Finance Minister Chrystia Freeland delivers the federal budget in the House of Commons as Prime Minister Justin Trudeau looks on in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Finance Minister Chrystia Freeland delivers the federal budget in the House of Commons as Prime Minister Justin Trudeau looks on in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Federal Budget 2021: Liberals focus on clean technology for climate spending

Government says funds will be spread out over seven years and is on top of the $3 billion announced

Pushing the private sector to develop clean technology — and heavy emitters to adopt it — is where billions in new money will flow from the Liberals’ 2021 budget pledge to tackle climate change.

Around $17 billion is promised to be spent in the years ahead to promote a “green” recovery out of the COVID-19 pandemic and create jobs.

Included in that is $5 billion more into a fund meant to be spent on projects used by industry to reduce their greenhouse gas emissions.

The government says that will be spread out over seven years and is on top of the $3 billion announced when the Liberals unveiled their plan reach to net-zero emissions by 2050.

Another measure targeting heavy emitters is a new tax incentive to encourage companies to adopt technology that traps carbon dioxide into the ground from fuel combustion instead of seeing it released into the atmosphere.

The government says it will soon begin consultations on designing a tax credit for capital spent on carbon capture and storage technology in hopes of increasing how many million tonnes Canada traps annually.

Making the country a hub for clean technology is among the priorities Prime Minister Justin Trudeau has outlined in his approach to climate. The Liberals also want to adopt policies that make Canada go over and above its international commitment to reduce greenhouse gas emissions by 30 per cent below 2005 levels.

A political scientist who focuses on budget polices and public finances says the new spending plan fails to offer solutions to the pressures facing Ottawa, like how to reconcile the environment with the economy.

“I don’t see a big ambitious program that will lead us to zero emissions with strict targets,” said Genevieve Tellier of the University of Ottawa.

She added a lot of the new climate spending comes in form of grants, so it’s being left up to private businesses to come to government with ideas.

“It’s not a very aggressive, proactive environmental budget.”

Tellier says there’s not much for Saskatchewan and Alberta by way of providing a road map or more support for transitioning away from fossil fuels.

She also suggests the budget is not likely to woo potential voters who want to see more action on climate change if the minority Parliament heads into an election.

Overall, Tellier says climate change has taken a back seat to recovering the economy from the pandemic, although the government has placed a green lens on programs like housing.

Building off of what was promised in fall economic statement and in hopes of reducing people’s energy bills, Ottawa promised to send around $4 billion over five years to the Canada Mortgage and Housing Corp. to offer interest-free loans of up to $40,000 for households to do green retrofits.

Other climate initiatives include a 50 per cent 10-year reduction on corporate and small business income tax rates for companies manufacturing zero-emissions technologies, such as solar panels and electric buses.

It will also establish the first federal green bond with an issuance target of $5 billion. The goal is to attract investors to finance ways to fight climate change, like through green infrastructure.

Getting more electric vehicles on the road is a priority for the Liberals under its net-zero emissions plan and the budget promises $56 million over five years to work with countries like the United States on bringing in standards for zero-emission vehicle charging and refuelling stations.

Although the government says reducing emissions will help all Canadians, a gender-based analysis in the budget says men will likely benefit from growth in the clean energy sector because they make up most of its workforce, same with the new climate spending on science and research.

It also says employees in manufacturing tend to be men, and those who are middle-aged high-income earners have been the early adopters of zero-emission vehicles, according to data.

Monday’s budget also promises $2.3 billion in funding to federal departments like Parks Canada and Fisheries and Oceans to conserve up to one million square kilometres more land and inland waters to meet the country’s 2025 conservation targets

Stephanie Taylor, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

2021 Federal BudgetCoronavirusfederal government

Just Posted

RCMP responded to a call at approximately 7:30 p.m. MST on Thursday. (File photo)
One fatality in Highway 95 vehicle collision

Two more survived the two vehicle incident

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

Eva Capozzola (left) is a Golden-based climber who summited Mount Lucania with Pascale Marceau (right). To their knowledge, they are the first all-women team to reach the 5,226 metre summit in the Yukon. 
(Eva Capozzola photo)
All-woman team summits Mt. Lucania

The pair compared climbing to a spiritual journey, more than physical one

Provincial Health Officer Dr. Bonnie Henry on Thursday, June 10, mentioned Grand Forks among two other COVID “hot spots” in B.C. Photo: Screenshot - YouTube COVID-19 BC Update, June 10, 2021
PHO Henry says West Kootenay city is a COVID ‘hot spot’ in B.C.

There are 11 cases of COVID-19 in the Grand Forks local health area, according the BC CDC

The Columbia Shuswap Regional District (CSRD) is launching an online survey for residents of Electoral Areas B, D and F in regards to housing issues. (Black Press Files)
Housing survey launched for select Columbia Shuswap Regional District electoral areas

Survey asks questions about affordability, accountability and accessibility

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

The RCMP presence in Central Okanagan public schools is being reviewed by the board of education. (File photo)
RCMP presence welcomed in Central Okanagan public schools

Staff survey feedback overwhelmingly positive from students, staff and parents

18-year-old skier Logan Leach follows his guide, Julien Petit, down an alpine track. The Lumby athlete who is visually impaired has been named to Alpine Canada’s Ski Team ahead of the 2022 Paralympic Games in Beijing. (Contributed)
North Okanagan teen named to national Para-Alpine ski team

18-year-old Logan Leach officially joins Canada’s Para-Alpine roster ahead of Beijing 2022

Carina Stokes, bar manager at Enderby’s Small Axe Bistro, was recognized as one of four exceptional B.C. restaurant workers by the British Columbia Restaurant and Foodservices Association Tuesday, June 8, 2021. (Contributed)
Okanagan bar manager recognized as ‘stand-up’ B.C. restaurant worker

Small Axe Roadhouse’s Carina Stokes one of four to receive special recognition from the BCRFA

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Police cars are seen parked outside Vancouver Police Department headquarters on Saturday, January 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver police officer charged with assault during an arrest in 2019

The service has released no other details about the allegations

Denmark’s Christian Eriksen receives medical attention after collapsing during the Euro 2020 soccer championship group B match between Denmark and Finland at Parken stadium in Copenhagen, Saturday, June 12, 2021. (AP Photo/Martin Meissner, Pool)
Christian Eriksen in stable condition, Euro 2020 match resumes

Eriksen was given chest compressions after collapsing on the field during a European Championship

Most Read