The federal Liberal government’s budget touts $56 billion in tax credits to spur investments in climate change measures. These come in response to the US Biden Administration’s Inflation Reduction Act, which similarly leaned on private sector investment to move towards a so-called green economy. Some have commented that these tax credits and subsidies towards big businesses, to incentivize greener business transformation, electrification, and tech development, constitute a new green industrial policy for Canada.
But is this a real green industrial policy?
To help us understand this Budget 2023 highlight, we’re speaking with Brendan Haley, Adjunct Research Professor at Carleton University, and Broadbent Institute Policy Fellow. Brendan is also the author of a recent essay published by the Broadbent Institute that asks ‘Will the Response to the US Inflation Reduction Act Reveal Canada’s Lack of Green Industrial Policy?’ In it, he looks at Canada’s lack of capacity on Green Industrial Policy and why American climate actions need a more robust Canadian industrial policy response than weaker tax credits. Listen to the full conversation.