Atlantic businesses need accessible funding and policy clarity as 2050 draws near
(June 5, 2025, HALIFAX) - The Atlantic Economic Council today released the final report in its three-year research series on government commitments to reduce the country’s greenhouse gas emissions to net-zero by 2050.
“This project allowed us to examine the road to 2050 from an Atlantic and economic perspective and provide an in-depth analysis tailored to the unique considerations for our region,” said Lana Asaff, senior economist for the Atlantic Economic Council. “We were able to give practical insights that can help businesses plan ahead, mitigate risks, and identify opportunities in this massive transition.”
The pursuit of net-zero emissions is part of an international effort to limit global warming. Several provinces also set targets in support of this goal, including all four in Atlantic Canada.
The Council’s research highlights a lack of understanding among small- to medium-sized businesses about net-zero transition and how it will affect their operations. The report recommends businesses should get started by identifying their sources of energy use and emissions, then prioritize ways to reduce energy consumption or improve efficiency.
“This transition requires long-term planning, and in many cases, investment in technologies and resources. Businesses need to develop climate plans and take action, but high costs and uncertainty around future policies are key reasons they’re hesitant to move forward,” said Asaff.
Regulations and support are still evolving several years into the transition. All four Atlantic provinces recognize in their climate plans that achieving net-zero will require combining current emissions-reduction efforts with investment in new technologies. Government funding plays a key role by helping reduce the financial risks of adopting early-state, high-cost technologies.
“As governments continue to define the path ahead, they need to make easier for businesses to access funding and navigate the transition.”
The report is available here: Net-Zero Wrap-Up Report. The Atlantic Economic Council is the independent, non-profit economic and policy research organization for Atlantic Canada. We provide insights and ideas that promote a healthy, inclusive and sustainable economy for the region. For more information, visit AtlanticEconomicCouncil.ca.
Key Highlights:
- Government net-zero goals are ambitious considering current emission levels and recent emission reductions. Some provinces are further along than others, for example, New Brunswick had the largest emissions decrease in our region from 2005-2023 at 42%.
- Accelerating the transition will require greater investment from the public and private sectors, which need to collectively invest $125 billion to $140 billion per year to reach net-zero by 2050 (according to the 2022 federal budget). The current investment range stated in the budget is $15 billion to $25 billion annually.
- Five sectors represent 90% of Atlantic Canada’s business emissions: electricity, manufacturing, mining and oil, other primary industries, and transportation. They contribute over half the region’s economic output and 43% of total jobs.
- 70% of Atlantic Canada’s total emissions in 2023 came from three sources: transportation, electricity generation and buildings.
- Freight transportation is vital to Atlantic Canada’s economy, however, reducing emissions from boats, planes, trains and bigger trucks is challenging and costly. Greater adoption of cleaner fuels is the main near-term solution. These modes represented ⅓ of total transport emissions regionally in 2023.
- The Canada Energy Regulator projects our region’s annual electricity demand will grow over 60% from 2021-2050 – equivalent to adding about five Muskrat Falls. While utilities are adding more renewable generation and interprovincial transmission, timelines are tight. The total cost to green and expand our electricity grids remains uncertain.
- Opportunities exist for Atlantic Canada to contribute to, and benefit from, this transition. The region has the potential to develop and export clean energy solutions, including wind and hydroelectricity. Realizing this potential will require faster permitting approvals, timely investments in infrastructure, and clear signals from government about long-term policy direction.
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Media Contact:
Erin Esiyok
(902) 403-2693
erin@atlanticeconomiccouncil.ca
