Mr. Speaker, fellow colleagues, I am happy to appear before you this evening as Minister of Environment and Climate Change to discuss the 2025-26 main estimates for Environment and Climate Change Canada, the Impact Assessment Agency of Canada and the Canada Water Agency.
Before I begin, I would like to acknowledge that we are on the traditional unceded territory of the Algonquin Anishinabe people, the first stewards of the lands, waters and air we share today.
It is a tremendous honour, both personally and professionally, to take on the role of Minister of Environment and Climate Change. Environmental protection has always been a passion for me. It was in this spirit that I served as parliamentary secretary to the Minister of Environment and Climate Change and the Minister of Energy and Natural Resources. I held both positions for four years. I sincerely thank the Prime Minister for the trust he has placed in me.
I was delighted to hear, in the Speech from the Throne, our promise to Canadians to build the strongest economy in the G7 and defend our sovereignty. It also reaffirmed Canada's promise to achieve net-zero emissions. All of these commitments are relevant because, as we stand here today, our world is shifting. Our sovereignty has been threatened. Our environment is being threatened. Canadians elected us to address both of these threats by creating one Canadian economy that is the strongest in the G7, while also fighting climate change and protecting Canadians from its impacts.
The 2025-26 main estimates that we will be discussing today play an important role in steering Canada in the right direction.
The funding will allow Environment and Climate Change Canada to continue providing national leadership while collaborating closely with the Canadian public and indigenous peoples. It will help us fight climate change, protect nature, preserve the health and safety of the environment and the Canadian people, and promote clean growth.
The department will pursue these objectives in several ways. As the official source for weather information and weather warnings in Canada, we will continue to provide timely and accurate weather information, including severe weather alerts, to help Canadians make informed decisions to protect their health and safety. We will also continue to provide national leadership to reduce greenhouse gas emissions and short-lived climate pollutants in Canada, because we all know that climate change is real.
Under the previous Conservative government, Canada was on track to increase its emissions above 2005 levels by 9% by 2030. We have reversed that trajectory. We are now at our lowest emissions level outside of the pandemic in more than 25 years. As we diversify our trading relationships in light of the unjust American tariffs, our work to reduce emissions is more relevant now than ever. Maintaining strong industrial carbon pricing is a precondition for Canadian businesses to be able to access some of the world's largest economies. As a result, Pierre Poilievre's opposition to those policies would only weaken our ability to diversify our trading relationships. My hope is that, instead, the Conservatives will work with us to fight climate change and protect our environment.
Countries around the world are looking to Canada to make sure that the energy we provide is low-risk, low-cost and low-carbon. That is the key to ensuring that Canada becomes the energy superpower that we have the potential to be.
There is no question that meaningfully addressing Canada's carbon emissions requires action by large emitters. The output-based pricing system, otherwise known as industrial carbon pricing, is funding innovative, job-creating Canadian technology projects that would leverage cleaner technologies and fuels, the clean electricity initiatives and a decarbonization of Canada's industrial sectors.
A terrific example of this is the $25 million that Redpath Sugar Ltd. received to install new equipment and technology. This is a sweet story, so I ask members to please listen. This project will make the sugar-refining process more efficient and reduce thermal energy consumption while helping drive down carbon pollution.
We know there is no question that Canada's climate has changed and will continue to change. Because of that, we will carry on preparing properly and adapting to climate change to make Canadians and their communities safer, healthier and more resilient. We will continue to take strong action to help Canadians prepare for flood, wildfire, drought, coastline erosion and other extreme weather events worsened by climate change. We will also remain focused on preventing pollution in ecosystems, water and air.
There is also nature conservation. I have worked with communities to halt and reverse the loss of biodiversity, including species at risk. The department will continue to build on its progress, conserving and protecting Canada's wildlife and habitat, recovering species at risk and, moreover, ensuring that indigenous leadership and perspectives remain foundational to meeting our goals for Canadians and the environment.
The time has come to look at the main estimates for 2025-26. The department's reference levels in this budget are just over $3.127 billion. That is an increase of $366.3 million, or 13.3%, over the main estimates for 2024-25.
This difference stems mainly from $300 million in new funding for a grant to the Northwest Territories project finance for permanence, statutory expenditures for the distribution of revenues from fuel charge payments to indigenous communities and the distribution of revenues from the output-based pricing system. This increase is partly offset by the transfer of resources to the new Canada Water Agency. Some funding was deferred as some programs reached their anticipated end date.
Let us turn to the grants and contributions in the 2025-26 main estimates. I want to highlight the most important part now, which is that it includes grants, such as a $300-million grant to the our land for the future trust in the Northwest Territories, which will add almost 2% of Canada's land to protected land. This is an important project. There are also voted contributions to support the Canada nature fund and contributions for conserving nature.
I am not going to go through all of them. Members can look at the 2025-26 main estimates to learn more, but I will add that there is also funding for the Impact Assessment Agency and the Canada Water Agency, which are both doing important work to support our country and our community.
We will keep on working together right across our country to build a strong Canada.