Renewable Industries Canada says the federal government's fall economic statement will help Canada be competitive in the fast-paced international market for low-carbon hydrogen.
November 7, 2022 By Renewable Industries Canada
Renewable Industries Canada (RICanada), which represents Canada’s lead biofuel producers, welcomes the measures laid out in the Fall Economic Statement (FES). The new investment tax credit for clean hydrogen, together with new details on the launch of the Canada Growth Fund and a Clean Technologies Investment Tax Credit, will help to keep Canada competitive in an increasingly high-stakes global investment climate.
RICanada members are pleased to see the FES reflect the realities faced by Canadian companies investing in clean hydrogen production. Specifically, the recent passage of the United States Inflation Reduction Act (IRA) offers enormous financial support to American hydrogen producers in order to attract rapid investment and anchor domestic production. The FES signals that Canada needs a strong response to the IRA to ensure that Canada is competitive in low carbon and net zero fuels, such as ethanol, renewable diesel, sustainable aviation fuel, and renewable natural gas – all of which benefit enormously under the US IRA.
“Our view is that it takes a number of pathways to reach net zero, but there is a gap between what is technologically available and commercially viable. This is a challenge we are working actively to solve and there are policy instruments that can help make these projects sustainable,” said Doug Dias, RICanada board member, before the Nov. 3 meeting of the Standing Committee on Energy, the Environment and Natural Resources.
RICanada looks forward to continuing its engagement with the Government of Canada to ensure that existing funding mechanisms, such as the Clean Fuels Fund, are rolled out with expedited timelines in recognition of the current urgency around energy security and the fight against climate change. We also remain committed to working with all government departments to ensure Canada has quality data and sound systems in place for the accurate and bankable assessment of carbon on a full lifecycle basis. This is increasingly important as more government programs and incentives become tied to carbon reduction.
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