Environmental protection expenditures by businesses, 2023
Released: 2026-01-27
Canadian businesses spent $32.2 billion on environmental activities to protect and reduce pressures on the environment in 2023, up 17.4% from 2022. Almost two-thirds (63.1%) of this spending in 2023 was used to produce clean energy, purchase biomaterials or efficiently use and manage energy (resource management activities). By comparison, 36.9% of spending was put towards environmental protection activities, such as solid waste and wastewater management and air pollution management.
Production of energy from nuclear sources ($8.3 billion) was the largest component of spending, accounting for just over one-quarter (25.7%) of total environmental activity-related spending in 2023, followed by production of energy from renewable resources ($8.0 billion). Spending on wastewater management ($3.6 billion), solid waste management ($2.6 billion) and air pollution management ($2.3 billion) have continued to rank as the three primary environmental protection activities.
In 2023, more than half (55.9%) of environmental activity spending came in the form of operational costs, with the remainder (44.1%) coming through capital investments. The $14.2 billion spent on capital assets for environmental protection, and resource management accounted for 4.0% of all non-residential tangible capital expenditures in Canada in 2023.
Chart 1
Canadian businesses' expenditures in resource management and environmental protection activities
Electric power generation, transmission and distribution industry and oil and gas extraction industry continue to report top expenditures to protect the environment
The electric power generation, transmission and distribution industry has been the lead contributor to spending in resource management expenditures since 2018, and it spent $15.6 billion in 2023. The petroleum and coal product manufacturing industry followed, with $1.9 billion in spending, 98.3% of which was used to purchase biofuels, biochemical products or biomaterials.
The oil and gas extraction industry spent the largest share on environmental protection activities in 2023, at $4.0 billion, accounting for just over one-third (33.9%) of environmental protection expenditures. This industry allocated the largest proportion of its environmental protection expenditures to wastewater management (35.3%). The mining and quarrying industry followed, with $1.3 billion in spending, accounting for about one-tenth (10.6%) of environmental protection expenditures.
Alberta businesses record the highest environmental protection expenditures
In 2023, businesses in Alberta (38.9%) accounted for the largest share of environmental protection expenditures, followed by those in Ontario (19.5%). Spending on wastewater management activities (30.2%) accounted for the largest proportion of environmental protection expenditures among businesses in Alberta.
Business spending related to resource management activities in 2023 was highest in Ontario (43.8% of total spending) and British Columbia (32.3% of total spending), driven by spending on clean energy production.
Corporate policy, return on investment and regulations drive investment decisions
In 2023, businesses reported that corporate policy (10.4%), return on investment (9.9%) and regulations (9.9%) were the top drivers for the adoption of new or significantly improved clean technologies or systems related to environmental protection.
Looking for more information?
Check out the Environment Statistics portal and the Spending by Canadian businesses on environmental protection visualization tool.
Sustainable Development Goals
On January 1, 2016, the world officially began implementation of the 2030 Agenda for Sustainable Development—the United Nations' transformative plan of action that addresses urgent global challenges over the next 15 years. The plan is based on 17 specific sustainable development goals.
The 2023 Environmental Protection Expenditure Survey is an example of how Statistics Canada supports the reporting on the Global Goals for Sustainable Development. This release will be used in helping to measure the following goal:
Note to readers
This release presents data from the 2023 Environmental Protection Expenditures Survey. This annual survey of Canadian businesses is conducted with around 6,000 establishments in selected primary industries (resource extraction), electric power generation, transmission and distribution, natural gas distribution, the manufacturing sector, and pipeline transportation.
Data are available on expenditures and the share of businesses reporting expenditures for environmental activities, by industry and province. Data are also available on industry's drivers and obstacles to the purchase of technologies related to environmental protection, and the processes and practices adopted by them to protect the environment.
Related information on government spending on environmental protection can be found in table 10-10-0005-01 Canadian Classification of Functions of Government (CCOFOG) by consolidated government component.
Information on management of water resources is available in tables 38-10-0064-01, 38-10-0065-01, 38-10-0084-01 and 38-10-0085-01; information on research and development activities is available in table 38-10-0180-01.
Definitions
Environmental protection expenditures: All operating expenses and capital and repair expenditures whose primary purpose is the prevention, reduction or elimination of pollution and/or other forms of degradation of the environment, as well as measures taken to restore the environment from a degraded state. This includes expenditures that a business incurred for atmospheric pollution management; solid waste management; wastewater management; protection and remediation of soil, groundwater and surface water; protection and restoration of biodiversity and habitat; clean vehicles and transportation technologies; environmental monitoring; environmental assessments and audits; relevant training and administrative costs.
Resource management expenditures: All operating expenses and capital and repair expenditures whose purpose relates to the effective management of resources. In this survey, resource management includes heat or energy savings and management, the purchase of biofuels, biochemical products or biomaterials, as well as expenditures for the production of energy from nuclear or renewable sources. Other resource management activities (e.g., management of timber resources, aquatic resources, water resources) are not included in this survey.
For more information on the variables and definitions used, see the Annual Environmental Protection Expenditures Survey page.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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