Budget 2026 leaves National Adaptation Strategy unfunded, experts warn
The federal budget did not allocate direct funding to the National Adaptation Strategy, a framework for reducing wildfire and flood risks.
Budget 2026 did not allocate direct funding to the National Adaptation Strategy, a federal framework launched in 2023 to reduce the impacts of climate disasters like extreme flooding and wildfires. Experts expressed surprise and concern over the omission, warning that failing to invest in adaptation now will lead to far higher costs later. The Canadian Climate Institute estimates that an annual investment of $4 billion is needed to make infrastructure more resilient, a move it says could save the government up to $8.6 billion each year in avoided damages. Ryan Ness, the institute's research director of adaptation, said the budget lacked substance on climate adaptation despite a year of heightened public awareness of climate risks.
“It was certainly surprising to not see anything of substance related to climate adaptation,” said Ness. “Given especially the year we just had and the increasing awareness Canadians across the country have of the risks that that climate change poses for them.” He said he had hoped for more commitment to mapping flood and wildfire zones and direct investments to protect infrastructure. Ness added that money should be set aside specifically for housing and infrastructure damaged by climate change, rather than leaving stakeholders to compete for a general pot of funds.
“We’ve already seen that we’re paying billions to repair infrastructure and housing that’s damaged every year from flooding, wildfires and other climate-related impacts,” Ness said. “There’s upwards of a million homes at risk.” The Insurance Bureau of Canada also noted the long-standing call for more adaptation funding. “We’ve shown before that the earlier you’re able to invest in adaptation measures, it’s an economically prudent investment that has long-term gains,” said Rachel Barry, the group’s director of federal affairs.
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“So certainly we think that the sooner the government can act on climate adaptation, the better off Canada will be in the long term as we are dealing with these extreme weather events.” Barry said that while the bureau would have liked to see the budget commit to the national strategy, adaptation is not just about funding one framework. She pointed to other initiatives, like the Build Communities Strong Fund, which can help make communities resilient. Barry also highlighted non-financial measures, such as a government commitment to avoid building homes in high-risk flood zones.
“It’s everything from investing in infrastructure and adapting infrastructure, to refunding the Build Communities Strong Fund,” Barry said. “There are some significant measures that government can take to ensure that Canadians are protected from the extreme weather that we’re increasingly seeing.” The bureau did praise the budget for launching the Canadian Earthquake Insurance Facility, a program it has advocated for decades to manage the financial risk of a catastrophic natural disaster. “Canada has major earthquake risk and it could cause losses that could overwhelm the private insurance market, but also create a much broader financial and economic crisis,” Barry said.
Amy Falkner, press secretary to Environment and Climate Change Minister Julie Dabrusin, said the government remains focused on helping communities build resilience. She pointed to programs like the Build Communities Strong Fund and the National Heat Pump Rebate. In August, the government announced a $34.2 million investment to support 141 community climate adaptation projects through the Local Leadership for Climate Adaptation program, which falls under the national strategy. That money will fund more than 1400 communities to develop risk assessments or adapt infrastructure, Falkner said. Your Space Hamilton reported earlier this month that while the budget committed $50 billion to double electricity generation, it was criticized for missing adaptation targets.
With files from iPolitics