Energy NL welcomes “positive tone” towards energy sector from Canada’s 2023 budget
(WO) – The Government of Canada released its 2023 budget, one that sends positive signals to the energy sector, particularly the renewable energy sector. Energy NL welcomes the positive tone of the budget and looks forward to consultation with the federal government as it moves forward to implement the budget initiatives.
Highlights of the budget for Energy NL include a plan to improve the efficiency of the impact assessment process for major projects, support for offshore wind, the Clean Hydrogen Investment Tax Credit, the Clean Technology Investment Tax Credit, and the Carbon Capture, Utilization, and Storage Investment Tax Credit.
“The renewable energy sector in Canada needed substantive support from the federal government to be competitive against the massive incentives offered by the Biden Administration. While some questions do remain about how Government of Canada tax credits will be structured and who will be eligible, Budget 2023 sends a strong signal that Canada, including Newfoundland and Labrador, will be a leading player in providing clean energy. Energy NL looks forward to collaborating with the Government of Canada as they consult on these programs and begin an implementation process that could set the tone for a critically important industry of the future,” said Christian Somerton, Chair, Energy NL
The Clean Hydrogen Investment Tax Credit may provide support varying between 15% and 40% of eligible project costs, with the cleanest projects receiving the most support. Given the clean nature of potential green hydrogen projects proposed for Newfoundland and Labrador, Energy NL members could potentially receive substantial support to kickstart this industry.
The budget also provides support for new investments in science-based activities related to offshore wind for Newfoundland and Labrador. Energy NL is also keenly interested in plans to improve the efficiency of the impact assessment process for major projects as this could lead to energy projects commencing in a more timely and competitive manner to meet a significant global need for energy.
“Given our abundant natural resources in Newfoundland and Labrador and our potential to supply lower carbon oil and clean fuels to the world, this budget by the Government of Canada sends positive signals and offers the kind of support required to grow a strong renewable energy sector. Energy NL has long felt we need government support that ensures clear, consistent, and competitive regulations and Budget 2023 is a positive step forward in that direction, said Charlene Johnson, Energy NL CEO.