Canada can compete with the United States’s extensive new green incentives without major new spending if it acts quickly, according to the Business Council of Canada. Goldy Hyder, the organization’s chief executive officer and president, says Ottawa needs to refocus many of the federal climate and innovation policies it has announced but not fully launched.this week outlining key recommendations for the 2023 budget.
As has frequently been the case in advance of recent budgets, the Finance Minister faces considerable uncertainty when it comes to economic forecasts for the year ahead.
provisions in the IRA related to climate and energy initiatives, which add up to more than US$400-billion in spending over the next 10 years. His letter says that without an ambitious Canadian response, the country will be at risk of losing valuable human and financial capital. But that does not mean matching the U.S. dollar-for-dollar with new spending,Instead, Ottawa could focus on streamlining project approvals, positioning Canada as a key global provider of critical minerals and introducing a predictable set of tax credits to encourage green investments.
He said CEOs expressed strong concern in this week’s meeting that Canada is not acting fast enough in areas such as mining critical minerals for clean energy or moving to meet global demand for liquefied natural gas as a way to displace the use of coal or Russian oil.