Carbon-lowering contracts will get $7B from fall fiscal update
- Media Manager
- Nov 21, 2023
- 1 min read
Global News
Written By: Staff - The Canadian Press
Published: November 21st, 2023
Almost half of the Canada Growth Fund for clean technology investments will be allocated to special contracts intended to give companies the confidence they need to make major investments to lower their greenhouse-gas emissions.
Finance Minister Chrystia Freeland used her fall economic update Tuesday to confirm that the fund — which she launched a year ago in the 2022 fall economic statement — would be the principal vehicle to deliver carbon contracts for difference.
She said up to $7 billion of the $15-billion fund will be set aside for contracts for difference, some of which are already being negotiated.
The contracts acknowledge that companies are making decisions to invest in things that lower their carbon emissions based on how much they expect to pay for the carbon price over several years. Those investments are only sound if they would cost less than what the company would pay in carbon pricing without the technology.
