Amid growing climate risks, the Government of Canada is intensifying cross-governmental engagement with the provinces and territories. In January 2025, at the annual conference of prime ministers, the Climate Partnership Declaration was signed, outlining joint actions to reduce emissions and adapt to climate change.
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The document acknowledges the diversity of approaches: for example, Quebec and British Columbia maintain their emissions trading systems, while Alberta and Saskatchewan are focusing on technological solutions such as carbon capture and storage (CCS). The federal government is committed to respecting these differences but insists on achieving a national goal of reducing emissions by 40–45% by 2030 compared to 1990 levels.
One key mechanism is the creation of the $2.8 billion Climate Transformation Fund. The funds will be distributed using a formula that takes into account both emissions levels and the economic potential of the region. Provinces with coal-fired power and heavy industry will receive the largest grants.
Particular attention is being paid to clean transportation. The federal government will reimburse up to 50% of the cost of charging stations in rural and remote areas and subsidize the purchase of electric buses for municipalities. By 2035, all new passenger vehicles in Canada must be zero-emission.