The next edition of the Ottawa Report is scheduled to be sent at the end of February.
Latest News
The Resignation of Justin Trudeau
Not all January 6ths are created equal.
Washington, DC’s 2020 edition disrupted some people’s confidence in US democracy. Ottawa’s 2025 version was anti-climactic, with the subdued culmination of Prime Minister Justin Trudeau’s defiant yet inescapable journey toward resignation and Parliament’s path to prorogation.
At a time when President Trump threatens to impose tariffs and other punitive measures, Canada needs a stable government to shape the first hundred days of a Trump administration. Instead, the Trump administration will be dealing with a lame duck government for its first 100 days—or longer, depending on the timing of our federal election.
There is nevertheless opportunity to be found amid the chaos. Candidates for the leadership of the Liberal Party of Canada between now and the March 9 leadership election date and potential March 24 resumption of Parliament will have a chance to demonstrate how they are suited to manage risks emerging from south of the border.
And for those advocating to Government, the strain in having to manage two Government transitions—one in March 2025 and the other after a likely spring election—also represents an opportunity to broaden the focus of relationship-building and policy advocacy beyond the current government.
Practically speaking, the prorogation of Parliament has significant implications. All legislative and committee work ends. The House Public Accounts Committee meeting that the Opposition Conservatives had planned in early January to call for non-confidence in the government could no longer occur. It also means the end of all legislation that is still pending, including the Fall Economic Statement.
However, prorogation does not affect the work of the Executive Branch of Canada’s government. While candidates for leadership of the Liberal Party are asked to resign from cabinet, the work of cabinet committees, especially the Treasury Board Committee, continues, paving the way to keep key procurements, crown corporation corporate plans, and other initiatives on track.
Top of mind for Canadians will be the impact of this resignation on Canada’s response to the Trump administration, including a possible trade war. Trudeau attempted to give reassuring comments about the continued work of government during prorogation. And indeed, it is possible for government to put in place countervailing tariffs without Parliament sitting. Should any new spending to support Canadians and Canadian businesses from potential negative impacts from US tariffs be required during the election period, it would be accomplished through special warrants from the Governor General.
The Liberal Party is now having what Prime Minister Trudeau calls a “robust, nation-wide competitive process” to select a new leader, but will have to work to break through the media landscape. Former Bank of Canada Governor Mark Carney, former Deputy Prime Minister and Minister of Finance the Hon. Chrystia Freeland, and Leader of the Government in the House of Commons, the Hon. Karina Gould, have positioned themselves as front runners in the leadership race, with Carney landing the greatest number of endorsements from current cabinet ministers.
After the leadership race, the new leader will decide the timing of the election, particularly if they seek to have a longer election period to give Canadians more time to get to know them. Canadian federal elections can last from 37 days to 51 days.
In any event, a new Prime Minister—whether the new Liberal leader or Conservative leader Pierre Poilievre—will welcome the G7 in Alberta in June this year.
Government of Canada Modernizes Disaster Recovery Funding Program
A modernized disaster finance assistance arrangement program is anticipated to go into effect on April 1, 2025, and will ensure that all levels of government are able to deliver efficient services in the aftermath of a disaster. These measures include increased investments in strategic disaster mitigation, rebuilding to minimize disaster impacts on communities and the risk of future disasters, incentives for risk reduction, pre-disaster planning, improved hazard awareness, and expanded support for people hardest hit by disasters.
Federal Reports
2024 Report on Federal Climate-Related Risk Management
Finance Canada has released their inaugural report on Federal Climate Related Risk Management plans that outlines Canadas actions to manage financial risks while continuing delivering investments toward achieving a net-zero economy. Highlights from the report include:
- Climate change presents risks and opportunities to the operations of the Government of Canada. The federal public administration faces a wide range of climate-related financial risks, from the physical effects of climate change impacting federal infrastructure, to risks and opportunities driven by the transition to a net-zero emissions economy. The Greening Government Strategy is the main strategy for managing these risks and opportunities in federal operations.
- Surveyed federal organizations frequently reported that climate-related financial risks may have consequences for their federal assets, programs and services, and public servants. Climate change can affect the financial health of federal organizations primarily through impacts to financial and non-financial assets (e.g., climate change can impact federal buildings, the management of pension plans); impacts to program and services (e.g., climate change can impact the way programs and services are delivered); and impacts to federal public servants (e.g., climate change can impact the health and safety of employees).
- Individual federal organizations are working to address climate-related risks through prudent risk management practices. Building on decades of integrated risk management practices, federal organizations are identifying, assessing, and integrating climate-related risk information into ongoing business planning and decision-making, as well as taking action to treat or reduce risks. Examples are wide ranging and include using climate-risk and vulnerability assessments to identify risks to federal coastal and inland infrastructure (e.g., harbours, laboratories, bridges); taking steps to ensure the durability of these assets against weather-related events such as wind, ice and rain; protecting Canadians and Canadian livestock from infectious diseases and zoonotic (animal-to-human) diseases that are climate change-driven; and integrating climate change information into regular emergency management planning (including site-specific business continuity plans).
Federal Funding Awarded
Canada Invests in Housing, Destinations, and Jobs on Toronto’s Waterfront
In partnership with the Government of Canada and the City of Toronto, Ontario announced a $975 million investment in Toronto’s waterfront to create 14,000 new homes and develop infrastructure for future waterfront destinations. This investment is expected to create 100,000 skilled trade jobs on Toronto’s waterfront and add $13.2 billion to the economy. Each level of government is contributing $325 million for this trilateral deal.
Federal Government Invests in Flood Protection in Tahsis
Housing, Infrastructure and Communities Canada announced a combined investment of $2.8 million from federal, provincial, and local governments to create flood walls to safeguard the village from extreme weather events. Protection measures include drainage improvements, such as catch basins, leaders, and flap gates along the roads. This investment will help protect public and private infrastructure that is currently at risk of flooding damage in the village of Tahsis, British Columbia.
Transit Funding for Municipalities through the Canada Public Transit Fund
The federal government is investing in several municipal transit systems through the Canada Public Transit Fund. These funding commitments will take place over 10 years from 2026 to 2036 and will help increase housing supply and affordability by fostering transit-oriented communities. These investments also help to reduce greenhouse gas emissions and mitigate the impacts of climate change. Vancouver will receive $663 million in transit funding to improve Metro Vancouver’s public transit infrastructure. Ottawa’s transit system, OC Transpo, will receive $180 million; Mississauga’s MiWay system will receive $112 million of funding. Burlington will receive $14 million and Milton will receive $7.2 million of investment for their local transit systems.
Canada Invests in Climate Change Adaptation Across Canada
The government of Canada is working to address the increasingly severe impacts of climate change, such as floods, wildfires, and rising sea levels impacting public safety in Canadian communities. Natural Resources Canada has announced $4.1 million in funding based on Ontario’s Great Lakes, $8.8 million for nine projects in Atlantic Canada, and $4.5 million for nine projects in southern Ontario. These projects are funded under the Climate Change Adaption Program and aim to enhance knowledge and skills among professionals to adapt to climate change.