Montreal — With Canada facing economic uncertainty, global instability, a deepening housing crisis and threats to its sovereignty, it’s time to use innovative industrial policy tools to drive private sector investment in priority areas. A new report from the Institute for Research on Public Policy (IRPP), Building for the Future: How Industrial Policy can Strengthen Canada’s Economy and Sovereignty, shows how a smart industrial strategy can help Canadian governments address unprecedented challenges.
“Industrial policy — where governments steer economic activity to address a public priority — can have a big impact when it’s used with discipline,” said Rachel Samson, the IRPP’s Vice President of Research. “Right now, our industrial policies are fragmented, which limits their ability to achieve results. But with an approach grounded in sound strategy, good governance and rigorous evaluation, governments can more effectively strengthen Canada’s economy and sovereignty — whether they’re enhancing defence capacity, diversifying supply chains or boosting housing construction.”
To make industrial policy work better, the IRPP recommends that the federal government:
The report suggests governments pursue industrial policy in key priority areas: defending Canadian sovereignty; diversifying trade; accelerating housing construction; preparing the economy for shifts from climate change, artificial intelligence and the energy transition; advancing Indigenous Economic Reconciliation; and promoting more inclusive and geographically distributed growth.
“A smart approach to industrial policy doesn’t mean taking unnecessary risks. We’re calling for careful planning, open communication with the public, and a laser focus on pressing challenges that the private sector cannot — or will not — solve without the right incentives and supporting policies in place,” said IRPP research director Steve Lafleur.
“Canadians are right to expect transparency and results. But we can’t let caution become inaction. If we focus our efforts, learn from past experience and work together, we have a real opportunity to seize on this unique moment in our history to begin building a stronger, more secure future.”
A six-member steering group has guided the IRPP’s industrial policy project over the past two years, which has gathered insights from more than 100 experts from academia, government, non-profits, business, trade unions and Indigenous organizations.
Tim Duboyce
514-604-9282 • tduboyce@nullirpp.org
Montreal – New research from the Institute for Research on Public Policy recommends a proactive, flexible and place-based strategy for skills development, tailored to the unique needs of specific regions that can respond to changes in the economy.
Authored by the IRPP’s Abigail Jackson, Rachel Samson and Ricardo Chejfec, the report highlights the challenges facing Canadian communities exposed to tariffs on their exports, the global energy transition or rapid expansion of major projects. These types of economic disruptions can be particularly challenging for Indigenous, rural and remote communities that face greater barriers to attracting skilled workers and accessing training opportunities.
“Workers are understandably hesitant to invest in training unless it’s clearly tied to a job opportunity,” says IRPP Vice President of Research Rachel Samson. “And while employers and governments offer programs to fill some gaps, these efforts are often fragmented, slow to respond to change, or too limited in scope to meet the needs of workers in the community.”
The IRPP research identifies a critical disconnect between economic development planning and local skills training. That gap has resulted in missed opportunities for both communities and businesses. To address this, the IRPP recommends governments adopt a more localized and coordinated approach to workforce development.
Key recommendations from the policy brief include:
“Canada’s ability to adapt depends on the strength and resilience of its workforce,” says Samson. “That means investing in people where they are — and ensuring skills development is aligned with local realities.”
Montreal — A new IRPP study sheds light on how generative artificial intelligence (AI) might affect Canadian jobs over the next five years. While some tasks are at risk, whole jobs are not necessarily disappearing. In fact, with the right support and planning, many could be enhanced by AI instead.
Using ChatGPT and the federal government’s occupational and skills information system database, the study’s authors, Matthias Oschinski and Ruhani Walia, assessed the technical ability of generative AI to perform work-related tasks. Their findings suggest that just because AI can do a task doesn’t mean it will replace a job.
“AI’s impact on work depends on a lot more than just the technology itself. Companies also need the right infrastructure, capital, legal permissions and organizational readiness. That means many jobs are only at risk if these other pieces fall into place,” says Oschinski.
The study found three key trends:
Crucially, the authors urge governments and employers to take a proactive approach. To get the most out of AI — and to protect jobs — they recommend targeted investments in skills training, especially for abilities that AI can’t replicate, like problem-solving, collaboration, and people management. They also recommend governments embrace regional differences in workforce strategies and invest in the data and infrastructure needed to get the most of this rapidly evolving technology.
