OTTAWA – With the long-awaited passage last month of U.S. President Joe Biden’s climate legislation, America now has a plan environmentalists say will significantly reduce emissions, vaulting the U.S. from a laggard to a leader on climate change.
But unlike Canada’s approach, Biden’s plan has no carbon tax, focusing instead on tax incentives to spur investments in renewable energy, incentives Canada may soon find itself under pressure to match to stay competitive.
Biden's plan offers a tax-rebate of up to US$7,500 for people who buy electric vehicles. The Liberals have a similar program but the credit tops out at $5,000
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Canada’s carbon tax is set to continually rise over the next decade until it reaches $170 per tonne in 2030. Hornung said the industry needs to understand what happens after that, and says there are loopholes that still need to be closed for it to really succeed.
“Taking steps to make carbon pricing more stringent in the electricity sector can help drive more investment in renewable energy, providing clarity on the future of carbon pricing after 2030 drives more investment in renewable energy,” he said.
Hornung said every country is different and Canada doesn’t have to match the U.S. approach exactly, but many renewable firms conduct business globally and the new incentives will draw investment???
