Opinion: In 2026, we don’t need to choose between the environment and economic prosperity
January 2, 2026
Tim Gray is the executive director at Environmental Defence.
As we move into 2026, the landscape of environmental advocacy in Canada has changed dramatically. Canada’s closest neighbour and biggest trading partner is driving massive political and economic restructuring, which has created unease among Canadians at a collective and personal level.
These new threats have also forced public attention away from clean energy, climate change, chemical and plastic pollution and urban sprawl. Unfortunately, many polluting industries have seized this moment to maximize their profits, lobbying decision-makers to roll back progress and carry out attacks on longstanding environmental protection rules and legislation.
These industries argue that it’s for the greater economic good. But is it? Evidence from history shows that societies succeed in the long term when they integrate protection of the environment into economic and social development strategies. In fact, for the first time in human history, scientifically conclusive evidence is telling us that economic progress must be grounded in what is best for the environment.
As we move into 2026, my prediction (and my hope) is that Canada will take the opportunity to get some key things right to chart a course toward a better future.
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The federal government has been hyperfocused on nation-building projects. In 2026, watch for these projects to start aligning with clean energy, climate action and protection of nature. Prioritizing projects like high-speed rail, offshore wind farms, clean steel and better public transit will keep us in our nation-building era without leaving the environment behind.
The fossil fuel industry has worked hard to block renewable energy projects. Fortunately, the price of solar, wind and battery storage systems has dropped so dramatically that it will become increasingly difficult to convince citizens to stick with expensive and polluting gas and oil. In 2026, expect to see a continuing shift from gas furnaces to heat pumps and from gas plants to renewable energy production projects.
As we change the way our homes are powered, big changes will also come to the rules that guide how those homes are built. In place of regulations that have prevented midrise buildings (think four storeys with six apartments), we can anticipate that cities and towns will recognize that the housing crisis will be partly solved by encouraging more of this type of building. This will allow us to densify existing neighbourhoods rather than relying on urban sprawl.
Making our neighbourhoods denser and more walkable will hopefully mean fewer private cars on the road. But when we do need to drive, those cars should be electric. In 2026, we’ll be moving toward more affordable EVs and hope for a major government push on charging infrastructure. There is no future for Canadian automakers and the jobs they provide if Canada tries to join the U.S. in sitting out the move to EVs. In 2026, EVs will be back in style as both consumers and governments recognize that they are less polluting and better value.
Speaking of value, 2026 is the year we think we’ll finally see the Ontario government put a price on non-alcoholic drink containers through an expanded deposit-return program. This will greatly increase recovery and recycling rates. It’s not hard to do, and eight of the other 10 Canadian provinces already have successful programs in place.
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It will also be the year that the jig is up on the long-hidden truth about the risks of polyfluoroalkyl chemicals (PFAS), also known as “forever chemicals.” These include developmental effects, cancers and disruption of hormone regulation. These chemicals are found in a plethora of everyday products, including non-stick coatings, menstrual products and furniture. Fortunately, after long delays, we can watch for federal bans on at least some of the most egregious PFAS uses this year. We must continue to push for action on all of them.
Finally, the cynical Alberta-federal government MOU that undercuts Canadian climate action will run up against rocks of its own making. Oil demand is expected to peak by the end of this decade, meaning the massive increases in oil sands production and a risky bitumen pipeline to the British Columbia northwest coast make no economic sense. These projects will never move forward. We’ll be reading the MOU’s epitaph well before the year’s end.
The predictions I’ve laid out here can become a reality, but it will require bold action from our leaders. This year, let’s hold them accountable and ensure that Canada moves in the right direction. Here’s to a 2026 where clean water, a safe climate and healthy communities ground all our efforts to create economic and social prosperity.
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