Here are three tough truths about climate that Bill Gates thinks everyone should know:

• Climate change is serious, but we’ve made great progress. We need to keep backing the breakthroughs that will help the world reach zero emissions.

• We can’t cut funding for health and development, or other essential programs that help people stay resilient in the face of climate change to do it.

• It’s time to put human welfare at the center of our climate strategies, which includes reducing the Green Premium to zero and improving agriculture and health in poor countries.

Many are claiming that Bill Gates’ message means that we should slow down or stop the deployment of clean energy infrastructure or cease trying to improve energy efficiency within our systems. However, this dramatically misrepresents his statements. In fact, a strong argument can be made that focusing on climate adaptation rather than climate mitigation doesn’t change anything about renewables deployment, grid modernization, or building efficiency.

Instead, Bill Gates is stating that we need to be strategic about how capital is deployed to ensure that we get the greatest societal return on our investments. And the good news for the renewable energy sector is that energy, water, and transportation are the backbones of society.

So, in the context of Canada and the push for energy expansion and efficiency, we must “keep calm and carry on.”

Breaking Down Bill’s Tough Truths

The core of the argument

At the core of Bill’s opinion piece is the fact that climate change is not an imminent existential threat to humanity, and as such people will be able to continue living and thriving in most places on Earth. He also believes that “the doomsday outlook is causing much of the climate community to focus too much on near-term emissions goals, and it’s diverting resources from the most effective things we should be doing to improve life in a warming world.”

This letter was published in the lead up to the annual Conference of the Parties (COP), which is organized by the United Nations Framework Convention on Climate Change (UNFCCC), set to take place in Brazil this year. On the agenda for this year’s COP30 is ‘climate adaptation’. 

So what exactly is ‘climate adaptation’ and how is it different from ‘climate mitigation’? Unlike climate mitigation, which is about tackling the cause of climate change by reducing greenhouse gas emissions (GHG), climate adaptation means adjusting to the current or expected effects of climate change. It’s about reducing harm or taking advantage of potential benefits that come from a changing climate, for example:

• Building seawalls or restoring wetlands to protect coastal areas from rising sea levels.

• Developing drought-resistant crops to cope with less predictable rainfall.

• Upgrading infrastructure (like stormwater systems or buildings) to withstand more extreme weather.

In short, climate mitigation is about preventing future change, while climate adaptation is about managing the change that has already happened or is unavoidable.

But here’s the trick: if done correctly, a positive outcome of climate adaptation can be climate mitigation.

Climate Adaptation Done Right

In the context of energy expansion, what should Canada, and the rest of the world for that matter, be focusing on when it comes to climate adaptation? I would direct your attention to bullet point number three above – upgrading infrastructure.

First and foremost is diversifying and decentralizing power generation. By encouraging the development and deployment of distributed energy resources (DERs) like rooftop solar, community wind, battery storage, and utility-scale solar and wind, we can reduce our vulnerability to centralized grid failures during extreme weather. Utility-scale projects provide large, reliable sources of renewable energy that support grid stability, while smaller, distributed systems add redundancy and flexibility. Together, this mix ensures that even if one part of the system is disrupted by storms, heatwaves, or wildfires, power can still be delivered to homes, businesses, and critical infrastructure.

Next is future-proofing our electricity grid by upgrading transmission and distribution systems (aka power-lines) to withstand more frequent heatwaves, wildfires, storms, and ice events. This includes undergrounding lines, reinforcing poles, and improving vegetation management.

We must also look to expand energy storage capacity. By investing in short- and long-duration battery energy storage systems (BESS), we can better balance intermittent renewable energy resources during climate-driven demand spikes. During heat waves, air-conditioning loads increase dramatically, while cold snaps lead to an increase in heating demand, all of which places extra load on the grid. BESS allows energy that was stored during periods of low demand to be released back onto the grid, taking the pressure off of power generators and potentially avoiding brown- or black-outs.

Climate adaptation also means supporting microgrids, renewable-thermal hybrids, and local energy storage in northern and Indigenous communities that face rising fuel transport costs and infrastructure vulnerability from thawing permafrost.

