(Ottawa) On Monday, April 19th, the federal government released its first budget in two years. The budget, “A Recovery Plan for Jobs, Growth and Resilience,” advances several of CEA initiatives related to low carbon energy investments, energy efficiency and support for Measurement Canada.
“This budget recognizes the many challenges we are facing, including economic recovery and climate change, and it ensures clean energy continues to be the solution,” notes Francis Bradley, President and CEO of the Canadian Electricity Association, “We are grateful that the government recognizes the value of electricity and we hope the various electricity-related components will lead to a larger decarbonization strategy in the near future.”
“We are pleased to see a continuation of the positive electricity-sector announcements from the Fall Economic Statement launch of the strengthened climate plan in late 2020,” said Michael Powell, Vice President of Government Relations, “This budget builds on these announcements and sets the stage for investment to come, including new infrastructure spending in the North through the Strategic Partnerships initiative.”
CEA is pleased with the overall direction that this budget sets for the electricity sector. It advances issues that CEA has been advocating for, including metering reform, energy efficiency, and encouraging low carbon energy investments.
Highlights from Budget 2021 for the electricity sector include:
- In 2020, CEA released this set of recommendations urging aggressive action for achieving Net Zero emissions. by 2050. The Net Zero accelerator will allocate up to $8 billion of support for projects that will help reduce domestic Greenhouse Gas Emissions
- CEA was pleased to see a proposal to ensure an investment tax credit for capital invested in Carbon Capture, Utilization and Storage projects with the goal of reducing emissions by over 15 megatonnes of CO2 annually. This credit will support the development of hydrogen production.
- The electrification of transportation is integral to the decarbonization of the Canadian economy. Budget 2021 proposes to provide $104.6 million to strengthen greenhouse gas (GHG) regulations for light-and heavy-duty vehicles. As well, Budget 2021 proposes to allocate $56.1 million over five years to Measurement Canada to develop and implement, in a set of codes and standards for retail ZEV charging and fueling stations.
- Over the last two years, CEA in partnership with Natural Resources Canada, has worked with the electricity sector on climate change adaptation plans. Budget 2021 proposes to provide $1.4 billion over 12 years on similar adaptation projects including those affecting Indigenous communities.
- CEA supports electricity companies in Canada as they work with their customers on energy efficiency initiatives. Budget 2021 proposes to provide $4.4 billion on a cash basis to CHMC to help homeowners complete deep home retrofits through interest-free loans.
- The Canadian electricity sector is supportive of indigenous communities across Canada engaging them on new infrastructure projects and ensuring clean and affordable electricity to indigenous communities. Budget 2021 proposes $40.6 million to support grid interconnection projects in the North which could advance projects including the Atlin Hydro Expansion project and Kivalliq HydroFibre Link project.
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About the Canadian Electricity Association
Canadian Electricity Association (CEA) members generate, transmit and distribute electrical energy to industrial, commercial, residential and institutional customers across Canada every day. From vertically integrated electric utilities, independent power producers, transmission and distribution companies, to power marketers, to the manufacturers and suppliers of materials, technology and services that keep the industry running smoothly -all are represented by this national industry association.
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