Canada's green subsidies a 'bankable gap' weaker than U.S.: report
- Media Manager
- Jul 18, 2023
- 1 min read
Microsoft Start - Yahoo! Finance Canada
Written By: Jeff Lagerquist
Published: July 19th, 2023
From producing hydrogen, to mining and refining ingredients for batteries, Canada's incentives for low-carbon industries lag those in the United States despite attempts to level the playing field in the last federal budget.
That's the thrust of a report from Clean Prosperity and The Transition Accelerator published on Tuesday. Based on an analysis of 10 low-carbon technologies in both countries, the think tanks highlight multiple gaps in Canada for "bankable" funding, the type which companies rely upon to greenlight investments. Those funds do not include less certain revenue, like Canadian carbon-credit sales or grant programs.
"This bankable gap will make it difficult for Canada to systematically attract investment in key low-carbon technologies," the report's authors wrote. "Instead, Canada will have to continue to rely on bespoke discretionary deals to make up for this incentive gap, such as the package offered to Volkswagen to set up a battery manufacturing facility in Ontario."
The U.S. Inflation Reduction Act (IRA) signed into law by President Joe Biden last year put Canada and other major economies on notice to respond. The legislation includes US$369 billion in public funding for energy security and climate change over the next decade. Canada's federal budget sets out $83 billion for clean technology tax credits through to the 2034-35 fiscal year.
