Statement from Energy for a Secure Future on the 2024 Federal Budget

OTTAWA – Energy for a Secure Future (ESF), a civil society initiative focused on building a more secure future for Canada and our global allies, is reacting to the federal budget today.

As a country, Canada is uniquely positioned to help the international community enhance its energy security and environmental performance through the export of energy, including liquefied natural gas (LNG). We are also well placed to drive broad economic growth that will create jobs, improve quality of life and advance reconciliation through economic policies that are informed by energy fundamentals and support our competitiveness on the world stage.

The 2024 federal budget. PHOTO BY ADAM HURAS / BRUNSWICK NEWS

Budget 2024 captures some of these opportunities:

Competitiveness

The government proposes to amend the Impact Assessment Act to bring it into conformity with the Supreme Court of Canada decision in Reference re Impact Assessment Act and make targeted efficiency improvements.

• The current legislation has been a deterrent to investment and these changes will be critical to future projects in all sectors. The details of these improvements will be key to Canada’s success.

Economic Reconciliation

Up to $5 billion in loan guarantees for natural resource and energy projects to be made available to Indigenous communities to provide successful applicants access to affordable capital.

The program would be sector-agnostic for natural resource and energy projects to prioritize economic reconciliation and self-determination.

• Many Indigenous leaders and organizations have made the case for a program of this kind to close the gap on access to capital. Being “sector agnostic” to accommodate the many different types of project opportunities available to Indigenous peoples in Canada, including LNG, natural gas and oil related projects, was also a priority. It is very positive to see this in the announcement.

Targeted Tax Measures

Delivering the new major economic investment tax credits, by the end of 2024, to create jobs and keep Canada on track to reduce pollution and reach net-zero by 2050: ­

• Carbon Capture, Utilization, and Storage investment tax credit; ­
• Clean Technology investment tax credit; ­
• Clean Hydrogen investment tax credit;
• ­ Clean Technology Manufacturing investment tax credit; and ­
• Clean Electricity investment tax credit.

These measures are important to attracting the private investment needed in all sectors of Canada’s economy from manufacturing to agriculture and resource development. Innovation involves risk and these measures offer needed incentives. At the same time, there are missed opportunities here. Canada needs the same sector-agnostic approach for these programs to support the regional diversity in opportunities, energy supply, and industries in different parts of the country. ESF encourages the government to focus on performance and to avoid assumptions about how that performance will be achieved in the design of its programs.

“Canada’s potential role in delivering security and a cleaner environment through our energy leadership globally can advance reconciliation and support better quality of life for all Canadians. The ESF and its network will continue to bring insights and solutions to realize this potential as Canada moves to implement Budget 2024.”

- Shannon Joseph, Chair, Energy for a Secure Future