Thank you to our friends at the Canada Cleantech Alliance for summarizing the relevant references to clean growth in the Federal Government’s Fall 2021 Economic Update:

Tax Incentive for Carbon Capture, Utilization, and Storage
Budget 2021 proposed an investment tax credit for capital invested in carbon capture, utilization, and storage (CCUS) projects with the goal of substantially reducing emissions. The new investment tax credit would be available for a broad range of CCUS applications across different industrial subsectors (e.g. concrete, plastics, fertilizers, fuels), including blue hydrogen projects and direct air capture projects but not enhanced oil recovery projects. The government will outline the final design of the proposed investment tax credit in Budget 2022 based on stakeholder consultations.

Green Bond
The government plans to publish its green bond framework in the final quarter of 2021-22. The inaugural green bond issuance will target $5 billion and is planned by the end of 2021-22, subject to market conditions. This will be Canada’s first green bond and the government intends for it to be a regular offering.

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