Where Did $200 Billion Go? Carney Says Climate Targets Now Impossible

Prime Minister Mark Carney acknowledged Canada will fail to meet its 2030 and 2035 emissions targets despite more than $200 billion in climate spending since 2015.

Carney told CBC News the previous climate plan relied too heavily on regulation. “We have too much regulation, not enough action,” he said in a year-end interview.

The government directed funds through 149 programs across 13 federal departments to cut emissions 40 to 45% below 2005 levels by 2030. Federal data shows Canada achieved only an 8.5% reduction — less than one-quarter of the target.

Former Environment Minister Steven Guilbeault called the spending “the single biggest package of climate commitments in Canada’s history” when announcing the $200 billion figure in April 2023.

Carney eliminated several major policies after taking office in March 2025, including the consumer carbon tax and the proposed oil and gas emissions cap. His government also relaxed Clean Electricity Regulations for Alberta through an agreement with Premier Danielle Smith.

Guilbeault resigned from Carney’s cabinet in November 2025 over the Alberta deal, saying it dismantled years of climate policy work.

Read: Canadian Climate Minister Guilbeault Resigns Over Alberta Pipeline Deal 

Current projections show Canada will achieve a 21% emissions reduction by 2030 under Carney’s policies, compared to 34% under Trudeau’s approach — both falling short of the 40 to 45% target.

Canada’s oil and gas sector accounts for 30% of national emissions and increased 77% since 2005. Electricity generation showed the strongest progress with a 58% reduction, driven by coal plant phase-outs.

Environment Minister Julie Dabrusin maintained the targets remain achievable, contradicting Carney’s assessment. The Canadian Climate Institute warned emissions could resume growth if governments continue scaling back climate policies.

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