Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy
On this page:
- A Strong Foundation
- A Safe, Smart, and Competitive Place to Do Business
- The Opportunities Ahead
- The Challenges We Face
- A Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy
- 3.1 Investing in Clean Electricity
- 3.2 A Growing, Clean Economy
- 3.3 Investing in Canadian Workers
- 3.4 Reliable Transportation and Resilient Infrastructure
- 3.5 Investing in Tomorrow's Technology
Today, the world's major economies are moving at an unprecedented pace to fight climate change, retool their economies, and build the net-zero industries of tomorrow. At the same time, our closest allies are looking to shift their economic dependence away from dictatorships and towards stable, reliable democracies like our own.
Together, these two shifts represent a significant economic opportunity for Canada.
At the turn of the last century, the new Transcontinental Railway connected Canada and the Canadian economy for the first time. It was a major national project, ushering in a new generation of prosperity for a growing country. The prosperity it brought was not shared equally—with Indigenous Peoples, with women, or with new Canadians. But the Canada we know today would not exist without it.
With the race to build the global clean economy already underway, there is a new national project in front of us: to build our generation's version of the Transcontinental Railway—one that will protect our environment, grow our economy, and ensure every single Canadian can share in the prosperity we will create together.
Canada has the potential to become a clean electricity superpower with a cross-Canada electricity grid that is more sustainable, more secure, and more affordable.
The measures proposed in this Budget are important steps toward that goal.
From the resource workers that mine critical minerals or provide clean energy to the world, to the engineers designing next generation batteries, to the autoworkers assembling the electric vehicles people want to buy, we can ensure that Canadians produce the goods and resources that Canada and our allies will need for generations to come. We will help Canadian businesses grow, and we will make it easier for them to invest in our communities—right across Canada—and create good careers for Canadians.
This is a country of big ideas, big opportunities, and hardworking people who can do big things.
We have an opportunity to build a thriving, sustainable made-in-Canada clean economy—for ourselves, for our children, and for our grandchildren, in every corner of our country.
Now is the time to seize it.
Budget 2023 lays out the next steps in the government's plan to build Canada's clean economy—one that is good for workers, good for business, good for the environment, and which makes life more affordable for Canadians from coast-to-coast-to-coast.
Snapshot of Recent Major Investment Decisions in Canada
Over the past year, a number of significant investment commitments have been made in Canada, which will help to build the economy of the future. Some examples include:
Spring 2022: Honda, General Motors, and Stellantis all announced plans to invest in their existing assembly plants to help support the production of hybrid and electric vehicles in Canada. Together these multibillion projects will be supported by $919.6 million in federal funding.
Summer 2022: The government announced support for projects across Canada, including up to $100 million to minimize the carbon footprint and improve worker safety at BHP's $7.5 billion Jansen Stage 1 mine in Saskatchewan. In Ontario, Umicore announced its plan to invest $1.5 billion in a net-zero facility that will produce essential components of electric vehicle batteries.
Fall 2022: In Quebec, Rio Tinto Fer et Titane announced its plans to increase its production of critical minerals, cut emissions, and help build clean technology supply chains, supported by up to $222 million in federal funding. Nokia also announced a $340 million project to expand its Ottawa facility and revitalize its laboratories with the goal to further advance wireless technology research and development in Canada.
Winter 2022-23: In March 2023, Volkswagen announced that its subsidiary, PowerCo, will build its first overseas electric vehicle battery manufacturing 'gigafactory' in St. Thomas, Ontario. MEDTEQ+ announced it will invest in a $154 million envisAGE Network, supported by $47 million in federal funding, that will help bring together industry, health experts, and investors to commercialize new health technologies. Together with Ontario, the federal government announced it will support the Oneida Energy storage project, which will be the largest electricity battery storage project in Canada.
A Strong Foundation
Since 2015, the federal government has taken action to build Canada's clean economy and create good middle class jobs. This includes:
Putting in place a federal carbon pricing system, which puts money back in the pockets of Canadians and gives businesses the flexibility to decide how best to reduce their emissions;
$15 billion for the Canada Growth Fund to incentivize private sector investment into projects and companies that will grow Canada's clean economy at speed and scale;
$8 billion for the Net Zero Accelerator to make large-scale investments in clean technologies;
$4.2 billion for the Low Carbon Economy Fund to support the installation of emission-reducing technologies for provinces and territories, businesses, Indigenous communities, and other organizations;
$3.8 billion for Canada's Critical Minerals Strategy, which will help make Canada a global supplier of choice for the critical minerals that are the bedrock of clean and digital technologies;
$3.9 billion to make zero-emission vehicles more affordable for Canadians and Canadian businesses, and to build new charging stations across Canada;
$1.5 billion for the Clean Fuels Fund to encourage investment in the production of clean fuels, including clean hydrogen and biofuels;
$4.7 billion for the National Trade Corridors Fund for investments in our ports, roads, railways, and airports;
$33.5 billion for the Investing in Canada Infrastructure Program to support new investments in public transit; green infrastructure; community, culture and recreation infrastructure; and rural and northern communities;
$35 billion for the Canada Infrastructure Bank to attract private capital to major infrastructure projects and help build more infrastructure across the country; and,
$2.6 billion for the new Canada Innovation Corporation, which will support Canadian businesses in investing in research and development.
A Safe, Smart, and Competitive Place to Do Business
Investments the government has made since 2015 have built upon Canada's existing competitive advantages, which have made us a destination of choice for investments in the global clean economy. Our competitive advantages include:
A free and stable democracy, home to a diverse population and an inclusive society—one that is supported by publicly funded health care, dental care, child benefits, and affordable early learning and child care;
Leading education and research institutions that have produced the most educated workforce in the world;
Preferential access to global markets through 15 free trade agreements, which cover 51 countries with nearly 1.5 billion consumers, representing two-thirds of the global economy, making Canada the only member of the G7 with free market access to every other G7 country;
Abundant supplies of critical minerals and metals, clean energy, and technologies needed to power the global clean economy;
A strong and stable, and accessible financial system; and,
A competitive corporate income tax system, including the lowest marginal effective tax rate on new business investment in the G7.
The Opportunities Ahead
The accelerating transition to net-zero has started a global race to attract investment as our friends and allies build their clean economies. Canada must keep pace. We cannot afford to fall behind.
Investments in strengthening Canada's competitiveness in the clean economy will not only promote the shift towards net-zero and reduce pollution. They will also deliver good middle class jobs for Canadian workers in communities right across Canada.
For example, the International Energy Agency estimates the global market for clean technology manufacturing alone will triple by 2030, to US$650 billion per year. Many of the careers in the clean technology manufacturing sector do not require a university degree, and even at this early stage of development, the average worker compensation in this sector in 2021 was $90,252—well above Canada's economy-wide average of $69,311.
Seizing our opportunity to lead the way in rapidly expanding global industries will ensure Canada can create the good middle class jobs needed to build more vibrant communities from coast-to-coast-to-coast.
At the same time, the pandemic and Russia's illegal invasion of Ukraine exposed strategic economic vulnerabilities among many of the world's democracies. Our allies are moving at speed to limit their dependence on dictatorships by building their critical supply chains through democracies like our own.
This shift, often referred to as 'friendshoring,' represents a significant economic opportunity for Canada and Canadian workers. As a stable democracy with a skilled workforce and a rich endowment of natural resources, Canada can reap the benefits of becoming a reliable supplier of critical goods for our democratic allies.
The Challenges We Face
Despite our competitive advantages and the foundational investments we have made in building Canada's clean economy over the past seven years, there are two fundamental challenges that Canada must address.
First, many of the investments that will be critical for the realignment of global supply chains and the net-zero future are large-scale, long-term investments. Some investments may require developing infrastructure, while others may require financial incentives or a patient source of financial capital. For Canada to remain competitive, we must continue to build a framework that supports these types of investments in Canada—and that is what we are doing.
Second, the recent passage of United States' Inflation Reduction Act (IRA) poses a major challenge to our ability to compete in the industries that will drive Canada's clean economy.
Canada has taken a market-driven approach to emissions reduction. Our world-leading carbon pollution pricing system not only puts money back in the pockets of Canadians, but is also efficient and highly effective because it provides a clear economic signal to businesses and allows them the flexibility to find the most cost-effective way to lower their emissions. At the same time, it also increases demand for the development and adoption of clean technologies.
In contrast, the United States has chosen to rely heavily on new industrial subsidies to reduce its emissions. The IRA has introduced subsidies for the production of clean technologies and clean products. The IRA's federal clean growth incentives are officially estimated at US$369 billion by the U.S. Congressional Budget Office, though a number of observers estimate the final total will be significantly higher. As a result of these uncapped subsidies, private sector estimates suggest that the IRA could mobilize as much as US$1.7 trillion of private and public investments in the U.S. clean economy over ten years.
As the United States' closest trading partner—and with our economies so closely intertwined—Canada stands to benefit from the IRA, both from the accelerated pace of technological development, and from new opportunities in North American supply chains for clean energy and technologies. The IRA also offers tax credits to U.S. consumers for purchasing electric vehicles (EVs) produced in North America. The Government of Canada led a relentless advocacy and outreach effort to ensure that the tax credits would apply to Canadian production, given the integrated nature of Canada-U.S. supply chains in the auto sector. This 'Buy North American' policy stands to benefit both Canada and the United States, and ensures that the supply of critical minerals processed, and batteries manufactured, in Canada supports a continued partnership in auto-making.
Canada has all of the fundamentals required to build one of the strongest clean economies in the world. However, without swift action, the sheer scale of U.S. incentives will undermine Canada's ability to attract the investments needed to establish Canada as a leader in the growing and highly competitive global clean economy.
If Canada does not keep pace, we will be left behind. If we are left behind, it will mean less investment in our communities, and fewer jobs for an entire generation of Canadians.
We will not be left behind.
A Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy
Building on the foundation the government has been laying since 2015, Budget 2023 delivers a series of major investments to ensure Canada's clean economy can deliver prosperity, middle class jobs, and more vibrant communities across Canada.
