Federal Budget 2023: Investing in a Sustainable and Resilient Canadian Economy
Our government has committed to achieving net-zero emissions by 2050, and significant funds have been allocated to this goal and to build a sustainable and resilient economy in recent federal budgets.
Federal Budget 2023 ensures that a clean Canadian economy can deliver prosperity, middle-class jobs, and more vibrant communities across the country by making significant investments to ensure that Canada does not fall behind during this period of profound global economic opportunity. The federal budget establishes several priorities for developing a clean economy, which are supported by targeted investments and programming, strategic financing, clear and predictable investment tax credits, pollution pricing, and a regulatory framework.
Highlights of the federal budget 2023 for clean growth
- 30% investment tax credit to the cost of new machinery and equipment used to manufacture or process key clean technologies, as well as extract, process, or recycle critical minerals (Cost $4.5 billion over five years)
- 15%-40% investment tax credit for clean hydrogen projects (Cost $5.6 billion over a five-year period)
- 15% investment tax credit non-emitting electricity, natural gas-fired electricity generation, and energy storage ($6.3 billion over five years)
- Investment Tax Credit for Carbon Capture, Utilization, and Storage ($520 million over five years)
- Canada Infrastructure Bank to invest at least $20 billion to support the building of major clean electricity and clean growth infrastructure projects
- Natural Resources Canada will receive $3.0 billion over 13 years, starting in 2023-24, to support building of a more sustainable, secure, and affordable electricity grid and other targeted federal programs (Recapitalize funding to SREP, Renew Smart Grid Program, create new investments to help capitalize on Canada’s offshore wind potential, advancing the Atlantic Loop)
Building upon the various initiatives undertaken over the recent years, the federal budget 2023 undertaken various initiatives to boost domestic capacity and paves way for a timely energy transition. We believe that there will be a role for future budgets to keep moving forward to get to net zero by 2050 and secure a prime spot for our country in a green global economy.
A Long way to go!
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About the Smart Grid Innovation Network Canada
SGIN is a national, non-profit, member-driven organization. SGIN promotes, identifies, and helps drive smart energy solutions in Canada and at our core we are committed to serving the needs of member networks, communities, industry, and the clean energy ecosystem.