This budget lets the market drive decision-making on climate investments – that’s good, but risky

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The tax-credit and financing plans add up to a high-stakes experiment that requires the government to put broad policies in place, then step back and see how the market responds

The federal government’s new industrial strategy is predicated on removing politicians and bureaucrats from public investment decisions in favour of a more market-driven approach, even as it commits tens of billions of new dollars to backing low-carbon sectors.federal budget

The idea is to get money out the door more quickly, in ways that can be more reliably built into companies’ business plans when they’re deciding where to site their projects. That’s seen as preferable to the more discretionary grants and other funding tools on which Canada has mostly relied to date, which often involve long and opaque application processes that can be shaped by political lobbying.

Most of the ones it is putting on the table – including a 30-per-cent investment tax credit for clean-tech manufacturing, a hydrogen one ranging from 15 per cent to 40 per cent and an expanded, 50-per-cent one for carbon capture – are superficially in the same range as comparable incentives in the U.S. under the Inflation Reduction Act. The government estimates they’ll amount to $80-billion between now and 2035, although that number is difficult to predict given the uncertainty of uptake.

Instead, Ottawa will make its new 15-per-cent refundable electricity credit available even to non-taxable entities such as Crown corporations, public utilities and Indigenous-owned corporations. It’s a novel solution to a complex problem, and the government estimates it will ultimately pay out more money than any of its other new credits, but again it’s hard to know how many projects will be made sufficiently appealing by effectively promising a 15-per-cent share of building costs.

 

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Risky? it’s outright stupid. ALL OF IT requires endless escalating public funding because none of its viable without. No positive revenue, margin ever. The jobs are at the expense of Cdn’s suffering liberals record tax & cost of living that is perpetually increasing along with it

Yes the government really did a great job on TransMountain pipeline.

LOL Meanwhile The Corruption, Lying & Cover-Ups Continue... 8 Years This Pail Of Meat Trimmings Has Held The Title Of Prime Minister Of Canada 🇨🇳 For 8 Years Aladdin’s 🇨🇳 Banana Republic 🇨🇦 TrudeauMustGo JUSTINflation BlackFaceHitler 🇨🇳🧦🌴🍾🤡🎈

As if.

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