With new investments in clean electricity—the driving force of a clean economy—we will build a national electrical grid that connects Canadians from coast-to-coast-to-coast, and delivers cleaner, more affordable electricity to Canadians and Canadian businesses.
We will deliver investments to put Canadian workers and Canadian businesses at the heart of essential global supply chains, and we will become the reliable supplier of the goods and resources that a net-zero world will need.
Our made-in-Canada plan is centered on three tiers of federal financial incentives that will attract new investment, create good middle class jobs, and build Canada's clean economy. These include:
An anchor regime of clear and predictable investment tax credits, which will be broadly accessible to eligible organizations. In addition, many of these new credits will be accompanied by provisions to ensure that workers see the benefits of a clean economy;
Low-cost strategic financing; and,
Targeted investments and programming, where necessary, to respond to the unique needs of sectors or projects of national economic significance.
These investments will be underpinned by Canada's pollution pricing systems and large-emitter credit markets, which Budget 2023 proposes to reinforce with other tools, such as contracts for difference. Together these instruments set a framework for boosting overall investment, while leveraging the expertise of the private sector to determine how to invest based on how the global clean economy evolves. Together, they will incentivize businesses to reduce their emissions, become leaders in the global clean economy, and create new middle class jobs for Canadians.
3.1 Investing in Clean Electricity
The growing clean economy—both here in Canada and around the world—will depend almost entirely on clean electricity.
Fortunately, Canada already has one of the cleanest electricity grids in the world. Roughly 83 per cent of our electricity comes from non-emitting sources, such as hydroelectricity, wind, solar, and nuclear.
Electricity Generation by Source, 2020
However, if we are to preserve this advantage and position Canada to compete in the next generation of electricity-intensive sectors, such as clean hydrogen and green steel and aluminum, significant investments must be made today. Industry's need for electricity is only slated to grow.
Electricity's importance to Canadians will also increase. From powering our cars to providing a clean, secure, and affordable source of energy in communities across Canada, investments in clean electricity today will make life more affordable for Canadians in the years and decades to come. To reach our goal of achieving net-zero emissions by 2050—and to power our homes, vehicles, and industries for generations to come—Canada must become a clean electricity superpower.
As electricity becomes the main source of energy, daily and seasonal demand peaks will become more pronounced. Canada will need to invest heavily in renewable generation, to meet this demand. At the same time, some renewable energy generation, such as solar and wind, can vary with the weather and season.
Cost of Renewables Has Come Down Dramatically in the Last Decade
Levelized cost of electricity, US$/MWh
This will necessitate larger generation capacity and enhanced transmission networks to ensure the reliability of our electrical grids. Canada's electricity demand is expected to double by 2050 (Chart 3.3), and to meet this increased demand with a sustainable, secure, and affordable grid, our electricity capacity must increase by 2.2 to 3.4 times compared to current levels (Chart 3.4).
Such a significant expansion of clean, secure, and affordable electricity will require massive new investments in power generation and transmission. Given the long lead times and high upfront costs for electricity generation and transmission projects—and with our allies and partners set to invest heavily in preparing their own electrical grids for the future—Canada needs to move quickly to avoid the consequences of underinvestment.
Underinvestment in Canada's electrical grid today would risk our ability to power our economy and deliver cleaner and cheaper energy to Canadians. It would hamstring Canada's electricity-intensive manufacturing sector, and impede the development of new electricity-intensive sectors, such as hydrogen, that can be a source of good middle class jobs for generations to come.
Put simply, Canada's economic prosperity depends on significant investments today in building a sustainable, secure, and affordable electricity grid. Abundant and low-cost clean electricity will underpin the investments needed to create middle class jobs, provide the energy that will power our daily lives and the entire Canadian economy, and provide more affordable energy to millions upon millions of Canadian homes.
In Budget 2023, the federal government is proposing significant investments to accelerate the supply and transmission of clean electricity. We will expand Canada's electricity grid, connect it from coast-to-coast-to-coast, and ensure that Canadians and Canadian businesses have access to cleaner and cheaper energy into the next century.
This made-in-Canada plan follows the federal tiered structure to incent the development of Canada's electricity sector and provide additional support for projects that need it. This plan includes:
A clear and predictable investment tax credit as the anchor that offers foundational support for investments in clean electricity;
Beyond this investment tax credit, as needed, low-cost and abundant financing through a targeted focus on clean electricity from the Canada Infrastructure Bank; and,
Targeted electricity programs, where needed, to ensure critical projects get built.
This plan introduces the necessary tools to put Canada's electricity sector on the path to reduce its emissions to net-zero from the 56 Mt CO2-equivalent in 2020, and to meet its commitment to achieve a net-zero electricity grid by 2035.
An Investment Tax Credit for Clean ElectricityView the impact assessment
Canada's electrical system includes a mix of private, public, and Indigenous-owned assets. The government believes a clear and predictable incentive that is available to this range of asset owners is needed to accelerate our progress toward a net-zero grid.
By extending support to a broad base of clean electricity technologies and proponents, we can accelerate the investments needed to expand the capacity of our clean electricity grid and ensure it delivers more sustainable, more secure, and more affordable electricity across Canada.
To support and accelerate clean electricity investment in Canada, Budget 2023 proposes to introduce a 15 per cent refundable tax credit for eligible investments in:
- Non-emitting electricity generation systems: wind, concentrated solar, solar photovoltaic, hydro (including large-scale), wave, tidal, nuclear (including large-scale and small modular reactors);
- Abated natural gas-fired electricity generation (which would be subject to an emissions intensity threshold compatible with a net-zero grid by 2035);
- Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries, pumped hydroelectric storage, and compressed air storage; and,
- Equipment for the transmission of electricity between provinces and territories.
Both new projects and the refurbishment of existing facilities will be eligible.
Taxable and non-taxable entities such as Crown corporations and publicly owned utilities, corporations owned by Indigenous communities, and pension funds, would be eligible for the Clean Electricity Investment Tax Credit.
The Clean Electricity Investment Tax Credit could be claimed in addition to the Atlantic Investment Tax Credit, but generally not with any other investment tax credit.
The Clean Electricity Investment Tax Credit would be available as of the day of Budget 2024 for projects that did not begin construction before the day of Budget 2023. The Clean Electricity Investment Tax Credit would not be available after 2034.
Labour requirements, including ensuring that wages paid are at the prevailing level, and that apprenticeship training opportunities are being created, will need to be met to receive the full 15-per-cent tax credit. If labour requirements are not met, the credit rate will be reduced by ten percentage points. These labour requirements will come into effect on October 1, 2023. The government will consult with labour unions and other stakeholders to refine these labour requirements in the months to come.
In order to access the tax credit in each province and territory, other requirements will include a commitment by a competent authority that the federal funding will be used to lower electricity bills, and a commitment to achieve a net-zero electricity sector by 2035.
The Department of Finance will engage with provinces, territories, and other relevant parties to develop the design and implementation details of the Clean Electricity Investment Tax Credit. The government will also conduct targeted consultations on the possibility to introduce reciprocal treatment in light of some of the eligibility conditions associated with certain tax credits under the U.S. Inflation Reduction Act.
With respect to intra-provincial transmission, the government will consult on the best means, whether through the tax system or in other ways, of supporting and accelerating investments in projects that could be considered critical to meeting the 2035 net zero objective.
Budget 2023 clean electricity measures would be able to support projects across the North that support the transition away from diesel and in meeting emissions goals, including the Atlin Hydro Expansion Project, the Taltston Hydro Expansion Project, and the Kivalliq Hydro-Fibre Link.
The Clean Electricity Investment Tax Credit is expected to cost $6.3 billion over four years starting in 2024-25, and an additional $19.4 billion from 2028-29 to 2034-35.
The Clean Technology Investment Tax Credit announced in the 2022 Fall Economic Statement will complement the Clean Electricity Investment Tax Credit by providing support to decarbonize industry.
A Clean Electricity Focus for the Canada Infrastructure BankView the impact assessment
The expansion and transformation of Canada's electricity system will require major investments and enhanced partnerships between governments and the private sector.
As of March 23, 2023, the Canada Infrastructure Bank has made investment commitments of $8.6 billion in 37 projects, in support of its mandate. Budget 2022 announced a deepened role for the Canada Infrastructure Bank to invest in private sector-led infrastructure projects that accelerate Canada's efforts to reach net-zero. The Canada Infrastructure Bank is an active partner in supporting these efforts, including by making investments in renewable energy, energy storage, and transmission projects.
Building on this, Budget 2023 will position the Canada Infrastructure Bank to play a leading role in electrifying Canada's economy, supporting lower energy bills for Canadians and businesses, and ensuring that cleaner, affordable electricity is available from coast-to-coast-to-coast.
Budget 2023 announces that the Canada Infrastructure Bank will invest at least $10 billion through its Clean Power priority area, and at least $10 billion through its Green Infrastructure priority area. This will allow the Canada Infrastructure Bank to invest at least $20 billion to support the building of major clean electricity and clean growth infrastructure projects. These investments will be sourced from existing resources.
These investments will position the Canada Infrastructure Bank as the government's primary financing tool for supporting clean electricity generation, transmission, and storage projects, including for major projects such as the Atlantic Loop.
Supporting Clean Electricity ProjectsView the impact assessment
With Budget 2023 announcing new measures to support the building of a more sustainable, secure, and affordable electricity grid, other targeted federal programs will continue to play important roles in advancing individual projects and building a stronger Canadian electricity industry.
Budget 2023 proposes to provide $3.0 billion over 13 years, starting in 2023-24, to Natural Resources Canada to:
- Recapitalize funding for the Smart Renewables and Electrification Pathways Program to support critical regional priorities and Indigenous-led projects, and add transmission projects to the program's eligibility;
- Renew the Smart Grid program to continue to support electricity grid innovation; and,
- Create new investments in science-based activities to help capitalize on Canada's offshore wind potential, particularly off the coasts of Nova Scotia and Newfoundland and Labrador.
