EV slump knocks Canada down as renewables and storage race ahead in energy transition
Canada has fallen out of the global top 10 for energy‑transition investment even as renewable power and storage are growing fast, according to BloombergNEF’s Energy Transition Investment Trends 2026.
BloombergNEF reports that Canada’s total energy‑transition investment dropped 8.8 percent to US$33.4bn in 2025, down from eighth place last year, while Saudi Arabia invested US$34bn and moved ahead.
The report says Canada “is facing stiff competition in the global race for energy transition investment, as countries move quickly to secure low-cost, low-risk and low-carbon energy systems.”
The weak spot is electric vehicles.
Canadian investment in electrified transport fell by US$1bn versus 2024, driven by a 35 percent drop in EV spending “influenced by ending of rebates and policy uncertainty, with the federal EV Availability Standard under review,” according to the report.
Over the same period, global investment in electrified transportation rose 21 percent despite trade turmoil.
At the same time, BloombergNEF notes “exceptional 76 percent y-o-y growth” in renewable energy investment, led by several onshore wind projects, and “major growth in energy storage expansion, approaching $1bn of investment.”
One example is a $750m lithium‑ion battery energy storage facility now under construction in the Township of Edwardsburgh Cardinal, ON, which will store electricity from Ontario’s clean grid during lower demand and return it when demand is higher.
Policy direction sits at the centre of how far this capital can scale.
Merran Smith, president of New Economy Canada, said “investment in clean electricity technologies, grids and electrification is now central” to Canada’s economy.
She argued that “a strong and durable policy framework is required” and said federal electricity, auto and climate competitiveness strategies must work together to expand clean power, develop critical minerals, batteries and vehicle electrification, and improve the competitiveness of Canadian industries.
Linking climate policy directly to productivity and competitiveness is also key, said Moe Kabbara, CEO of Transition Accelerator.
He said Canada’s advantage will be in “mastering the electro-technologies of the future at home—powering our economy while exporting solutions abroad.”
added that “investments in clean power, manufacturing, and skills training aren’t just environmental, they’re nation-building,” and argued that the electricity, auto and climate competitiveness strategies are “all interconnected.”
He warned that with “multiple origin points for those strategies, and even more delivery vehicles, the challenge will be ensuring that the whole adds up to more than the sum of its parts.”
