Federal budget puts Canada on a stronger path toward electrification

OTTAWA — CHRIS SEVERSON-BAKER, the Pembina Institute’s executive director, made the following statement in response to the federal government’s Budget 2026:

“Today’s federal budget marks a significant step forward for Canada’s path to electrification, including investments in transmission, electric vehicle charging networks, and reducing diesel dependence in northern communities. After decades of underinvesting in our electricity system, today’s budget recognizes the investment and breadth of action needed to build a more resilient, affordable, and secure system.

“These investments will help Canada tackle some of its biggest challenges, from economic competitiveness and energy security to affordability, job creation, and climate resilience. They also demonstrate a serious commitment to electrification as a foundation for a stronger economy and a more independent energy future.

“Today's budget is also an encouraging signal after a year that saw important climate and clean energy policies weakened or rolled back. Investments in electricity infrastructure, transportation electrification, and northern energy modernization can help restore momentum and provide greater certainty for workers, communities, and investors looking to participate in Canada's clean energy transition and reap the benefits of affordable and reliable energy."

Quick facts

Budget 2026 makes a number of critical investments that will help advance electrification across the Canadian economy:

Long term certainty on Clean Electricity and Clean Technology Investment Tax Credits by extending them from 2034 to 2040, costing $38.5 billion. This change supports projects that take many years to build, including transmission lines within and across provincial borders.
$1.6 billion over 10 years for energy reliability in the North, starting in 2027-28. This includes $713.8 million for renewable energy and capacity-building projects that help Indigenous, rural, and remote communities transition from diesel and fossil fuels to renewable energy sources, and $929.1 million to replace and upgrade aging electricity infrastructure in northern communities.
Significant investment in EV charging, with $634.2 million committed to charging infrastructure and related programs. Funding for more than 55,000 additional chargers will make it easier for Canadians to switch to electric vehicles and save on fuel costs. The investment will also support Canadian innovation and businesses.