Innovation, Science and Economic Development Canada - April 30, 2021 Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, met with some of Alberta's foremost business leaders, investors, innovators and policy–makers to discuss the clean tech investments announced in Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience.
CALGARY, AB, April 30, 2021 /CNW/ - Budget 2021 is the Government of Canada's plan to finish the fight against COVID-19 and ensure a robust economic recovery that is inclusive of all Canadians.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, met with some of Alberta's foremost business leaders, investors, innovators and policy–makers to discuss the clean tech investments announced in Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience.
The COVID-19 recession is the steepest and fastest economic contraction since the Great Depression. It has disproportionately affected low-wage workers, young people, women and racialized Canadians. Budget 2021 is a historic investment to address the specific impacts of the COVID-19 recession, put people first, create jobs, grow the middle class, set businesses on a track for long-term growth and ensure that Canada's future will be healthier, more equitable, greener and more prosperous.
Budget 2021 demonstrates the Government of Canada's commitment to making investments in clean technology that lay the groundwork for a stronger, greener and more sustainable economy that creates opportunities for all Canadians. Clean tech continues to offer significant benefits to Canadians—from reduced electricity costs to clean air to more than 211,000 well-paying jobs— and helps reduce our environmental impacts and helps us meet our climate change goals. Building on recent investments in climate action and clean technology, Budget 2021 proposes to provide $17.6 billion toward a green recovery that creates middle-class jobs, builds a clean economy and protects against climate change.
Canada entered the pandemic in a strong fiscal position. This allowed the government to take quick and decisive action, supporting people and businesses, and put it in the position to make historic investments in the recovery.
Quote
"Through Budget 2021, we are investing an unprecedented $17.6 billion in clean technology to meet our climate goals and protect our planet for future generations, all while driving economic prosperity and creating well-paying jobs across Canada. These bold investments reflect our commitment to helping companies and innovators succeed in their pursuit of clean-growth solutions, thereby putting Canada on the map as a global leader in clean technology and climate action." – The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
Quick facts
To help strengthen Canada's clean industrial advantage, Budget 2021 proposes significant investments through Innovation, Science and Economic Development Canada, including:
$5 billion over seven years to increase funding to the Net Zero Accelerator. This support builds on the $3 billion over five years announced in the government's strengthened climate plan in December 2020. This funding would allow the government to provide support for projects that will help reduce domestic greenhouse gas emissions across the Canadian economy.
$1 billion over five years to help draw in private sector investments in transformative clean technology projects. These resources would fuel the growth of innovative Canadian companies, create jobs for highly skilled workers, help decarbonize the Canadian economy, and bring important environmental and climate solutions to the world.
$24 million over three years to renew the Clean Technology Data Strategy to continue to measure the clean tech sector's contribution to Canada's economy; and Clean Growth Hub to continue to help clean technology companies navigate federal resources and supports.
Budget 2021 also proposes to provide Natural Resources Canada with:
$319 million over seven years to support research, development and demonstrations that would improve the commercial viability of carbon capture, utilization and storage technologies;
$1.5 billion over five years to establish a Clean Fuels Fund to support the production and distribution of low-carbon and zero-emission fuels, including hydrogen and biomass, positioning Canada as a global hydrogen leader and delivering on the Hydrogen Strategy for Canada;
$9.6 million over three years to create a Critical Battery Minerals Centre of Excellence, in addition to coordinating federal policy and programs on critical minerals and working with provincial, territorial and other partners; and
$36.8 million over three years for federal research and development to advance critical battery mineral processing and refining expertise.
In addition, Budget 2021 proposes to provide $56.1 million over five years to Measurement Canada to develop and implement, in coordination with international partners, a set of codes and standards for retail Zero Emission Vehicle charging and fueling stations. This would include accreditation and inspection frameworks needed to ensure the standards are met throughout Canada's vast network of charging and refueling stations. Budget 2021 also proposes to provide $67.4 million to Measurement Canada to ensure that commercial transactions of low-carbon fuels are measured accurately, just as they are for conventional fuels.
These new investments will be a cornerstone of the government's plan to rebuild the economy, help more than 200,000 Canadians make their homes greener, and invest in world-leading technologies that make industry cleaner and reduce pollution.
To help accelerate investment in clean energy technology and make Canada one of the best places in the world for clean tech manufacturing and investment, Budget 2021 also proposes new tax instruments that would:
reduce by 50% the general corporate and small business income tax rates for manufacturers of zero-emission technologies;
expand the list of equipment eligible for tax incentives to encourage businesses to invest in clean energy generation and energy efficiency equipment, allowing them to immediately write off the full cost of investments in certain clean energy technologies;
update eligibility criteria, so that fossil-fueled equipment will no longer be eligible for these tax incentives after 2024; and
introduce an investment tax credit for capital invested in carbon capture, utilization and storage projects, with the goal of reducing CO2 emissions by at least 15 megatonnes annually.
The government announced the largest-ever investment in Sustainable Development Technology Canada (SDTC) in December 2020 as part of the strengthened climate plan. SDTC has made significant recent investments in next-generation clean technologies in Alberta to support early commercialization efforts, such as:
$12 million to Enerkem Alberta Biofuels in Edmonton to help build the world's first commercial-scale biorefinery dedicated to the production of renewable chemicals and advanced biofuels using non-recyclable municipal solid waste. As part of the project, Enerkem plans to build, own and operate a commercial next-generation cellulosic ethanol plant.
$5 million to Calgary-based Acceleware Ltd., a Canadian innovator of clean tech enhanced heavy oil recovery technology and a developer of software solutions for the oil industry. Acceleware is working with a consortium, including GE Global Research and oil sands producers, to test and commercialize its radio frequency XL heating technology.
Up to $100,000 in funding per project through the SDTC Seed Fund to identify and support early-stage clean tech innovators in Alberta, including:
Direct-C Ltd. (2019) – Energy Exploration and Production – TEC Edmonton
Stream Technologies (2019) – Agriculture – TEC Edmonton
G2V Optics (2020) – Agriculture – TEC Edmonton
Swirtex Inc. (2020) – Water/Wastewater – Alacrity Canada
Absolute Combustion International (2020) – Energy Utilization – TEC Edmonton
SeeO2 Energy (2020) – Energy Utilization – Innovate Calgary
Summit Nanotech (2020) – Transportation – MaRS
Future Fielding Cellular Agriculture (2020) – Agriculture – TEC Edmonton
Carbonova Corp. (2020) – Transportation – Innovate Calgary
CleanO2 (2020) – Products with captured carbon – CDL Rockies
Clean technologies contributed more than $28.8 billion to the Canadian economy in 2019, including the export of approximately $7.05 billion worth of clean technology goods and services.
Women occupied 41% of all jobs in the clean tech sector. On average, women and Indigenous peoples in clean tech were compensated better than in the general workforce. Moreover, Indigenous peoples are better represented in clean tech compared to the economy-wide average.