The future of Canada’s ambitious plans for clean technology is in jeopardy as the long-awaited incentives that were supposed to spur green technology projects are still not in place. The Liberal Party of Canada under Prime Minister Justin Trudeau committed to providing investment tax credits (ITCs) worth a total of C$27 billion over five years to encourage the development of green technologies and speed up the shift to a low-carbon economy. Although the Pantech tech sector is impatiently expecting action, the delay in putting these incentives into place poses a danger, with over $50 billion in prospective investments on the line.
Current State of Affairs
Despite the initial announcement of C$10 billion in ITCs for net-zero technology including carbon capture and storage, followed by an additional C$17 billion for clean hydrogen, power, and industry, the money has not yet been distributed. Since the United States has been providing comparable incentives, making it an appealing location for green investments, the delay has raised concerns among the industry.
Industry’s Perspective
A number of business groups, such as Canadian Manufacturers & Exporters and the Chemistry Industry Association of Canada, stress how quickly the incentives must be put into place. They emphasize the requirement for foreign products to be comparable to American ones in order to maintain competitiveness and avoid losing prospective investments to nearby nations.
To move on with their decarbonization programmes, a number of businesses, notably Lafarge and Dow Chemicals, are relying on ITCs. Lafarge, a manufacturer of cement, intends to reduce carbon emissions significantly, demonstrating the potential effect that these incentives may have on the viability of such projects.
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More than $50 billion in prospective investments are at stake as a result of Canada’s delay in granting the promised clean tech incentives. For the country to reach its net-zero emission goals by 2050, timely implementation of these incentives is essential given the urgency of addressing climate change. To guarantee that Canadian businesses maintain their competitiveness and attract critical investments in the quickly changing green technology market, the government must expedite the legislative process.