The Atlantic LoopView the impact assessment
The federal government is committed to advancing the Atlantic Loop—a series of interprovincial transmission lines that will provide clean electricity between Quebec, New Brunswick, and Nova Scotia—and is currently negotiating with provinces and utilities to identify a clear path to deliver the project by 2030.
3.2 A Growing, Clean Economy
More than US$100 trillion in private capital is projected to be spent between now and 2050 to build the global clean economy.
Canada is currently competing with the United States, the European Union, and countries around the world for our share of this investment. To secure our share of this global investment, we must capitalize on Canada's competitive advantages, including our skilled and diverse workforce, and our abundance of critical resources that the world needs.
The federal government has taken significant action over the past seven years to support Canada's net-zero economic future. To build on this progress and support the growth of Canada's clean economy, Budget 2023 proposes a range of measures that will encourage businesses to invest in Canada and create good-paying jobs for Canadian workers.
This made-in-Canada plan follows the federal tiered structure to incent the development of Canada's clean economy and provide additional support for projects that need it. This plan includes:
- Clear and predictable investment tax credits to provide foundational support for clean technology manufacturing, clean hydrogen, zero-emission technologies, and carbon capture and storage;
- The deployment of financial instruments through the Canada Growth Fund, such as contracts for difference, to absorb certain risks and encourage private sector investment in low-carbon projects, technologies, businesses, and supply chains; and,
- Targeted clean technology and sector supports delivered by Innovation, Science and Economic Development Canada to support battery manufacturing and further advance the development, application, and manufacturing of clean technologies.
Canada's Potential in Critical Minerals
As a global leader in mining, Canada is in a prime position to provide a stable resource base for critical minerals that are central to major global industries such as clean technology, auto manufacturing, health care, aerospace, and the digital economy. For nickel and copper alone, the known reserves in Canada are more than 10 million tonnes, with many other potential sources at the exploration stage.
The Buy North American provisions for critical minerals and electric vehicles in the U.S. Inflation Reduction Act will create opportunities for Canada. In particular, U.S. acceleration of clean technology manufacturing will require robust supply chains of critical minerals that Canada has in abundance. However, to fully unleash Canada's potential in critical minerals, we need to ensure a framework is in place to accelerate private investment.
Budget 2022 committed $3.8 billion for Canada's Critical Minerals Strategy to provide foundational support to Canada's mining sector to take advantage of these new opportunities. The Strategy was published in December 2022.
On March 24, 2023, the government launched the Critical Minerals Infrastructure Fund—a new fund announced in Budget 2022 that will allocate $1.5 billion towards energy and transportation projects needed to unlock priority mineral deposits. The new fund will complement other clean energy and transportation supports, such as the Canada Infrastructure Bank and the National Trade Corridors Fund, as well as other federal programs that invest in critical minerals projects, such as the Strategic Innovation Fund.
The new Investment Tax Credit for Clean Technology Manufacturing proposed in Budget 2023 will also provide a significant incentive to boost private investment in Canadian critical minerals projects and create new opportunities and middle class jobs in communities across the country.
An Investment Tax Credit for Clean Technology ManufacturingView the impact assessment
Supporting Canadian companies in the manufacturing and processing of clean technologies, and in the extraction and processing of critical minerals, will create good middle class jobs for Canadians, ensure our businesses remain competitive in major global industries, and support the supply chains of our allies around the world.
While the Clean Technology Investment Tax Credit, first announced in Budget 2022, will provide support to Canadian companies adopting clean technologies, the Clean Technology Manufacturing Investment Tax Credit will provide support to Canadian companies that are manufacturing or processing clean technologies and their precursors.
Budget 2023 proposes a refundable tax credit equal to 30 per cent of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals, including:
- Extraction, processing, or recycling of critical minerals essential for clean technology supply chains, specifically: lithium, cobalt, nickel, graphite, copper, and rare earth elements;
- Manufacturing of renewable or nuclear energy equipment;
- Processing or recycling of nuclear fuels and heavy water;
- Manufacturing of grid-scale electrical energy storage equipment;
- Manufacturing of zero-emission vehicles; and,
- Manufacturing or processing of certain upstream components and materials for the above activities, such as cathode materials and batteries used in electric vehicles.
The investment tax credit is expected to cost $4.5 billion over five years, starting in 2023-24, and an additional $6.6 billion from 2028-29 to 2034-35. The credit would apply to property that is acquired and becomes available for use on or after January 1, 2024, and would no longer be in effect after 2034, subject to a phase-out starting in 2032.
Securing Major Battery Manufacturing in CanadaView the impact assessment
Here in Canada and around the world, major automakers are pivoting to building electric vehicles at historic speeds. Canada can capitalize on this shift by securing our place in rapidly developing global supply chains for electric vehicle manufacturing, including in battery manufacturing and the critical minerals and high-value midstream components that play an essential role in their production. Together, these segments of the electric vehicle supply chain can create and secure more high-quality jobs for Canadian workers for a generation to come.
Recognizing Canada's potential to be a global leader in battery manufacturing, Volkswagen announced on March 13, 2023, that its subsidiary, PowerCo, will build its first overseas 'gigafactory' in St. Thomas, Ontario.
This massive battery manufacturing facility will represent a significant portion of the North American battery manufacturing sector. It will cement Canada's place in the North American and global battery value chains, and create good middle class jobs for Canadians, both at the facility itself and across Canada's battery and critical minerals sectors.
Projected costs of this agreement have been fully accounted for in Budget 2023. Further details and announcements will follow in the coming weeks after finalization of the agreement by Volkswagen.
Securing Major Battery Manufacturing in Canada
As the North American automotive sector pivots to electric vehicle (EV) -based platforms, battery manufacturing investments will be a critical component of the new value chains. Investing in building this capacity in Canada will have significant benefits for Canadian workers and the Canadian economy, both now and in the future, by:
Anchoring the future Canadian supply chain: Around 50 per cent of the battery's total value accrues in battery cell and pack production activities—anchoring a significant portion of value-added production in Canada.
Accelerating investment across the value chain: Battery manufacturing activities generate important demand for Canadian critical minerals and can help attract additional processing activities to Canada.
Promoting growth in the automotive sector of the future: Integration between battery and automotive manufacturing activities can help make Canada an even more attractive investment destination for future EV assembly and parts manufacturing.
Securing good jobs for Canadians: Battery 'gigafactories' typically employ thousands of people, create valuable economic spin-off benefits for local communities, and support even more good jobs across their supply chains.
Supporting the shift to a net-zero economy: The shift to using batteries and EVs is a vital part of Canada's plan to reach net-zero by 2050, and will help to reduce pollution across Canada.
Delivering the Canada Growth FundView the impact assessment
There are trillions of dollars in private capital waiting to be spent in building the global clean economy. Canada is extremely well-positioned to attract a competitive share of this capital. And doing so is essential in our work to fight climate change, create middle class jobs now and into the future, and grow the clean economy.
The Canada Growth Fund is a $15 billion arm's length public investment vehicle that will help attract private capital to build Canada's clean economy by using investment instruments that absorb certain risks in order to encourage private investment in low carbon projects, technologies, businesses, and supply chains.
The 2022 Fall Economic Statement announced that the Canada Growth Fund would be initially launched as a subsidiary of the Canada Development Investment Corporation (CDEV), with a permanent, independent structure to be put in place in the first half of 2023.
The Growth Fund was formally incorporated as a subsidiary of CDEV in December 2022.
As a significant part of the government's plan to decarbonize and build Canada's clean economy, the Canada Growth Fund requires an experienced, professional, independent investment team ready to make important investments in support of Canada's climate and economic goals.
Budget 2023 announces that the government intends to introduce legislative amendments to enable the Public Sector Pension Investment Board (PSP Investments) to manage the assets of the Canada Growth Fund to deliver on the Growth Fund's mandate of attracting private capital to invest in Canada's clean economy.
Established as a federal Crown corporation, PSP Investments is one of Canada's largest pension investment managers with more than $225 billion in assets under management. It operates at arm's length from the government. The Canada Growth Fund assets managed by PSP Investments will be separate from and managed independently of the pension assets of PSP Investments. PSP Investments will continue to successfully deliver on its pre-existing pension management mandate.
By partnering with PSP Investments, the Canada Growth Fund will be able to move quickly and begin making investments to support the growth of Canada's clean economy. As the government committed in the 2022 Fall Economic Statement, the Canada Growth Fund will begin investing in the first half of 2023.
PSP Investments will provide an independent investment team with extensive experience across the range of investment tools that the Growth Fund will use to deliver on its mandate and attract new private investment to Canada. PSP Investments will also establish an investment decision-making committee, focused exclusively on the Growth Fund, to ensure that investment decisions align with the Growth Fund's objectives, investment principles, and performance criteria.
While the Growth Fund will be independently managed by PSP Investments, it will maintain the market-leading reporting framework for public transparency and accountability that the government committed to in the 2022 Fall Economic Statement.
To ensure that workers are represented in the governance of PSP Investments, the government will consult unions this spring on adding two seats to the PSP Investments Board of Directors for representatives of organized labour, in keeping with the current recruitment rules for filling positions for board members. The government aims to legislate this change in fall 2023.
Contracts for Difference
One of the investment tools the Canada Growth Fund will provide to support clean growth projects is contracts for difference. These contracts would backstop the future price of, for example, carbon or hydrogen, providing predictability that helps to de-risk major projects that cut Canada's emissions. Contracts for difference allow companies to plan ahead, supporting the growth of Canada's clean economy by making clean projects more cost-effective than more polluting projects.
Building on this, Budget 2023 announces that the government will consult on the development of a broad-based approach to carbon contracts for difference that aims to make carbon pricing even more predictable, while supporting the investments needed to build a competitive clean economy and help meet Canada's climate goals. This would complement contracts for difference offered by the Canada Growth Fund.
