The next edition of the Ottawa Report is scheduled to be sent at the end of July.
Latest News
Carney Shifts Political Landscape
In the month that has passed since the Speech from the Throne, Prime Minister Mark Carney has been moving quickly to capitalize on his honeymoon period, pulling the Liberal Party towards the center-right, passing his signature One Canadian Economy Act, and stepping up repeatedly on the international stage to steer Canada’s economic relationships amid the trade crisis with the United States.
The most dramatic shift in Canadian political dynamics is apparent in the House of Commons. Until last fall, former Prime Minister Justin Trudeau was able to get legislation passed in his minority government through his supply-and-confidence agreement with former NDP leader Jagmeet Singh. The two left-leaning, progressive leaders were in alignment on many new spending initiatives, including dental care, child-care, and the earliest version of Pharmacare. Their working agreement led to the longest-ever minority government in Canadian history, but at the same time left the Conservatives more and more the clearest voice of opposition to that government, as they filibustered repeatedly through fall 2024, preventing Trudeau from moving forward his government’s agenda. The Conservative alternative to the Liberal government was strong enough that it ended up being the most popular party ever not to form a government in Canada’s history.
Fast forward to June 2025, and a very different picture emerges. Conservative Leader Pierre Poilievre’s push to gain working class union votes met significant success in the spring election, leading his party to scoop up a number of formerly NDP seats in British Columbia and Ontario, and leaving the NDP with only seven MPs and no official party status in Parliament. Even more strange for an Official Opposition, instead of filibustering the Liberal government’s agenda, the Conservatives have embraced it.
The One Canadian Economy Act, passed by the House of Commons on June 20 and passed by the Senate on June 26 is a bill that Ecojustice says is a “threat to democracy.” In its speedy passage through the House with limited study, even Liberal MP Nathaniel Erskine-Smith noted “it would all actually make [former Prime Minister Stephen] Harper blush.” There are two main parts to the bill, which were voted on separately: Part 1 removes federal barriers to interprovincial trade and labor mobility. This has very broad support, even winning the vote of the Bloc Quebecois. However, Part 2 enacts the Building Canada Act, which is meant to speed approval for major projects (such as pipelines, major roads projects, energy grids, etc.) that are deemed to be in the national interest. While the Liberals and Conservatives voted in favor of it, a number of Indigenous groups have voiced concern, and the Bloc and NDP voted against. Even one Liberal MP, Erskine-Smith, voted against.
Erskine-Smith’s vocal criticism aside, Liberals have toed the line on the legislation as a necessary response for Canada to meet the moment amid the economic damage inflicted by President Trump’s trade war. Behind closed doors, however, there are more Liberals than just Erskine-Smith who remember that Canadians’ perceptions of Harper’s undermining of environmental protection and lack of consultation with Indigenous peoples underlaid the surge of support that brought them back to power in 2015 after 10 years of the Harper Government. That was the era of many “Idle No More” protests by Indigenous peoples—the renewal of which has been suggested amid moves by Premier Doug Ford in Ontario and Carney’s recent legislation. Given his determination to see this legislation through, Carney was wise to burn political capital while he has it by passing the One Canadian Economy Act before the summer while his popularity is running high.
Budget 2025 Set for Fall
Finance Minister François-Philippe Champagne will present his first (and Prime Minister Mark Carney’s first) budget in fall 2025, a departure from the usual presentation in the spring, but one which opens opportunities for advocacy through the summer. The list of major projects of “national interest” that Carney has requested from the Premiers of the provinces and territories is much anticipated, and will present a risk of friction with provinces, environmentalists, and Indigenous peoples. While no list is public yet, the fall budget is likely to take initial steps to address Carney’s desire to, in his words, “build, baby, build.”
Canada-US Relations Update
Following Canada’s presidency of the G7 Summit in June, Prime Minister Carney and President Trump have set a 30-day deadline for reaching an economic and security deal between Canada and the US. The two leaders held a bilateral meeting at the G7, where they discussed the proposed agreement along with other shared issues, including border security, defense, and critical minerals. They will remain in contact as they work toward finalizing the deal by July for a renewed economic and security agreement. In addition to a Canada-US trade deal, Canada has signed a security and defense partnership with the EU as early as next week, which will allow Canada to participate in loan program for joint defense projects.
Canada and the EU Agree on Unified Approach to Crisis Management
Canada and the EU have announced a renewed partnership focused on strengthened economic and security ties. A unified approach to crisis management has come from this new deal and includes an administrative arrangement between Canada’s Department of Foreign Affairs, Trade and Development and the European External Action Service, which will enhance international cooperation in emergency planning and crisis response. Both sides aim to improve humanitarian crisis response and are exploring a dedicated administrative arrangement to align priorities and coordination. Building on the sale of 22 Canadian-made DHC-515 water bombers to the EU and its Member States, they also plan to explore further opportunities to share technology and expertise in disaster response.
