Government Funding & Budget 2021

This article is an overview of the commitments made and legislative amendments expressed in Budget 2021 that will be of interest to Canada’s energy sector.

On April 19th, 2021, the Canadian government tabled Federal Budget 2021 – one of the most important budgets of our time. The budget includes a plan to build a clean economy, with tax incentives to grow zero-emission technology manufacturing, carbon capture, utilization, and storage, and green hydrogen. Our team of leading CCI professionals help make sense of the complex and ever-changing Canadian landscape by exploring the implications of key federal budget initiatives, investments, and proposed tax measures regarding clean technology and a sustainable future. Budget 2021 commits $17.6 billion to “green stimulus measures” for Canada’s traditional industries, including its natural resources, manufacturing and energy sectors.

Chapter 4 – Helping Canadian Businesses Grow and Succeed

Chapter 4 focuses on helping Canadian business grow and succeed by investing in Canadian innovators through a renewed venture capital catalyst initiative, boosting Canada’s cleantech exports, and supporting innovation and industrial transformation.

  • $450 million over five years beginning in 2021 to provide additional venture capital to entrepreneurs, which may be of interest to early-stage energy companies across Canada
  • $21.3 million over five years starting in 2021 for Global Affairs Canada’s continuation of its International Business Development Strategy for Clean Technology
  • The intention of the International Business Development Strategy is to assist Canadian firms in identifying export opportunities and accessing international climate financing
  • $8 billion over seven years starting in 2021 for increased funding in the Strategic Innovation Fund’s Net Zero Accelerator to help support industry decarbonization and clean technology projects

Chapter 5 – A Healthy Environment for a Healthy Economy

Budget 2021 recognizes