Green Economy: Highlights from 2024-25 Newfoundland and Labrador Provincial Budget

Below are some highlights from the Newfoundland and Labrador provincial budget, delivered on March 21, 2024, relevant to green economy stakeholders. Click here to view the budget materials.

Tax Credits

Two provincial tax credits that can support cleantech adoption and production will continue, including:

The 20% ‘Green Technology’ tax credit (to help businesses with specific capital costs for green activities, such as equipment for energy conservation and clean energy generation and the efficient use of fossil fuels).
The 10% manufacturing and processing investment tax credit.

Green Transition and Innovation

Financing to assist businesses and research institutions pursue green economy opportunities will be funded again in 2024-25, including:

$13.7 million in funding for the Innovation and Business Development Fund.
$11.5 million for the Green Transition Fund.
$35 million to support economic development, with a focus on research and development, commercialization, investment attraction, and regional development – not specifically tied to ‘green’ but green activities eligible.

Net Zero

Investments to help decarbonize and reduce GHGs in the province, including:

$81.9 million to reduce greenhouse gas emissions, while addressing energy affordability including support to transition homes from oil to electric heat.
$1.1 million for electrical vehicle infrastructure.

Climate Change Adaptation

Contributions to help acquire vital information for municipalities and planners:

$1.5 million for flood risk mapping.

Wastewater

Dedicated funds to assist in tackling wastewater challenges in NL, including:

$50 million over five years to support water and wastewater projects.
$650,000 for a permanent wastewater surveillance program.

Mining

Plus, investments to help the province continue to position itself as a leader in critical minerals:

$2.6 million to support implementation of the Critical Minerals Strategy to enhance the province’s competitiveness and attract private investment.
$1.7 million for the Mineral Incentive Program, including $1.3 million for Junior Exploration Assistance.
$1.6 million annually for a Labrador-specific geoscience program that supports exploration in frontier regions.

Also of note, a $72.4 million contribution is being made to the Newfoundland and Labrador Future Fund (revenues from one-time sources and non-renewables resources) bringing the total contributions to $358.8 million.