Liberals 'dawdle' on billions in net-zero investment tax credits: NDP critic - Action News
Home WebMail Friday, November 22, 2024, 06:12 AM | Calgary | -13.3°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Politics

Liberals 'dawdle' on billions in net-zero investment tax credits: NDP critic

Two years after the federal government began announcing what it calls "clean investment tax credits," no company has been able to access the incentives that are supposed to jump-start a net-zero investment bonanza.

Finance minister says her department is working to roll the ITCs out

Landowner Duane Olson and his dog Bella walk past solar panels at the opening of the Michichi Solar project near Drumheller, Alta., Tuesday, July 11, 2023.THE CANADIAN PRESS/Jeff McIntosh
Landowner Duane Olson and his dog Bella walk past solar panels at the opening of the Michichi solar project near Drumheller, Alta., on July 11, 2023. (THE CANADIAN PRESS/Jeff McIntosh)

Two years after the federal government began announcing what it calls "clean investment tax credits" to jump-start an anticipatednet-zero investment bonanza, no company has managedto access the incentives.

The government says it is still finalizing the terms of the investment tax credits, or ITCs. Industry and other climate policy researchers say ITCs are needed to decarbonize Canada's economy and achieve net-zero emissions by 2050.

The incentives, which could be worth$27 billion over five years, include refundable tax credits for clean electricity generation, hydrogen and carbon capture utilization and storage.

Some of these measures were announced as recently as March, while others, such as the clean technologies and hydrogen credits, were announced a year ago during the 2022 fall economic statement.

The carbon capture utilization and storage credit was announced way back inbudget 2021.

Canada risks falling behind in the global race to attract billions of dollars in low-emission investments especially given the rapid pace of the Biden administration's efforts to green the U.S. economy said NDPnatural resources critic Charlie Angus.

NDP MP for Timmins-James Bay Charlie Angus speaks during a news conference calling on First Nations representation, at the ongoing health care talks on Parliament Hill in Ottawa on Feb. 7, 2023.
NDP MP for Timmins-James Bay Charlie Angus says Canada risks being left behind in the race to create a low-carbon economy. (Spencer Colby/The Canadian Press)

"It seems like the Liberals are continuing to dawdle around and talk about it," Angus told CBC News. "Meanwhile the Biden administration is driving an economic transformation unlike anything we've ever seen.

"And we risk being left at the side of the road if we do not move quickly."

Angus cited International Energy Agency (IEA) reports that predict aradically different energy market by 2030. The IEAprojectsthatby then, nearly half of the world's electricity supply will come from renewable sources and heat pumps, and other electric heating systems will outsell fossil fuel systems.

"This is an industrial revolution that's happening at an accelerated level. International investors are choosing where to go," Angus said.

Angus's comments echo a warning delivered by the Macdonald Laurier Institute policy think-tank this week.

During her testimony before a House of Commons committee, Heather Exner-Pirot, the institute's director of natural resources, energy and the environment, told MPs the federal government developed the tax credits in response to the Biden administration's Inflation Reduction Act (IRA).

The IRA is a multi-billion-dollar program that pledges government funding for developing low-carbon energy. The IRA looks to boost the country's manufacturing sector and takes aim at China's dominant position in the clean energy technology supply chain. The law is regarded as the most ambitious climate bill ever passed in the U.S.

The Commons standing committee on natural resources is looking at whether Canada's clean energy plans meet the challenge posed bythe IRA.

"As of today, none [of the ITCs] are in force," Exner-Pirot told the standing committee. "Delays in finalizing the terms and conditions of each ITC through law effectively freezes capital and diminish Canada's ability to achieve its emissions reductions targets."

An electric vehicle charging station is displayed in an exhibition showroom.
A fast charging station manufactured by Sumitomo Electric at Fully Charged Live, an electric vehicle (EV), renewable and clean energy and urban mobility exhibition, in Vancouver, B.C. on Sept. 8, 2023. (Darryl Dyck/The Canadian Press)

While draft legislation has been published for the clean technology and carbon capture and storage tax credits, she said,the tax credits for hydrogen, clean manufacturing and clean electricity "remain conceptual."

Freeland working to get the ITCs across the line

Finance Minister Chrystia Freeland was in Calgary Wednesday toannouncethe first investment from the government's Canada Growth Fund a $15 billion arm's-length public investment vehicle to support Canada's clean economy.

Through the fund, Ottawa will invest $90 million in the Calgary-based geothermal energy company Eavor Technologies.

Freelandsuggested the investment tax creditswill be finalized soon.

"Our government absolutely shares that sense of urgency, and you will hear more from us soon about getting all of those ITCs across the line and available for companies like this one," Freeland told reporters.

In follow-up comments, Freeland's senior communications adviser said tax credits for technology, manufacturing, and carbon capture, utilizationand storage tax would be backdatedso some investments being made now could still qualify.

"The tax credits are retroactive, deliberately, as we know Canada cannot afford to miss out on this opportunity to build a thriving, sustainable, clean economy with economic opportunities for Canadians across the country," said Katherine Cuplinskas in a media statement.

Deputy Prime Minister and Minister of Finance Chrystia Freeland takes part in a press conference in Ottawa on Tuesday, Oct. 17, 2023. THE CANADIAN PRESS/Sean Kilpatrick
Finance Minister Chrystia Freeland takes part in a press conference in Ottawa on Tuesday, Oct. 17, 2023. (THE CANADIAN PRESS/Sean Kilpatrick)

Although Freeland hinted there could be more news about investment tax credits soon, the tax credits would still need to be tabled in legislation and approved by Parliament.

Meanwhile, companies are postponing investment decisions, said Green Party MP Mike Morrice.

"I am hearing directly from clean tech companies in my community that the decision to purchase and move ahead is being delayed," said Morrice, the MP for Kitchener Centre.

"And that's the real concern here and why it is so important for these tax credits to be put in legislation as soon as possible."

Add some good to your morning and evening.

Your weekly guide to what you need to know about federal politics and the minority Liberal government. Get the latest news and sharp analysis delivered to your inbox every Sunday morning.

...

The next issue of Minority Report will soon be in your inbox.

Discover all CBC newsletters in theSubscription Centre.opens new window

This site is protected by reCAPTCHA and the Google Privacy Policy and Google Terms of Service apply.