Montreal, April 19, 2021 — In the public-health context of economic recovery, Propulsion Québec, Quebec’s cluster of electric and intelligent transportation, applauds the efforts of the Government of Canada and the measures announced to lift the country out of the COVID-19 crisis by focusing in particular on green energy and future sectors such as electric and intelligent transportation.
Totaling more than $7 billion by 2028, the measures announced for industrial innovation touch the entire value chain of electric and intelligent transportation (EIT).
Driving industrial innovation through zero-emission technologies
In order to accelerate the decarbonization of heavy industries, the Government of Canada sends a strong message of support to Canadian SMEs that manufacture and develop zero-emission technologies, which include, among other things, the manufacture of electric vehicles, batteries and charging stations:
- By augmenting by $5 billion the Net-Zero Accelerator for a total of $8 billion, this Strategic Innovation Fund will support projects that contribute to reducing greenhouse gas emissions across all sectors of the Canadian economy ;
- By establishing a tax incentive of a 50% general tax reduction for these companies.
“This additional support is excellent news for Quebec EIT companies that develop and manufacture in particular electric vehicles, batteries, charging stations, energy storage equipment and cutting-edge technological solutions related to intelligent transportation. The Government of Canada's vision for a green, sustainable and prosperous economic recovery is reflected through concrete and encouraging measures for the environmental record of our country,” confirms Sarah Houde, President and CEO of Propulsion Québec.
Furthermore, Propulsion Québec notes the investments announced by the government that directly concern the reduction of GHG emissions related, among other things, to transportation:
- CA$104.6 million over five years to Environment and Climate Change Canada to strengthen, among other things, the regulations concerning greenhouse gas emissions for light- and heavy-duty vehicles and for off‑road residential equipment.
- Green Battery of North America: CA$9.6 million over three years to create a centre of excellence on critical battery minerals managed by Natural Resources Canada (NRCan) for interprovincial and even intercontinental collaboration related to the extraction, mining, processing and refining of critical and strategic minerals. Also, CA$36.8 million over three years to NRCan for federal research and development to advance expertise in the processing and refining of critical battery minerals.
- Charging network: CA$56.1 million over five years (Canada Measures) to develop and implement, in collaboration with global partners such as the United States, a set of codes and standards for charging stations and retail refuelling stations for zero-emission vehicles.
- Canada’s Climate Plan: CA$94.4 million over five years to Environment and Climate Change Canada to increase national and international capacity and measures to combat 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.
- Note also that the government will publish a framework of green bonds in the coming months in advance 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 be able to finance Canada’s efforts to combat climate change and protect the environment. Potential projects that these green bonds could finance include green infrastructure, clean technological innovations, community adaptation projects, nature conservation and other efforts to combat climate change and protect our environment.
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