Environment Committee on Feb. 10th, 2026

[Trevor Bhupsingh]

No, we don't have that number. We do know there are high-risk communities across the country, whether that is due to evacuation from flooding or whether they're in high-risk fire paths. We know that.

Again, these are important questions. Public Safety Canada wouldn't have that data, but we can certainly look into that for you.

[Ellis Ross, Conservative, Skeena—Bulkley Valley, BC]

One of the topics mentioned is insurance companies and maybe, possibly, a government-backed program that talks about not rebuilding in a high-risk zone. They'll cover the cost to rebuild, but not there. However, in first nation communities, the history is complicated. It might not have been their choice to begin with. They were probably moved there by the government for some other type of development. If there's any way to get that kind of information, in terms of how many first nations are living in high-risk zones....

The cost to move them, in terms of a building better program, can be a lot of money when we're talking about a first nation, not to mention the band council being presented with this issue. I would love a written response from any one of the panellists, if that's okay.

All right.

Mr. Chair, I cede the rest of my time to the next panellist.

[The Chair, Liberal, Angelo Iacono]

Thank you very much. You're very kind.

That means we will attribute a minute to Mr. Bonin right after Mr. Fanjoy.

Mr. Fanjoy, you have two minutes.

Mr. Bonin, you will have one minute of speaking time after Mr. Fanjoy's comments.

[Bruce Fanjoy, Liberal, Carleton, ON]

Thank you.

Mr. DeFazio, in your testimony, you talked about climate-compatible homes. Could you elaborate on what makes a climate-compatible home in 2026?

[Andrew DeFazio]

Sure. I'll speak to the criteria we largely rely on for underwriting.

Largely, it would be energy efficiency, and those are the types of materials and the types of equipment within the house that help reduce the carbon footprint. We would do evaluations on that and score it. Then, through our programs, we would prioritize those programs higher, or they would be eligible for premium discounts.

[Bruce Fanjoy, Liberal, Carleton, ON]

Thank you.

Are there any levers in CMHC that would allow you to assess different risk categories to homes you're insuring in order to create an incentive for builders and buyers to take advantage of the options they have?

[Andrew DeFazio]

The lever would be done at the front end on the underwriting criteria to work with the proponent to say, “If you do these things and you put these technologies into your building, here are the benefits we can give you.”

Largely, the benefits would be around a longer amortization period to help manage monthly cash flows, as well as premium discounts for mortgage loan insurance to help make the transaction more affordable overall.

[Bruce Fanjoy, Liberal, Carleton, ON]

Thank you.

Ms. El Bied, with the planet getting warmer, we know that the effects of extreme weather events escalate exponentially—

[The Chair, Liberal, Angelo Iacono]

I'm sorry, but your time is up.

[Bruce Fanjoy, Liberal, Carleton, ON]

It was a good question.

[The Chair, Liberal, Angelo Iacono]

Mr. Bonin, you have the floor for one minute.

[Patrick Bonin, Bloc, Repentigny, QC]

Thank you. I'll be quick.

It seems that the Canada greener homes loan program has been cancelled. Do you think that this program should come back as part of the new Build Canada Homes strategy?

[Andrew DeFazio]

I don't know. I couldn't answer that question.

[Patrick Bonin, Bloc, Repentigny, QC]

That's a shame, once again.

Do you think that a flood insurance program is urgently needed?

[Kenza El Bied]

It's important. It must be implemented. Canada must take this approach in order to move this program forward.

[Patrick Bonin, Bloc, Repentigny, QC]

The Royal Canadian Mounted Police, or RCMP, and even the army are sometimes called in to help.

Should the training and mandate of the army and the RCMP include an increasingly prominent disaster response component?

[Kenza El Bied]

The army steps in when the federal government reaches its limit. So—

[Patrick Bonin, Bloc, Repentigny, QC]

Should there be more training and a stronger mandate in this area?

[Kenza El Bied]

I don't know whether you're aware of this. A consultation process started in November and will run until February 28. The goal is to answer questions about how the emergency measures system should work.

I'm sorry.

[The Chair, Liberal, Angelo Iacono]

I would like to thank the witnesses for their testimony here today. You are now excused.

I shall suspend the meeting for a few minutes while we change witness panels.

[The Chair, Liberal, Angelo Iacono]

I call the meeting back to order.

The committee is continuing its study on protecting Canadian residents from extreme weather events.

This afternoon, we are meeting with the following witnesses. From the Office of the Parliamentary Budget Officer, we have Mr. Jason Jacques, interim parliamentary budget officer, and Zachary Vrhovsek. From Statistics Canada we have Jennifer Withington, assistant chief statistician, economic statistics; Ryan MacDonald, director, economic and social analysis and modelling division; and Matthew Hoffarth, assistant director, national economic accounts division.

