Budget 2023 is a start but significant low-carbon competitiveness gap remains
Renewable Industries Canada says the federal government's efforts in Budget 23 are a step in the right direction but is too slow on biofuels
OTTAWA, ON, March 29, 2023 /CNW/ - Renewable Industries Canada (RICanada) thanks the Hon. Chrystia Freeland, Deputy Prime Minister and Finance Minister, and her team at Finance Canada, for their work to make Canada a more competitive place to invest in clean energy. Budget 2023 A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future's Clean Hydrogen investment tax credit and other measures will ensure that Canadian developers of low-carbon hydrogen projects will be better positioned in global markets.
The new Clean Hydrogen Investment Tax Credit is a welcome and important start to help attract capital and spur domestic production in Canada. However, not extending the same investment tools to domestic low carbon liquid biofuels production is concerning. As other countries aggressively incentivize low carbon liquid biofuels, hearing news of further consultations in Canada is disappointing.
Biofuels are a permanent and growing feature of net-zero ambitions in the United States and across Europe. Canadian policy announcements to date continue to lag these jurisdictions in amplitude and impact. RICanada is urging the federal government to work closely with the biofuels industry in Canada to accelerate its growth. Specifically, RICanada is asking the government to prioritize recommendations made by the biofuel industry and its partners in the agriculture sector in recent years, in relation to the Clean Fuel Regulations announced in 2016. These recommendations include accurate carbon accounting, incenting capacity building investments, carbon border adjustments and avoiding administrative pitfalls and delays that could prevent true carbon reductions, like biofuels, from being implemented effectively and remaining competitive in light of the incentives offered in the US.
"Renewable Industries Canada has long advocated for practical policy measures to improve Canada's production and use of low carbon fuel. Budget 2023 is a step in the right direction that will help level the playing field for hydrogen production in Canada. However, Canada needs an entire suite of low-carbon fuels, in addition to hydrogen, to keep our economy moving and our environment clean. We look forward to continuing to work with the government to swiftly implement additional measures to grow domestic biofuel production and the economic benefits that come with that."– Andrea Kent, Board Member, RICanada
Founded in 1984, Renewable Industries Canada (RICanada) is a business coalition representing Canada's first and foremost biofuel producers. With a mission to promote the use of value-added products made from renewable resources, our members work to raise consumer awareness, offer expertise on low-carbon policies and markets, and are helping build a sustainable future powered by clean technology and fuels.
Twitter: @renewcan
SOURCE Renewable Industries Canada
Dan Pfeffer, Renewable Industries Canada, [email protected], T: 1-833-4-RN-FUEL
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