What’s in it for cleantech?
Last week Prime Minister Trudeau issued mandate letters to his new Cabinet. Find below what’s in it for cleantech. We are particularly excited to see that the 30% investment tax credit Canada Cleantech Alliance had been advocating for is included in the Prime Minister’s mandate letter to Minister Freeland.
Environment and Climate Change
- Implement the Canadian Net-Zero Emissions Accountability Act, and bring forward an updated Emissions Reduction Plan to achieve a 40 to 45 per cent reduction in emissions by 2030 from 2005 levels.
- Cap oil and gas sector emissions at current levels and ensure that the sector makes an ambitious and achievable contribution to meeting the 2030 climate goals.
- Develop a plan to reduce economy-wide methane emissions consistent with the Global Methane Pledge and require through regulations the reduction of oil and gas methane emissions in Canada by at least 75 per cent below 2012 levels by 2030.
- Work with industry, labour, and other stakeholders to develop a regulated sales mandate that at least 50 per cent of all new light-duty vehicle sales be zero emissions vehicles in 2030, toward achieving Canada’s mandatory target of 100 percent by 2035.
- Introduce a Clean Electricity Standard to achieve a net-zero clean electricity grid by 2035.
- Seek opportunities within your portfolio to support our whole-of-government effort to reduce emissions, create clean jobs and address the climate-related challenges communities are already facing.
- Advance near-term consultations with provinces, territories, and Indigenous communities to develop and implement strategies to decarbonize electricity systems by establishing a Pan-Canadian Grid Council, support the transformation from diesel-fueled power to clean, renewable, and reliable energy by 2030, and work to connect regions with carbon intensive electricity systems to more clean power.
- Cap oil and gas sector emissions at current levels and ensure that the sector makes an ambitious and achievable contribution to meeting the 2030 climate goals.
- Accelerate Canada’s G20 commitment to eliminate fossil fuel subsidies from 2025 to 2023 and develop a plan to phase out public financing of the fossil fuel sectors.
- Support the implementation of the Net Zero Accelerator Initiative.
- Work with the Minister of Innovation, Science and Industry to establish a global centre for excellence on methane detection and elimination and develop a sustainable battery innovation and industrial ecosystem in Canada and launch a Canada-U.S. Battery Alliance.
- Introduce a new Buy Clean Strategy to support and prioritize the use of made-in-Canada low-carbon products in Canadian infrastructure projects.
- Reduce pollution from transportation by adding 50,000 new electric vehicle chargers and hydrogen stations to Canada’s network.
- Work with provinces and territories, communities and Indigenous Peoples to develop and implement a National Net-Zero Emissions Building Strategy to achieve net-zero emissions from buildings by 2050.
- Work with the Prime Minister to champion the adoption of a global minimum standard on carbon pricing and engage with provinces, territories, and key trading partners, including the US and the EU, to inform the development of an approach to applying Border Carbon Adjustments (BCAs) to emissions-intensive imports such as steel, cement, and aluminium.
- Ensure budgetary measures are consistent with the federal government’s climate goals and the legislated requirement to achieve net-zero emissions by no later than 2050.
- Introduce an investment tax credit for capital invested in Carbon Capture, Utilization and Storage projects.
- Require federally regulated institutions, including financial institutions, pension funds and government agencies, to issue climate-related financial disclosures and net-zero plans.
- Launch an annual program of green bond issuances, with an initial issuance of $5 billion.
- Support clean energy and clean technologies by introducing additional investment tax credits for renewable energy and battery storage solutions, doubling the Mineral Exploration Tax Credit for minerals essential to the manufacture of vital clean technologies.
- Establish an investment tax credit of up to 30 per cent for a broad range of clean technologies, both market-ready and emerging.
International Trade, Export Promotion, Small Business and Economic Development
- Engage the United States to address bilateral trade issues and protectionist measures, including with respect to government procurement and in the automotive, energy, and agricultural sectors
- Continue working to position Canada as a global leader on critical minerals — and to secure supply chains — by working with international partners through the implementation of the Canada–U.S. Joint Action Plan on Critical Minerals Collaboration and the Canada-EU Strategic Partnership on Raw Materials.
Innovation, Science and Industry
- Lead the delivery of the Net Zero Accelerator Initiative, a multibillion-dollar effort sourced from the government’s Strategic Innovation Fund meant to substantially reduce greenhouse gas emissions in the industrial sector.
- Work with Natural Resources Minister Jonathan Wilkinson on a Canadian Critical Minerals Strategy to develop a globally competitive industry as zero-emission vehicle production ramps up around the world.
- Champion Canada’s “green agricultural plan” — supporting farmers with funding for clean tech and other practices while reducing methane and fertilizer emissions.