The forecast for climate change-related total tax revenue in Canada remains relatively stable with values projecting a steady course from 2024 to 2028. In 2023, this revenue stood at 2.82% of total tax revenue. The year-on-year variation shows a slight decrease by 2025 with a constant value expected through 2028. Over the last two years, a very marginal variation is observed, largely nominal, leading to an average CAGR that indicates stability in revenue from climate change-related taxes over the next five years.
Future trends to watch for:
- Potential regulatory changes influencing tax structures.
- Economic fluctuations affecting tax revenue stability from climate-related sources.
- Increasing investments in green technology possibly altering tax bases.
- Social and political pressure for greater climate action impacting future tax policies.
