Election '25: Canada's energy future

POLICY

Election 2025: Choosing Canada’s energy future

What happened: We’ll have a new government next week, following an election dominated by trade, tariffs and Trump. But the energy transition has also taken centre stage - less as a climate imperative, but more as an economic and geopolitical issue.

Here’s what the parties have laid out so far:

What’s missing: Tax credits and permitting reform matter, but they won’t deliver the full impact we need on their own. Industrial policy can bring these pieces together to proactively build out next-gen sectors.

• Carbon removal: Use government procurement and stable carbon pricing to spark demand and accelerate a high-potential emerging sector

• Critical minerals: Invest in processing and value-added products like batteries that create markets for natural resources

• Clean materials: Tap into abundant clean power and carbon capture to produce low-carbon steel, cement, and aluminum

Why it matters: Trade tensions have prompted some to advocate for doubling down on resource extraction and fossil fuels.

But that strategy risks missing out on where global markets are heading. Trading partners beyond the US - like the EU and China - are prioritizing low-carbon products, reducing emissions, and putting carbon border adjustments in place.

The bottom line: The stakes are high in this election. Whoever forms the next government has the opportunity to reshape Canada’s economy to lead in the energy transition and build long-term global competitiveness.

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CAPITAL & MILESTONES

📊 SensorUp received a $3 million investment from Emissions Reduction Alberta to develop and deploy its measurement, reporting, and verification platform to reduce emissions and methane leaks in the oil and gas sector.

🚚 7Gen secured $1 million in funding from The Atmospheric Fund for its end-to-end fleet electrification services. The investment will expand 7Gen’s services while accelerating electrification and improving air quality. 

♻️ Styrofoam recycling startup PolyStyvert rebranded to UpSolv and will expand its product to recycle a wider range of common plastic.

⚡️ Hydrostor’s $1.5B Willow Rock project is facing uncertainty from permitting delays and a review of its DOE loan guarantee.

🔌 Convenience chain On The Run opened its first 400 kW chargers in B.C., with more to come in Ontario and Quebec.

IN THE NEWS

👷 Ontario plans to overhaul major projects: The province introduced major changes to project permitting in a bid to accelerate mining and other projects. Proposed changes include a One Project, One Process permitting model, special economic zones, and changes to species conservation. [Ontario]

🌲 Tariffs could lead to mass timber boom: Potential US tariffs on Canadian softwood lumber could encourage adoption of mass timber construction in B.C. Lower imports to the US could increase supply and lower costs in Canada, making the low-carbon building method more economically attractive. [Business in Vancouver]

⚡️ Building transmission lines to the North: Manitoba and Nunavut will collaborate on a 1,200 km transmission line to Nunavut to reduce diesel reliance in the north. The $1.6 billion project is part of a renewed focus on internal trade and energy connections. [CBC] 

📈 Canadian oil benefits from trade war: Chinese refiners are turning to Canadian crude oil in response to U.S. tariffs, importing record amounts. At the same time, oil prices are dropping due to concerns about lower demand. Canadian producers are better able to weather price declines than US producers due to stronger balance sheets. [Financial Post]

BIG PICTURE

Carbon removal startup Holocene gets snapped up by Oxy

Spain shuts down nuclear to go all in on renewables

Waymo’s electric robotaxis are taking over Austin’s taxi industry

EU battery startup Nyobolt closes $30M to avoid Northvolt’s fate

CATL launches its own breakthrough battery to catch up to BYD

Clean fuels company Global Clean Energy files for bankruptcy

Vietnam plans $136B investment in renewables, nuclear to ditch coal 

Bloomberg’s New Energy Outlook shows emissions peaking, but off track for net-zero

COMMUNITY

🚀 CDL Startup Programs: Creative Destruction Lab is now accepting applications for all 2025/26 program streams for science- or technology-based ventures. Apply by July 25th

➡️ Discover more funding opportunities.

🗓️ Removing Carbon in the Far North: ​Join me in Ottawa for an in-depth conversation with Dr. Vida Gabriel, co-founder and COO of TerraFixing. Ottawa, April 23rd

➡️ Discover more climate events.

💻️ Deep Sky is hiring a Senior Project Director to spearhead the development and delivery of Deep Sky's critical infrastructure projects.

➡️ Find more open roles.