Canadian clean tech needs to match the U.S. Inflation Reduction Act: Tom Rand on 2023 Federal Budget
The investments for Canada’s green economy in the 2023 federal budget are “trying to match pro rata, the U.S. with their incentives,” but the bigger question is whether it will be enough to just match the U.S., according to a clean-tech venture capitalist.
In an interview with BNN Bloomberg on Tuesday, Tom Rand, co-founder and partner of ArcTern Ventures, said Finance Minister Chrystia Freeland is “responding, as they must, to the Inflation Reduction Act south of the border.”
“It's (Inflation Reduction Act) really, across the smorgasbord of low carbon tech and Canada's got to respond to that, roughly about a 10th of that would be equivalent to Canada's share, and that's roughly what they've (the federal government) done,” Rand said.
“The question for Canada is, can we carve out a niche in which we're competitive, or is it enough just to match the U.S. and do, as you know, President Biden and Prime Minister Trudeau talked about which is really building an integrated North American clean energy technology market, and I think that's the ultimate goal. But right now, it's kind of tit for tat on the incentive side.”
Over the past few months, the federal government has underscored the need to remain competitive with the U.S. when it comes to the green transition.
In the 2022 Fall Economic Statement, finance officials said after the United States introduced the Inflation Reduction Act, “the need for a competitive clean technology tax credit in Canada is more important than ever.”
The federal budget projects program spending will be about $491 billion in the coming fiscal year, with the deficit now set to reach $40 billion.
The spending roadmap included support for Canada’s energy transition, with a mix of investment tax credits and cash handouts.
For the full interview, click the video at the top of the article.
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