Finance Minister Chrystia Freeland delivers the federal budget in the House of Commons as Prime Minister Justin Trudeau looks on in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Finance Minister Chrystia Freeland delivers the federal budget in the House of Commons as Prime Minister Justin Trudeau looks on in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Federal Budget 2021: Liberals focus on clean technology for climate spending

Government says funds will be spread out over seven years and is on top of the $3 billion announced

Pushing the private sector to develop clean technology — and heavy emitters to adopt it — is where billions in new money will flow from the Liberals’ 2021 budget pledge to tackle climate change.

Around $17 billion is promised to be spent in the years ahead to promote a “green” recovery out of the COVID-19 pandemic and create jobs.

Included in that is $5 billion more into a fund meant to be spent on projects used by industry to reduce their greenhouse gas emissions.

The government says that will be spread out over seven years and is on top of the $3 billion announced when the Liberals unveiled their plan reach to net-zero emissions by 2050.

Another measure targeting heavy emitters is a new tax incentive to encourage companies to adopt technology that traps carbon dioxide into the ground from fuel combustion instead of seeing it released into the atmosphere.

The government says it will soon begin consultations on designing a tax credit for capital spent on carbon capture and storage technology in hopes of increasing how many million tonnes Canada traps annually.

Making the country a hub for clean technology is among the priorities Prime Minister Justin Trudeau has outlined in his approach to climate. The Liberals also want to adopt policies that make Canada go over and above its international commitment to reduce greenhouse gas emissions by 30 per cent below 2005 levels.

A political scientist who focuses on budget polices and public finances says the new spending plan fails to offer solutions to the pressures facing Ottawa, like how to reconcile the environment with the economy.

“I don’t see a big ambitious program that will lead us to zero emissions with strict targets,” said Genevieve Tellier of the University of Ottawa.

She added a lot of the new climate spending comes in form of grants, so it’s being left up to private businesses to come to government with ideas.

“It’s not a very aggressive, proactive environmental budget.”

Tellier says there’s not much for Saskatchewan and Alberta by way of providing a road map or more support for transitioning away from fossil fuels.

She also suggests the budget is not likely to woo potential voters who want to see more action on climate change if the minority Parliament heads into an election.

Overall, Tellier says climate change has taken a back seat to recovering the economy from the pandemic, although the government has placed a green lens on programs like housing.

Building off of what was promised in fall economic statement and in hopes of reducing people’s energy bills, Ottawa promised to send around $4 billion over five years to the Canada Mortgage and Housing Corp. to offer interest-free loans of up to $40,000 for households to do green retrofits.

Other climate initiatives include a 50 per cent 10-year reduction on corporate and small business income tax rates for companies manufacturing zero-emissions technologies, such as solar panels and electric buses.

It will also establish the first federal green bond with an issuance target of $5 billion. The goal is to attract investors to finance ways to fight climate change, like through green infrastructure.

Getting more electric vehicles on the road is a priority for the Liberals under its net-zero emissions plan and the budget promises $56 million over five years to work with countries like the United States on bringing in standards for zero-emission vehicle charging and refuelling stations.

Although the government says reducing emissions will help all Canadians, a gender-based analysis in the budget says men will likely benefit from growth in the clean energy sector because they make up most of its workforce, same with the new climate spending on science and research.

It also says employees in manufacturing tend to be men, and those who are middle-aged high-income earners have been the early adopters of zero-emission vehicles, according to data.

Monday’s budget also promises $2.3 billion in funding to federal departments like Parks Canada and Fisheries and Oceans to conserve up to one million square kilometres more land and inland waters to meet the country’s 2025 conservation targets

Stephanie Taylor, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

2021 Federal BudgetCoronavirusfederal government

Just Posted

Michelle Jacobs receives her first dose of the COVID-19 vaccine at the Coast Capri Hotel on April 28, 2021. The pop-up clinic was hosted by the First Nations Health Authority. (Aaron Hemens/Capital News)
126 new cases of COVID-19 in Interior Health over the weekend

There are 22 individuals hospitalized due to the virus, and 13 in intensive care

Lauren Regula
Trail native comes back for a third Olympic Games

Trail native Lauren Regula is proud to represent her country in softball at Tokyo Olympic Games

View of the red SUV down an embankment. Photo: Trail RCMP
High speed crash sends 4 people to Trail hospital

The collision happened May 14 at the intersection of Highway 3B and Devito Drive

X
Trail RCMP issue BOLO for Solo

Solo was last spotted in Warfield, but has also been seen around the Tadanac area.

Kootenay Lake Anger Incentive Program wraps up June 1. Photo: Jim Bailey
Incentive program rewards Kootenay angler with $1,000 prize

In catching and retaining Kootenay Lake rainbow and bull trout, fishers are supporting conservation

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Grand Forks Fire/Rescue’s Dave Paulett hoses down a section of a wooden retaining wall which caught fire Monday, May 17. Photo: Laurie Tritschler
Fire starts in Grand Forks backyard after by oily rags left in sun

Flames put out before reaching home on 800-block of 72nd Avenue

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present seven-year-old Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
7-year old Shuswap boy receives medal of bravery for rescuing child at beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the province’s COVID-19 vaccine program, May 10, 2021. (B.C. government)
B.C.’s COVID-19 infection rate stays below 500 a day over weekend

14 more deaths, down to 350 in hospital as of Monday

Royal Bay Secondary School’s rainbow crosswalk was vandalized shortly after being painted but by Monday, coincidentally the International Day Against Homophobia, Transphobia and Biphobia, the crosswalk had been cleaned up and students had surrounded it with chalk messages of support and celebration. (Zoe Ducklow/News Staff)
B.C. high’s school’s pride crosswalk restored following ‘hateful’ graffiti attack

Hate terms, racial slur, phallic images spray-painted at Greater Victoria high school

Terrance Mack would have celebrated his 34th birthday on May 13, 2021. Mack’s family has identified him as the victim of a homicide in an apartment on Third Avenue in Port Alberni sometime in April. (SUBMITTED PHOTO)
Family identifies Ucluelet man as victim of Vancouver Island homicide

Terrance Mack being remembered as ‘kind, gentle’ man

Vancouver Canucks’ Jake Virtanen (18) and Calgary Flames’ Josh Leivo, front right, vie for the puck as goalie Jacob Markstrom, back left, watches during the first period of an NHL hockey game in Vancouver, on Saturday, February 13, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver Canucks forward Jake Virtanen sued over alleged sexual assault

Statement of claim says the woman, identified only by her initials, suffered physical and emotional damages

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Most Read