The Chemistry Industry Association of Canada (CIAC) recognizes the federal government’s commitment to targeted policies in support of advancing a low-carbon economy following the release of the 2023 federal budget.
The budget earmarks over $20 billion in support of carbon-reducing technologies. Specifically, CIAC welcomes the government’s continued commitment to investment tax credits for clean hydrogen, clean technology, and carbon capture utilization and storage (CCUS). We applaud the introduction of the new Clean Technology Manufacturing Investment Tax Credit, which takes into account the manufacturing or processing of certain upstream components and materials including chemistry.
Carbon Contracts for Differences (CCfD) can be an effective mechanism to de-risk the uncertainty of future carbon prices or carbon credit prices below currently scheduled carbon price increases to $170/tonne by 2030. CIAC welcomes the government’s signal to implement CCfDs and encourages their broad eligibility as a form of long-term insurance against future carbon price volatility to all industrial emitters – including chemistry – making large decarbonization investments.
“Canada’s chemistry industry is delivering made-in-Canada, low-carbon chemistry products. Thanks to our low-emissions electricity grid, our electro-chemistry sector is already close to achieving net-zero production. Chemistry and plastics play a crucial role in the supply chain for almost all manufacturing in Canada,” said Bob Masterson, President and CEO of CIAC.
“Decarbonizing this supply chain will require significant new investments including research and development which will ultimately lead to a net-zero industrial transformation. Budget 2023 will help reshape the industrial landscape and Canada’s economy for decades to come.”
CIAC looks forward to continuing to work with all levels of government in the continued journey toward net-zero chemistry in Canada.