Finally, we must adapt power plants (including hydro and thermal) to withstand warmer water temperatures and reduced water availability that can limit cooling capacity and electricity output.

The Case for Continued & Accelerated Investing

Should we slow down?

As Bill notes himself (in bold lettering with the lead in to be clear), “Climate change is a very important problem. It needs to be solved, along with other problems like malaria and malnutrition. Every tenth of a degree of heating that we prevent is hugely beneficial because a stable climate makes it easier to improve people’s lives.”

Climate adaptation is not about admitting defeat or stopping what we are doing, it’s about shifting the focus to working on the things that have the greatest impact in avoiding the worst outcomes of climate change. This means continuing to accelerate clean energy innovation and deployment, hardening our infrastructure, and continuing to fund innovators and innovations that will help to reign in, and even reverse, global warming.

Capital constraints are real

It is a fact that we live in a world of finite resources, which includes capital. There is only so much money available to drive all aspects of human development, including energy expansion. In this context, the critical question is not “should we invest” in new power generation or energy infrastructure, but rather “where should we invest” to get the best return on our investments.

But we’re not talking simply return on investment (ROI) from a purely economic sense. In order to ensure we succeed in climate adaptation and future proof our systems, we need to add impact to the equation.

In a world of limited capital, the most effective approach is to focus on adaptation investments that deliver multiple, long-term benefits, such as resilience, emissions reduction, and social or economic returns, rather than single-purpose fixes.

Where should Canada focus its resources?

Strategic climate adaptation requires a prioritized framework to maximize the impact of every dollar spent. The first area of focus is protecting critical infrastructure. The big three in this realm are energy, water, and transportation, which together form the backbone of society and the economy. If these systems fail, cascading impacts ripple across every other sector. Strengthening them, through measures such as flood-proof substations, climate-proofed transmission corridors, and resilient roads and bridges, helps prevent costly disasters and systemic disruption.

Equally critical is ensuring that new renewable energy, storage, and transmission projects are designed to withstand future climate stresses. This will require significant upfront investment, but it is far cheaper to build resilience into infrastructure from the outset than to retrofit after failure. In many cases, this involves adapting existing approaches rather than reinventing them entirely. For utility-scale solar, it means siting projects outside wildfire-prone areas or deploying panels in urban landscapes with clear exposure to sunlight. For wind, it entails designing towers, nacelles, and blades to accommodate higher wind variability. For battery energy storage systems (BESS), it means anticipating the physical and operational risks amplified by climate change, such as heat, flooding, storms, and wildfire, and engineering or siting systems accordingly.

Adaptation should also reinforce future economic opportunities, including strengthening clean-tech supply chains, training climate-resilient workers, and supporting localized manufacturing.

Another priority is enhancing energy efficiency and climate-ready buildings. Retrofitting structures to improve insulation, ventilation, and passive heating and cooling delivers dual benefits: adaptation, through improved comfort, health, and resilience, and mitigation, through reduced energy demand.

Finally, Canada should emphasize ‘no-regret’ measures that provide value under any climate scenario. These include energy efficiency improvements, investments in green infrastructure, and development of resilient local grids, all of which reduce risk and deliver tangible benefits regardless of how the climate evolves.

Energy Expansion & Climate Adaptation

The world’s demand for energy is increasing

Global energy demand is on the rise, with some forecasts projecting it could more than double by 2050. Several key factors are driving this growth. First, population growth and urbanization are increasing the number of people consuming electricity, heating, cooling, and transportation fuels, particularly in developing regions. Rising incomes also mean more energy-intensive goods and services are being used, further boosting demand.

At the same time, efforts to decarbonize are shifting major sectors like transport, buildings, and industry from fossil fuels to electricity. Widespread adoption of electric vehicles, heat pumps, and electrified industrial processes will put additional pressure on power systems. Digital technologies, including data centers, cloud computing, and artificial intelligence, are also increasingly energy-intensive, further contributing to electricity demand.

