Canada will boost investments in the green transition in this year's budget to compete with massive U.S. incentives, but the aim is to claim a portion of the growing clean-tech industry, not to go head-to-head with the world's biggest economy, a senior Canadian government source said.
Governments across the world are attempting to capitalize on the rapid transition to low-carbon energy, and the enactment of the Inflation Reduction Act (IRA) in the United States last year offers significant incentives for those who invest there.
After the IRA, Canadian Finance Minister Chrystia Freeland pledged in the 2023-2024 budget to try to level the playing field with the US, at least in some sectors.