Clean Fuels for the Clean Economy
While electricity is expected to be the dominant source of energy in the years to come, clean fuels— namely hydrogen, biofuels, and biomass—will be critical sources of energy where electricity would be inefficient or impractical. They will also be reliable sources of good middle class careers for Canadians right across the country.
Clean hydrogen is rapidly becoming a leading candidate to fuel long-haul road, marine, and aviation transport, as well as for heavy industries, such as iron and steel production. Canada has the potential to become a global supplier of various forms of clean hydrogen.
Globally, the pace of development in the production and use of hydrogen is accelerating. However, it will require considerable investment before hydrogen can scale to the point of becoming a critical source of energy—which is why measures such as the Investment Tax Credit for Clean Hydrogen announced in the 2022 Fall Economic Statement are so important.
Biofuels, such as renewable diesel and sustainable aviation fuel, generate fewer emissions on a lifecycle basis compared to fossil fuels, and will also be critical to the growth of Canada's clean economy. With our abundant feedstocks, Canada is well positioned to grow our biofuels industry.
Biomass, which is renewable organic material that comes from plants, includes wood and wood processing waste, such as wood chips, lumber mill sawdust and waste, and black liquor from pulp and paper mills. Biomass is often combusted for heating and for industrial applications, notably in the pulp and paper industry. Biomass heating also presents an opportunity for rural and remote Indigenous communities in Canada to reduce their reliance on diesel fuel.
An Investment Tax Credit for Clean HydrogenView the impact assessment
In the 2022 Fall Economic Statement, the federal government announced a refundable investment tax credit for investments made in clean hydrogen production based on the lifecycle carbon intensity of hydrogen.
This critical investment in a growing source of energy will help create good middle class careers, ensure that Canadian companies can remain globally competitive, and encourage the use of clean energy to reduce pollution.
Since the 2022 Fall Economic Statement, the government has consulted on how best to implement the Clean Hydrogen Investment Tax Credit, and has used the input received to inform its design.
Budget 2023 announces the details of the Clean Hydrogen Investment Tax Credit with the following key design features:
- The levels of support will vary between 15 and 40 per cent of eligible project costs, with the projects that produce the cleanest hydrogen receiving the highest levels of support (Table 3.1).
- The Clean Hydrogen Investment Tax Credit will also extend a 15 per cent tax credit to equipment needed to convert hydrogen into ammonia, in order to transport the hydrogen. The tax credit will only be available to the extent the ammonia production is associated with the production of clean hydrogen.
- Labour requirements will need to be met to receive the maximum tax credit rates. If labour requirements are not met, credit rates will be reduced by ten percentage points. These labour requirements will come into effect on October 1, 2023.
|Tax Credit Rate2
(applied to eligible costs)
|0.75 kg to <2.0 kg||25%|
|2.0 kg to <4 kg||15%|
|4 kg or higher||N.A.|
1 Reflects the expected life-cycle emissions of a project based on its carbon intensity (measured as kilograms (kg) of carbon dioxide equivalent per kg of hydrogen produced).
2 Assumes labour requirements are met.
The proposed Clean Hydrogen Investment Tax Credit is expected to cost $5.6 billion over five years, beginning in 2023-24. Between 2028-29 and 2034-35, the Clean Hydrogen Investment Tax Credit is expected to cost an additional $12.1 billion.
Additional details can be found in the Budget Supplementary Information, under "Investment Tax Credit for Clean Hydrogen" and "Labour Requirements Related to Certain Investment Tax Credits".
Growing Canada's Biofuels Sector
With global demand for biofuels growing rapidly, the production of biofuels offers economic opportunities for Canada's energy sector, as well as for Canada's agricultural and forestry sectors, which provide essential feedstocks used in these fuels. These include canola, pulping liquor, bio-charcoal, and organic matter in municipal and industrial wastes.
In the months ahead, the federal government will engage with the biofuels industry to explore opportunities to promote its growth in Canada. This will include an examination of different support mechanisms that could support the sector in meeting the growing demand for low-emissions fuels.
Biofuels Opportunities Across Canada
British Columbia's expansive forestry sector presents many opportunities to produce biofuels from wood-based feedstocks. Canfor and Licella are proceeding with the development of a low-carbon biofuel plant in Prince George, British Columbia, that will convert forestry residues and wastes into renewable biocrude, which can be further refined to low-carbon transportation fuels.
Canada's prairies boast a strong agricultural sector that is able to supply feedstocks, such as canola, for the production of biofuels. FCL recently announced plans to build the largest renewable diesel facility in Canada in Regina, Saskatchewan.
Ontario and Quebec
Ontario and Quebec boast high population centers that generate considerable municipal waste, which can be utilized to produce biofuels. The Varennes Carbon Recycling plant, currently under construction in Varennes, Quebec, will convert non-recyclable waste and forest residues into biofuels.
Production of certain biofuels can be achieved by repurposing existing petroleum refineries. The Braya Renewable Fuels refinery in Come By Chance, Newfoundland and Labrador is a repurposed petroleum refinery that is being converted into a renewable diesel and sustainable aviation fuel production facility.
Enhancing the Reduced Tax Rates for Zero-Emission Technology ManufacturersView the impact assessment
To build more zero-emission technologies in Canada, Budget 2021 reduced corporate income tax rates by half for zero-emission technology manufacturers to drive investment and create new jobs. These rates, of 4.5 per cent for small businesses and 7.5 per cent for other businesses, are currently scheduled to expire beginning in 2032, subject to a phase-out starting in 2029. With new opportunities ahead, extending this support is important to ensure businesses have the runway they need to innovate and produce zero-emission technologies.
Budget 2023 proposes to extend the availability of these reduced rates by another three years, such that the reduced tax rates would no longer be in effect for taxation years starting after 2034, subject to a phase-out starting in 2032.
Budget 2023 also proposes to extend eligibility for the reduced rates to include the manufacturing of nuclear energy equipment and the processing and recycling of nuclear fuels and heavy water, effective for taxation years beginning after 2023.
These enhancements of the reduced tax rates are expected to cost $20 million over five years, starting in 2023-24, and an additional $1.3 billion from 2028-29 to 2034-35.
Supporting Clean Technology ProjectsView the impact assessment
The Strategic Innovation Fund provides funding for large projects across sectors that include emissions reduction, biomanufacturing, and natural resources. Since 2018, the Strategic Innovation Fund has created or maintained more than 105,000 jobs, and used $6.9 billion in contributions to leverage $67 billion in private investment across 107 projects. The federal government wants to ensure that companies and innovators in Canada are well-positioned to capitalize on the exciting opportunities to come as we build Canada's clean economy.
Budget 2023 proposes to provide $500 million over ten years to the Strategic Innovation Fund to support the development and application of clean technologies in Canada. The Strategic Innovation Fund will also direct up to $1.5 billion of its existing resources towards projects in sectors including clean technologies, critical minerals, and industrial transformation.
The Strategic Innovation Fund
The Strategic Innovation Fund has invested in significant clean technology projects, including:
- Algoma Steel Inc., in Sault Ste. Marie, Ontario, with a $200 million contribution, to reduce emissions by transitioning to electric steelmaking processes;
- Svante Technologies Inc., in Burnaby, British Columbia, with a $25 million contribution, to reduce emissions by heavy industrial emitters by supporting the development of carbon capture technology;
- Moltex Energy Canada Inc., in Saint John, New Brunswick, with a $47.5 million contribution, to support the production of non-emitting energy through small modular reactor research and technology development.
Expanding Eligibility for the Clean Technology Investment Tax CreditView the impact assessment
The 2022 Fall Economic Statement announced the details of the Clean Technology Investment Tax Credit, which will provide support to Canadian businesses in adopting clean technology at a 30 per cent refundable rate. In Budget 2023, the federal government is expanding the eligibility for the Clean Technology Investment Tax Credit to further support the growth of Canada's burgeoning clean technology sector.
Budget 2023 proposes to expand eligibility for the Clean Technology Investment Tax Credit to include geothermal energy systems that are eligible for capital cost allowance Classes 43.1 and 43.2. The Clean Technology Investment Tax Credit would be available to businesses investing in such property that is acquired and becomes available for use on or after the day of Budget 2023. Projects that will co-produce oil, gas, or other fossil fuels would not be eligible for the Clean Technology Investment Tax Credit.
Budget 2023 also proposes to modify the phase-out of the Clean Technology Investment Tax Credit. Rather than starting the phase-out in 2032, the tax credit would now begin to phase out in 2034 and would not be available after that year.
Including geothermal systems in this measure is expected to cost $185 million from 2023-24 to 2027-28. This will bring the total expected cost of the Clean Technology Investment Tax Credit to about $6.9 billion over the same period.
Getting Major Projects Done
Building Canada's clean economy will require significant and sustained private sector investment in clean electricity, critical minerals, and other major projects. Ensuring the timely completion of these projects is essential—it should not take 12 years to open a critical minerals mine. As part of its clean growth strategy, the government is making it a priority to expedite major project reviews while maintaining strong regulatory standards.
In the past year, the federal government has taken action to fast-track the assessment of mining, energy, and other major projects, and to make Canada's rigorous regulatory process more efficient. This includes:
$1.3 billion over six years, starting in 2022-23, and $55.4 million ongoing, to the Impact Assessment Agency of Canada, the Canada Energy Regulator, the Canadian Nuclear Safety Commission, and ten other federal departments, to continue to improve the efficiency of assessments for major projects;
$10.6 million for Natural Resources Canada's Centre of Excellence on Critical Minerals to provide direct assistance to critical mineral developers in navigating regulatory processes and government support measures; and,
$40 million to Crown-Indigenous Relations and Northern Affairs Canada to support Northern regulatory processes.
The Impact Assessment Agency of Canada and other federal departments are also working together to streamline regulatory assessment processes and ensure timely decisions.
