Deputy Prime Minister Chrystia Freeland is in Calgary on Thursday, taking in some of the innovations being made at a carbon capture facility as she reiterated the federal government's plan to reach net-zero emissions in Canada.
The Trudeau government, in its budget, stated that it aims to make that goal by 2050 by offering $2.6 billion in tax credits to companies that invest in carbon capture projects.
While provincial leaders said they're happy with the funding, many say they're not sure it's enough to make net-zero happen.
Freeland toured a carbon capture facility in southeast Calgary, a first-hand look for her to see some of the work being done.
"This has been a real proof point for me that Canada can, Canada will, seize the opportunities in the green transition and so much of that seizing of opportunities is going to happen here in Calgary," she said.
Starting in 2022, companies will be able to claim a tax credit of up to 60 per cent for direct air capture projects and 50 per cent for all other eligible carbon capture projects. A 37.5 per cent tax credit is available for investment in equipment for carbon transportation, storage and use. (Enhanced oil recovery, which involves injecting carbon underground to extract more oil from older wells, is excluded from the tax credit.)
The government will decrease the tax credit rates by 50 per cent in 2031 in an effort to get companies to build their carbon capture projects now, not later.
Freeland also said Alberta has an opportunity to be a leader in the green transition.
"I've seen the evidence in the past hour here today," she said. "I really feel we are at the beginning of a new chapter for Alberta and for Canada.
"There are so many smart inventors and engineers here and I really feel we are going to open up some brand new industries."
PROVINCIAL PITCH-IN
Jason Kenney has been a vocal proponent of the carbon capture technology, but the federal government was quick to point out that hasn't yet resulted in more tax credits or financial incentives for companies wanting to participate.
On Wednesday, Kenney didn't completely rule out more help. He said his government has been on board with the technology for years, but that federal goals are the responsibility of the federal government.
When asked about it Friday, Freeland said she hopes all provinces will pitch in.
"I really see this as a conversation, as a collaborative approach," she said.
"This shows that willingness that we've seen before on the part of the federal government to basically work with those who are willing to work with them in Alberta," political scientist Lori Williams added. "Whether that be leaders in the industry, whether it be municipal governments, or whatever. I think this is a strategy that's much longer term."
(With files from the Canadian Press)
