In its latest budget, the Canadian Government under Prime Minister Justin Trudeau’s leadership has outlined ambitious goals, funding, and tax incentives in its bid to stay on track with achieving net-zero emissions by 2050.
The country will set aside as much as C$3.8 billion (A$4.04 billion) over eight years to push for greater critical mineral exploration, extraction, and processing as it tries to cut carbon emissions.
The 2022 budget sures up these efforts through creating carbon-capture incentives on top of an extensive critical minerals plan.
As it stands, Canada is the world’s fourth-largest oil producer, but many experts believe that with the country’s plethora of resources, it has the opportunity to lead the way in sectors where supply chain challenges have impacted the global economy.
Deputy Prime Minister of Canada Chrystia Freeland’s press secretary Adrienne Vaupshas says the country has a real opportunity to engage and become a serious player in the critical minerals industry throughout the world.
“Canada has an abundance of valuable critical mineral deposits, and with the right investments, this sector can create thousands of new good jobs, grow our economy, and make Canada a vital part of the growing global critical minerals industry,” she said.
Smart investments in areas such as critical minerals will enable Canada to become a leader in clean and digital technologies that the world relies on, which could offload many jobs at the benefit of county-siders.
Critical minerals pivotal to all major global industries
Clean technology, health care, aerospace, and computing are areas where critical minerals are vitally needed in today’s society and in the future.
Canada has a vast inventory of these minerals available, and the government believes it’s time to capitalise on these.
As outlined in the 2022 budget, the government aims to provide up to C$3.8 billion in support over eight years to implement the critical minerals strategy, stimulating thousands of jobs as well as growing the economy and putting the country on the map as a vital player in the growing global critical minerals industry.
In order to push for a greater cut in carbon emissions, Canada is bringing in a 60% tax credit for equipment used to capture carbon from the air, on top of 50% for all other capture equipment, and a 37.5% credit for transportation and storage equipment.
Alberta regional director at the Pembina Institute Chris Severson-Baker says the tax boost is a great initiative to reduce risk throughout the country.
“For the oil and gas sector this tax credit, combined with the fact they are generating massive revenues right now, is more than enough to reduce the risk associated with going ahead with CCS projects,” he said.
Carbon capture and storage (CSS) facilities are set to become a key player in the global efforts to reduce emissions from fossil fuels leading into the future.
Plan to grow mineral investments
Canadian Government Prime Minister Justin Trudeau said the government aims to fund up to C$1.5 billion over seven years, initiated in 2023-24, towards infrastructure investments that support the development of critical mineral supply chains and particularly focusing on priority deposits.
Natural Resources Canada will receive C$79.2 million over five years to use towards providing public access to integrated data sets to help with critical mineral exploration and development.
A new 30% Critical Mineral Exploration Tax Credit will be introduced for particular mineral exploration expenses incurred in the country and renounced to flow-through share investors.
Canada the ideal location for critical minerals projects
With Canada being home to strong environmental protections, a well-educated workforce, experience in green mining operations and commitments to Indigenous participation, it is a leading candidate for any companies looking for a country to invest in for mining projects.
The government hopes these advantages will enable them to develop the critical mineral supply chains they aim to achieve.
On top of these efforts, Mr Trudeau’s government will also create a Growth Fund to attract private investment needed to reach zero carbon emissions by 2050, which will initially be capitalised at C$15 billion over five years.
The country hopes, through its efforts they can stray away from the dependence on the production of internal-combustion cars and move towards attracting electric vehicle and battery makers to change the face of its manufacturing industry moving into the future.