The 2025 G7 Meeting in Alberta
G7 leaders met in Kananaskis, Alberta in June where they discussed the increase of wildfires across forested continents over the past decade and their impact on natural resources, often requiring governments to request assistance from other governments. G7 nations have agreed to increase global cooperation to prevent, fight, and recover from wildfires. To prevent and mitigate wildfires, G7 nations will adopt a whole-of-society approach, implement both mitigation and adaptation actions, and raise awareness about the causes of wildfires and how to prevent them. To strengthen global capacity for wildfire preparedness and response, G7 nations will leverage technology to forecast, identify, and monitor wildfires; collaborate on data collection and information sharing; build shared capacity to mitigate and respond; enhance interoperability; and improve timely access to basic firefighting equipment and capabilities.
To support recovery and build resilience after wildfires, G7 nations have committed to identifying areas for active restoration, rebuilding with wildfire-resilient infrastructure, and encouraging research to better understand local conditions.
Analysis of Canada’s National Adaptation Strategy
The Commissioner for the Environment and Sustainable Development has published its analysis of the Government of Canada’s National Adaptation Strategy. The Commissioner has found that the responsible Government of Canada departments “did not effectively design the National Adaptation Strategy.” Furthermore, the Commissioner noted that “the strategy did not prioritize Canada’s climate change risks.”
Key Facts and Findings
- Since 2015, the Government of Canada has invested over $6.6 billion in climate adaptation-related efforts.
- Environment and Climate Change Canada estimated that for every dollar spent on proactive adaptation measures, between $13 and $15 can be saved in the long term.
- Canada’s greatest climate risks had not been systematically prioritized.
- Two of the three National Adaptation Strategy components had not yet been established and the only component in place, the Government of Canada Adaptation Action Plan, had gaps.
- The framework for measuring, monitoring, and reporting was insufficient. For example, Environment and Climate Change Canada planned to issue only one progress report before 2030.
Municipalities, who tend to be on the front lines of adaption, did not figure much in the report. Of the two components that are said to be missing from the plan, one of them is establishing “Federal, Provincial and Territorial Bilateral Action Plans.”
Parliamentary Business
House of Commons Committees Assemble
With the return of Parliament, several committees important to the work of the CPWA have been struck. CPWA will be keen to connect with MPs with a CPWA member presence in advocacy activities going forward.
Transport, Infrastructure and Communities
Name; Party, Riding and Province
- Peter Schiefke, Chair; Liberal; Vaudreuil, Quebec
- Dan Albas, Vice-Chair; Conservative; Okanagan Lake West—South Kelowna, British Columbia
- Xavier Barsalou-Duval, Vice-Chair; Bloc Quebecois; Pierre-Boucher—Les Patriotes—Verchères, Quebec
- Will Greaves; Liberal; Victoria, British Columbia
- Mike Kelloway, Parliamentary Secretary to the Minister of Transport and Internal Trade; Liberal; Sydney—Glace Bay, Nova Scotia
- Philip Lawrence; Conservative; Northumberland—Clarke, Ontario
- Leslyn Lewis; Conservative; Haldimand—Norfolk, Ontario
- Dan Muys; Conservative; Flamborough—Glanbrook—Brant North, Ontario
- Chi Nguyen; Liberal; Spadina—Harbourfront, Ontario
- Stéphane Lauzon; Liberal; Argenteuil—La Petite-Nation, Quebec
Environment and Sustainable Development
Name; Party; Riding and Province
- Angelo Iacono, Chair; Liberal; Alfred-Pellan, Quebec
- Ellis Ross, Vice-Chair; Conservative; Skeena—Bulkley Valley, British Columbia
- Patrick Bonin, Vice-Chair; Bloc Quebecois; Repentigny, Quebec
- Bruce Fanjoy; Liberal; Carleton, Ontario
- Wade Grant, Parliamentary Secretary to the Minister of Environment and Climate Change; Liberal; Vancouver Quadra, British Columbia
- Branden Leslie; Conservative; Portage—Lisgar, Manitoba
- Shannon Miedema; Liberal; Halifax, Nova Scotia
- Eric St-Pierre; Liberal; Honoré-Mercier, Quebec
- Carol Anstey; Conservative; Long Range Mountains, Newfoundland and Labrador
- David Bexte; Conservative; Bow River, Alberta
Finance
Name; Party; Riding and Province
- Hon. Karina Gould, Chair; Liberal; Burlington, Ontario
- Jasraj Hallan, Vice-Chair; Conservative; Calgary East, Alberta
- Jean-Denis Garon, Vice-Chair; Bloc Quebecois; Mirabel, Quebec
- Sandra Cobena; Conservative; Newmarket—Aurora, Ontario
- Pat Kelly; Conservative; Calgary Crowfoot, Alberta
- Eric Lefebvre; Conservative; Richmond—Arthabaska, Quebec
- Carlos Leitão; Liberal; Marc-Aurèle-Fortin, Quebec
- Kent MacDonald; Liberal; Cardigan, Prince Edward Island
- Jake Sawatzky; Liberal; New Westminster—Burnaby—Maillardville, British Columbia
- Ryan Turnbull, Parliamentary Secretary to the Minister of Finance and National Revenue; Liberal; Whitby, Ontario
Federal Funding Awarded
Canada and Nova Scotia Finalize Agreement to Build More Homes
The Government of Canada and Nova Scotia have finalized a 10-year agreement under the Canada Housing Infrastructure Fund (CHIF). Nova Scotia will receive $170.9 million to invest in infrastructure such as drinking water, wastewater, stormwater, and solid waste systems, all of which are essential to unlocking sustainable, long term housing supply. Nova Scotia will extend the freeze on development charges announced on November 10, 2024, to reduce development charges and ensure that costs are brought down for home builders.
