The Canadian government, under Prime Minister Justin Trudeau’s leadership, had announced investment tax credits (ITCs) worth C$27 billion over five years to encourage investments in green technologies. These incentives were designed to promote clean energy, carbon capture and storage, and other environmentally friendly initiatives.
Despite the initial announcement made more than a year ago, the incentives have not been put into practice, leading to frustration and uncertainty among businesses in Canada’s clean technology sector. This delay is seen as a missed opportunity, particularly when compared to the United States, which has been offering generous incentives for similar projects.
Industry groups, such as the Chemistry Industry Association of Canada and Canadian Manufacturers & Exporters, have expressed concerns about the delay. They argue that many projects, with proposed investments exceeding C$25 billion, are waiting for these incentives to move forward.
The government has stated that once the ITCs are fully legislated, they will be applied retroactively to the dates outlined in the initial announcements. Some companies have already started investing based on the expectation that the incentives will eventually be implemented.
The incentives are considered crucial in achieving Canada’s target of reaching net-zero emissions by 2050. They are meant to encourage industries to adopt cleaner and more sustainable practices, including carbon capture and renewable energy.