RBC Climate Action Institute 2026 Report: Climate Action Barometer falls--but tech, innovation and capital build new momentum

Executive Summary

• RBC Climate Action Institute released its third annual “Climate Action 2026” report, highlighting a projected 7% decline in Canada’s total national emissions from 2019 to 2025 but noting slowing momentum.
• The report identifies sector‑specific emission intensity reductions (electricity –27%, buildings –19%, oil & gas –19%) and estimates climate‑related capital flows of roughly $20 billion annually, with nearly $100 billion in incentives slated through 2035.
• A new “Idea of the Year” focuses on Canada’s building sector, proposing the Responsible Buildings Pact to accelerate low‑carbon construction materials such as mass timber and low‑carbon concrete.

Key Details

• Emissions Outlook: Total national emissions projected down 7% (2019‑2025); however, further progress is challenged by policy shifts and incentive rollbacks.
• Sector Reductions:
• Electricity –27% emission intensity reduction.
• Buildings –19% emission intensity reduction.
• Oil & Gas –19% emission intensity reduction.
• Climate Capital Flows: Approximately $20 billion per year in climate‑related financing identified across federal, provincial, and private sources.
• Incentive Landscape: Close to $100 billion in clean‑tech and climate program incentives budgeted for deployment up to 2035.
• Climate Action Barometer: Fell for the first time in six years, indicating a dip in overall momentum despite higher levels than in 2019.
• Public Sentiment: One‑quarter of Canadians still prioritize climate issues; cost of living, healthcare, and economic strength rank as top concerns.
• Idea of the Year – Responsible Buildings Pact: Targets Canada’s building sector (emissions up 15% from 1990‑2023) to promote low‑carbon designs/materials (mass timber, low‑carbon concrete, steel, aluminum). Launched in 2024 under the Climate Smart Buildings Alliance.
• Case Studies Included: Showcasing Canadian companies/communities using prefabricated buildings, agricultural skill development, battery storage, electric vehicles, and certified natural gas solutions.
• Methodology Highlights: Proprietary data on investment trends, technology adoption, feedback from >2,000 consumers and 150 business leaders, plus deep dive into federal/provincial policy priorities.

Notable Quotes

“Climate action is among the biggest collective needs humanity has faced,” said John Stackhouse, Senior Vice‑President, Office of the CEO, RBC. “With 25 years until Canada’s 2050 net‑zero target, we’re at a critical moment… it’s also about harnessing technology, funding, innovation, and collective action required to carve out pathways to a low‑emissions future.”