Consumer Pulse Check: Urgent action, yes, but balanced with economic priorities

Budget-strapped Canadians willing to pay a bit more for climate action, but want corporations and governments to lead the way.

We have found that Canadian consumers are willing slightly more to tackle climate change, but a higher cost of living and affordability crisis has made the issue a lower priority for many across the country.

The second annual survey of approximately 2,000 Canadians, conducted by polling firm Ipsos on behalf of RBC Climate Action Institute, highlights the tension between addressing their own immediate cost of living challenges and the greater longer-term issue of addressing and mitigating global warming. The survey was conducted across Canada, roughly 50-50% between men and women, with representation from Ontario (36%), Quebec (23%), British Columbia (12%), Alberta and Saskatchewan (10% each) and Atlantic Canada (8%). Millennial Generation (1981–1996), Generation X (Born 1966–1980), and Baby Boom Generation (Born 1946–1965) were evenly split, with Generation Z (born 1987-2012) making up 11%.

Ipsos also polled approximately a thousand American consumers and roughly an equal number of Britons to understand consumer attitudes in peer countries, suggesting Canadians aren’t the only ones grappling with helping the environment without straining their budgets.

Eight in 10 Canadians also said they would strongly support or be somewhat supportive of regulating and incentivizing heavy-emitting industries to reduce their impact on the climate, even if it requires a small increase in taxes, increased deficit, or reallocation of government spending from other areas, according to the survey of Canadian consumers’ attitude towards climate issues.

Other related social measures—like providing financial support for workers in energy transition or expanding public transit—have broad support.

However, roughly a year after the federal government scrapped the consumer carbon tax, the nation seems ambivalent about putting a price tag on carbon emissions to manage climate change.

1. One in 10 Canadians see climate among Canada’s top two priorities—but there’s a provincial divide. That’s compared to 21% last year. Cost of living was the most dominant issue on Canadians’ minds at 70%. But there’s provincial divergence: 16-17% of Quebecers and Maritime residents listed climate in the top two issues for Canada, compared to 6% in Prairies, 10% in Ontario and 12% in British Columbia.

2. A near majority (47%) says we must act urgently on climate change, but balance it with the economy and other needs. That was the dominant sentiment – only 13% don’t see an impetus for urgent action citing other priorities. 

3. Every second Canadian has witnessed the impact of extreme heat or wildfires in the past few years. The survey was also taken just before the wildfire smoke blanketed the sky across several provinces. The U.S. and the U.K. share similar experiences with extreme heat, topping the chart for the three nations. But Canadians surveyed claim to be more affected more across the board of extreme weather events.

4. One in four Canadians claim to have suffered a health issue due to climate change in the past two to three years. Women report higher impact than men across health and wellness categories. One in five Canadians were also hit economically, with Gen Z and Millennials feel the greatest impact overall, especially compared to Boomers.

5. Cost and affordability are the top barriers to climate-friendly action. Three quarters (74%) of Canadians cited it as the biggest challenge, followed by limited availability of options. A striking quarter of Canadians doubt individual actions matter.

6. More than half (57%) of Canadians have not taken any of the climate action investments (outlined below) in the past 12 months.

This tension is reflected in expectations: Canadians overwhelmingly believe governments (62%) and corporations (58%) should lead on climate action, while individual engagement remains more limited and cost-sensitive.

7. Two in five (38%) Canadians are willing to pay more for a product or service that’s considered “environment friendly”. Younger Canadians are significantly more willing to pay higher premiums – 51% and 45% among Gen Z and Millennials compared to 31% and 37% for Gen X and Boomers. Most of those willing to pay more, however, would accept up to 10% higher price, and only 2% going as far as paying over 50% premium.

8. Few Canadians want to see their energy costs rising. About a quarter oppose accepting higher energy costs if that means transitioning to renewable energy. Generational gap was most pronounced, with nearly two-thirds of Gen Z willing to accept higher costs compared to 38-49% across the rest of age cohorts.

9. Canadians believe corporates and governments should take the most responsibility for addressing climate change and mitigation. Canadians surveyed believe that it is the job of lawmakers and major emitters, with only 1 in 10 Canadians seeing individuals taking the most responsibility. One in four Quebecers is more likely to say NGOs should take on some of the burden.

10. Every generation believes they are the generation that cares the most about climate action. All the generations surveyed identified themselves as most caring about climate action. However, among all the Canadians surveyed, Generation Z was viewed as the most concerned about climate action, with Boomers and the Silent Generation getting the fewest votes.”

Affordability is seen as a single main obstacle to making choices with climate in mind across all three countries (57-74%), in Canadian provinces (70-79%), and age groups (71-75%). Though younger generations quote convenience as a relatively more challenging barrier, boomers, at the verge of retiring and one of the largest consumer groups, cited finding limited options.

11. Women care more than men. Canadian women generally displayed more concern for the environment:

• They are more likely to say we must act urgently, balancing environmental and economic needs (52%), compared to men (43%).

• Women are more likely than men to report taking several actions, including reducing consumption (61% vs. 47%), reducing home energy use (54% vs. 44%), and shifting diet (23% vs. 14%), while men are more likely to say they have taken no actions (12% vs. 7%) or “none of the above” (19% vs. 11%).

12. Canadians are not the only ones struggling to balance climate with other priorities. British (14%) and American (15%) residents are largely in line with Canadians (12%) to identify climate change as among their nation’s top priorities. Still, climate remains among the lowest priorities for all three nations.

• Americans surveyed are more likely to have experienced climate change through extreme heat waves (47%) or severe storms (38%). Western U.S. residents are most likely to report extreme heat effects and drought or water restrictions, along with poor air quality.

• Britons experienced climate change through heat waves (46%) and changes in seasonal patterns (36%).