Energy efficiency highlights from the Spring Economic Update

April 28, 2026 — The federal government’s Spring Economic Update 2026 aims to build a stronger, more independent, and resilient economy, but it has not (yet) deployed energy efficiency as a nation-building project to meet these objectives.

Here are some energy efficiency highlights from the Economic Update:

• An initiative called “Team Canada Strong” to recruit, train, and hire 80,000–100,000 new Red Seal skilled trades workers by 2030–31. This includes $2 billion for paid placements that lead to apprenticeship, $10,000 per apprentice to support employers to retain apprentices, and a $400 per week apprenticeship training grant. These new initiatives present an opportunity for energy efficiency workforce development. 
• A permanent capital gains tax exemption to support employee ownership (The Employee Ownership Trust Tax Exemption). This is relevant to HVAC and other energy efficiency businesses aiming to remain Canadian-owned and following innovative retrofit business models.
• Updates to National Model Codes, including creating a “performance-based approval pathway for modular and panelised systems” for buildings as part of an additional $41.9 million to the National Research Council, the Standards Council of Canada, and Innovation, Science, and Economic Development Canada. This follows recommendations from Efficiency Canada’s “Policy Strategies to Support Innovation in New Housing Construction report. 
• The government is “exploring ways to modernise mortgage products,” which could be an opportunity to promote energy efficiency.
• The $51-billion Build Communities Strong Fund launched in April 2026. The Direct Delivery Stream can support large building retrofits and climate adaptation, and the Community Stream can support public transit and buildings like recreation facilities and fire halls. Energy-efficiency solution providers should take up the opportunity to propose relevant projects.
• Large-scale, nation-building projects will be prioritized for timely income tax rulings. The Scientific Research and Experimental Development Tax Incentive Program has a redesigned pre-claim approval process. This is relevant because Efficiency Canada’s budget priorities include the need for similar pre-approval and simplification of the Clean Technology Investment Tax Credit (ITC). The update projects $13.1 billion will be spent on the Clean Technology ITC between 2023 and 2034.
• Build Canada Homes’ mandate includes “supporting the preservation of existing affordable housing stock, through the Canada Rental Protection Fund,” which the statement says will launch “this spring.” There are no details on whether the preservation strategy includes building retrofits. Read Betsy Agar’s blog on the opportunity to make building retrofits part of Build Canada Homes’ strategy.
• The statement notes that the government will “soon release a discussion paper” on a “stronger” electricity grid. The “electricity stack” noted includes “storage and end-use applications,” which hopefully signals that Canada’s electricity plan will include saving electricity and improving grid utilization. Brendan Haley highlighted this as key to growing the electricity system affordably.

Energy efficiency is one of Canada’s most powerful economic tools. It lowers energy bills, strengthens Canadian industries and skilled trades, and improves energy productivity — generating more value from every unit of energy we use. 

Budget 2026 could launch an energy-saving nation-building project with these five recommendations:

1. Renew $400 million in funding for the Green Industrial Facilities and Manufacturing Program.
2. Dedicate $4.5 billion in low-cost repayable capital for Canadian home energy upgrades.
3. Fund $300 million to modernize and scale building retrofits.
4. Increase funding for low-income energy efficiency through the Canada Greener Homes Affordability Program to $2 billion.
5. Simplify application and expand eligibility to the Clean Technology Investment Tax Credit.