Climate-driven heat waves harm our health and economy. Canadian cleantech innovators are creating the solutions we need.
Our world is getting hotter, and every summer it’s becoming harder to ignore. In the Greater Toronto Area, what used to feel like an occasional heat wave now feels like the new normal. Toronto experienced six heat waves in 2025, compared to just four last year. These extreme heat events are no longer brief episodes; they are becoming more prolonged and frequent, making our cities harder to live and work in.
This is not a passing trend. The World Meteorological Organization confirmed that 2024 was the warmest year ever recorded. The last decade has been a period of unprecedented heat, with the top 10 warmest years on record all occurring since 2015. The first half of 2025 broke several monthly temperature records, and the year is on track to be the second or third hottest yet. Canada, warming faster than anywhere else on Earth, is experiencing these impacts firsthand.
While many are familiar with melting ice caps, rising sea levels, and wildfires, the growing frequency and duration of heat waves are also causing more immediate consequences.
Economic Impact
On a recent VIA Rail trip, Foresight’s Vice President of Technology Adoption, Heather Crochetiere, experienced a 2.5-hour delay caused by extreme heat. When temperatures climb above 30°C, trains often operate at reduced speeds to prevent sun kinks, where steel rails expand and warp, creating serious safety risks. What was first communicated as a short 10–15 minute delay stretched into hours, underscoring how extreme heat disrupts daily life, work, and the economy.
And the economic costs are mounting. Climate-related disruptions are projected to slow national economic growth by $25 billion annually by the end of 2025. Worker safety and productivity are especially vulnerable: indoor manufacturing workers struggle in poorly cooled facilities, while outdoor labourers face shortened shifts due to dangerous heat. Extreme heat also strains our food, transportation, timber, and electricity systems. The Canadian Climate Institute estimates that Canada’s manufacturing sector alone could see annual losses of $1-2 billion by 2050, driven by the productivity impacts of more frequent and intense heat waves.
A Public Health Crisis
The healthcare sector is also feeling the strain. Heat is the leading cause of illness and death from weather-related hazards in Canada, and the frequency, severity, and duration of heat events are rising. During a late-June 2025 heat wave, Toronto Public Health reported 42 heat-related emergency room visits—highlighting the risks for vulnerable populations, including the elderly, infants, outdoor workers, people without air conditioning, and those with pre-existing health conditions.
Intense heat impacts both our physical and mental health, increasing the frequency and intensity of:
- Cardiovascular events
- Respiratory conditions
- Kidney disease
- Anxiety and depression
- Irritability and aggressive behaviour
The urban heat island effect—where paved surfaces, dense buildings, and limited greenery trap heat—further intensifies these conditions in cities.
Declining health also comes with a financial cost. A 2021 estimate projects that by mid-century, Canada’s economy will face $3-$3.9 billion annually in costs tied to heat-related deaths and a reduced quality of life.
Scalable Cleantech
Fortunately, scalable solutions do exist. Innovators across Toronto—and the country—are stepping up to strengthen our resilience. Three Toronto-based companies serve as powerful examples:
- Enersion is developing emission-free cooling and heating systems that use solar energy and advanced materials to eliminate harmful refrigerants and reduce electricity consumption. The company was recently named to the 2025 Global Cleantech 100, a list of the most promising climate tech ventures worldwide.
- NxLite creates energy-efficient window coverings and coatings that reduce solar heat gain, helping buildings stay cooler and lowering energy use. In 2025, NxLite opened a $9 million Advanced Innovation & Manufacturing (AIM) Center in Canton, Michigan, to scale production and accelerate R&D.
- Parity secured $26.1 million in Series B funding, led by Idealist Capital, for its AI-powered software that optimizes HVAC systems in multi-family buildings and hotels, helping them use energy more efficiently.
Other notable Canadian companies are making strides in the fight against heat waves. Calgary’s Eavor Technologies has raised $90 million from the Canada Growth Fund to scale its advanced geothermal systems to deliver consistent, low-carbon heating and cooling. Montreal’s Carbicrete is pioneering cement-free, carbon-negative concrete by using industrial byproducts and captured CO₂. In 2023, the company raised $23.5 million in Series A funding, positioning itself as a key player in building low-carbon, climate-resilient infrastructure.
A Clear Path Forward
Building resilience isn’t optional—it’s urgent. These ventures show that while Canada’s cities and infrastructure aren't yet fully prepared for the realities of climate change, the solutions to protect our communities are already within reach.
Extreme heat is no longer just an inconvenience to our daily plans. It is a growing economic, social, and health crisis. By investing in these innovations today, we can transform an existential threat into an opportunity to build a healthier future for all.
Foresight is scaling technologies to protect infrastructure, communities, and ecosystems from climate change. Learn more about our Earth Tech: Adapt program and how your venture can receive expert mentorship, market access, and funding support.
