As we move towards a more sustainable future, the Government of Canada’s budget for 2023 has made clear its focus on clean energy and CleanTech investments. With a heavy emphasis on supporting cleantech development, healthcare and accelerating Canada’s transition away from fossil fuels, the budget aims to create a more sustainable and environmentally friendly economy.
One of the key initiatives of the budget is the allocation of $500 million to the Strategic Innovation Fund (SIF), aimed at boosting innovation and competitiveness in Canada. The government also plans to introduce billions of dollars in new cleantech and clean energy tax credits, aimed at encouraging businesses to invest in environmentally sustainable technologies.
Despite its emphasis on clean energy, the budget lacks funding for innovation beyond that, prompting concerns from some critics. Nevertheless, the government remains committed to prioritizing affordability, healthcare, and the green economy, while seeking to balance new investments with a shaky macroeconomic environment.
As Canada takes steps towards a cleaner and more sustainable future, the government’s budget for 2023 serves as a clear indication of its commitment to supporting a greener economy and creating a more sustainable future for all Canadians.
Here’s a summary of the key announcements:
$500 million over 10 years
Cleantech investing through the Strategic Innovation Fund (SIF)
$1.5 billion existing resources
Cleantech, critical minerals, and industrial transformation projects through SIF
Investment Tax Credits
$17 billion over 5 years
Clean electricity, hydrogen, cleantech manufacturing, and carbon capture and storage
Clean Technology Manufacturing Investment Tax Credit
Clean Electricity Investment Tax Credit
Clean Technology Investment Tax Credit Eligibility
Expanded eligibility for 30% Investment Tax
Credit for Clean Technology
Expanded eligibility for Carbon Capture,
Utilization, and Storage Investment Tax Credit
Other Innovation Funding
$108.6 million over three years
Expand the College and Community Innovation Program
$368.4 million over three years
Forest sector innovation
$333 million over 10 years
Agriculture and Agri-Food Canada R&D efforts
Tax changes to facilitate Employee Ownership Trusts
Facilitate the creation of Employee Ownership Trusts
Canada Growth Fund (CGF)
Attract private capital to build the country’s green economy through the CGF
Public Sector Pension Plan Investment Board (PSP Investments)
Beginning first half of 2023
Start investing through CGF
Protect Canadians from the risks of crypto assets
Consult with financial institutions on guidelines
Consult federally regulated financial institutions on guidelines for publicly disclosing their exposure to crypto assets
Federally-regulated pension funds to disclose their crypto exposure to OSFI
In conclusion, the Canadian Government’s Budget 2023 reflects a significant shift towards a greener and cleaner economy with a strong focus on CleanTech investments and tax credits. The budget aims to support cleantech development, healthcare, and accelerate Canada’s transition away from fossil fuels. Although innovation funding beyond CleanTech is lacking, the government has made affordability a priority and is trying to balance new investments with the shaky macroeconomic ground. It will be interesting to see how these initiatives will impact Canada’s economy and its efforts towards sustainable development in the coming years.