You will have five minutes for your opening remarks. When I put up this yellow card, it indicates you have one minute left, and once I turn it over, I ask that you finish your sentence, your thought.

The floor is yours for five minutes, Mr. Jason Jacques.

[Jason Jacques, Interim Parliamentary Budget Officer, Office of the Parliamentary Budget Officer]

Thank you, Mr. Chair.

Committee members, I would like to thank you for the invitation to appear today.

In October 2025, we published a report entitled “Projecting the Cost of the Disaster Financial Assistance Arrangements Program”, or DFAA. The report projects the cost of the DFAA program over 2025 to 2034 and provides a breakdown of costs across major disaster types, including floods, wildfires and storms.

I'll now continue in English.

The cost estimate accounts for changes to the DFAA program starting in April 2025, as well as trends in disaster frequency and the cost per disaster over time. We estimate that over the period of 2025 to 2034 the DFAA program will cost an average of $1.8 billion per year. This represents an approximate doubling of the average nominal cost over the previous 10-year period.

In closing, I would like to say that my office remains determined to provide Parliament with clear, timely and impartial analysis to help you in your study. I would also say, Mr. Chair, that we currently have several studies under way to support other parliamentary committees and will be very pleased to undertake additional work for you and members of this committee.

Thank you.

[The Chair, Liberal, Angelo Iacono]

Thank you, Mr. Jacques.

The floor is yours, Ms. Withington.

[Jennifer Withington, Assistant Chief Statistician, Economic Statistics, Statistics Canada]

Thank you, Chair.

Thank you for the opportunity to participate in the current discussion on extreme weather events in Canada, how these events impact Canadians and how they're captured with Canada's official statistics.

I'm here with my colleagues, Ryan MacDonald and Matthew Hoffarth.

At Statistics Canada, we're dedicated to delivering accurate and timely information on the socio-economic indicators that paint a portrait of Canadians' lives. From the census and health surveys to the consumer price index and our expansive macroeconomic accounts, we provide a clear view of Canada's socio-economic landscape to help inform decisions by policy‑makers, businesses and the public.

At the same time, we appreciate the complexity in comprehensively tracking the impacts, risks and costs related to extreme weather events.

Today, we're here to share some information on how extreme weather events are reflected in our economic statistics and to highlight research that integrates climate information with socio-economic outcomes.

Since 2020, Canada has experienced five years that have ranked in the top 10 for costliest years in Canadian history with respect to insurance claims from severe weather losses. Recent data shows that almost a quarter of households and 14% of businesses have been affected by a natural disaster or a weather-related emergency in the past year. These events can be extremely disruptive for individuals, families, businesses and communities.

However, measuring the impact of extreme climate events is not a straightforward task. It involves a multidisciplinary approach and a myriad of data sources, including financial, socio-economic, health hazard and geospatial information. While these data sources cannot fully convey the individual impact these events have on Canadians, they are critical to accounting for these events within official statistics.

When there's an extreme weather event, there are many impacts that are recorded both explicitly and implicitly within our statistical system. For example, Canadians lose wealth when property is damaged or destroyed. To replace this wealth, insurance companies cover the losses, which are shown as payments from insurers to households and businesses. The income and balance sheet for insurers and other businesses are reflected in our industry and sector statistics.

Homeowner insurance costs, which have largely outpaced the all-items CPI since 2020, are only one aspect related to climate events. Increased construction, consumption and debt related to the replacement of damaged property and the temporary or long-term displacement of individuals and businesses, all reflect the economic reality. There are lost wages for those who cannot work. There are increased wages for people such as first responders. Government expenditures may rise, given emergency support programs, supplies and health care costs.

Many impacts of extreme weather are felt immediately, while others are experienced later or continue over time. For example, there was a 4.9% higher incidence of lung cancer and a 10% higher incidence of brain tumours for people living within 50 kilometres of a wildfire in the past 10 years, compared to the unexposed population. Moreover, more than 200 excess deaths were attributed to extreme heat events in both Montreal and Toronto from 2000 to 2020.

There are also costs related to extreme climate events that are not clearly captured in our official statistics. For example, fires in remote areas have little measurable economic impact. However, even remote forests with no human habitation provide crucial ecosystem services to Canadians, such as carbon sequestration. Work on environmental accounts at Statistics Canada aims to value these services and more explicitly link the environment to the macroeconomy.

We know collaborative approaches across jurisdictions are vital to understanding the true impacts of natural disaster and extreme climate events. We're strengthening partnerships and building on our strengths, as we can, to deliver timely, detailed and relevant information to Canadians on this topic.

Thank you.

[The Chair, Liberal, Angelo Iacono]

Thank you, Ms. Withington.

Mr. Bexte, the floor is yours for six minutes.