Canada’s Budget 2025: A Step Towards a Greener Future?
As Canada unveils its Budget 2025, questions arise about its potential impact on the country’s green economy and the daily lives of its citizens. Rachel Doran, the executive director of Clean Energy Canada, shared her insights on the matter, highlighting both progress and areas needing improvement.
Rachel Doran commented on the budget, stating, “Today’s much-anticipated budget was billed as setting a clear, consequential direction for Canada. But while Budget 2025 has some important signals, there is still work to be done to ensure Canada will reap the broader economic benefits of the energy transition and that Canadians will stand to benefit.”
The budget signifies a focus on competitiveness, recognizing the critical role of low-carbon industries and the clean economy in Canada’s future. A key component is the promise of regulatory certainty, which aims to attract private investments and incentivize clean technologies. This strategy includes plans to strengthen industrial carbon pricing and maintain the Clean Electricity Regulations, with possible negotiated agreements with provinces.
Moreover, the budget continues to support the clean economy through existing tax credits for clean technology investment and manufacturing. It also confirms plans to finalize a new Clean Electricity tax credit. An exciting element is the emphasis on critical minerals, supported by the Critical Minerals Sovereign Fund, which seeks to derisk investments and ensure supply for strategic industries. These minerals are essential for clean technologies and enhancing Canada’s energy security.
However, Doran points out the budget’s shortcomings. There is a lack of focus on individual Canadians and households in the energy transition. The termination of the Greener Homes Grant and Loan, coupled with uncertainties around the EV Availability Standard and a lack of federal EV rebate program recapitalization, could impact affordability for Canadians whose energy costs are linked to global fossil fuel prices.
In response, Doran emphasizes the need for improved market conditions through competition, such as maintaining an effective EV Availability Standard, lowering tariffs on Chinese EVs, and facilitating the entry of European EVs into the market.
Another concern is the absence of comprehensive initiatives to expand the clean electricity supply. While tax credit finalization is a step forward, Doran calls for a more ambitious focus on clean electricity projects, including renewables, transmission, and energy efficiency, as part of Canada’s industrial strategy.
Doran also highlights the importance of strengthening industrial pricing, ensuring robust agreements with provinces on clean electricity, maintaining consumer-friendly EV standards, and developing an effective regulatory framework for oil and gas emissions.
Despite these challenges, the budget presents opportunities for clean industrial products and processes through major investments in infrastructure, housing, and defense. However, effective implementation is crucial to turn potential into reality. Doran stresses the need for clear policies, like Buy Clean, and new investments in training and reskilling to secure long-term job security for Canadian workers.
Reflecting on the budget, Doran questions whether it signifies a shift in the right direction, noting, “So, is Budget 2025 a shift in the right direction? Or as Prime Minister Mark Carney put it today, does it help Canada take control of its future? To a degree, but there are important missing pieces.”
With more critical decisions ahead, Doran is hopeful for future announcements on projects of national significance and updates to the EV Availability Standard. She looks forward to the upcoming meeting of provincial ministers to discuss overcoming barriers to a more unified Canadian economy. As the prime minister envisions Canada writing its own future, Doran stresses the importance of an economy that benefits everyday Canadians.
Original Story at cleanenergycanada.org