The Candian government has delivered a massive boost to green investment and subsidies with a $C80 billion investment.
The investment includes massive tax credits for clean technology over the next decade, including C$25 billion for investments in clean electricity. The plan is being compared to the US Inflation Reduction Act of 2022.
The Canadian government has committed to a net zero future by 2050.
The Candian government will need to spend significant sums to get there and this will include subsidies to encourage investment into Canada and compete against US projects.
Details include a 30 percent tax credit on manufacturing equipment for renewable, nuclear energy projects, zero-emission vehicles and critical mineral extraction and recycling, expected to cost C$11 billion between now and 2035, Politico reported.
Analysts said the efforts by Canada would put the country in a bidding war for green energy projects.
Great for green minerals
The budget proposes another tax credit worth C$11 billion, which will allow for a 30 per cent break in the cost of investments in equipment used for “key critical minerals” like “lithium, cobalt, nickel, graphite, copper, and rare earth elements.”
It’s also good news for nuclear power in Canada.
The budget gives record tax incentives for nuclear energy and manufacturing in Canadian history. Both large-scale nuclear plants and small modular reactors are winners in Tuesday’s rollout of multiple new refundable tax credits, tabled in the House of Commons by Finance Minister Chrystia Freeland, The Narwhal website reported.
Candian energy players will be able to apply for the “Clean Electricity Investment Tax Credit” from next year, reports said.