The Budget Office in a report released Wednesday said the cost of climate credits promised to industries will cost taxpayers $10 billion more than the Trudeau Liberals initially calculated. Analysts after pressure from industry leaders examined the inconsistency in the math and found the actual expenses of credits intended to meet cabinet’s 2050 “net-zero” targets are substantially higher than the Liberals claimed, per Blacklock’s Reporter.Budget Office estimates are $10 billion higher compared to Budget 2024 estimates,” said the report on long-term fiscal costs of major economic investment tax credits. “The difference is mostly attributable to higher projected eligible investments in the electricity generation sector.”Analysts calculated the total cost of tax credits for new projects in electric vehicle production, carbon capture, clean electricity, clean hydrogen and clean manufacturing. “The Budget Office projects total fiscal costs of $103 billion over 2023 to 2035,” said the report It was uncertain what Canadians would gain from the $103 billion. We did not estimate the long term economic impact of these investment tax credits. Such estimates would need to account for the interaction with other climate policies which is beyond the scope of this report.”“The impact of the projected investments in clean technologies on the economic outlook is uncertain. Some investment will be offset by declines in spending on fossil fuels and other industries.”Energy NL, a trade group representing Newfoundland and Labrador resource firms including offshore oil and gas companies wrote in a 2023 submission to the Senate Energy Committee it needs more financial and legislative support to meet Cabinet’s net-zero goals by 2050. “Achieving net zero by 2050 is likely not possible without the support of multiple levels of government,” wrote Energy NL. “This support must be in the form of financial but also legislative and policy support.”“Canada will need 121 terawatt hours of new supply to replace carbon sources. That is the equivalent of four Churchill Falls.” Labrador’s Churchill Falls Generation Station is the largest hydroelectric plant in Canada outside Québec. “To meet net zero 2050 targets Canada’s electricity generation capacity needs to grow by two to three times bigger than today,” said the submission.“To meet Canadian demand and replace carbon-based sources Canada needs new hydro facilities equal to four Churchill Falls.”The Canadian Electricity Association has estimated utility refits would cost $350 billion at ratepayers’ expense. The Department of Environment put costs at more than $400 billion.“It is assumed the majority of costs incurred by electric utilities would be ultimately passed onto consumers,” the Department of Environment wrote in a statement August 10. “Lower income households would pay a higher proportion of their household income to cover these costs relative to higher income households.”
