Propulsion Québec attended the unveiling of the 2021–2022 Canadian budget in order to quickly present it to its members the measures adopted related to the electric and smart transportation sector.
Discover the most relevant highlights related to electric and smart transportation.
COVID-19 measures for workers and businesses
Extension of the wage subsidy until September 25. But it will gradually become less generous, starting July 4, decreasing from a maximum of $847 per week per worker to $226 in September.
Extension of the deadline to submit applications for assistance to the Regional Relief and Recovery Fund (Canada Emergency Business Account) to June 30, 2021.
The federal government will enhance the Canada Worker Benefit, at a cost of $8.9 billion over 5 years, to help nearly one million workers in difficulty. Employment Insurance sickness benefits will also increase from 15 to 26 weeks, and a $15 minimum wage will also be introduced for federally regulated workers.
Ottawa is promising businesses an additional $16 billion over five years. A quarter of this amount will be specifically aimed at SMEs to, among other things, help 160,000 of them integrate new technologies into their work and train their employees. The government would also like to add more than $7 billion over 7 years to industrial innovation, including $5 billion to help decarbonize heavy industries (Net-Zero Accelerator).
Zero-emission technologies
The 2021 budget proposes to reduce general corporate and small business tax rates by 50% for companies that manufacture zero-emission technologies. The reductions would take effect on January 1, 2022 and would be gradually phased out starting January 1, 2029 to be fully eliminated on January 1, 2032. The Department of Finance Canada will regularly review new technologies that could be eligible, in consultation with Environment and Climate Change Canada, Natural Resources Canada, Sustainable Development Technology Canada, and other key government and industry stakeholders.
Here are examples of zero-emission technology manufacturing in Canada:
- Manufacturing of wind turbines, solar panels and equipment used in hydroelectric power plants.
- Manufacturing of geothermal energy systems.
Manufacturing of cars, buses, trucks and other electric vehicles. - Manufacturing of batteries and fuel cells for electric vehicles.
- Production of biofuels from waste materials.
- Production of green hydrogen.
- Manufacturing of electric vehicle charging stations.
- Manufacturing of certain energy storage equipment.
$5 billion over seven years (on a cash basis) to the Net-Zero Accelerator. Building on the support of the net-zero accelerator announced in the strengthened climate plan, this funding would enable the government to provide up to $8 billion in support for projects that will help reduce greenhouse gas emissions across all sectors of the Canadian economy.
Hundreds of millions of dollars will also go to the development of cutting-edge sectors, such as artificial intelligence, quantum technologies and genomics.
GHG emissions related to transportation
$104.6 million over five years, with $2.8 million in remaining amortization, to Environment and Climate Change Canada to strengthen regulations regarding greenhouse gas emissions for light- and heavy-duty vehicles and for off-road residential equipment, establish national methane regulations applying to large landfills, and undertake additional measures to reduce and better use waste at these sites.
Strategic minerals
$9.6 million over three years to create a centre of excellence on critical battery minerals (NRCan). The centre would coordinate federal policies and programs on critical minerals and collaborate with our provincial, territorial and other partners. The centre would also participate in implementing the Joint Action Plan between Canada and the United States.
$36.8 million over three years, with $10.9 million in remaining amortization, to NRCan for federal research and development to advance expertise in the processing and refining of critical battery minerals.
Charging
$56.1 million over five years, with $16.3 million in remaining amortization, and $13 million per year thereafter, to Measurement Canada to develop and implement, in collaboration with global partners such as the United States, a set of codes and standards for retail chargers and refuelling stations for zero-emission vehicles. This would include the accreditation and inspection frameworks necessary to ensure compliance with standards across Canada's extensive network of charging points and refuelling stations.
Canada's Climate Plan
Reminder of the $14.9 billion in funding over eight years announced last February to build new public transit projects, electrify existing public transit networks, and find public transit solutions to connect rural, remote and Indigenous communities.
$94.4 million over five years to Environment and Climate Change Canada to increase national and international capacity and measures to fight climate change, strengthen strategic capacity in clean technologies, including support for the Clean Growth Hub, and to fund reporting under the Canadian Net-Zero Emissions Accountability Act.
The 2021 budget proposes to change payments of the Climate Action Incentive, which would move from a refundable credit claimed annually on individuals' tax returns to quarterly payments delivered through the benefits system starting in 2022. This measure will allow Climate Action Incentive payments to be made more regularly. Further details will be announced later in 2021.
Aluminium
The government has taken measures to strengthen its trade regulation system so that Canada can effectively manage the cross-border movement of sensitive goods. This includes additional monitoring and controls regarding imports of certain steel and aluminum products and of supply-managed commodities, which helps better manage trade flows. The 2021 budget proposes to allocate $38.2 million over five years, starting in 2021–2022, and $7.9 million annually thereafter, to Global Affairs Canada as additional resources in support of Canada's trade regulation regime.
Note also that the government will publish a green bond framework in the coming months in anticipation of the issuance of federal green bonds in 2021–2022 and will set an issuance target of $5 billion, subject to market conditions. This will be the first green bond issuance among many others. The framework will provide details on how, through green bonds, investors will have the opportunity to finance Canada's efforts to combat climate change and protect the environment. Potential projects these green bonds could finance include green infrastructure, clean technology innovations, community adaptation projects, nature conservation and other efforts to fight climate change and protect our environment.
To view the full budget plan click >>here
