Canada’s economy has grown strongly over the past decade, supported by high commodity prices that boosted income from energy and agricultural exports. However, economic growth has increased energy and resource use, escalating environmental pressures. This chapter examines the country’s progress in decoupling economic activity from these environmental pressures, focusing on the period since 2000. It presents the key socio-economic developments and reviews Canada’s progress in moving towards an energy-efficient and low-carbon economy; resource efficiency in material consumption and waste management; and sustainable management of the natural asset base.

Canada has improved the effectiveness of multi-level environmental governance and enhanced the engagement of Indigenous peoples in environmental decision making. However, more needs to be done to build on recent progress in these areas and adopt good international practices in environmental assessment and permitting. This chapter analyses Canada’s environmental governance system, including the institutional and regulatory frameworks and measures to ensure compliance with environmental law. It also assesses progress in promoting environmental democracy through public participation, access to information, justice and education.

While progress towards green growth has been relatively slow since the last review in 2004, Canada is now building strong policy frameworks and measures to support its green growth transition. It is also establishing new collaborative efforts across federal, provincial and territorial governments. This chapter presents Canada’s progress towards green growth, considering environmentally related taxation, other economic instruments, investments in environmental infrastructure and services, the state of eco-innovation and markets for environmental goods and services, measures to address the social consequences of green growth, and the interaction between environment and international trade and development assistance.