Canada’s release of its 2023 federal Budget: A Made-In-Canada Plan, comes at a pivotal moment in global commitments to a clean energy transition. From President Biden’s historic signing of the Inflation Reduction Act south of the border (85% of which focuses on climate), to robust sustainable finance and greenwashing-busting legislation in Europe, Canada too includes various investments in and tax credits for clean technology in its new budget.
The federal budget targets three priority areas: healthcare, affordability for everyday citizens, and the clean economy transition. It proposes $43 billion in net new spending over the course of six years, slightly raising the country’s debt-to-GDP ratio for the next two. Current federal debt is at $1.18 trillion.
Budget 2023: Clean Economy
The 2023 budget provisions for a clean economy cover the following areas:
· Clean energy and electrification (e.g., support for innovating the electricity grid)
· Clean manufacturing
· Greenhouse gas emissions reduction
· Electric vehicles and batteries
· Critical minerals
· Support for other major projects