Backdrop: Since coming to power in 2015, Prime Minister Justin Trudeau has emphasized the government’s commitment to tackle climate change. As Canada’s economy slowly recovered from the impact of Covid-19 amid global interest in climate issues, the government’s first budget in two years sought to curb the recovery of its environmental policy.
“[The federal budget is] A plan that captures a moment of global transformation towards a green and clean economy, ”Freeland said in her budget speech,“ In 2021, job growth means greener growth. ”
Another senior official summed up the government̵7;s thinking, “Climate change is an innovation and job opportunity.”
This is how the Trudeau government plans to meet its climate goals.
Direct spending: As part of the government’s stated goal of reducing Canada’s carbon footprint to zero by 2050, while playing an increasingly activist role in guiding the Ottawa economy, it is pumping $ 5 billion. C in seven years to the Net Zero Accelerator.
The project, announced in December with an initial capital of $ 3 billion, is aimed at attracting Canadian companies in traditional sectors to reduce their carbon footprint, spurring big emitters such as oil and steel producers. Doing dismantling or urging automobile and aerospace manufacturers Adopt clean technology
In the same vein of driving the private industry to act as the liberal government deems worthy, Ottawa will provide S $ 1 billion over five years “to help attract private investment” to Canada’s clean technology sector.
One of the biggest new items among the budget environmental initiatives aims to meet the October 2019 election liberal pledge to conserve 25 percent of Canada’s oceans and land by 2025, the government plans to spend 2.3 thousand. Millions of US dollars over 5 years for conservation. Up to one million square kilometers of land and waterways in the country The government also pledged to create “thousands of jobs” through “historic investments in Canada’s natural heritage” but gave no specific information.
Tax cuts: In large budgets to maximize tax revenue, one group sees fewer tax bills – at least temporarily – manufacturers of zero-emissions technology. It’s a broad umbrella that includes manufacturers of wind turbines, solar panels, electric cars, batteries and fuel cells, as well as producers of green biofuels and hydrogen.
Companies earning at least 10 percent of Canada’s total income through ineligible emissions efforts will receive 50 percent of the corporate income tax rate and small businesses, even if the tax cuts begin to expire in 2029. And will be eliminated by 2032.
Home is where it’s green: Based on a program announced in the fall 2020 economic statement to encourage homeowners and homeowners to undertake energy-efficient upgrades, Ottawa plans to lend a $ 4.4 billion C $ 40,000 interest-free loan to homeowners to operate. “Additional installations” such as oil stove replacement, thick windows and poor insulation.
Other measures: As expected, Canada plans to reach growing demand among global investors for fixed income securities, support for green infrastructure and other sustainability initiatives, Canada hopes to raise 5 thousand. Millions of C dollars with green bond issuance in fiscal 2021-22, the budget will “be the first to issue a large number of green bonds.”
With the federal carbon tax passed the last legal hurdle with a thumbs up from the Supreme Court last month, reimbursement to consumers will begin to become more visible next year. For the time being, Canadians get their payments as a refundable credit when they file taxes, but starting in 2022, the money goes out each quarter as a normal benefit.
To consider: Some of the key elements of Ottawa’s climate-related budget measures that could affect Canada’s ability to meet climate goals remain unresolved.
There are many claims from industry, especially in the oil and gas sector, for Ottawa to introduce a tax credit to support carbon capture, utilization and storage (CCUS). In the upcoming CCUS program, the measure could reduce the carbon footprint of at least 15 megatons per year.
However, no dollar figure was attached to the budget, which said final expenses are pending a 90-day consultation period with no official start date.
Finally, with countries around the world implementing different types of carbon pricing, and some do not apply prices to pollution at all in their domestic industries, governments are looking to raise the playing field for Canadian businesses. It is exploring a border carbon adjustment program that will implement a reasonable import and export tax, although the government says this is required. “Consultation process” as well