Canada has gone big to match U.S. clean-tech subsidies, report finds – but not big enough – by Adam Radwanski (Globe and Mail – July 18, 2023)

Canada will continue to lag the United States significantly in government incentives for low-carbon sectors that both countries are courting, even after new policies promised in Ottawa’s most recent budget, according to new research to be released on Tuesday.

The findings are in an update of an influential report earlier this year by the think tanks Clean Prosperity and The Transition Accelerator, which contributed to the budget’s focus on responding to hundreds of billions of dollars in green subsidies introduced by Washington through last year’s Inflation Reduction Act. A copy of the new version was provided in advance to The Globe and Mail.

It assesses that the promised investment tax credits that mostly comprise the Canadian response so far – which Ottawa is currently under pressure from industry to actually put in place – will likely have some success in levelling the playing field.

In particular, the report finds that once a pair of clean-electricity tax credits are in place, Canada should be at no significant financial disadvantage in attracting investment in wind, solar and other forms of non-emitting power needed for a shift away from fossil fuels across various sectors.

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