Federal Budget for 2021 Supports Green Economy and Innovation

Steph Q.
28.04.21 04:18 PM Comment(s)

The Canadian government plans to increase investment in companies creating and working with climate conscious science.

The 2021 Budget proposes to put $101.4 billion toward the development of clean tech. Companies manufacturing zero-emission technology could receive up to 50% in income tax breaks. Although they are not specified, the development of Small Modular Reactors (SMRs) are expected to be included.

Another policy tool within the budget is the Green Bond Framework (GBF). Under the proposed framework, investors would purchase “Green Bonds”. Income generated from the Bonds would be used to combat the effects of climate change. While the details have yet to be finalised, the budget used the funding of green infrastructure projects as an example of what would be supported.

The potential for Alberta to benefit from the GBF is clear. Not long ago, the province joined Saskatchewan, New Brunswick, and Ontario in signing an MOU to study the feasibility of SMRs. The partner provinces intend to develop a joint strategic plan.

Companies investing in reducing their own operational carbon footprint would also receive Federal funding and support. The “Net Zero Accelerator” initiative supports projects that work to cut pollution and intends to create a low carbon advantage for Canadian industry. The goal of this initiative is assist projects that "work to cut pollution, spur clean technology innovations, attract major investments, create good middle class jobs, and foster development of key supply chains to ensure Canadian industries and workers can use their low-carbon advantage to compete and win.”

Other notable features of the budget include the extension of Emergency Wage and Emergency Rent Subsidy Programs to September 25, 2021 and an increase of the Federal Minimum Wage to $15 per hour. Small businesses would be also supported by The Canada Small Business Financing Program, and$63.8 million is slated to assist provinces and territories to complete flood maps for higher-risk areas.

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