Federal Budget Injects Fiscal Stimulus Into Energy Transition

The long-awaited federal budget released on April 19, 2021 (the Budget) took aim at supporting the transition of Canada's energy industry to a low carbon future by providing significant incentives. Many of those incentives seek to boost Canada's nascent low carbon fuel industry and accelerate energy transition across the country.

Although it lacks detail in several noteworthy respects, the Budget incorporates multiple "green" initiatives aimed at curbing greenhouse gas emissions and global climate change, including a $17.6 billion allocation toward a "green recovery" from the economic hardships imposed by the COVID-19 pandemic. Such initiatives and spending include:

• Green project funding:
  • $5 billion over seven years to the recently-created Net Zero Accelerator, a fund aimed at expediting decarbonization projects with large emitters and scaling-up clean technology across the country. This commitment is in addition to the $3 billion over five years