Positioning Canada for a New Economy: UCL’s Federal Pre-Budget Submission
Canada’s future prosperity depends on the choices we make today. As climate change reshapes our economy and communities, the 2025 federal budget is a chance to lead with purpose, partnership, and vision or risk falling behind.
Urban Climate Leadership (UCL), a project of MakeWay, submitted a pre-budget brief calling on the federal government to put cities at the centre of Canada’s clean economy. Local governments manage more than 60% of public infrastructure—housing, transit, energy systems—and they are where national climate and economic goals meet people’s daily lives. Stable, predictable investment in municipalities isn’t optional; it’s the foundation for a resilient, affordable, and climate-ready future.
UCL recommends targeted investments across four federal ministries. Each recommendation recognizes local governments as essential partners in implementing national objectives. We’re calling on the federal government to:
Invest in local governments to deliver climate-aligned infrastructure: Expand the Canada Community-Building Fund, triple the Canada Public Transit Fund, and invest $2 billion immediately in climate resilience infrastructure.
Leverage private capital for deep retrofits: Establish a municipal-led Deep Retrofit Investment Facility to blend public and private financing, prioritize equity, and ensure energy affordability.
Build municipal capacity to govern and deploy AI for the public good and climate: Provide grants, training, and a Cities AI Innovation Fund to ensure AI deployment serves the public good and advances climate goals.
Build the foundations of a clean economy with grid modernization and integrated transportation: Invest in interprovincial transmission, clean mobility, and zero-emissions freight corridors to secure Canada’s economic competitiveness.
The global transition to a low-carbon, values-driven economy is accelerating. Canada is well-positioned with its natural assets, world-class talent, strong post-secondary institutions, innovative private and non-profit sectors, empowered Indigenous communities, and local governments to take a leadership role in building a new economy.
“Canada’s ability to deliver on its clean economy goals depends on investing in municipalities. Local governments are ready to act, but they need federal partnership to deliver lasting change in the communities where Canadians live, work, and thrive” — Shauna Sylvester, Founder and Lead Convenor, UCL
The path forward is clear: partner with local governments, invest in a clean economy, and secure Canada’s leadership on the global stage. The time to act is now.
Read our full submission [here].
