February 21, 2024

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On Tuesday, Federal Liberal Finance Minister Chrystia Freeland launched a fall financial assertion that included a timeline for launching the long-promised carbon seize utilization and storage (CCUS) incentives retroactively to Jan. 1, 2022, — pending laws set to be launched earlier than the tip of the yr.

“Our financial plan is targeted on constructing an financial system that works for everybody with good jobs that folks can rely on,” Freeland mentioned in a speech to the Home of Commons.

Ottawa additionally provided some particulars about carbon contracts for variations, which can supply insurance coverage in opposition to future adjustments to the value on carbon, defending traders if the value goes down, noting the Canada Progress Fund is already working to barter contracts with proponents.

The Canada Progress Fund is about to allocate, “on a precedence foundation,” as much as $7 billion of its present $15 billion in capital to challenge all types of contracts for variations and offtake agreements, the doc mentioned.

“The federal authorities has made this dedication within the earlier three budgets — we want a extra sturdy entry into carbon contracts with trade to spur actual funding,” Jean mentioned.

The CCUS tax credit may even include labour strings connected, together with the requirement to pay “prevailing union wages.”

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Kendall Dilling, president of Pathways Alliance, speaks to the Fort McMurray Chamber of Commerce at their annual basic assembly at Shell Place on June 22, 2023. Vincent McDermott/Fort McMurray In the present day/Postmedia Community

Prime Minister Justin Trudeau’s authorities has beforehand mentioned the brand new funding tax credit could be set at 50 per cent for spending on gear that’s wanted to seize CO2, whereas a 37.5 per cent credit score could be offered for investments in gear utilized in associated transportation and storage. Different inexperienced know-how tax credit like these for clear hydrogen and clear electrical energy are anticipated to change into out there in late March.

It’s all a part of Ottawa’s plan to achieve net-zero emissions by 2050. The Alberta authorities and trade teams have lobbied for Trudeau’s authorities to current a solution to the U.S. Inflation Discount Act, which provided huge incentives for decarbonization.

Kendall Dilling, president of the Pathways Alliance, mentioned in an announcement Tuesday the group of six main oilsands firms is happy Ottawa intends to legislate the tax credit score earlier than the tip of the yr, saying clear coverage and laws to help authorities funding are important to remaining aggressive.

“We’re inspired the federal government has allotted extra assets for carbon contracts for variations, and we stay up for working with the federal government and the Canada Progress Fund to see how they might be carried out for carbon seize and storage initiatives,” Dilling acknowledged.

Kathleen Ganley, Alberta NDP Opposition power and local weather critic, spoke to reporters within the legislature Tuesday earlier than the discharge of the federal financial plan, and emphasised the significance of carbon contracts for distinction and investments in CCUS infrastructure.

“The funding ought to be what is critical to make sure that we are able to transfer ahead with these initiatives,” mentioned Ganley, including that trade wants certainty to be able to make funding choices as quickly as attainable.

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NDP power critic Kathleen Ganley speaks to media at press convention on the steps of McDougall Centre in Calgary. Photograph by picture equipped

Premier Danielle Smith has beforehand mentioned she anticipated to roll out her authorities’s incentive package deal for CCUS earlier than she attends the COP28 local weather summit, which begins subsequent Thursday.

That program, Smith has signalled, will likely be designed to reflect the present Alberta petrochemicals incentive program, which gives grants price 12 per cent of a mission’s eligible capital prices.

Freeland’s financial assertion Tuesday additionally projected larger future deficits, and confirmed initiatives meant to deal with the nation’s housing disaster, together with $15 billion in loans for residence building, cracking down on short-term leases, and new mortgage guidelines directed at banks.

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— With information from Chris Varcoe

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