Statement by Tim Gray, Executive Director, Environmental Defence
Toronto | Treaty Lands and Territory of the Mississaugas of the Credit First Nation, and the traditional territory of the Anishinaabeg, the Haudenosaunee, and the Wendat – Environmental Defence welcomes the government’s latest investments in making heat pumps and home retrofits more accessible and affordable for Canadians.
Canadians know that addressing the climate crisis and affordability go hand in hand. This funding will lower heating costs for Canadians and reduce climate pollution.
New data released today by the Canadian Climate Institute found that an increase in natural gas use in buildings was one of the primary drivers behind an increase in greenhouse gas pollution, highlighting the country’s slow progress in clean electrification. Today’s announcement is a step towards reversing that trend.
We call on the government to ensure Budget 2026 includes funding to enhance grid transmission, and to strengthen — rather than weaken — the Clean Electricity Regulations, so that our grids can be near-zero-emitting by 2035.
Finally, one policy or measure cannot be seen in isolation. Since coming to power, Prime Minister Carney has dismantled much of Canada’s climate progress. As a result of PM Carney’s actions, Canada is now more than 20 years behind on its international climate commitments. What the future looks like for our children depends on the policy choices being made today.
Background information:
- Efficiency Canada warns that it is disingenuous for the government to claim that a small heat pump grant will be largely responsible for meeting the government’s goal to retrofit one million homes. The lack of a systemic approach to single-family home upgrades, using multiple energy efficiency and demand-management solutions, puts Canadians at risk of bad advice on how to reduce bills and increased electricity system costs.
- The Government of Canada today announced a $2 billion investment to deliver one million home retrofits across Canada. This includes a new National Heat Pump Rebate to help households make the switch to electric heat pumps.
- Heating is one of the biggest expenses for Canadians during the winter months. Over seven million households in Canada still heat their homes with oil, propane, diesel, electric baseboards, or outdated furnaces. The Government of Canada has committed to helping one million Canadian households make retrofits.
- Heat pumps are more efficient, cleaner, and safer than oil and electric furnaces. They will save an average of $1,400 a year for households currently heating with oil or electrical baseboards.
- A recent survey of Canadian heat pump owners found that 91% would recommend a heat pump to their friends or neighbours, citing increased comfort, cooling, and lower bills as the main benefits.
- According to previous research from 440 Megatonnes, currently contemplated climate policies put Canada more than 20 years behind on its emissions targets.
- Environmental Defence is taking Prime Minister Carney and his government to court. We’re asking the courts to step in and order the federal government to create a climate plan that can actually protect Canadians and the environment from the worst impacts of climate change by meeting the 2030 target.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
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For more information or to request an interview, please contact:
Lauren Thomas, Environmental Defence, media@environmentaldefence.ca