Clean growth projects also require provincial and territorial regulatory approvals, and ensuring regulatory processes are efficient and effective is a shared responsibility. Building on the success of the federal-provincial cooperation agreement signed with British Columbia, the federal government stands ready and willing to work with provinces and territories to deepen federal-provincial cooperation to reach the goal of "one project, one assessment".
Over the course of this year, the government will propose further steps to ensure the effectiveness of Canada's reviews of major projects, which will support the growth of Canada's clean economy while continuing to uphold the highest standards for environmental and other impacts.
Budget 2023 announces that, by the end of 2023, the government will outline a concrete plan to improve the efficiency of the impact assessment and permitting processes for major projects, which will include clarifying and reducing timelines, mitigating inefficiencies, and improving engagement and partnerships.
In addition, Budget 2023 proposes to provide $11.4 million over three years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada to engage with Indigenous communities and to update the federal guidelines for federal officials to fulfil the Crown's duty to consult Indigenous peoples and accommodate impacts on their rights. This will support the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act and provide more clarity on how the government will proceed to ensure an effective and efficient whole-of-government approach to consultation and accommodation.
As outlined in Chapter 4, Budget 2023 also announces investments in improving Indigenous economic participation in major projects, as well as increased support for the participation of Indigenous Peoples and other Northerners in environmental and regulatory assessments of major projects in the North.
Enhancing the Carbon Capture, Utilization, and Storage Investment Tax CreditView the impact assessment
Carbon capture, utilization, and storage (CCUS) is a suite of technologies that captures carbon dioxide (CO2) emissions to either store the CO2 or to use in other industrial processes, such as permanent mineralization in concrete.
In Budget 2022, the federal government announced design details of the Investment Tax Credit for Carbon Capture, Utilization, and Storage—an important tool for reducing emissions in high-emitting sectors and helping to create good careers. In August 2022, a consultation on draft legislation and additional design features was launched, which provided the Department of Finance with submissions that have informed additional design elements of the investment tax credit.
Budget 2023 proposes that the Investment Tax Credit for Carbon Capture, Utilization, and Storage:
- Include dual use heat and/or power equipment and water use equipment, with tax support prorated in proportion to the use of energy or material in the carbon capture, utilization, and storage process, subject to certain conditions;
- In addition to Saskatchewan and Alberta, be available to projects that would store CO2 using dedicated geological storage in British Columbia;
- Require projects storing CO2 in concrete to have their concrete storage process validated by a third-party based on an ISO standard prior to claiming the investment tax credit; and,
- Include a recovery calculation for the investment tax credit in respect of refurbishment property.
The proposed changes are expected to cost about $520 million over five years, beginning in 2023-24.
The government intends to apply labour requirements to the Investment Tax Credit for Carbon Capture, Utilization, and Storage. Details will be announced at a later date. These labour requirements will come into effect on October 1, 2023.
A full package of legislative proposals will be released for consultation in the coming months. Once legislated, the tax credit will be retroactively available to businesses that have incurred eligible CCUS expenses, starting in 2022.
3.3 Investing in Canadian Workers
Across all sectors of our economy—in blue collar jobs and in white collar jobs—Canadian workers are the most talented and resourceful in the world. The federal government's plan to build Canada's clean economy will build an economy that is worker-driven; one that creates more good careers today, where the unions that built the middle class can thrive, and where young people don't have to move across the country just to find a job that pays them well. This is a plan that will create good careers and opportunities for everyone, anywhere in Canada.
There will be good jobs for: auto workers manufacturing electric vehicles: construction workers and tradespeople retrofitting energy efficient homes; resource workers mining the critical minerals the world needs; mill and smelter workers making the cleanest aluminum and steel in the world; aerospace workers building the next generation of greener planes and helicopters; engineers designing hydrogen plants and fuel cells; mechanics who keep zero-emission vehicles running well; Indigenous Guardians, forest workers, fishers, and marine biologists working to protect our lands and waters and use the power of nature to fight climate change; back-office and support staff at thousands of growing companies. And, of course, the next generation of small business entrepreneurs dreaming up solutions to the new challenges of the 21st century.
Since 2019, the government has invested in a range of measures that are empowering unions and equipping Canadian workers with the tools they will need to work the good jobs of today and tomorrow. Budget 2023 builds on this progress and proposes new steps to ensure that workers from coast-to-coast-to-coast will share in Canada's economic prosperity for generations to come.
Investing in Skills for a Clean Economy
Investments since Budget 2017 in skills and labour mobility measures include:
Labour Market Transfer Agreements: Enabling provinces and territories to deliver training and employment supports tailored to their unique labour market needs, including with a $1.5 billion top-up in 2020 to get people back to work in the sectors hit hardest by the pandemic. This builds off of the annual investment of nearly $3 billion delivered to provinces and territories for training and employment supports and a top-up of $2.7 billion over six years, starting in 2017-18, announced in Budget 2017.
Union-based training: Over $200 million to expand the Union Training and Innovation Program to train more than 30,000 additional apprentices and journeypersons.
Employer-led training: $250 million over three years for the Upskilling for Industry Initiative to support more than 15,000 workers, and $125 million over five years to launch the Sustainable Jobs Training Centre.
In addition, Budget 2021 announced the Sectoral Workforce Solutions Program to help key sectors of the economy implement solutions to address their current and emerging workforce needs and the Apprenticeship Service to support first-year apprentices in construction and manufacturing trades by providing employers with $5,000 for upfront costs like salary and training, or $10,000 for members of underrepresented groups.
Apprenticeship Service: Launched the Apprenticeship Service to help first year apprentices in construction and manufacturing Red Seal trades connect with opportunities at small and medium-sized employers.
Skills for Success: Helping Canadians at all skill levels improve their foundational and transferable skills, like problem solving and digital skills, through free training resources and online skills assessments.
Financial support for adult learners: $815 million over five years for the Canada Training Credit, which covers up to 50 per cent of eligible training fees.
Labour mobility improvements: $595 million over six years for the Labour Mobility Deduction for Tradespeople to make it more affordable to travel to where the jobs are.
Fair Pay for Workers Who Build the Clean EconomyView the impact assessment
When the federal government provides support for businesses to grow, their workers must also see the benefit. For the first time in Canadian history, the 2022 Fall Economic Statement announced that labour requirements would be attached to investment tax credits.
These tax credits, for investments in clean technology and clean hydrogen equipment, have requirements that include paying prevailing wages and ensuring that apprenticeship opportunities are being created.
Following consultations with unions and other stakeholders, Budget 2023 is announcing additional details on the labour requirements for the Clean Technology and Clean Hydrogen Investment Tax Credits.
To be eligible for the highest tax credit rates, businesses must pay a total compensation package that equates to the prevailing wage. The definition of prevailing wage would be based on union compensation, including benefits and pension contributions from the most recent, widely applicable multi-employer collective bargaining agreement, or corresponding project labour agreements, in the jurisdiction within which relevant labour is employed.
Additionally, at least ten per cent of the tradesperson hours worked must be performed by registered apprentices in the Red Seal trades.
The government also intends to apply labour requirements related to the prevailing wage and hours worked by registered apprentices to the Investment Tax Credit for Carbon Capture, Utilization, and Storage, and the Investment Tax Credit for Clean Electricity. Further details will be provided at a later date.
In all cases, the requirements would apply to labour that is performed on or after October 1, 2023.
Ensuring Fairness for Canadian Workers with Federal Reciprocal Procurement
The federal government is committed to having procurement policies that treat Canadian workers and businesses fairly—and this should include ensuring the government buys goods and services from countries that also grant Canadian businesses a similar level of access to their government procurement markets. In doing so, we will ensure that federal procurement dollars benefit Canadian workers and businesses, and support the development of mutually-beneficial, reciprocal, and resilient supply chains.
To deliver these benefits, Budget 2023 announces the government will undertake targeted engagement with provinces and territories, industry stakeholders, and workers and unions on concrete reciprocal procurement measures, so they can be implemented in the near term. The proposed measures will include placing conditions on foreign suppliers' participation in federally-funded infrastructure projects, applying strict reciprocity to federal procurement, and creating a preference program for Canadian small businesses.
The federal government will also engage with provinces and territories to explore extending this reciprocal treatment to all sub-national procurement opportunities.
Beyond government procurement policies, in light of some of the restrictive eligibility conditions associated with new measures within the U.S. Inflation Reduction Act, the government will initiate targeted consultations on the possibility to introduce new reciprocal treatment for the measures in the government's plan to build a clean economy.
Doubling the Tradespeople's Tool DeductionView the impact assessment
Our economy depends on skilled tradespeople. From electricians, to painters, to plumbers, supporting Canada's skilled tradespeople is essential to attracting more Canadians to the trades, and ensuring that Canada has the skilled workforce required to build Canada's clean economy and double the number of new homes that will be built in Canada by 2032.
To help tradespeople invest in the equipment they need, Budget 2023 proposes to double the maximum employment deduction for tradespeople's tool expenses from $500 to $1,000.
This change would take effect for the 2023 taxation year and would reduce federal revenues by $11 million over six years, starting in 2022-23.
Strengthening Internal Trade
Reducing barriers to interprovincial and territorial trade and improving labour mobility would create more opportunities for Canadian businesses to grow, make it easier for Canadians to get help from medical professionals, and bring down costs for Canadians through increased competition and consumer choice.
In December 2022, the Minister of Intergovernmental Affairs, Infrastructure and Communities launched a new Federal Action Plan to Strengthen Internal Trade, which seeks to accelerate efforts to remove barriers to trade and labour mobility across Canada. This includes:
Funding work to identify barriers to trade, and solution-driven analysis on how to eliminate them;
The creation of an Internal Trade Data and Information Hub; and,
Identifying opportunities to enhance the capacity of the Internal Trade Secretariat and the Regulatory Reconciliation and Cooperation Table.
