The institute's mission is to "advance a prosperous clean energy future for Canada through credible policy solutions that support communities, the economy and a safe climate.

"[2] The Pembina Institute was formed following the 1981 Lodgepole sour gas accident in Alberta, which killed two people and polluted the air for weeks.

A small group of rural Albertans came together to secure tougher regulations for drilling sour gas wells, and later went on to form the Pembina Institute.

The Pembina Institute was also involved in the "Renewable is Doable"[8] initiative with WWF-Canada to replace coal and nuclear power with clean energy sources.

[11][12] The Pembina Institute is primarily funded by a range of project-specific grants, event sponsorships (including those from energy companies such as Suncor, Shell and Bullfrog Power)[13] and individual donations.