“Generative AI could be a powerful tool to improve Canada’s productivity. But it won’t happen on its own. We need coordinated action to build the right workforce and ensure that the benefits are shared,” says Walia.
Montreal – As trade tensions between Canada and the U.S. continue to escalate, researchers at the Institute for Research on Public Policy (IRPP) have unveiled a series of interactive dashboards to track how dependent the workforces of communities across Canada are on U.S. exports.
The dashboards are designed for policymakers, economic development organizations, industry leaders and residents who want to assess a community’s risks and strengths in the face of potential tariffs from the U.S.
“Canada’s reliance on the U.S. market has left certain communities vulnerable to shifting trade policies, including tariffs and protectionist measures,” said Rachel Samson, the IRPP’s vice-president of research.
“Our dashboards can help identify which communities could experience challenges if tariffs are applied to sectors they depend on, allowing governments to work with the community to plan effective responses.”
The interactive dashboards allow users to:
“This tool provides a much-needed, detailed look at how U.S. trade policy could affect Canadian workers at the local level,” said Ricardo Chejfec, IRPP lead data analyst.
“By making this data accessible, we aim to support evidence-based policymaking that strengthens economic resilience. Governments can use this information to inform programs that soften the blow of tariffs and to help communities diversify their economies and reduce their exposure,” he said.
Users can explore regional breakdowns of workforce dependence on U.S. exports, industry-specific vulnerabilities and data that can inform policy and business planning.
For media inquiries or to schedule an interview with the IRPP researchers who developed the map, please contact Cléa Desjardins, IRPP Director of Communications at
cdesjardins@nullirpp.org or 514-245-2139.
MONTREAL — As we approach the fifth anniversary of the start of the COVID-19 pandemic, the Institute for Research on Public Policy is revisiting the work and analyses carried out by its Centre of Excellence on the Canadian Federation, which closely followed the evolution of public policy in response to this unprecedented crisis.
Charles Breton, Executive Director of the Centre, is available for comment and analysis on subjects including:
Since 2020, the Centre of Excellence and its Executive Director, Charles Breton, have published numerous analyses on federal-provincial coordination, the evolution of health measures and the lessons to be learned to strengthen the resilience of Canadian institutions in the face of future crises.
Among other outputs, the Centre developed the COVID-19 Stringency Index, which has since been used in numerous scientific studies, and published the report Resilient Institutions: Learning from Canada’s COVID-19 pandemic, one of the only publications to take a pan-Canadian look at the pandemic response.
To mark the anniversary, IRPP invites journalists and researchers to consult its analyses and explore their implications for tomorrow’s public policies.
For interviews with Charles Breton, please contact:
Cléa Desjardins
Director of communications, Institute for Research on Public Policy
514-25-2139 – cdesjardins@nullirpp.org
About the Centre of Excellence on the Canadian Federation
The Centre is a permanent research body within the Institute for Research on Public Policy. Its mission is to build a deeper understanding of Canada as a federal community.
The Institute for Research on Public Policy’s experts are available to provide commentary and analysis on Canada-US trade tensions, and the implications for our social and economic security.
Available Experts:
Media Contact:
Cléa Desjardins
Director of Communications, IRPP
cdesjardins@nullirpp.org | 514-245-2139
Montreal — Two decades after the release of the report by the Quebec government’s Commission on Fiscal Imbalance, known as the Séguin Report, the Institute for Research on Public Policy is taking stock of its recommendations and the evolution of Canada’s approach to fiscal federalism.
In a new research paper published by the IRPP’s Centre of Excellence on the Canadian Federation, economist and professor Marcelin Joanis, who was a member of the Séguin Commission Secretariat, looks back on the commission’s work, examines the context in which it was created and contrasts it with the current situation.
In the aftermath of the 1995 referendum defeat, the Séguin Commission proposed ways of reforming Canada’s fiscal federalism. But far from reviewing fiscal arrangements in line with the Commission’s recommendations, the federal government gradually adopted measures designed to make federal transfers predictable from its point of view.
Public finances today reflect the consequences of this chapter, which ended too early and could have led to greater equity, efficiency and accountability not only for Quebec, but also for the other provinces and territories.
