The next edition of the Ottawa Report is scheduled to be sent at the end of October.
Latest News
Carney Shores up Key Industries as Parliament Returns
Under Prime Minister Mark Carney, there was no cabinet “retreat” in September before Parliament returned, as would be the usual case. Rebranded as a cabinet “planning forum,” Carney’s government continues its attempts to communicate a team hard at work, despite missing deadlines for tariff agreements with the US over the course of the summer. After the planning forum, Carney reflected on a “new age of economic nationalism and mercantilism” due to the actions of President Trump. With countries having to “buy access” to the US economy through unilateral actions, Carney told Canadians today that what we are experiencing right now is not a transition, but a rupture, in which people will lose jobs. This follows comments earlier in the month from Carney that the next federal budget will be one of both austerity and investment: cuts to the government’s operational budget to make investments for economic growth.
Campaigning this spring on a plan to “unite, secure, protect, and build,” Carney made an announcement of new measures meant to “protect, build, and transform” Canadian strategic industries. While some of the announcements reflected commitments made in the election campaign, they have evolved in some notable ways to continue to meet the moment, with Carney underscoring the need for industry to have more certainty about the “scale of opportunity” to ensure that they can make calculated risks in their investments in Canada. As part of the government’s building of a “new industrial strategy,” this includes:
- Pause and Review Zero-emission Vehicle (ZEV) mandate. Tucked within plans for “liquidity relief” of BDC loans for small and medium-sized enterprises (SMEs) expanding to $5 million and more flexible financing for the Large Enterprise Tariff Loan Facility, the biggest news was yet another roll-back of a signature Trudeau-era policy. Carney committed to waive the 2026 implementation of the ZEV availability mandate on the auto sector, while launching a 60-day review on how to reduce costs going forward.
- Buy Canadian Policy. The policy will move from the “best efforts” committed in the election campaign to a “clear obligation” on the part of the federal government to buy from Canadian suppliers. The government sees this as a policy roadmap that the provinces and municipalities could also follow.
- Financial support. A new $5 billion Strategic Response Fund open to all sectors impacted by tariffs has been announced, building beyond the $2 billion Strategic Response Fund committed in the election campaign for the auto sector.
- SME support. The government will expand support to SMEs to $1 billion over three years through the Regional Tariff Response Initiative, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors, including agricultural and seafood.
- Worker support. The government will introduce a new reskilling package for up to 50,000 workers, make employment insurance more flexible and with extended benefits, and launch a new digital jobs and training platform with private-sector partners to connect Canadians more quickly to careers.
Carney’s backpedalling on the consumer carbon tax and pause of the ZEV mandate has led some of his Liberal caucus to voice concern on environment action. In response to questions on this, Carney highlighted the clean growth investments and maintenance of the industrial carbon tax, though he noted it may need market “enhancement.” It is worth remembering that both of these elements were part of Carney’s Made-in-Canada Industrial Competitiveness Strategy from his campaign platform, which signals where Carney’s team is starting from as the Climate Competitive Strategy takes shape, set to be announced later this fall.
First Major Projects for Review Announced
Following the launch in August of the new Major Projects Office (MPO), in September Prime Minister Carney announced the first five projects to be reviewed. The MPO will work to fast-track nation-building projects by streamlining regulatory assessment and approvals and helping to structure financing, in close partnership with provinces, territories, Indigenous peoples, and private investors. The first projects focus on mining, energy, and terminal capacity. Carney added that several other projects are at an earlier stage, but have great potential, including high-speed rail, port projects, and critical minerals.
Canada Launches Centre for Recovery and Resilience
Emergency Management and Community Resilience Minister the Hon. Eleanor Olszewski and Paul Kovacs, Executive Director for the Institute for Catastrophic Loss Reduction (ICLR), announced the launch of the Canadian Centre for Recovery and Resilience at the Institute for Catastrophic Loss Reduction in Toronto. A partnership between Public Safety Canada and ICLR, the center will provide expert guidance, practical resources, and training to help communities plan for recovery before and after disasters. The center will addresses gaps in recovery expertise by providing communities, especially smaller ones, with practical tools, expert guidance, training, and access to a recovery network. By supporting coordinated, risk-informed planning before and after disasters, the center helps communities rebuild more quickly, reduce future risks, and better adapt to the impacts of climate change.
