As we pass the mid-month mark, expectations are that the federal government will release its Climate Competitiveness Strategy before the end of October. This policy framework is designed not just to reaffirm Canada’s climate ambitions, but to re-cast them through the lens of economic opportunity. At its core, the strategy is expected to shift from the traditional emissions-reduction narrative and instead centre on how Canada can capture low-carbon growth and strengthen industrial competitiveness.
What to Expect
General expectations are that the Climate Competitiveness Strategy will aim to strengthen Canada’s industrial carbon pricing framework, channel funding and investment toward low-carbon innovation and technologies, and ease provincial/federal tensions through a more coordinated approach. The strategy is anticipated to shift the focus from emissions targets to enabling Canadian industries to compete and grow in a decarbonizing global economy. The federal government’s recent openness to stepping back from the oil and gas emissions cap reflects a pragmatic effort to achieve climate alignment without reigniting divisive politics. Uncertainty remains around key policies such as the Clean Electricity Regulation, which continues to face resistance from Alberta despite a longer implementation runway, and the potential carbon border adjustment mechanism, which has been floated in the past but not yet defined within Canada’s policy framework.
Why "Competitiveness"
Why emphasise “competitiveness”? Because climate policy cannot simply sit in isolation, it must be embedded within economic and trade policy if it is to win broad support. The tension around the federal fuel charge leading up to the election, as well as recent events in the U.S., have demonstrated how polarized climate politics can become when framed purely as an environmental issue; however, when climate policy is reframed as an integral element of national industrial strategy, competitiveness, and global positioning, the narrative changes.
For Canada, competing in this transition will require not just reducing emissions, but using climate policy as a tool to strengthen international competitiveness, attract investment, and invigorate key sectors of the economy. A forward-looking strategy that embeds climate goals within industrial and trade policy can help Canada build resilience, diversify its economic base, and reduce exposure to geopolitical tensions that increasingly shape global energy markets. The forthcoming Climate Competitiveness Strategy is expected to reflect this mindset—positioning Canada to lead in a world where economic strength and climate ambition are increasingly intertwined.
ClearBlue's Insights
At ClearBlue, we view the forthcoming Climate Competitiveness Strategy as an important inflection point for Canada’s climate and industrial policy. Once the Strategy is released, we will issue a dedicated announcement and analysis.
With regard to upcoming changes to industrial carbon pricing, Part 1 of our special report laid the groundwork for understanding the policy context. Part 2, soon to be released, will unpack how future adjustments could impact market dynamics and regulatory design for participants and industrial emitters. We encourage clients to begin assessing where emerging policies may create new tailwinds, where industrial players may need to pivot, and how compliance and opportunity will increasingly intersect. Staying ahead of the release and preparing to act quickly will be essential, and ClearBlue will be ready to help interpret and navigate the shifts as they unfold. Please reach out to us here to register your interest in these timely reports.