“The Séguin Report clarified the notion of fiscal imbalance and identified important issues flowing from it, such as the exercise of the spending power by the federal government,” says Joanis. “While some changes were made, like tweaks to the equalization formula, many key recommendations remain unfulfilled. Today, provinces still face rising costs, notably in health care, which federal transfers do not really take into account,” he says.
“The issues raised by the Séguin Report remain as relevant today as ever,” adds the Centre of Excellence executive director Charles Breton. “Provinces are shouldering increasing costs for health care and education because fiscal arrangements haven’t kept up. This research highlights how we should continue working on solutions to ensure fairness and collaboration between levels of government,” he says.
Tackling modern fiscal challenges
Joanis’s report also raises questions that are central to Canada’s fiscal future and that could be answered if a similar exercise was carried out today:
“Dealing with fiscal imbalances isn’t just about dollars and cents — it’s about making sure provinces can meet their responsibilities to citizens. My report shows that a new exercise looking at Canadian fiscal federalism in all its dimensions needs to be carried out today,” says Joanis.
A call for structured dialogue
One of the paper’s key recommendations is a call for a regular, structured forum to discuss fiscal issues.
“These arrangements are too important to be addressed sporadically and out of the public eye. A consistent dialogue would help governments adapt to changing realities and ensure fairness for all Canadians,” says Breton.
Two decades on, the Séguin Commission remains a strong source of inspiration that
could serve as a starting point if a similar undertaking were held today to provide a renewed reflection on Canadian fiscal federalism.
Montreal – Ten per cent of Canadians live in communities susceptible to workforce disruption in the coming years because of global and domestic efforts to reduce greenhouse-gas emissions, according to a major new research project led by the Institute for Research on Public Policy.
With change on the horizon over the coming decades due to actions in Canada and around the world, the IRPP is calling on federal and provincial governments to better co-ordinate their efforts and carefully tailor their assistance to help communities transform their local economies.
That is just one of the key recommendations to emerge from the IRPP’s groundbreaking and multi-pronged Community Transformations Project. The project is designed to provide Canadian communities with tools and knowledge to help them navigate changes that will unfold over the coming years.
“Susceptible communities may ultimately come out ahead, with a stronger economy and more skilled workforce, but the process of getting from here to there can be painful,” said Rachel Samson, the IRPP’s vice-president of research.
“There are things governments can do to improve the resilience of communities and help make transformations easier.”
The communities, identified by the Institute through a first-of-its kind interactive map, are often small, rural and less economically diverse. Some, such as auto manufacturing communities, are already in the process of transformation while others, such as those producing natural gas, may have decades before transformation occurs.
In small communities, disruption can spread from individual companies and their workers, and go on to affect local suppliers, services, government revenues and even housing markets.
The IRPP recommends:
Future recommendations from the project will consider skills and training needs, adjustments to Employment Insurance, assistance for major employers and enhanced social supports. By 2026, the project will provide a comprehensive body of research and a suite of analysis, data and recommendations.
“Canadian communities will face a host of challenges in the coming decades at the same time as governments will have to grapple with deep fiscal challenges. We need strategic, collaborative and ultimately locally driven policies and programs that will help our communities seize opportunities and respond to disruptions,” said IRPP president and CEO Jennifer Ditchburn.
For more information, visit irpp.org/community-transformationsThere, you will find:
The Community Transformations Project is an initiative of the Institute for Research on Public Policy, in collaboration with the Canadian Community Economic Development Network’s Community Data Program, The Energy Mix, and several experts. This project was made possible in part thanks to support from Vancity, the McConnell Foundation, and the Max Bell Foundation. Research independence is one of the IRPP’s core values, and the IRPP maintains editorial control over all publications.
Media contact
Cléa Desjardins, Communications Director – IRPP
cdesjardins@nullirpp.org – 514-245-2139
Montreal – Emissions pricing policies such as the federal fuel charge and the B.C. carbon tax have had a minimal impact on inflation, contributing less than 0.5 per cent to increases in consumer prices since 2019, according to a new study from the Institute for Research on Public Policy. That’s a small fraction of the more than 19 per cent rise in prices over that period.
But governments should be finetuning and better communicating their policies to help the Canadians most in need.
“Our study shows that, contrary to popular belief, emissions pricing isn’t driving Canada’s affordability challenges,” explain the study’s co-authors Trevor Tombe and Jennifer Winter, economists at the University of Calgary. “Most price increases for everyday essentials and consumer goods have been because of global factors like surging energy prices and supply-chain disruptions. The slow pace of income growth has also affected affordability.”
