Navigating Uncertainty Surrounding The Clean Economy ITCs

Canada's Clean Economy Investment Tax Credits (ITCs), some of which were enacted into law in 2024¹, are a cornerstone of the federal government's strategy to accelerate the transition to a green economy and achieve Canada's 2050 net-zero objective. These refundable ITCs, which provide significant incentives for investments in renewable energy, hydrogen, carbon capture and other green technologies, have been instrumental in attracting private capital to the sector. However, as Canada quickly approaches its next federal election—scheduled for April 28, 2025, potentially ushering in a new government with different priorities—many project stakeholders are wrestling with how to deal with the considerable uncertainty around the future of the Clean Economy ITCs.