Perfect budget that fits PYR's vertical market in so many ways.
April 20, 2021
Budget 2021: seven top takeaways for zero-emission transportation (electricautonomy.ca) In its blockbuster 2021 federal budget, the Canadian government announced that $17.6 billion of the overall $101.4 billion in new spending will go towards a “green recovery” for the country. Here are the top seven line items to look for:
Aggressive emission reduction targets
In an important piece of news on climate action, the 2021 budget estimates the investments and measures taken “including strengthened alignment with the United States to further cut pollution from transportation” put Canada on track to cut greenhouse gas emissions by 36 per cent below 2005 levels by 2030 — a six per cent increase over the pledge for a 30 per cent reduction first announced by the Harper government in 2015. The budget reaffirm’s Canada’s goal to be net-zero by 2050.
“We are at a pivotal moment. Just as the invention of the steam engine and of the personal computer triggered transformative economic shifts, today, the global economy is turning swiftly, decisively and irreversibly green”
2021 Canadian Federal Budget
Lowering emissions from transportation and landfills
The transportation and waste sectors account for 30 per cent of greenhouse gas emissions in Canada, with the majority coming from light- and heavy-duty vehicles, with emissions from gas-powered household equipment on the rise. Additionally, landfills across the country are responsible for contributing significant methane emissions.
The 2021 budget hones in on reducing these GHG emissions to create a “healthier environment” overall with an investment of $104.6 over five years to Environment and Climate Change Canada. The money will be used to “strengthen greenhouse gas emissions regulations for light- and heavy-duty vehicles and off-road residential equipment, establish national methane regulations for large landfills, and undertake additional actions to reduce and better use waste at these sites.”
Additional $5 billion for Net Zero Accelerator
The Strategic Innovation Fund’s Net Zero Accelerator, introduced last year, gets a further investment of $5 billion over seven years in the 2021 budget on top of the initial $3 billion in funding allocated at launch, for a total of $8 billion.
The funds are to be used to “rapidly expedite decarbonization projects with large emitters, scale-up clean technology and accelerate Canada’s industrial transformation across all sectors” according to government documents. This includes investments in clean technology developments in Canada’s automobile sector, the development of a battery sector that will contribute to an end-to-end battery supply chain.
Big investments in hydrogen fuel cells
Hydrogen fuel-cell technology is heavily favoured in the 2021 budget with funding for “green hydrogen,” tax breaks and funding to “support the production and distribution of low-carbon and zero emission fuels, including hydrogen.” The funding, which isn’t specified, in particular aims to position Canada as a “global leader” in hydrogen and make good on the Hydrogen Strategy for Canada, according to the budget.
Critical battery minerals see significant investment in Budget 2021
The federal government is backing up its strong stand on developing Canada’s national battery supply chain, as well as its bilateral commitments, with nearly $50 million in funding for research, development and policy-informing initiatives
Critical minerals are coming out a winning sector in Budget 2021 with $46.4 million in total funding over the next three years directed to setting up a research centre, informing cross-border policies with the United States and research and development (R&D).
“Canada has rich reserves of the critical minerals needed for electric vehicle batteries and solar panels, along with other low-carbon technologies needed to reach net-zero,” reads Budget 2021. “The resources needed for these technologies create good jobs in regions across the country.”
The money will be divided between two major streams: $9.6 million will be used over three years to establish a Critical Battery Minerals Centre of Excellence at Natural Resources Canada and $36.8 million over three years will go towards R&D in the mining and refining sectors.