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Federal budget 2022 highlights

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To help meet Canada's climate change targets, the budget offers $2.6 billion over five years to finance a new investment tax credit for businesses that spend money on carbon capture, utilization and storage (CCUS).

New tax breaks for carbon capture technology are yet another subsidy for fossil fuel companies

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Canada needs at least $100 billion more in annual investments to reach its goal of a net-zero economy by 2050, according to the Liberals’ 2022 budget.

“Governments cannot do this alone. To prosper in the face of challenges of such great scale, we must find new ways of pooling our capabilities across the public sector, the private sector, and across industries from coast-to-coast-to-coast,”

“On the fight against climate change alone – to build a net-zero economy by 2050 – Canada will need between $125 billion and $140 billion of investment every year over that period. Today, annual investment in the climate transition is between $15 billion and $25 billion. No one government can close that gap.”

That’s the government’s framing for a $15-billion “Canada Growth Fund” – a new arms-length “public investment vehicle” that hopes to raise $3 in private sector buy-in for every $1 in public money.

The government hopes the Canada Growth Fund will achieve three central goals – reducing emissions to help the country reach its climate goals, to bolster “low-carbon industries and new technologies” and boost their export, and to “support the restructuring of critical supply chains” important to the future economy.

But details about how the fund will actually be structured will wait until the government’s fall economic update, pending consultations with experts both in Canada and abroad.

The government is also designing a new investment tax credit for businesses investing in clean technology, but will wait until the fall economic statement to unveil details.

The budget also proposed $547.5 million over four years to launch a similar program for medium- and heavy-duty zero-emission vehicles, as well as $33.8 million over five years to assist provinces and territories with developing regulations and conduct safety testing for long-haul zero-emissions trucks.