officials explained the repeal of the electric vehicle availability standard in favour of a technology-neutral greenhouse gas standard, projecting approximately 75% electric vehicle sales by 2035.

On nature protection, the committee heard from the Secretary of State for Nature that the “A Force of Nature” strategy is a $3.8-billion plan to meet the 30% by 2030 target through collaboration, not expropriation, and that the nature accountability act will not be revived. Parks Canada officials reported welcoming 26 million visitors in 2025 but noted a $75-million budget cut and a known annual deficit for asset repair, with no new capital funding from the nature strategy. The committee also examined flood and drought forecasting through Bill C-241, where officials supported a government amendment broadening the strategy’s language to avoid duplicating provincial strengths, while Conservative members argued the amendment removed any obligation on the minister to act. Witnesses on plastic pollution were divided: scientists and environmental groups testified that bans on single-use items have been effective and should be expanded, while industry representatives argued the federal government has used the wrong legal framework and called for a recycled content mandate and a national circular plastics strategy.

The Commissioner of the Environment and Sustainable Development’s spring 2026 reports revealed that federal flood hazard mapping has been slow, with many maps incomplete and not prioritizing high-risk areas, and that the Treasury Board Secretariat failed to publicly report on climate resilience for eight years. Officials from Natural Resources Canada defended the mapping program, stating they are on track to exceed their target of 1,000 maps by 2028. On avian influenza, the Commissioner found that while the Canadian Food Inspection Agency successfully eliminated the virus from sampled premises, documentation was weak, and the Public Health Agency of Canada purchased an oversupply of human vaccines, with over 95% expiring unused. Officials acknowledged the wastage but said it was comparable to other countries and that a new decision-making framework is being developed.