Canada Government to Drive Sustainable Energy and Clean Transportation Development through Funding
The Liberal government’s budget for 2024 is making a massive push towards sustainable energy and clean transportation development with an array of funding and investment tax credits. With a total budget of $480.5 billion, the government is allocating significant amounts to various initiatives aimed at transitioning to zero-emission transportation and power generation.
One of the key investments in the budget includes $607 million for zero-emission vehicle purchase rebates, along with a 10% tax credit to support electric vehicle supply chain investment and a 15% tax credit to boost investment in low-emitting electricity generation systems. Overall, the government is using tax credits to support clean-economy initiatives and attract private investment in crucial industries for the net-zero transition.
Budget 2024 also introduces six “major” investment tax credits focused on sustainability and decarbonization, including carbon capture, clean technology adoption, clean hydrogen, clean technology manufacturing, clean electricity, and EV supply chains. The new tax credits, such as the 10% EV Supply Chain Investment Tax Credit, aim to drive investment in key areas needed for a sustainable future.
Additionally, the budget touches on boosting EV adoption by supporting the EV Availability Standard, which mandates a certain percentage of zero-emission vehicles in vehicle sales over the coming years. The government plans to provide a top-up of $607.9 million to the federal iZEV purchase rebate program to help achieve these targets.
In terms of energy and electricity investments, Budget 2024 outlines specific allocations for projects such as energy storage in Nova Scotia and the Atlin Hydroelectric Expansion in Yukon. The budget also introduces a 15% refundable Clean Electricity Investment Tax Credit and provides financing for various renewable energy projects across the country.
Overall, Budget 2024 aims to make Canada’s economy more sustainable, competitive, and productive while creating high-paying jobs in the clean energy sector. With a focus on investing in clean electricity, the government hopes to reduce energy costs for Canadians and create thousands of new jobs by 2050.