Canada wildfire climate
Image by Michael from Pixabay

Canada offers lesson in the economic toll of climate change

Wildfires are hurting many industries and could strain households across Canada, one of many countries reckoning with the impact of extreme weather, writes Lydia DePillis in the New York Times.


In a nutshell:

Canada's ongoing wildfires, which have already consumed 20 million acres and blanketed cities with smoke, are wreaking havoc on the economy. The fires have disrupted oil and gas operations, reduced timber harvests, impacted the tourism industry, and put a strain on the national health system. Previously, Canada seemed better positioned to handle climate change, but increasing volatility and extreme weather events are wiping out any potential gains. Experts predict that climate-related costs will mount to 25 billion Canadian dollars in 2025, with a loss of 500,000 jobs by mid-century. The economic impact of the current fires is yet to be determined, but it is expected to have a significant negative effect on Canada's economic growth.

Key quote:

“It’s come on faster than we thought, even informed people,” said Dave Sawyer, principal economist at the Canadian Climate Institute. “You couldn’t model this out if you tried. We’ve always been concerned about this escalation of damages, but seeing it happen is so stark.”

The big picture:

The Canada wildfires not only pose a threat to the economy but also have severe health implications. The smoke generated by the fires can lead to respiratory issues and exacerbate existing conditions such as asthma. Breathing in the polluted air can cause headaches and other discomforts, prompting experts to advise people to limit their time outdoors and improve indoor air quality. The long-term consequences of exposure to wildfire smoke, such as respiratory ailments and increased costs for smoke-related illnesses, are a growing concern as these catastrophic events become more frequent.

Read more at the New York Times.

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Izzy Ross reports for Grist and Interlochen Public Radio.

In short:

  • The tribes oppose Enbridge’s Line 5 tunnel project, which would replace part of a 72-year-old pipeline under the Straits of Mackinac, a critical freshwater corridor between Lake Michigan and Lake Huron.
  • Their withdrawal follows the Army Corps of Engineers’ move to fast-track permitting under President Trump’s energy emergency order, which tribes say dismisses their environmental and legal concerns.
  • Tribal leaders and legal advocates argue that the project threatens water resources and violates both U.S. treaty obligations and international law requiring Indigenous consent.

Key quote:

“Tribal Nations are no longer willing to expend their time and resources as Cooperating Agencies just so their participation may be used by the Corps to lend credibility to a flawed [Environmental Impact Statement] process and document.”

— Letter from seven Indigenous nations to the U.S. Army Corps of Engineers

Why this matters:

Buried beneath the Straits of Mackinac, where Lake Michigan and Lake Huron converge, Line 5 has become a flashpoint in the battle over fossil fuel infrastructure, Indigenous sovereignty, and environmental protection. The aging oil and gas pipeline — operated by Canadian energy giant Enbridge — moves millions of gallons of crude and natural gas liquids daily through a region that holds 20% of the planet’s surface freshwater. A proposed tunnel to house a replacement segment beneath the lakebed has drawn fierce opposition from tribal nations, who warn it risks catastrophic spills and continued desecration of sacred territory.

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