Climate change is the major environmental challenge of the 21st century. For Canada it poses a distinct challenge, both in terms of adaptation (particularly for Northern and coastal communities, as well as for economic sectors like forestry and agriculture), and in terms of greenhouse-gas reduction and the transition from a carbon-intensive economy to a low-carbon one. Yet there is also an economic opportunity in this transition. In launching the new “Canada’s Transition to a Low-Carbon Economy” initiative, Smart Prosperity Institute is growing its focus on the policy and market tools for supporting this transition.