A new report says the financial support Canada is offering for the clean energy transition is competitive with the Inflation Reduction Act south of the border. (Photo: Canadian Press)

By Canadian Press

Canada’s financial support for clean energy compares favourably to U.S: TD Bank

Apr 24, 2023 | 12:50 PM

A new report says the financial support Canada is offering for the clean energy transition is competitive with the Inflation Reduction Act south of the border.

The report by TD Economics refutes the arguments made by some business leaders who say Canada risks missing out on investment because of the spate of clean energy subsidies and incentives the U.S. government is offering.

TD says it has crunched the numbers, and the government of Canada has spent $139 billion in total spending since budget 2021, or five per cent of the country’s nominal GDP, on supports for clean energy development.

The bank says this compares favourably to the U.S. Inflation Reduction Act’s estimated US$393 billion in spending, or 1.5 per cent of nominal GDP.

The report estimates that Canada has received $17.4 billion in electric vehicle and battery plant investment announcements since 2021, that again compares favourably to the U.S. relative to each economy’s size.

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But, it cautions that in order to remain competitive, Canada will need to focus on expediting project assessments, speeding up mine development times, and refocusing policy on labour force skills and training.

This report by The Canadian Press was first published April 24, 2023.