Canada Launches Build Canada Homes
Prime Minister Carney has launched Build Canada Homes, a new federal agency with a mandate to tackle Canada’s housing crisis by building affordable homes at scale. A core pillar of the initiative is the commitment to sustainability, with an emphasis on factory-built, modular, and mass timber construction that can cut timelines, reduce costs, and lower emissions. Build Canada Homes will leverage public lands, flexible financing, and partnerships with provinces, municipalities, Indigenous communities, and private developers to double housing construction, restore affordability, and reduce homelessness. By prioritizing low-carbon materials, efficient design, and Canadian-made resources, the agency aims to catalyze a modern, sustainable housing industry while creating high-paying jobs across the supply chain. With an initial capitalization of $13 billion, immediate investments in supportive and transitional housing, and projects on federal land in cities like Ottawa, Toronto, Winnipeg, and Edmonton, Build Canada Homes is designed to scale quickly and deliver lasting solutions for Canadians.
Canada and Mexico Focused on Climate and Conservation
Prime Minister Carney and Mexican President Claudia Sheinbaum launched a new Comprehensive Strategic Partnership to strengthen North America’s competitiveness. A central focus is reinforcing climate and conservation cooperation to protect wildlife and freshwater systems, alongside deeper collaboration on infrastructure, trade, and security. Together, Canada and Mexico aim to build sustainable growth, secure supply chains, and a more resilient region.
Government of Canada and Nova Scotia Partner to Support Offshore Wind Project
Canada and Nova Scotia are moving forward on the country’s first offshore wind project, marking a major step in unlocking renewable energy potential and strengthening energy security. Federal Minister Sean Fraser and Nova Scotia Minister Trevor Boudreau announced that both governments have provided Strategic Direction to the Canada–Nova Scotia Offshore Energy Regulator, which will launch a prequalification process, call for information, and future call for bids for designated wind energy areas. This work, supported by the new Major Projects Office, will attract investment, ensure environmental sustainability, and accelerate development of Atlantic Canada’s world-class wind resources. The initiative positions Canada as a global leader in offshore wind while delivering clean energy, boosting economic prosperity, and supporting regional interconnections.
Canada Launches CUSMA Consultation
Canada is seeking public feedback on industry priorities ahead of the planned renegotiation of the Canada-United States-Mexico Agreement (CUSMA) trade deal. Canada launched their consultation just days after the United States launched its public consultation ahead of the review. Led by the minister responsible for Canada-US Trade, Intergovernmental Affairs and One Canadian Economy, Dominic LeBlanc, the consultations aim to gather feedback from Canadians to help shape Canada’s position ahead of the first joint review of the agreement. Minister LeBlanc noted that Canada is looking for “very specific suggestions” from Canadian industry and Canadian workers on what might advance at the review table with the United States. Submissions are open until November 3, 2025.
Parliamentary Business
Budget Day: November 4, 2025
Despite assurances from Prime Minister Carney and his cabinet from June to September that the budget would be presented in October, Finance Minister François-Philippe Champagne has announced that the budget, the first fiscal update of 2025 due to the spring election, will be tabled on November 4. While Carney has been pushing a cost-cutting agenda, he also warned that this budget will have a higher deficit than last year, given the challenge of the US trade disruption. Champagne has added that the upcoming fall budget will shift federal spending from operations to capital investments, which he argues will drive growth and help reduce the deficit over time. He pledged a declining deficit-to-GDP ratio and a balanced operating budget within three years, despite concerns from the parliamentary budget officer about fiscal discipline. Champagne framed the budget as a “generational” investment, citing commitments to NATO, infrastructure, and housing, and defended the delay to November as necessary to reflect global developments.
Infrastructure Spending Projected to Increase
A recent Parliamentary Budget Office (PBO) report projects that the Government of Canada will spend $159 billion on infrastructure from 2025–26 to 2029–30. Broadly, infrastructure refers to physical assets, such as buildings, roads, railways and ports, that enable governments, communities, and businesses to deliver and access services. This projection is based on information from federal departments and past spending trends. While federal reporting on individual infrastructure projects has improved, there is still no timely, consolidated account of overall infrastructure spending.
