Budget 2024 advances climate and clean growth priorities, but risks missing opportunities

TORONTO — Rick Smith, President of the Canadian Climate Institute, made the following statement in response to the release of the 2024 federal budget:

“The commitments outlined in Budget 2024 will continue to advance climate progress in ways that drive growth and economic competitiveness while keeping energy affordable. In particular, this budget confirms the federal government is working to implement a range of measures to unlock clean growth and help companies invest in low-carbon innovation, such as investing in critical minerals development, renewable energy, carbon contracts for difference, and various investment tax credits (ITCs).

“While we welcome additional detail on the coverage, timelines, and conditions for accessing the Clean Electricity ITCs, the proposed conditions for access represent a significant missed opportunity. Making access to these ITCs conditional on provincial energy roadmaps—as the Canada Electricity Advisory Council has called for—represents a pragmatic path forward that we hope the government considers as it consults on the final design in the coming months.

“We’re also pleased to see continued support for electric vehicle charging infrastructure and energy-saving retrofits—investments that will help make life more affordable as Canadians make the switch to cleaner, more efficient energy. However, other measures—such as the commitment to continue working to establish a climate investment taxonomy—are long overdue, and we urge the federal government to move swiftly to implementation.

“This budget commits the federal government to implement a low-cost national flood insurance program within the next 12 months and invests $175 million over five years in First Nations emergency preparedness for wildfires and other climate disasters. These commitments will boost capacity to address acute climate-related threats to communities across the country.

“Yet helping communities prepare for escalating climate damages requires sustained focus and investment. Unfortunately, this budget continues a trend of under-investing in crucial preventative measures, such as delivering on federal responsibilities under the National Adaptation Strategy. And despite the significant funding committed to addressing Canada’s housing crisis, this budget misses an opportunity to ensure new homes are built to be more resilient to climate hazards, which will drive up the costs of home ownership over time as climate-fuelled disasters escalate.”

CONTACT

Catharine Tunnacliffe
Communications Director
Canadian Climate Institute
(416) 527-1777
ctunnacliffe@climateinstitute.ca

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