Original language of petition: English
We, the undersigned citizens of Canada, draw the attention of the House of Commons to the following:
Whereas, the reduction of global net carbon emissions is a critical endeavor in our fight against climate change;
Whereas, the Liberal Government committed to net-zero emissions by 2050;
Whereas, the Liberal Government committed to exceed Canada's 2030 goal by introducing new carbon reducing measures;
Whereas, Carbon Capture, Utilization, and Storage (CCUS) is a leading measure to reduce global carbon emissions.
Therefore we, the undersigned, Citizens and residents of Canada, call upon the Government of Canada to introduce new tax incentives to attract CCUS investment to Canada.
The Government of Canada recognizes the importance of accelerating action to fight climate change. As the Government of Canada works to rebuild a more sustainable and resilient economy, it will examine whether a proposed tax incentive for Carbon Capture, Utilization, and Storage (CCUS) should be considered in the context of its environmental and fiscal priorities.
Strengthened Climate Plan
Canada’s strengthened climate plan, “A Healthy Environment and a Healthy Economy”, was announced in December 2020. It proposes measures to cut energy waste, provide clean and affordable transportation and power, build Canada’s clean industrial advantage, and support nature based climate solutions. It also proposes to put a rising price on pollution through to 2030. The plan is supported by an initial $15 billion in investments that will create jobs, grow the middle class, and support workers in a stronger and cleaner economy. This is in addition to the Canada Infrastructure Bank’s $6 billion for clean infrastructure that was announced in the fall.
CCUS technologies will play a role in helping Canada exceed its 2030 Paris Agreement emissions reductions target. Under the proposed strengthened climate plan, CCUS projects can benefit from credits that are generated under pollution pricing regimes, and the Clean Fuel Standard if projects reduce the carbon intensity of fuels for fuel suppliers. The plan also provides direct support that may be available for CCUS investments through a new Net Zero Accelerator that will provide $3 billion over five years via the Strategic Innovation Fund. The fund is expected to face high demand as it aims to rapidly expedite decarbonization projects with large emitters, scale-up clean technology, and accelerate Canada’s industrial transformation across all sectors. Certain projects could also be complemented by funding under the $1.5 billion Low-carbon and Zero-emissions Fuels Fund to increase the production and use of low-carbon fuels. As well, investments by Sustainable Development Technology Canada will support further advancement of pre-commercial clean technologies.
As announced in the strengthened climate plan, the Government proposes to develop a comprehensive CCUS strategy and explore other opportunities to help keep Canada globally competitive in this growing industry. It is important that governments continue to work with stakeholders to determine the best approach to leveraging this technology in Canada.
The Accelerated Investment Incentive that was announced in the 2018 Fall Economic Statement provides an enhanced first-year allowance for certain eligible property that is subject to Capital Cost Allowance rules. CCUS projects are typically capital intensive and can benefit from a more rapid expensing of capital for the purpose of calculating business income tax. The incentive applies to property acquired after November 20, 2018, and that is available for use before 2028. A phase-out will begin for property that becomes available for use after 2023.
Support for Sectors Reducing Emissions
The Government of Canada has also announced support for high emitting sectors of the economy to assist them with their efforts to reduce greenhouse gas emissions. As part of the Government’s COVID economic response plan, $2.8 billion has been allocated for the energy sector to support workers and reduce emissions. This includes $750 million for the Emissions Reduction Fund to help oil and gas companies reduce methane emissions, $1.7 billion to the Western provinces and the Alberta Orphan Wells Association to support work to clean up orphan and inactive oil and gas wells, and $320 million for Newfoundland and Labrador to support workers in the offshore sector. This funding will sustain jobs in the energy sector while cleaning up the environment. In addition, the Government has committed $185 million to support communities and workers affected by the phase out of coal-fired electricity through measures aimed at skills development and economic diversification.
Only validated signatures are counted towards the total number of signatures.