This builds on the work the government has undertaken to improve labour mobility, including:
Providing $115 million over five years, with $30 million ongoing, through Budget 2022 to expand the Foreign Credential Recognition Program, which makes it easier for newcomer workers to have their credentials recognized in Canada. This is expected to help up to 11,000 internationally trained health care professionals per year get their credentials recognized; and,
Launching the Labour Mobility Deduction for Tradespeople, which makes it more affordable for skilled tradespeople to travel to the worksite, wherever in Canada it is.
To continue making progress on strengthening internal trade in 2023, including efforts to eliminate exemptions to the Canadian Free Trade Agreement, the government, led by the Minister of Intergovernmental Affairs, Infrastructure and Communities, will lead and advance federal, provincial, and territorial efforts to explore mutual recognition of regulatory standards, which will ensure goods and services are able to move more freely.
This includes the development of a Federal Framework on Mutual Recognition, which will set out the federal government's coordinated policy approach towards mutual recognition, helping to advance engagement with provincial and territorial partners.
These critical steps to strengthen internal trade in Canada will be discussed at federal, provincial, and territorial meetings in 2023, in order to establish a clear roadmap to reach an agreement in a timely way that has quantifiable and verifiable targets.
Supporting Employee Ownership TrustsView the impact assessment
Employee Ownership Trusts enable employees to share in the success of their work. They support participation in business decisions and allow workers to receive their share of profits. With more than 75 per cent of small business owners planning to retire in the next decade, Employee Ownership Trusts can also give business owners an alternative succession option. Budget 2022 announced the government's commitment to create these trusts while consulting with stakeholders to address remaining barriers.
Budget 2023 proposes to introduce tax changes to facilitate the creation of Employee Ownership Trusts. Selling the business to employees would become a more attractive proposition for owners looking to exit, and employee-owned businesses would be able to re-invest more of their profits in growth.
The government welcomes stakeholder feedback on how best to enhance employee rights and participation in the governance of Employee Ownership Trusts.
These changes would take effect for the 2024 tax year, and would reduce federal revenues by $20 million over five years, starting in 2023-24.
Investing in Canada's Labour Market Transfer AgreementsView the impact assessment
Every year, the federal government invests nearly $3 billion in Canada's Labour Market Development Agreements and Workforce Development Agreements with provinces and territories. This funds a range of supports, including skills training, on-site work experience, career counselling, and job search assistance that helps one million Canadians each year to upgrade their skills or find new jobs.
Budget 2023 proposes to invest an additional $625 million in 2023-24 in the Labour Market Transfer Agreements to ensure Canadians continue to have access to the supports they need to get their next job.
Continuing to Support Seasonal EI ClaimantsView the impact assessment
Many seasonal workers—including in fishing and tourism sectors—rely on Employment Insurance for the support they need between work seasons. To address gaps in Employment Insurance support between seasons, the government introduced temporary rules in 2018 to provide up to five additional weeks—for a maximum of 45 weeks—for eligible seasonal workers in 13 economic regions. This support is set to expire in October 2023.
Budget 2023 proposes to extend this support for seasonal workers until October 2024. The cost of this measure is estimated at $147 million over three years, starting in 2023-24.
Protecting Federally Regulated Gig WorkersView the impact assessment
When workers are engaged in a typical employer-employee relationship, but are misclassified as something other than employees, they miss out on the same labour rights, protections, and entitlements as traditional employees. For those in the gig economy, such as those who rely on an app or digital platform for their source of work, this can have a real impact on the stability and security of their livelihoods. As a first step in addressing this, in 2021, the federal government made illegal the intentional misclassification of employees in the federally regulated private sector.
Budget 2023 proposes to amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification. This will help ensure all federally regulated workers receive the protections and employer contributions to which they are entitled, including Employment Insurance and the Canada Pension Plan.
Protecting Jobs with Timely Access to Work-Sharing AgreementsView the impact assessment
When businesses struggle, it can be difficult for them to keep staff on payroll. The Work-Sharing Program helps avoid layoffs during temporary decreases in business activity by providing income support through the Employment Insurance program to eligible employees who work a reduced week while their employer recovers. This means that employees can keep their jobs and continue earning income, while their employer retains skilled workers without having to hire someone new when business picks up.
Budget 2023 proposes to provide $5.4 million over three years, starting in 2023‑24, to Employment and Social Development Canada to ensure that the Work-Sharing Program continues to provide timely support to Canadian workers and businesses.
Continuing Support for the Student Work Placement ProgramView the impact assessment
Work-integrated learning programs such as co-ops and internships play a critical role in helping students transition from post-secondary institutions to the workforce. The federal government recognizes the need to continue supporting students to develop work-ready skills, particularly in the context of an increasingly complex and evolving labour market.
Budget 2023 proposes to provide $197.7 million in 2024-25 to the Student Work Placement Program to continue creating quality work-integrated learning opportunities for students through partnerships between employers and post-secondary education institutions.
These measures will ensure that students can gain the necessary skills, education, and real-life work experience to transition successfully into the workforce.
Prohibiting the Use of Replacement WorkersView the impact assessment
The ability to form a union, bargain collectively, and strike is essential to a healthy democracy. These important rights can be undermined when an employer brings in replacement workers to temporarily do the work of unionized workers during a strike or lockout.
Budget 2023 proposes to table amendments to the Canada Labour Code, before the end of 2023, that would prohibit the use of replacement workers during a strike or lockout, and improve the process to review activities that must be maintained to ensure the health and safety of the public during a work stoppage.
3.4 Reliable Transportation and Resilient Infrastructure
Canadians expect and deserve a transportation and supply chain system that reliably delivers goods and people to our cities and towns, provides businesses with access to global markets, and safely and efficiently connects our communities. Our economy depends on it, too.
In Budget 2023, the federal government proposes new investments to ensure that Canada's transportation and supply chain systems are resilient and reliable for Canadians and Canadian businesses.
Strengthening Canada's Trade CorridorsView the impact assessment
Canada's trade corridors keep our economy moving. From ports, to airports, to railways and highways, they are the backbone of the supply chains that bring goods to our communities and enable our businesses to export their products around the world.
Since 2017, the federal government has announced more than $2.7 billion for projects to increase Canada's trade corridor capacity under the National Trade Corridors Fund. To date, this has meant support for more than 120 transportation supply chain projects across the country, including bridges, roads, airports, railways, and ports.
Recent events, including the pandemic and flooding in British Columbia, which cut off the supply of goods to and from the west coast, have demonstrated the economic challenges for Canadians and businesses that come with supply chain disruptions.
To further strengthen Canada's transportation systems and supply chain infrastructure, Budget 2023 proposes to:
- Provide $27.2 million over five years, starting in 2023-24, to Transport Canada to establish a Transportation Supply Chain Office to work with industry and other orders of government to respond to disruptions and better coordinate action to increase the capacity, efficiency, and reliability of Canada's transportation supply chain infrastructure;
- Collaborate with industry, provinces, territories, and Indigenous Peoples to develop a long-term roadmap for Canada's transportation infrastructure to better plan and coordinate investments required to support future trade growth;
- Provide $25 million over five years, starting in 2023-24, to Transport Canada to work with Statistics Canada to develop transportation supply chain data that will help reduce congestion, make our supply chains more efficient, and inform future infrastructure planning. This measure will be advanced using existing Transport Canada resources;
- Introduce amendments to the Canada Transportation Act to provide the Minister of Transport with the authority to compel data sharing by shippers accessing federally regulated transportation services;
- Introduce amendments to the Canada Transportation Act for a temporary extension, on a pilot basis, of the interswitching limit in the prairie provinces to strengthen rail competition; and,
- Launch a review of the Shipping Conferences Exemption Act to improve marine shipping competition.
These measures are a down payment on Canada's National Supply Chain Strategy, which will be released in the coming months and will be informed by the recommendations of the National Supply Chain Task Force report.
Delivering Canada's Infrastructure Funding
Through the Investing in Canada Infrastructure Program (ICIP), the federal government is providing more than $33 billion in funding for public infrastructure across the country—projects that municipalities rely on to make our communities stronger. Under this program, provinces and territories prioritize and submit projects to Infrastructure Canada for review.
To date, the program has approved $24.2 billion for 5,400 projects. These projects have improved access to safe drinking water by building or rehabilitating over 1,000 water and wastewater systems, strengthened communities with 800 projects to improve cultural and recreational spaces, and enhanced public transit systems by acquiring over 4,200 public transit vehicles like buses, subway cars and light rail transit trains.
ICIP is supporting several transformational infrastructure projects, such as the extension of Montreal Metro's Blue Line, the St. John's 2025 Canada Summer Games Track and Field Facility, the Winnipeg North End Sewage Treatment Plant Upgrades, the Eastern Ontario Regional Network Cellular Gap Project, and the Port Saint John West Side Terminals Modernization Project.
To help build more infrastructure sooner, Budget 2022 signalled the government's intent to accelerate the deadline for provinces to commit their remaining funding to March 31, 2023, with any uncommitted funds after this date to be reallocated to other priorities. The government is working closely with the provinces to support them in allocating their remaining funding and expects that all remaining funding will be committed by the deadline.
|Province||Remaining Project Funding
(October 19, 2022)
|Remaining Project Funding
(March 23, 2023)
|($ millions)||Percentage of total
project funding envelope
|($ millions)||Percentage of total
project funding envelope
|Newfoundland and Labrador||$212.8||38%||$0.0||0%|
|Prince Edward Island||$56.9||16%||$0.0||0%|
Source: Infrastructure Canada
1Remaining project funding includes funding for projects that provinces have signaled to the federal government but not yet submitted for approval.
2The Government of Canada is expecting Quebec to allocate approximately $695 million of its remaining project funding to the Montreal Blue line project and the balance of these funds to other priority projects before March 31, 2023.
Whether it is building public transit, supporting the resilience of communities, or funding community infrastructure, the government knows our partners rely on a long-term approach to infrastructure. Following the success of ICIP, the government is actively reviewing Canada's continued infrastructure needs as it charts a course for future federal infrastructure programming. The government will provide an update on this work later this year, including the next steps on permanent public transit funding.
