Canada strengthens incentives to help industries improve clean technologies

REPUBLIKA.CO.ID, OTTAWA — Canada is seeking to bolster its incentives to help industries upgrade clean technologies after the United States passed a major investment in August to accelerate the green transition there.

As shown on the page ReutersThursday (10/20/2022) The Inflation Reduction Act (IRA) was signed into law by US President Joe Biden and contains incentives for consumers and businesses as the United States seeks to significantly reduce its carbon emissions.

“This is a huge bill with many different Canadian ramifications. We’re working on it. You’ll see some of it in the fall economic report, and you’ll see other measures in the spring budget.” said Finance Minister Chrystia Freeland.

Freeland said he would soon announce an annual fall economic statement (FES) date, when the government updates its economic projections and sometimes changes its spending plans. Canada is expected to avoid further stimulus at the FES, analysts told Reuters last week.

Company Canada those looking to build carbon capture facilities and manufacturers hoping to attract new electric vehicles (EVs) or battery factories have expressed concern that IRAs would give the United States an unfair advantage.

Governments in Europe and Asia have lodged complaints about some of the measures affecting their industries. On Wednesday, the Biden administration announced another major push for its green transition, saying it was providing a $2.8 billion grant to boost U.S. production of electric vehicles or the minerals in their batteries.

Freeland has repeatedly welcomed the introduction of the IRA as it puts the US on a path to a green transition without penalizing Canada with the US automaker’s new electric vehicle consumption tax credit. , as previously announced. Instead, a tax credit allowed North American automakers.

The extended IRAs also increase supply requirements for critical minerals used to make batteries with free trade agreement allies such as Canada, which has many minerals but still needs to increase production and processing.