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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Jaimie Davis won received a Northwest Community College President’s Art Award in 2018. This year, she won the Best Solopreneur Award from Small Business BC for her online shop Jada Creations. (Contributed photo/Northwest Community College)
Terrace artist wins provincial small business award

Jaimie Davis of Jada Creations won BC Small Business’ Best Solopreneur Award

Chera Bergen (left) with her sisters Hali and Dylan Ouellet (not in the picture) raised money through a bottle drive in Terrace to buy essential supplies for a homeless shelter. (Binny Paul/ Terrace Standard)
Terrace sisters’ recycle drive raises money for homeless shelter

With the $1175 raised, Chera, Hali and Dylan bought essential supplies for Ksan Society

A memorial march takes place along Highway 16 also known as Canada’s ‘Highway of Tears’ on national day of awareness of Murdered & Missing Indigenous Women and Girls (MMIWG). Over five dozen people from nearby communities joined the march which began outside Terrace City Hall and ended at the memorial totem pole erected along Hwy 16, near Kitsumkalum. (Binny Paul/Terrace Standard)
‘City of Terrace can and should make spaces safer’: MMIWG activists

Activists called on governments to amplify safety net for women on national day of awareness of MMIWG

RCMP are reminding the public to be aware of their surroundings after a stabbing sent a man to hospital on May 4, 2021. (Black Press Media File Photo)
Terrace stabbing sends man to hospital

RCMP remind the public to be aware of surroundings

The construction site for the new Mills Memorial Hospital has been cleared. (Binny Paul/The Terrace Standard)
Bird nests key to decision to log hospital site in Terrace

Nests would have posed a risk of increasing costs

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman’s body found in Kootenay National Park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Edmonton Oilers’ Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Edmonton superstar McDavid hits 100-point mark as Oilers edge Canucks 4-3

NHL scoring leader needs just 53 games to reach century mark

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Most Read