The Federal Government released its budget and recovery plan to finish the fight against COVID-19 and ensure a resilient economy. Key themes of this plan include jobs creation, small business and growth, women and early learning and child care, climate action and a green economy, and young Canadians.
Here’s a summary of the proposals for Climate Action and a Green Economy:
Lower Home Energy Bills Through Interest-free Loans for Retrofits
$4.4 billion on a cash basis to the Canada Mortgage and Housing Corporation $40,000 ($778.7 million on an accrual basis over five years, starting in 2021-22, with $414.1 million in future years) to help homeowners complete deep home retrofits through interest-free loans worth up to $40,000
Available by Summer 2021
Will support retrofits for up to 200,000 households
Historic Investments in Canada’s Natural Legacy
$2.3 billion over five years, with $100.5 million in remaining amortization, to Environment and Climate Change Canada, Parks Canada, and the Department of Fisheries and Oceans to conserve up to 1 million square kilometers more land and inland waters
$200 million to build natural infrastructure
Accelerating Canada’s Net-zero Transformation Through Innovation
$5 billion over seven years to the Net Zero Accelerator
Funding will allow the government to provide up to $8 billion in support for good jobs and projects that will help reduce domestic greenhouse gas emissions across the Canadian economy.
Carbon Capture, Utilization, and Storage (CCUS)
Introduce an investment tax credit for capital invested in CCUS projects (beginning 2022) with the goal of reducing emissions by at least 15 megatonnes of CO2 annually
Provide $319 million over seven years (starting 2021-2022) with “$1.5 million in remaining amortization, to Natural Resources Canada to support research and development that would improve the commercial viability of carbon capture, utilization, and storage technologies”