Canada Invests in Transportation Infrastructure in Petawawa
A joint investment of $435,500 from the federal government and municipal governments has allowed for the construction of a 1.4km asphalt multi-use pathway along Laurentian Drive. This project boosts Petawawa’s existing reputation as a bicycle-friendly community and makes active transportation available to individuals using mobility and accessibility devices.
Canada Invests in Flood Mapping and Adaptation
The Government of Canada recently committed $6.8 million to support 20 flood‐mapping and adaptation projects across the country as part of the Flood Hazard Identification and Mapping Program (FHIMP), under the National Adaptation Strategy. Of this, $3.3 million is directed to nine research initiatives, conducted by universities and climate scientists to improve flood modelling, integrate Indigenous knowledge, and refine predictions for diverse flood scenarios. An additional $2.8 million is funding eight regional modelling projects via Natural Resources Canada, plus $750,000 dedicated to three partnerships blending Indigenous Traditional Knowledge with scientific approaches. These investments aim to enhance Canada’s flood resilience by producing high quality, accessible flood maps and tools to support planning, infrastructure development, and emergency response in a changing climate.
Peterborough is also being supported by a $11 million investment from the federal government to conduct a flood reduction project which will include the replacement of storm sewers to help improve water flow and drainage. A 100-year-capacity sewer will replace the existing sewer and will also improve water flow and drainage from the street, significantly reducing the impact of extreme weather events. Every dollar that is invested in adapting and preparing for climate-related disasters can return as much as $13 to $15 in benefits.
Canada Invests in Indigenous-led Solar Initiative
With a joint investment of more than $28.6 million from the federal government, the Government of Yukon, and First Kaska Utilities LP, the Sādę Solar Initiative project will significantly reduce diesel use for power generation in Watson Lake. This project will construct a 2.85MW solar power plant combined with a battery energy storage system that will connect to the existing micro-grid in Watson Lake, which is currently powered by diesel generators. This initiative is also expected to have economic benefits for Laird First Nation, allowing them to generate revenue by selling surplus power to the grid operator while creating jobs and training opportunities.
The Canadian Infrastructure Bank Invests in Critical Minerals Project
The Canadian Infrastructure Bank (CIB) has invested $55 million with Torngat Metals Ltd. to support the next phase of the Strange Lake rare earth minerals project. This loan will help advance early works such as utility connections, rehabilitation of an airstrip, and improvements to existing infrastructure to prepare the site for future development. The CIB acknowledges that critical minerals are the building blocks for Canada’s digital economy and presents an opportunity for Canada’s mining industry in areas such as exploration, extraction, processing, downstream product manufacturing, and recycling.
The Canadian Infrastructure Bank Invests in Industrial Buildings Energy Reduction
The CIB has invested $50 million with Dream Industrial to retrofit 34 industrial warehouses in Alberta, Ontario, and Quebec by making them more energy efficient and resilient. The CIB’s investment will support updates in mid-and large-bay warehouses used for urban logistics, light industrial, and distribution. The project is expected to create 630 jobs and generate 14,500 megawatt-hours of clean electricity from installed solar panels.
Canadian Infrastructure Bank Invests in Wind Projects
The CIB has made its first investment in Nunavut with the territory’s first wind project. Nunavut’s southern most community, Sanikiluaq, will see a replacement of up to 70 percent or up to 600,000 liters per year of its diesel use from the installation of one wind turbine and an energy storage facility that is expected to supply one megawatt of zero-emission sustainable electricity. This wind farm is expected to reduce greenhouse gas emissions by nearly 1,559 tons a year. The CIB has also invested $97 million loan to support a new wind energy project, Wedgeport Wind, located in the Municipal District of Argyle, Nova Scotia. This project will produce 12 Nordex seven-megawatt wind turbines with the capacity to generate up to 84 megawatts of renewable energy and support up to 85 jobs at the peak of construction.