Supporting Resilient Infrastructure Through Innovation
The Smart Cities Challenge was launched in 2017 to encourage cities to adopt new and innovative approaches to improve the quality of life for their residents. The first round of the Challenge resulted in $75 million in prizes across four winning applicants: Montreal, Quebec; Guelph, Ontario; communities of Nunavut; and Bridgewater, Nova Scotia.
New and innovative solutions are required to help communities reduce the risks and impacts posed by weather-related events and disasters triggered by climate change. To help address this issue, the government will be launching a new round of the Smart Cities Challenge later this year, which will focus on using connected technologies, data, and innovative approaches to improve climate resiliency.
Investing in VIA Rail Trains and ServicesView the impact assessment
VIA Rail trains help to connect communities across Canada, including rural, remote, and Indigenous communities where other transportation options may be limited or unavailable, such as those between Winnipeg and Churchill, Prince Rupert and Jasper, or Montreal and Senneterre. However, many of VIA Rail's trains require significant investments to ensure they can provide the service that Canadians deserve.
Budget 2023 proposes to provide $210.0 million over five years, starting in 2023-24, with $117.4 million in remaining amortization, to VIA Rail to conduct maintenance on its trains on routes outside the Québec City–Windsor Corridor and to maintain levels of service across its network.
This funding is in addition to the $42.8 million over four years, starting in 2023-24, with $169.4 million in remaining amortization, provided in Budget 2022 to construct, maintain, and upgrade stations and maintenance centres in the Québec City–Windsor Corridor.
Investing in the Canadian Coast GuardView the impact assessment
To carry out its critical activities, such as search and rescue and icebreaking operations, the Canadian Coast Guard operates 117 vessels and 22 helicopters. As the Coast Guard plans to expand its fleet of ships in the coming decades, new investments in people and infrastructure are needed today to prepare for these new vessels.
Budget 2023 proposes to provide $119.6 million over five years, starting in 2023–24, with $102.1 million in remaining amortization and $17.4 million ongoing, to Fisheries and Oceans Canada to reinforce the integrity of its helicopter fleet and ensure the Canadian Coast Guard has the necessary infrastructure and support to hire and train the staff to operate its future marine vessel fleet. Of this amount, $27.8 million over five years and $4.3 million ongoing would be sourced from existing departmental resources.
Safe and Reliable Ferry Services in Eastern CanadaView the impact assessment
The federal government provides financial support for interprovincial ferry routes between Saint John, New Brunswick and Digby, Nova Scotia; Wood Islands, Prince Edward Island and Caribou, Nova Scotia; and Îles-de-la-Madeleine, Quebec and Souris, Prince Edward Island. These ferry services are essential transportation links for communities, businesses, and tourism, and contribute an estimated $141 million annually to the regional economy.
Budget 2023 proposes to provide $29.9 million over two years, starting in 2023-24, to Transport Canada for the Ferry Services Contribution Program to support the continued safe and reliable operation of ferry services in Eastern Canada. This will include the chartering of a second vessel for the Wood Islands-Caribou route.
Redeveloping the Bonaventure Expressway and Supporting Transportation Infrastructure in MontrealView the impact assessment
For nearly 20 years, converting the Bonaventure Expressway into an urban boulevard has been part of the vision for the redevelopment and revitalization of Montreal's shoreline. The federal portion of the expressway will soon require replacement, which provides an opportunity to modernize the roadway in line with this vision and restore public access to the area.
Budget 2023 proposes to provide $47.8 million over nine years, starting in 2023-24, with $225.5 million in remaining amortization, to the Jacques Cartier and Champlain Bridges Incorporated for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
Budget 2023 also proposes to provide $576.1 million over five years, starting in 2023-24, with $192.3 million in remaining amortization, to the Jacques Cartier and Champlain Bridges Incorporated to operate, maintain, and repair its infrastructure in the Greater Montreal Area.
Delivering the Lac-Mégantic Rail Bypass Project
Canadians will always remember the 47 victims of the tragic train derailment in Lac-Mégantic, Quebec in July 2013. The completion of the Lac-Mégantic rail bypass project remains a priority for the federal government as the community continues to recover from this tragedy.
The government continues to take important steps to move the project forward, including working in close partnership with the Government of Quebec to make the project a reality. In December 2022, the Prime Minister and the Premier of Quebec committed to fund the project in the same ratios as initially announced in 2018.
3.5 Investing in Tomorrow's Technology
With the best-educated workforce on earth, world-class academic and research institutions, and robust start-up ecosystems across the country, Canada's economy is fast becoming a global technology leader – building on its strengths in areas like artificial intelligence. Canada is already home to some of the top markets for high-tech careers in North America, including the three fastest growing markets between 2016 and 2021: Vancouver, Toronto, and Quebec City.
However, more can be done to help the Canadian economy reach its full potential. Reversing a longstanding trend of underinvestment in research and development by Canadian business is essential our long-term economic growth.
Budget 2023 proposes new measures to encourage business innovation in Canada, as well as new investments in college research and the forestry industry that will help to build a stronger and more innovative Canadian economy.
Attracting High-Tech Investment to Canada
In recent months, Canada has attracted several new digital and high-tech projects that will support our innovative economy, including:
Nokia: a $340 million project that will strengthen Canada's position as a leader in 5G and digital innovation;
Xanadu Quantum Technologies: a $178 million project that will support Canada's leadership in quantum computing;
Sanctuary Cognitive Systems Corporation: a $121 million project that will boost Canada's leadership in the global Artificial Intelligence market; and,
EXFO: a $77 million project to create a 5G Centre of Excellence that aims to develop one of the world's first Artificial Intelligence-based automated network solutions.
Review of the Scientific Research and Experimental Development Tax Incentive Program
The Scientific Research and Experimental Development (SR&ED) tax incentive program continues to be a cornerstone of Canada's innovation strategy by supporting research and development with the goal of encouraging Canadian businesses of all sizes to invest in innovation that drives economic growth.
In Budget 2022, the federal government announced its intention to review the SR&ED program to ensure it is providing adequate support and improving the development, retention, and commercialization of intellectual property, including the consideration of adopting a patent box regime. The Department of Finance will continue to engage with stakeholders on the next steps in the coming months.
Modernizing Canada's Research Ecosystem
Canada's research community and world-class researchers solve some of the world's toughest problems, and Canada's spending on higher education research and development, as a share of GDP, has exceeded all other G7 countries.
Since 2016, the federal government has committed more than $16 billion of additional funding to support research and science across Canada. This includes:
Nearly $4 billion in Budget 2018 for Canada's research system, including $2.4 billion for the Canada Foundation for Innovation and the granting councils—the Natural Sciences and Engineering Research Council of Canada, the Social Sciences and Humanities Research Council of Canada and the Canadian Institutes of Health Research;
More than $500 million in Budget 2019 in total additional support to third-party research and science organizations, in addition to the creation of the Strategic Science Fund, which will announce successful recipients later this year;
$1.2 billion in Budget 2021 for Pan-Canadian Genomics and Artificial Intelligence Strategies, and a National Quantum Strategy;
$1 billion in Budget 2021 to the granting councils and the Canada Foundation for Innovation for life sciences researchers and infrastructure; and,
The January 2023 announcement of Canada's intention to become a full member in the Square Kilometre Array Observatory, which will provide Canadian astronomers with access to its ground-breaking data. The government is providing up to $269.3 million to support this collaboration.
In order to maintain Canada's research strength—and the knowledge, innovations, and talent it fosters—our systems to support science and research must evolve. The government has been consulting with stakeholders, including through the independent Advisory Panel on the Federal Research Support System, to seek advice from research leaders on how to further strengthen Canada's research support system.
The government is carefully considering the Advisory Panel's advice, with more detail to follow in the coming months on further efforts to modernize the system.
Using College Research to Help Businesses GrowView the impact assessment
Canada's colleges, CEGEPs, and polytechnic institutes use their facilities, equipment, and expertise to solve applied research problems every day. Students at these institutions are developing the skills they need to start good careers when they leave school, and by partnering with these institutions, businesses can access the talent and the tools they need to innovate and grow.
To help more Canadian businesses access the expertise and research and development facilities they need, Budget 2023 proposes to provide $108.6 million over three years, starting in 2023-24, to expand the College and Community Innovation Program, administered by the Natural Sciences and Engineering Research Council.
Supporting Canadian Leadership in SpaceView the impact assessment
For decades, Canada's participation in the International Space Station has helped to fuel important scientific advances, and showcased Canada's ability to create leading-edge space technologies, such as Canadarm2. Canadian space technologies have inspired advances in other fields, such as the NeuroArm, the world's first robot capable of operating inside an MRI, making previously impossible surgeries possible.
Budget 2023 proposes to provide $1.1 billion over 14 years, starting in 2023-24, on a cash basis, to the Canadian Space Agency to continue Canada's participation in the International Space Station until 2030.
Looking forward, humanity is returning to the moon. Canada intends to join these efforts by contributing a robotic lunar utility vehicle to perform key activities in support of human lunar exploration. Canadian participation in the NASA-led Lunar Gateway station—a space station that will orbit the moon—also presents new opportunities for innovative advances in science and technology. Canada is providing Canadarm3 to the Lunar Gateway, and a Canadian astronaut will join Artemis II, the first crewed mission to the moon since 1972. In Budget 2023, the government is providing further support to assist these missions.
Budget 2023 proposes to provide $1.2 billion over 13 years, starting in 2024-25, to the Canadian Space Agency to develop and contribute a lunar utility vehicle to assist astronauts on the moon.
Budget 2023 proposes to provide $150 million over five years, starting in 2023-24, to the Canadian Space Agency for the next phase of the Lunar Exploration Accelerator Program to support the Canada's world-class space industry and help accelerate the development of new technologies.
Budget 2023 also proposes to provide $76.5 million over eight years, starting in 2023-24, on a cash basis, to the Canadian Space Agency in support of Canadian science on the Lunar Gateway station.