Federal Funding Awarded
Niagara Receives Funding for Clean Transportation
Niagara Transit is receiving over $128 million from the federal, provincial, and regional governments to modernize its fleet and improve services. The investment will fund eight projects, including the purchase of 124 new diesel buses with updated technology, replacement of 30 specialized buses, refurbishment of three conventional buses, and the addition of two specialized vehicles. It will also support the development of a long-term growth plan, ensuring safer, more reliable, and more convenient transit for Niagara commuters.
Federal Government Invests in Rural Transit Projects Across British Columbia
The federal government is investing $350,000 to support transit planning in seven rural and Indigenous communities across British Columbia. Funding will be used for transit assessments, feasibility studies, and community engagement to identify local transportation needs, gaps, and solutions. Projects include a transit assessment in the Fraser Valley, a transportation study in Comox Valley, and additional studies in Dawson Creek, Fort St. James, Telkwa, Seabird Island Indian Band, and Skowkale First Nation. This investment aims to improve transit planning and support future transportation options in rural and First Nation communities.
Canada Invests in Zero-Emission Transit for Moose Jaw
The federal government, the City of Moose Jaw, and the Canadian Urban Transit Research and Innovation Consortium are investing $152,180 to develop a zero-emission transit strategy for Moose Jaw. The plan will assess economic, technological, and environmental factors, identify barriers, and guide the city’s transition to an electrified fleet.
Canada Invests in Recovery Infrastructure
The Government of Canada, along with the Province of Newfoundland and Labrador and the Town of Harbour Grace, is investing over $4.4 million through the Canada Housing Infrastructure Fund to upgrade local water, wastewater, and stormwater systems. The project will connect 29 homes from private wells and septic systems to municipal services, supporting safer, more reliable infrastructure. This investment is part of a broader federal-provincial effort to expand housing capacity, make homes more affordable, and create opportunities in the skilled trades.
Canada Invests to Advance Sustainable Affordable Housing Across Canada
Canada is investing $85.5 million through the Green Municipal Fund’s Sustainable Affordable Housing stream to support affordable, energy-efficient, and climate-resilient housing. The funding includes $67.9 million for 21 capital and pilot projects and $17.6 million for planning and feasibility studies, helping communities of all sizes scale innovative housing solutions. Projects like the deep retrofit of 59 townhouse units at the Sundance Housing Co-operative in Edmonton demonstrate how energy use can be cut dramatically while keeping housing affordable and residents in place. This investment reflects Canada’s commitment to reducing emissions from buildings and advancing climate-friendly, affordable housing.
Canada Invests in a New Wastewater Treatment Facility for Prince Rupert
Prince Rupert is receiving over $5.4 million in joint federal, provincial, and municipal funding to build a new wastewater treatment facility in the Moresby Avenue area. The project includes upgrades to lift stations, piping, and controls, along with two treatment trains using engineered wetlands and modern technology to meet regulatory standards. This investment will improve sewage treatment, protect local waterways, enhance quality of life, and support the community’s future growth.
Canada Invests to Support Indigenous-Owned Wind Power
The federal government is investing $13.5 million in new funding, bringing total federal support to $16.5 million, for the Kluane N’tsi Wind Energy Project in Yukon. This community-owned, 900-kW wind turbine, paired with battery storage, has been integrated into the local diesel grid, allowing generators to be shut off when wind power is available. The project will cut diesel use by over 300,000 litres annually, reducing emissions by about 50 percent, and marks Canada’s first grid-scale wind project enabling “diesel-off” conditions. Led by the Kluane N’tsi Nation, it sets a national precedent for Indigenous-led clean energy, strengthening energy security and lowering costs in the North.
Alberta Communities Receive Support to Enhance Infrastructure
Five Alberta communities will benefit from over $1.3 million in federal funding to enhance natural infrastructure. In Edmonton, the Edmonton Valley Zoo will restore native grasses, plant boreal shrubs and trees, and revitalize one of the city’s first green roofs. Calgary will transform 2.1 acres of parkland into an urban forest with improved stormwater management. Projects in Grande Prairie, Nanton, and Brooks will create natural community gathering spaces featuring play areas, walkways, seating, insect gardens, and sustainable irrigation and drainage systems.
