What lies ahead for Canada’s green energy sector?
As the new federal government sets out its key priorities, we’re thinking about our sustainable energy sector — how it might evolve under a renewed administration, and how organizations can keep advancing their energy transition plans. Despite national focus shifting to current economic challenges and political uncertainties, it’s expected that Canadian businesses and the public sector will continue working toward optimized energy use, waste reduction and operational efficiency.
Whether it be adopting energy management technologies like smart grids or implementing innovative energy management systems and storage solutions, significant energy investments that drive operational, economic and environmental benefits will continue to shape Canada’s energy future. The challenge going forward however will be balancing environmental commitments with immediate economic priorities.
Shifting geopolitical landscapes
While looming U.S. tariffs are forcing Canada to rethink its export strategies with greater interest in traditional energy sectors like liquid natural gas, Prime Minister Mark Carney plans to implement numerous financial incentives to promote sustainable energy alternatives. This is good news for organizations working to achieve net-zero targets, but their success will ultimately hinge on effective implementation while also navigating economic and political uncertainty.
“The path to a net-zero energy system has never been linear and now more than ever, every organization will need to approach their transition differently, depending on their unique strengths and the challenges they face,” says MJ Croonen, our vice president and energy advisory practice lead. “Leaders must first understand their energy goals so they can prioritize effectively and act proactively. A systems-based approach is essential to success — one that appraises the full energy lifecycle of infrastructure, including generation, transfer, and consumption, and assesses environmental footprint and future adaptability.”
On the global stage, similar challenges exist. In this recent Utility Dive article by AECOM’s Adrian Del Maestro, Resetting net zero: What next?, he cites a 2024 decrease in the growth rate of clean energy investment, particularly in emerging technologies like hydrogen and carbon capture and storage. He also emphasizes the importance of grid modernization and the integration of renewable energy sources.
“Getting net zero back on track will not be straightforward. Yet there is still time for a course correct. This will require a renewed emphasis on energy resilience, one that refocuses limited resources on key technologies while removing barriers to what is already profitable,” says Del Maestro.
Embracing technology and innovative thinking
Even though today’s geopolitical landscape threatens collaboration and makes whole-systems thinking more difficult, we’re also experiencing incredible momentum for innovation. Organizations are embracing intrapreneurship to spark accelerated digitalization and a collective desire to create positive societal outcomes. What’s more, technologies that help store, transport and recover energy are transforming how we design, build, and operate today’s infrastructure and its supporting systems.
To align with these rapid technical advancements, we have reimagined how we work and lead in energy transition. Our Sustainable Legacies strategy not only defines the meaningful action needed within our organization, it outlines how we extend our deep technical expertise to best serve our clients.
“We’re disrupting the advisory services and management consulting space by putting technical excellence at the forefront of advisory,” says Elizabeth Logan, our ESG advisory and sustainability services lead. “We’re channeling our full arsenal of industry-leading technical excellence, trusted relationships and profound client listening to deliver end-to-end advisory services that blend strategic direction with real-world technical expertise and deep collaboration. Our goal is to unlock opportunities and long-term success for our clients while creating positive societal impact.”
Our global Water and Environment Advisory business led by Jill Hudkins is an example of where we bring together experts in digital water, asset transformation, strategic energy advisory, resilience planning, climate change mitigation, and ESG to solve our clients most pressing challenges. Their work supports high-growth needs in an increasingly resource-constrained world. Coupled with our world-class program management expertise, we’ve further elevated the value of technical excellence to meet the rapidly growing size, scale and complexity of today’s critical infrastructure.
“Our commitment to decarbonizing the full lifecycle of infrastructure includes reducing our own carbon emissions by 50 percent by 2030. But our role extends beyond internal action,” says Jennifer Routhier, AECOM Canada’s decarbonization lead. “We unite with governments, utilities, regulators and investors to shape whole energy systems, from initial strategy to deployment and operation.”
For over two decades, we’ve helped evaluate and develop renewable energy systems — biomass, solar, wind, hydroelectric, geothermal — and continue to expand our capabilities in emerging areas like hydrogen, nuclear, and future fuels. Across Canada, we’re helping local partners upgrade aging grid systems, strengthen disaster resilience, and build new infrastructure to connect renewable sources to where power is needed most.
We also understand the significant role Indigenous communities play in energy transitions and are committed to implementing the Truth and Reconciliation Commission of Canada Call to Action #92. This includes building respectful, long-term relationships; supporting equitable access to employment, training, and procurement; and advancing economic participation for Indigenous Peoples.
Our work with Henvey Inlet First Nation to deliver a 300-megawatt wind farm on their traditional territory is one such example. With approximately 15 percent of project staff coming from the Anishinabek Nation, we worked closely with the community on environmental assessments and workforce planning to ensure knowledge transfer on local ecosystems and species-at-risk. This project now delivers clean power to 100,000 homes annually.
Looking ahead, Canada’s energy future will be shaped by more than technology — it will be influenced by economic shifts, social and environmental priorities, and evolving public policy. By engaging with clients early and holistically, we evaluate regional opportunities, mitigate organizational risk, and build tailored roadmaps that drive enduring positive outcomes. We are transforming how we deliver — investing in AI, knowledge management, and digital tools that enhance how we work and maximize impact.
Ultimately the success of sustainable energy requires participation from everyone — regulators, industry, transmission companies, large-scale energy users, and public entities. It also demands an all-encompassing, systems-based approach that champions innovation, equity and collaboration. By integrating advisory services that are deeply rooted in technical expertise and a commitment to our Sustainable Legacies strategy, we are supporting communities across Canada and throughout the world in building a clean, resilient and inclusive energy future.
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