As governments across Canada ramp up investments in infrastructure and housing, experts emphasize the importance of integrating climate resilience into these projects to safeguard long-term value amid escalating environmental risks. With more frequent and severe weather events already causing extensive damage, officials and industry leaders warn that speed alone cannot be the guiding principle in construction and development.
Canada faces growing challenges from climate change, which has intensified extreme weather occurrences such as floods and wildfires. In 2024, insured catastrophe losses climbed to a record $8.5 billion, driven largely by these events, according to the Insurance Bureau of Canada. This figure marks a significant increase from the pre-2008 average of roughly $450 million annually. Notably, heavy rainfall on Canada Day flooded regions of Eastern Ontario and western Quebec, disrupting communities and infrastructure projects including Ottawa’s light rail expansion.
Federal and provincial governments are responding with extensive investments. Plans call for $115 billion in core infrastructure spending over the next five years, supplemented by a $51 billion Build Communities Strong Fund and $25 billion dedicated to housing. These initiatives target critical areas such as energy supply, transportation networks, and urban development. However, industry observers argue that resilience must be incorporated from the outset to prevent these investments from becoming vulnerable or obsolete in a shifting climate landscape.
Building codes and procurement processes currently lack consistent requirements for assessing physical climate risks and incorporating forward-looking climate data, a gap highlighted in a recent insurance industry report supported by the World Bank. The report recommends embedding resilience criteria into requests for proposals, contracts, and project designs to ensure new assets can withstand future climate-related stresses.
Canada is well-positioned to lead in adaptation and resilience technology. Montreal-based consulting firm WSP has compiled a Canadian inventory of 158 guidance documents on climate-resilient infrastructure, spanning various asset types and jurisdictions. Additionally, the country’s technology sector, including startups supported by accelerators like Toronto’s MaRS Adaptech Accelerator, is advancing innovations such as AI-driven climate risk modeling and infrastructure hardening solutions.
Practical measures such as avoiding development in flood- and wildfire-prone areas are gaining traction as foundational strategies. Meanwhile, government bodies like the Build Canada Homes Crown corporation are tasked with accelerating housing construction while also promoting durability and affordability. Advocates suggest that such agencies could drive greater adoption of resilience standards and homegrown technologies, ensuring new homes are built not only quickly but also sustainably.
The consensus among experts is that although rapid expansion is needed to meet pressing infrastructure and housing demands, incorporating resilience is essential to protect investments and maintain their functionality amid climate uncertainty. Balancing speed with durability will be critical in securing Canada's future infrastructure against the mounting risks posed by climate change.
