Budget 2022 –Analysis by Ron McKinnon, MP – What is in Budget 2022 for Green Tech?
April 22, 2022
What is in Budget 2022 for Green Technology and Electric Vehicles?
Making the Switch to Zero-Emission Vehicles More Affordable
To help make ZEVs more affordable for Canadians, the federal government has offered purchase incentives of up to $5,000 for eligible vehicles since 2019. The program has helped Canadians purchase or lease over 136,000 new ZEVs, but more support is needed to help Canadians get behind the wheel of zero-emission vehicles.
- Budget 2022 proposes to provide $1.7 billion over five years, starting in 2022-23, with $0.8 million in remaining amortization, to Transport Canada to extend the Incentives for Zero-Emission Vehicles (ZEV) program until March 2025. In addition, we will broaden eligibility under this program to support purchasing more vehicle models, including more vans, trucks, and SUVs, which will help make ZEVs more affordable. Transport Canada will announce further details in the coming weeks.
Building a National Network of Electric Vehicle Charging Stations
Since 2015, the federal government has helped build almost 1,500 charging stations across Canada. But, as more and more Canadians adopt zero-emission vehicles, we need to develop the charging infrastructure that drivers can rely on, no matter where they’re going.
- Budget 2022 announces that the Canada Infrastructure Bank will invest $500 million in large-scale urban and commercial ZEV charging and refuelling infrastructure. Funding will be sourced from the Canada Infrastructure Bank’s existing resources under its green infrastructure investment priority area.
- Budget 2022 proposes to provide $400 million over five years, starting in 2022-23, to Natural Resources Canada to fund the deployment of ZEV charging infrastructure in suburban and remote communities through the Zero-Emission Vehicle Infrastructure Program (ZEVIP).
- Budget 2022 proposes to provide $2.2 million over five years, starting in
2022-23, to Natural Resources Canada to renew the Greening Government Operations Fleet Program, which will continue to conduct readiness assessments of federal buildings required to facilitate the transition of the federal vehicle fleet to ZEVs.
Helping Businesses Switch to Medium- and Heavy-Duty Zero-Emission Vehicles
Businesses across Canada want to upgrade their fleets to be part of the solution to climate change. However, those upgrades can be expensive, and companies need to be confident that ZEVs can reliably transport their goods to market.
- Budget 2022 proposes to provide $547.5 million over four years, starting in 2022-23, to Transport Canada to launch a new purchase incentive program for medium- and heavy-duty ZEVs.
- Budget 2022 proposes providing $33.8 million over five years, starting in 2022-23, with $42.1 million in remaining amortization, to Transport Canada to work with provinces and territories to develop and harmonize regulations to conduct safety testing for long-haul zero-emission trucks.
- To help decarbonize vehicles already on the road, Budget 2022 proposes providing $199.6 million over five years, starting in 2022-23, and $0.4 million ongoing, to Natural Resources Canada to expand the Green Freight Assessment, which will be renamed the Green Freight Program. That will support assessments and retrofits of more vehicles and a greater diversity of fleet and vehicle types.
With these investments, the government is taking a significant step towards reducing pollution on our roads and is on track to meet its commitment to add 50,000 new ZEV chargers and hydrogen stations across Canada.
A New Tax Credit for Investments in Clean Technology
The expansion of clean technology will need to accelerate if Canada’s economy will reach net zero. Helping Canadian companies adopt clean technologies will create jobs, keep Canadian businesses competitive, and reduce Canada’s emissions at the same time.
- Budget 2022 announces that the Department of Finance Canada will engage with experts to establish an investment tax credit of up to 30 percent, focused on net-zero technologies, battery storage solutions, and clean hydrogen. The design details of the investment tax credit will be provided in the 2022 fall economic and fiscal update.
To read the Budget 2022 speech or to review the budget documents, please visit: https://budget.gc.ca/