People familiar with the matter told Reuters,CanadaThe government will introduce legislation this month to start providing subsidies for carbon capture and net zero projects in the energy sector, as part of a five-year plan worth about $20 billion.
Reuters reported that Canada’s delays in developing a carbon capture, reuse and storage (CCUS) program and equipment used to produce low-carbon energy prompted industry lobby groups to warn in September That if the government did not act, the cost would be as high as $36 billion. soon. related toinvestThere may be risks.
Sources also said that Canadian Finance Minister Chrystia Freeland will submit the so-called Autumn Economic Report (FES) to Congress on the afternoon of the 21st, at which time the investment tax credit (ITC) benefits will be announced.
The investment tax credit will also be included in the legislative process in the autumn economic report submitted to Congress, the sources said. According to previous budget documents, the five investment tax credit programs combined would invest approximately $19.7 billion in Canada’s net-zero emissions reductions in the first five years of effect.
The Canadian government will also propose to Parliament Labor provisions related to most investment tax credit programs. These conditions require investors to pay workers wages commensurate with local union standards and provide apprenticeship opportunities to maximize subsidies.
Carbon capture, utilization and storage (CCUS) technology, which can reduce the concentration of carbon dioxide in the atmosphere, is critical if Alberta is to cut carbon emissions without reducing oil sands production. Canada has the world’s fourth largest the country isOilProducing country.
The transition to a low-carbon economy is considered the core of Canadian Prime Minister Justin Trudeau’s economic policy, and the investment tax credit is key to helping the Canadian government achieve net-zero emissions in 2050.
An investment tax credit program to finance green technology and the machinery and other equipment needed to produce hydrogen could come in the spring of 2024, the sources said, while an investment tax credit program for clean electricity would come in the autumn. . is proposed.
Funding for investment tax credits related to the construction of green technology and equipment for the production of hydrogen energy will be provided in the spring of 2024; The money needed for clean electricity-related investment tax credits will have to wait until the autumn.