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ARTICLE · 11 APRIL 2023

Canada's Budget 2023: Compromise And Competition – Climate, Carbon And CCfDs

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The Federal Government's Budget 2023 ("Budget 2023") promises many investments and financial incentives to address issues of climate and energy security. One of these areas of focus...

CanadaEnergy and Natural Resources
Julia Loney
Julia Loney
Mike Richmond
Mike Richmond
Ryan Johnson
Ryan Johnson
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The Federal Government's Budget 2023 ("Budget 2023") promises many investments and financial incentives to address issues of climate and energy security. One of these areas of focus is contracts for differences ("CfDs"), which were identified as an investment tool of the Canada Growth Fund (the "Growth Fund") that will be used to support clean growth projects.1 While the particulars are limited, Budget 2023 announced that the Federal Government will undertake consultations on "the development of a broad-based approach to carbon contracts for difference", with the aim of making carbon pricing predictable and providing financial assurances to those developing and implementing new technologies. Budget 2023 provided that the contracts would be complementary to those offered by the Growth Fund.2

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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