They found that government rebates such as the Canada Carbon Rebate, which provide a cushion against the cost of emissions pricing, have helped curb the impact.
While households in provinces with a higher reliance on fossil fuels experience relatively higher costs from emissions pricing, the federal government’s carbon rebate has mitigated these impacts. In provinces that face the federal fuel charge, the rebates often exceed the additional costs incurred by households, particularly for those with lower incomes.
“The Canada Carbon Rebate results in a net financial gain for many low- and moderate-income families. Lower-income households and families with children, who spend more of their income on essentials like energy, are also among the largest beneficiaries of the rebates, meaning they are mostly sheltered from emissions pricing,” say Tombe and Winter.
However, the authors caution that not all rebates result in net gains for citizens. For example, British Columbians, who receive the province’s income-tested Climate Action Tax Credit instead of the Canada Carbon Rebate, often end up paying more in the carbon tax than they receive in rebates. By taking a similar approach to the federal government or by increasing its rebate amounts, B.C. could help a greater proportion of residents come out ahead under emissions pricing.
The study, which was commissioned by the Affordability Action Council, does not aim to forecast future impacts of emissions pricing or assess its effectiveness as a climate policy tool. Instead, it evaluates its historical role in Canadian affordability dynamics.
The results suggest that policymakers seeking to address affordability challenges should consider all drivers of price increases. They should also consider the income side of the affordability challenge, given that the slow pace of income growth continues to erode household purchasing power.
“Our study shows definitively that emissions pricing is not a primary driver of affordability challenges in Canada. Through thoughtful policy design, and by more clearly communicating how emissions pricing impacts households, Canada can address climate change while still maintaining affordability for its citizens,” say Tombe and Winter.
Study advocates results-based climate finance model ahead of COP29 in Baku, Azerbaijan
Montreal — As the climate talks at COP29 kick off this week in Baku, Azerbaijan, a new paper from the Institute for Research on Public Policy proposes a way to support accelerated climate action in developing countries.
This innovative approach, which the authors call “Climate Impact Auctions,” could transform international climate finance by offering results-based incentives for renewable energy projects, allowing funds to stretch further, attract small and medium-sized enterprises, and prioritize impactful, measurable outcomes. Over time, the approach can be expanded to other types of projects that reduce emissions or help developing countries adapt to a changing climate.
“Developing countries are essential partners in reducing greenhouse gas emissions, but they need targeted and efficient financial support. Climate Impact Auctions could be key to accelerating renewable energy in these countries by offering incentives based on actual impact,” explains Joanes Atela, the Executive Director of African Research & Impact Network, who co-authored the paper with a group of international climate-finance experts.
Low- and middle-income countries account for 72 per cent of global greenhouse-gas emissions. Without swift action in these countries, the goal of limiting global temperature increases to under two degrees Celsius cannot be reached. High-income countries have committed US$100 billion annually to support climate action in developing countries, with plans to establish a new goal at COP29.
“But current financial aid flows have limitations,” says economist Aidan Hollis, one of the paper’s co-authors. “Current processes for providing climate finance are lengthy and burdensome and often lack measurable outcomes. The model we are proposing aims to address these gaps by implementing results-based auctions, allowing donor and recipient countries to get the maximum impact from each dollar spent,” he says.
Under the proposed Climate Impact Auctions model, public or private entities submit competitive bids for a fixed total amount of climate-related subsidies. Successful bidders then receive results-based payments for producing renewable energy, such as solar and wind. Additionally, by offering payments per kilowatt-hour of renewable energy produced, the model supports transparency and accountability, aligning incentives with real-world outcomes.
High-income countries, like Canada and Germany, have previously used similar reverse-auction methods domestically to accelerate renewable energy investment. Applying a results-based approach offers the potential to rapidly expand the effectiveness of international climate finance in developing countries.
“High-income countries caused most of the emissions that have accumulated in the atmosphere,” notes co-author Clara Brandi of the German Institute of Development and Sustainability (IDOS). “They have a duty to support solutions in those countries that did not contribute as much to the problem yet are often most impacted by climate change. Climate Impact Auctions can help ensure that support is impactful and measurable, while providing benefits to countries around the world through reduced emissions.”
