CIAC Welcomes Federal Budget 2025’s Focus on Investment, Innovation, and Competitiveness 

November 05, 2025

The Chemistry Industry Association of Canada (CIAC) welcomes the 2025 Federal Budget, which demonstrates a renewed commitment by the Government of Canada to advancing economic growth, industrial innovation, and global competitiveness. 

Budget 2025 marks a notable shift in the federal approach to economic and environmental policy — moving from a primarily regulatory framework toward one that enables progress through investment attraction, tax incentives, and improved project approvals. CIAC commends this pragmatic and collaborative direction, which aligns closely with the chemistry and plastics sectors’ priorities for sustainable growth and decarbonization. 

“Budget 2025 shows clear recognition that investment and innovation are essential to achieving Canada’s economic and climate objectives,” said Greg Moffatt, President and CEO of CIAC. “By strengthening supports for capital investment and research and development, this budget helps position Canada’s chemistry sector to drive the low-carbon solutions of the future.” 

Key Highlights for the Chemistry and Plastics Sector 

  • Investment Incentives: Extension of the Accelerated Investment Incentive to 2030 and introduction of the Productivity Super Deduction to lower the cost of capital and spur new investment. 
  • Clean Technology and R&D: Enhancements to Carbon Capture, Utilization and Storage (CCUS) and Clean Hydrogen tax credits, alongside renewed commitments to reform the Scientific Research and Experimental Development (SR&ED) program. 
  • Critical Minerals Fund: $2 billion over five years to establish a Critical Minerals Sovereign Fund supporting strategic investments across Canada’s clean economy value chain. 
  • Climate Competitiveness: A review of industrial carbon pricing, an emphasis on carbon markets and CCUS technologies, and a more balanced approach to reducing emissions from oil and gas production. 
  • Anti-Greenwashing Provisions: Commitment to clarify recent Competition Act amendments to support credible business communications on environmental performance. 

Together, these measures reflect meaningful progress toward strengthening Canada’s attractiveness as a destination for chemistry investment and innovation. 

CIAC looks forward to working with the federal government to ensure Budget 2025 measures translate into real opportunities for sustainable, job-creating growth across Canada’s chemistry sector.