Exploring the Impact of the 2023 Federal Budget Clean-Tech Manufacturing Tax Credit
The 2023 federal budget announcement of a clean-tech manufacturing tax credit, worth more than $3 billion over five years, is a significant development that could support the transition towards a more sustainable future for the industry.
In 2019, I delivered a keynote address at the Chateau Laurier to NRCan, PDAC, and other stakeholders on the future of Canada's mining and minerals brand. With ongoing global challenges like climate change, supply chain disruptions, and the need for sustainable trade practices, it's more important than ever to envision and work towards a greener and more inclusive future for the Canadian mining industry.
As John Ralston Saul notes in his book, "A Fair Country," Canada is built upon fairness and cooperation, values that should be reflected in our approach to the mining and minerals sector. "The real shape of Canadian civilization is to be found in its commitment to fairness and the refusal to achieve power through the imposition of will on others."
To better understand the potential futures for the industry, I conducted a futures foresight 2x2 matrix exercise, which revealed four distinct scenarios. The most desirable one, "Scenario Four: Sustainable Leaders," is characterized by sustainable and innovative practices, strong collaboration with Indigenous and Inuit communities, and a focus on addressing climate change and responsible trade.
In light of this foresight exercise, Tuesday's federal budget announcement of a clean-tech manufacturing tax credit is a significant development. Worth more than $3 billion over five years, this credit aims to encourage the mining of critical minerals in Canada, ultimately supporting the transition towards Scenario Four. [Read the full analysis here]
One standout example of the transformative potential of cleantech is the Kivalliq Hydro-Fibre Link project, a collaboration we have advocated for alongside Inuit leadership and communities - (resulting in a mention in the 2021 federal budget). This project showcases how the adoption of green technologies can contribute to a thriving and sustainable Canadian mining and minerals industry and enable investments from Canadian companies like Agnico Eagle.
By actively working towards Scenario Four and leveraging the clean-tech manufacturing tax credit, the Canadian mining and minerals industry can flourish, create positive systemic change, and strengthen its brand. This investment in clean technologies, Indigenous and Inuit engagement, and climate action is a vital step towards a brighter, greener future for the Canadian mining brand and all stakeholders involved, reflecting the core values of fairness and cooperation that define our nation.