Finally, expanding energy access to the more than 700 million people who currently lack reliable electricity, along with growing industrialization and material demand for infrastructure and clean-energy systems, are all adding to the pressure. Together, these trends highlight the urgent need for energy systems that are not only low-carbon but also resilient and capable of meeting a rapidly growing and evolving global demand.

We have the technology

Solving for climate adaptation and by extension mitigation does not require some future breakthroughs. Existing technologies such as renewable energy, storage, and smart grids allow us to reduce greenhouse‑gas emissions while building a more resilient power system capable of withstanding extreme weather and other climate risks.

And in Canada, the technology is already being applied:

• The federal Smart Renewables & Electrification Pathways Program (SREPs) is backing deployment of grid‑modernization, renewables and storage across the country, supporting over 2,700 MW of new renewable energy capacity and displacing over 3.1 million tonnes of CO₂e annually.

• The market snapshot from the Canada Energy Regulator shows that energy‑storage capacity in Canada could more than double by 2030, moving from 552 MW at end of 2024 to as much as 2,768 MW if proposed projects proceed.

• In Ontario, the federal investment in behind‑the‑meter energy storage systems (3.82 MW across multiple sites) is helping local grids become more resilient and flexible.

Energy efficiency and climate‑ready buildings further amplify these benefits. By improving insulation, ventilation, and passive heating or cooling, we reduce overall energy demand while increasing resilience to temperature extremes. Smart energy‑management systems, predictive maintenance, and advanced grid controls also allow utilities to anticipate and respond to climate‑related disruptions more effectively.

Will there be a “green premium”?

For many years, adopting clean energy technologies like solar, wind, and battery energy storage (BESS) came with a noticeable “green premium”, that is a higher upfront cost compared to conventional fossil fuel alternatives. This premium was often cited as a barrier to investment in low-carbon solutions, including those that also enhance climate adaptation.

Today, the landscape has changed dramatically. Technological advancements, economies of scale, and growing global deployment have driven down costs across the board. Utility-scale solar and wind projects are now frequently among the most cost-competitive sources of new electricity generation. Similarly, battery storage costs have plummeted as manufacturers optimize chemistry, scale production, and improve operational lifetimes. In many markets, building a solar farm or wind facility with integrated storage is cheaper than running new natural gas capacity over its lifetime, even without factoring in the social and climate benefits.

Moreover, cost curves continue to trend downward. Each doubling of installed capacity typically results in lower unit costs, a phenomenon seen repeatedly with solar panels, wind turbines, and lithium-ion batteries. The implication for climate adaptation is clear: deploying solar, wind, and BESS is no longer a niche or expensive strategy. These technologies allow communities, utilities, and industries to enhance resilience to extreme weather, stabilize power supply, and reduce emissions, all without paying a premium. In fact, in many cases, they offer a financial advantage over conventional solutions while simultaneously contributing to a safer, more adaptable energy system.

The Path Forward

Why Canada must “keep calm and carry on”

Canada is at a pivotal moment in addressing climate change. The challenges are real, but so are the solutions, and the good news is that we already have the tools, technologies, and strategies to meet them head-on. Climate adaptation is not a signal to slow down or concede, but rather a call to act strategically, focusing on investments that deliver benefits for resilience, emissions reductions, and social and economic returns.

By expanding clean energy generation, decentralizing power, modernizing grids, deploying storage, and making buildings and infrastructure climate-ready, Canada can protect communities from extreme weather, stabilize the energy system, and reduce greenhouse gas emissions simultaneously. The old “green premium” is gone, and declining costs in solar, wind, and battery storage make these solutions increasingly cost-competitive. In other words, resilience and adaptation are no longer expensive options. Instead they are practical, financially sensible investments for the future.

With a clear framework for prioritizing investments, an emphasis on technologies already proven in Canadian contexts, and a commitment to long-term planning, we can continue to innovate, grow, and protect our citizens and economy. As Bill reminds us, every tenth of a degree of warming we prevent matters. By keeping calm, carrying on, and focusing on the actions that truly make a difference, Canada can meet the energy demands of tomorrow while building a resilient, low-carbon future.