Today, the Government of Canada highlighted how Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience, is a plan to finish the fight against COVID-19, create jobs, and ensure a robust economic recovery that brings all Canadians along.
Climate change is the challenge of our times. And it is also one of our greatest opportunities. Canada’s well-educated workforce, energy sector know-how, and trade relationships position us to be a leader in the clean economy of the future. The global recovery from the COVID-19 recession will include seismic investments in a green recovery, and Canada’s plan for strategic, targeted investments will take advantage of this pivot and create opportunities for Canadians in every region of the country, today and well into the future.
Budget 2021 is a plan that proposes to provide $17.6 billion towards a green recovery that will fight climate change, reduce pollution, invest in world-leading clean technology, protect nature, and create good middle class jobs along the way.
Climate action also starts at home and Budget 2021 is a plan to help Canadians make deep energy efficient upgrades to their homes. It will provide zero-interest loans of up to $40,000 for up to 200,000 households. This will help families reduce their carbon footprint and save on their energy bills. It will also create good jobs in communities across the country.
Budget 2021 also proposes a historic investment of a further $5 billion over seven years in the Net Zero Accelerator. The Net Zero Accelerator will help even more companies invest to reduce pollution, while growing their businesses.
Budget 2021 is a plan to build a clean economy, with tax incentives to grow zero-emission technology manufacturing, carbon capture, utilization, and storage, and green hydrogen. It is essential for the prosperity of the next generation of Canadians – and indeed, for those of us working today – for Canada to be at the forefront of this transformation.
A sustainable, long-term recovery demands that we look far into the horizon and consider the legacy we will leave behind. By investing in climate action now, we can create good middle class jobs today, and create a cleaner and safer future for our children and grandchildren.
“Budget 2021 is about meeting the urgent needs of today and about building for the long term. It is a budget focused on middle-class Canadians and on pulling more Canadians up into the middle class. It is a plan that embraces this moment of global transformation to a green, clean economy. Fighting climate change, including by reaching net-zero, will be a cornerstone of the Government of Canada’s plan to rebuild the economy, create middle class jobs, and ensure Canadian industry stays competitive on the world stage.”
Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland
Budget 2021’s proposed investments will create good jobs, help businesses grow, and support a resilient and inclusive recovery. Key proposed measures to create a healthy environment include:
- Providing $4.4 billion on a cash basis to Canada Mortgage and Housing Corporation (CMHC) to help homeowners complete deep home retrofits through interest-free loans worth up to $40,000. The program would be available by summer 2021.
- Providing $5 billion to the Net Zero Accelerator.
- Working closely with the United States to strengthen alignment on transportation and methane emissions.
- Enhancing Canada’s supply of critical minerals to secure our energy security and make sure Canada is a critical supplier of the materials needed for batteries for electric vehicles, renewable energy storage, and net-zero industrial transformation.
- Introducing an investment tax credit for capital invested in carbon capture, utilization, and storage (CCUS) projects, with the goal of reducing emissions by at least 15 megatonnes of CO2 annually.
- Reducing-by 50 per cent-the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies. The reductions would go into effect on January 1, 2022, and would be gradually phased out starting January 1, 2029 and eliminated by January 1, 2032.
- Providing $2.3 billion, 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 and protect priority species at risk, to achieve Canada’s 25 per cent protected area by 2025 target, including through national wildlife areas, and Indigenous Protected and Conserved Areas.
- Providing $200 million to Infrastructure Canada to establish a Natural Infrastructure Fund to support natural and hybrid infrastructure projects. This would help to improve well-being, mitigate the impacts of climate change, and prevent costly natural events.
- Providing $976.8 million, with $80 million in remaining amortization, to help Canada reach its 25 per cent by 2025 target to protect the health of our oceans, commercial fishing stocks, and Canadians’ quality of life, especially in coastal communities.
- Providing $647.1, with $98.9 million in remaining amortization to Fisheries and Oceans Canada to stabilize and conserve wild Pacific salmon populations, including through investment in research, new hatchery facilities, and habitat restoration.
- Providing $1.4 billion to Infrastructure Canada to top up the Disaster Mitigation and Adaptation Fund, to support projects such as wildfire mitigation activities, rehabilitation of storm water systems, and restoration of wetlands and shorelines.
- Investing $11.7 million through Infrastructure Canada to renew the Standards to Support Resilience in Infrastructure Program, so that the Standards Council of Canada can continue updating standards and guidance in priority areas, such as flood mapping and building in the North.
- Providing $63.8 million to Natural Resources Canada, Environment and Climate Change Canada, and Public Safety Canada to work with provinces and territories to complete flood maps for higher-risk areas.
- Providing $17.4 million to Environment and Climate Change Canada to support work with the provinces, territories, Indigenous peoples, and key stakeholders on the scope of the new Canada Water Agency’s mandate, including identifying opportunities to build and support more resilient water and irrigation infrastructure.
Since 2015, Canada has invested roughly $60 billion toward climate action and clean growth. In 2020, the government announced an additional investment of $15 billion for Canada’s strengthened climate plan, along with nearly $15 billion for public transit in February 2021.