Canadians See the Light on Energy Transition but Lag in Capturing Its Investment Potential

The energy transition is no longer a distant ideal for Canadian investors—it’s a pressing concern. A staggering 76% of Canadian investors now recognize the critical role of the energy transition in addressing climate change, according to Mackenzie Investments’ Sixth Annual Earth Day Study. Yet this awareness has not yet translated into broad investment action, leaving a significant opportunity gap. While Canadians express a willingness to support sustainable projects, systemic barriers—from skepticism about emerging technologies to a lack of education—are holding them back.

The Paradox of Awareness and Inaction

Despite the overwhelming majority acknowledging the importance of transitioning to cleaner energy, 58% of investors say they’d pay a premium for ESG-aligned investments. Yet, without the tools to navigate the landscape, many remain on the sidelines. The study highlights a critical disconnect: 64% of respondents want more education on sustainable investing, suggesting that financial literacy around ESG strategies is a key bottleneck. This gap is most pronounced among older generations, who are 20% less likely than younger investors to prioritize ESG over short-term gains.

Generational Divide and Economic Priorities

Younger investors (under 40) are leading the charge, but their enthusiasm hasn’t yet trickled up. Meanwhile, 60% of all respondents cite clean energy job creation as a top priority, linking environmental goals to economic stability. This underscores a broader societal shift: Canadians see the energy transition not just as an environmental imperative but as an economic one. Yet skepticism persists. A full 38% remain doubtful about the reliability of emerging technologies like hydrogen fuels or carbon capture, while 45% distrust “greenwashing” claims, calling for stricter regulations to ensure transparency.

This data contrast reveals the growth potential of renewable energy companies, which have outpaced broader markets in recent years—a trend that Canadian investors may be underestimating.

Regional Challenges and the Need for Tailored Solutions

Geography plays a role too. In Alberta and Saskatchewan, where fossil fuels dominate the economy, enthusiasm for rapid energy transition policies drops to 60%, below the national average. This regional divide highlights the need for policies that balance environmental goals with economic realities, such as retraining programs for workers transitioning to clean energy sectors.

A Call for Collaboration and Education

The study concludes that 68% of investors believe government, corporate, and investor collaboration is essential to accelerate the energy transition. This sentiment points to a collective responsibility: financial institutions must provide clearer ESG education, while regulators must combat greenwashing. Investors, meanwhile, should look beyond skepticism to the long-term stability of renewables. For example, the volatility of fossil fuel stocks—Exxon Mobil (XOM) has fluctuated by over 30% annually in the past decade—contrasts with the steady growth of renewable-focused firms like Brookfield Renewable (BEP).

Conclusion: The Prize Is Within Reach

Canadians are primed to seize energy transition opportunities but are constrained by knowledge gaps and regional divides. With 58% willing to pay a premium for ESG investments, the demand exists—but only if institutions deliver accessible education and transparency. The 68% advocating for cross-sector collaboration signal a path forward. By addressing greenwashing concerns and tailoring strategies to regions like Alberta, investors can turn awareness into action. The energy transition is not just about saving the planet; it’s about building resilient, future-proof portfolios. Those who act now may well reap the rewards as renewables continue to outperform traditional energy sectors. The window is open—will Canadian investors step through?

This data illustrates the risks and rewards of emerging technologies, underscoring the need for informed, diversified investment strategies.