Investing in Canada's Forest EconomyView the impact assessment
The forestry sector plays an important role in Canada's natural resource economy, and is a source of good careers in many rural communities across Canada, including Indigenous communities. As global demand for sustainable forest products grows, continued support for Canada's forestry sector will help it innovate, grow, and support good middle class jobs for Canadians.
Budget 2023 proposes to provide $368.4 million over three years, starting in 2023-24, with $3.1 million in remaining amortization, to Natural Resources Canada to renew and update forest sector support, including for research and development, Indigenous and international leadership, and data. Of this amount, $30.1 million would be sourced from existing departmental resources.
Establishing the Dairy Innovation and Investment FundView the impact assessment
The dairy sector is facing a growing surplus of solids non-fat (SNF), a by-product of dairy processing. Limited processing capacity for SNF results in lost opportunities for dairy processors and farmers.
Budget 2023 proposes to provide $333 million over ten years, starting in 2023-24, for Agriculture and Agri-Food Canada to support investments in research and development of new products based on SNF, market development for these products, and processing capacity for SNF-based products more broadly.
Supporting Farmers for Diversifying Away from Russian FertilizersView the impact assessment
Russia's illegal invasion of Ukraine has resulted in higher prices for nitrogen fertilizers, which has had a notable impact on Eastern Canadian farmers who rely heavily on imported fertilizer.
Budget 2023 proposes to provide $34.1 million over three years, starting in 2023-24, to Agriculture and Agri-Food Canada's On-Farm Climate Action Fund to support adoption of nitrogen management practices by Eastern Canadian farmers, that will help optimize the use and reduce the need for fertilizer.
Providing Interest Relief for Agricultural ProducersView the impact assessment
Farm production costs have increased in Canada and around the world, including as a result Russia's illegal invasion of Ukraine and global supply chain disruptions. It is important that Canada's agricultural producers have access to the cash flow they need to cover these costs until they sell their products.
Budget 2023 proposes to provide $13 million in 2023-24 to Agriculture and Agri-Food Canada to increase the interest-free limit for loans under the Advance Payments Program from $250,000 to $350,000 for the 2023 program year.
Additionally, the government will consult with provincial and territorial counterparts to explore ways to extend help to small agricultural producers who demonstrate urgent financial need.
Maintaining Livestock Sector Exports with a Foot-and-Mouth Disease Vaccine BankView the impact assessment
Foot-and-Mouth Disease (FMD) is a highly transmissible illness that can affect cattle, pigs, and other cloven-hoofed animals. Recent outbreaks in Asia and Africa have increased the risk of global spread, and a FMD outbreak in Canada would cut off exports for all livestock sectors, with major economic implications. However, the impact of a potential outbreak would be significantly reduced with the early vaccination of livestock.
Budget 2023 proposes to provide $57.5 million over five years, starting in 2023-24, with $5.6 million ongoing, to the Canadian Food Inspection Agency to establish a FMD vaccine bank for Canada, and to develop FMD response plans. The government will seek a cost-sharing arrangement with provinces and territories.
|3.1. Investing inA Clean Electricity||0||8||1,081||1,683||2,146||2,443||7,361|
|An Investment Tax Credit for Clean Electricity||0||0||800||1,400||1,900||2,200||6,300|
|Supporting Clean Electricity Projects||0||10||288||289||252||249||1,088|
Less: Funds Sourced From Existing Departmental Resources
|3.2. A Growing, Clean Economy||0||173||1,464||2,331||3,499||3,632||11,099|
|An Investment Tax Credit for Clean Technology Manufacturing||0||35||1,015||1,020||1,170||1,270||4,510|
|An Investment Tax Credit for Clean Hydrogen||0||90||330||1,150||2,050||1,940||5,560|
|Enhancing the Reduced Tax Rates for Zero-Emission Technology Manufacturers||0||0||5||5||5||5||20|
|Supporting Clean Technology Projects||0||0||8||42||94||151||294|
|Expanding Eligibility for the Clean Technology Investment Tax Credit||0||0||20||25||45||95||185|
|Updating Federal Duty to Consult Guidelines View the impact assessment||0||3||6||3||0||0||11|
|Enhancing the Carbon Capture, Utilization, and Storage Investment Tax Credit||0||45||80||86||135||170||516|
Less: Funds Sourced From Existing Departmental Resources
|3.3. Investing in Canadian Workers||1||566||84||-132||-204||-208||107|
|Doubling the Tradespeople's Tool Deduction||1||2||2||2||2||2||11|
|Supporting Employee Ownership Trusts||0||0||2||3||5||10||20|
|Investing in Canada's Labour Market Transfer Agreements||0||625||0||0||0||0||625|
|Continuing to Support Seasonal EI Claimants||0||5||77||65||0||0||147|
|Protecting Jobs with Timely Access to Work-Sharing Agreements||0||2||2||2||0||0||5|
|Continuing Support for the Student Work Placement Program||0||0||198||0||0||0||198|
|Employment Insurance Revenues for Measures Included in Budget 20231||0||-68||-197||-203||-211||-220||-899|
|3.4. Reliable Transportation and Resilient Infrastructure||-16||195||157||153||209||224||921|
|Strengthening Canada's Trade Corridors||0||5||12||13||13||9||52|
Less: Funds Sourced From Existing Departmental Resources
|Investing in VIA Rail Trains and Services||0||117||5||10||39||39||210|
|Investing in the Canadian Coast Guard||0||23||26||23||23||24||120|
|Less: Funds Sourced From Existing Departmental Resources||0||-6||-6||-5||-5||-5||-28|
|Safe and Reliable Ferry Services in Eastern Canada||0||15||15||0||0||0||30|
|Redeveloping the Bonaventure Expressway and Supporting Transportation Infrastructure in Montreal||0||42||114||120||146||164||587|
Less: Year-Over-Year Reallocation of Funding
|3.5. Investing in Tomorrow's Technology||-24||53||129||196||210||196||759|
|Using College Research to Help Businesses Grow||0||39||36||33||0||0||109|
|Supporting Canadian Leadership in Space||0||17||53||119||174||146||508|
Less: Funds Sourced From Existing Departmental Resources
|Investing in Canada's Forest Economy||0||85||130||153||0||0||368|
Less: Funds Sourced From Existing Departmental Resources
|Establishing the Dairy Innovation and Investment Fund2||0||0||1||21||81||94||196|
Less: Funds Previously Provisioned in the Fiscal Framework
|Supporting Farmers for Diversifying Away from Russian Fertilizers||0||5||14||14||0||0||34|
Less: Funds Previously Provisioned in the Fiscal Framework
|Providing Interest Relief for Agricultural Producers||0||13||0||0||0||0||13|
|Maintaining Livestock Sector Exports with a Foot-and-Mouth Disease Vaccine Bank||0||12||12||12||12||12||58|
|Additional Investments – A Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy||0||218||200||184||50||35||686|
|Flow-Through Shares and Critical Mineral Exploration Tax Credit - Lithium From Brines View the impact assessment||0||3||3||3||3||2||14|
|Budget 2023 proposes to allow producers of lithium from brines to issue flow-through shares and to expand the eligibility of the Critical Mineral Exploration Tax Credit to lithium from brines.|
|Supporting Advanced Transportation Technologies View the impact assessment||0||37||49||53||0||0||138|
|Funding proposed for TC and RCMP to assess, certify, and regulate advanced transportation technologies, including connected and autonomous vehicles and aerial drones, and to support their safe use.|
|Supporting the Accessibility and Safety of Canada's Transportation System View the impact assessment||0||84||85||86||0||0||255|
Less: Costs to be Recovered
Less: Funds Sourced From Existing Departmental Resources
|Funding proposed for TC to support rail safety improvement projects, and to continue to fulfill its responsibilities under the Canadian Navigable Waters Act, the Railway Safety Act, and the Transportation of Dangerous Goods Act.|
|Building Up Capacity at the Transportation Safety Board of Canada View the impact assessment||0||5||4||4||4||4||20|
|Funding proposed for the TSB to ensure it is adequately resourced to deliver on its mandate.|
|Funding for the Explosives Detection Dog and Handler Teams Program||0||4||6||6||7||7||30|
|Funding proposed for TC to strengthen air cargo security by expanding the Explosives Detection Dog and Handler Teams program.|
|Renewal of Funding for the Regional Economic Growth through Innovation program View the impact assessment||0||50||0||0||0||0||50|
|Funding proposed for Canada's Regional Development Agencies to support economic development and diversification across the country.|
|Renewal of Funding for the Inclusive Diversification and Economic Advancement in the North Program View the impact assessment||0||0||15||15||15||0||44|
|Funding proposed for CanNor to continue to advance inclusive economic development and diversification in the territories.|
|CFIA Market Access and Food Safety Programming View the impact assessment||0||38||38||16||16||16||126|
|Funding proposed for the CFIA to continue to ensure the safety of domestic and imported food, as well as to maintain and grow market access for Canadian food exporters.|
|AAFC Laboratory Asset Renewal View the impact assessment||0||0||1||3||4||5||13|
Less: Funds Sourced From Existing Departmental Resources
|Funding proposed for AAFC to help restore aging research facilities in urgent need of repair.|
|Future Arctic Offshore Oil and Gas Development View the impact assessment||0||1||2||2||1||1||7|
Less: Funds Sourced From Existing Departmental Resources
|Funding proposed for CIRNAC to begin five-year climate and marine science-based assessments in Canada's Arctic waters for 2022-2027, and to support the administration and management of the Western Arctic - Tariuq (Offshore) Accord.|
|Chapter 3 - Net Fiscal Impact||-39||1,213||3,114||4,415||5,910||6,322||20,934|
Note: Numbers may not add due to rounding. A glossary of abbreviations used in this table can be found at the end of Annex 1
1Includes Employment Insurance revenue for Employment and Social Development Canada Rent Price Adjustment in table A1.12.
2$9 million to be sourced from a reprofile of unclaimed Dairy Direct Payment Program funding for 2022-23.
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