Experts Recommend Two Actions for Canada to Combat Inflation Reduction Act
Josh Skapin
March 16, 2023
Many believe the Inflation Reduction Act (IRA) has given the United States an insurmountable advantage over Canada attracting projects related to CCUS, hydrogen, and battery manufacturing, among other sectors.
While Canada has tabled a variety of clean economy policies to support industry since 2016, the latest proposals represent a step toward a true industrial strategy.
A working paper we recently released with the Transition Accelerator compared low-carbon subsidies in the U.S. Inflation Reduction Act with incentives on offer in Canada. For blue hydrogen production, which uses natural gas as a raw material and captures
The American Inflation Reduction Act has opened big gaps between the incentives for low-carbon investment in Canada and the U.S., threatening our ability to compete in a world that is on a turbo-charged path to net-zero emissions.
“The U.S. is offering very clear incentives that are available to everyone,†Michael Bernstein, executive director of Clean Prosperity, a climate policy think-tank, said in an interview. “If Canada is only putting in place a tailored approach for a