In 2021, Canada’s ranking on the ND-GAIN Index – assessing countries’ vulnerability to climate change and other global challenges, in combination with their readiness to adapt – remained similar to previous years. Extreme weather events in 2023 highlighted the detrimental impacts of climate change across the country. At the same time, the federal government released its National Adaptation Strategy in 2023 designed to improve the country’s resilience to climate change, providing direction on measures to protect buildings and infrastructure facing risks such as floods and fires. An average annual investment of $5.3 billion in municipal infrastructure has been projected as needed to adapt to the impacts of climate change, which will require cost-sharing across governments.

Canada continues to rank among the worst-performing countries in the world on climate change. While Canada has introduced an emissions reduction plan, including a target of net-zero emissions by 2050, there has been slow progress. Canada will continue to fall behind without efforts such as a strong cap on emissions and plans to phase out fossil fuels. Changes in Canada’s regulatory processes have also been identified as needed to build the infrastructure to meet climate targets. In December 2023, the federal government announced plans to cap emissions in the oil and gas sector through a regulatory framework. Canadians observed the impacts of climate change first-hand in 2023 with a record high number of wildfires, which are projected to become increasingly common with changing weather patterns.

Canada’s level of urban density has increased in recent years but remains lower than in some peer countries. Across many Canadian cities, lower levels of density contribute to ongoing challenges including housing affordability. Increasing density will help to address urban sprawl which has increased faster than population growth in recent years – resulting in costs to the economy, environment and society. Density in Canadian cities is not evenly distributed, with growth in some areas but stagnation or declines in others. There is potential for Canadian cities to build more in existing neighbourhoods with a focus on quality of life. Recent government activities focused on increasing density include stimulating zoning changes through the federal Housing Accelerator Fund.

Most Canadian households now have access and can subscribe to broadband at speeds of 50/10 Mbps. Progress has been made in recent years in rural parts of Canada with coverage growing from 37% to 67% over a five-year period. However, rural and remote parts of Canada continue to experience significantly lower levels of broadband coverage compared to urban Canada. Across Canada in 2022, 1.1 million households lacked 50/10 unlimited coverage in rural areas, Northern and First Nations communities. A lack of broadband coverage can lead to barriers in accessing the digital economy and virtual services such as health care or education. In the absence of fibre optic or fixed wireless services in some rural areas, high-speed satellite internet options like Starlink have become increasingly common and have attracted some federal and provincial investments. Challenges to closing the access and quality gap include slow approval processes for connectivity projects, as well as higher costs to service rural areas. Coordination will be required to enable all households in Canada to have access to high-speed broadband by the end of the decade.

Housing affordability remains a challenge across Canada especially as the population grows. While Canada’s level of “core housing need” improved in 2021, this was largely due to pandemic supports. Many people in low-income households are increasingly unable to affordably live in Canadian cities, as rent on the Consumer Price Index continues to rise. Canadians identified housing affordability as one of the most important problems they faced in 2023 and concerns about a lack of housing have impacted public support for immigration levels in Canada. While an increased number of newcomers can exacerbate housing pressures, other issues have to be solved to address challenges. Reducing immigration is not a strategy to solve Canada’s housing problems. Across the country, recent declines in housing starts have been driven by factors including high interest rates and increased building costs. Increases in housing investment and reduction of zoning barriers are critical to addressing these challenges. It is estimated that 3.5 million additional new housing units are required in order to hit the target of housing affordability for everyone by the end of the decade.

Canada’s infrastructure investment rate increased in 2022 but has remained flat compared to a decade earlier. Challenges with uncertain funding in 2023 resulted in cost pressures on projects, sparking calls for the next generation of infrastructure investments through collaboration across all levels of government. Current rates of investment are below levels needed as public infrastructure ages and requires maintenance, as well as to adapt to changing weather patterns. It would cost an estimated $265 billion to replace infrastructure found to be in poor or very poor condition. Population growth will add to stresses on existing infrastructure without greater levels of investment. Infrastructure challenges can also be also more pronounced in rural and remote areas and Indigenous communities.