Federal Budget 2022 will attract investments for the net-zero and circular economy transformation of Canada’s chemistry and plastics sector
April 08, 2022
The Chemistry Industry Association of Canada (CIAC) was pleased to see several measures in the 2022 Federal Budget released April 7 that will assist in attracting investments for the net-zero and circular economy transformation of Canada’s chemistry and plastics sector.
Of note, CIAC welcomed the Carbon Capture Utilization and Storage (CCUS) Investment Tax Credit, with a minimum 37.5 per cent inclusion rate for transport infrastructure, 50 per cent inclusion rate on CCUS equipment, and 60 per cent for direct air capture.
“CIAC was encouraged to see several important measures proposed in this budget which will be critical to attracting the investment required to facilitate the transformation of the chemistry and plastics sector. To succeed, our sector will need to attract hundreds of billions of new investments in the coming decades. These proposals will complement the investment attraction efforts of the key chemistry provinces,” said Bob Masterson, President and CEO of CIAC.
The chemistry sector will also play a role in the government’s plans to attract global critical minerals supply chains. Budget 2022 proposes up to $1 billion over six years to Innovation, Science and Economic Development Canada for the Strategic Innovation Fund. This will provide targeted support towards critical minerals projects, with prioritization given to manufacturing, processing, and recycling applications.
Other highlights include:
- Funding increase of $450 million to help build more resilient and efficient supply chains through the National Trade Corridors Fund;
- $750 million over six years to re-capitalize the existing Global Innovation Clusters program;
- Consultations to review the Scientific Research and Experimental Development (SR&ED) program;
- Investment to increase plastic circularity by developing and implementing regulatory measures, and conducting scientific research to inform policymaking, and;
- Broadening the role of the Canada Infrastructure Bank to invest in private sector-led infrastructure projects that will accelerate Canada’s transition to a low-carbon economy.
CIAC looks forward to working with all federal parties to implement these items, helping the government achieve their goals of net zero emissions and economic prosperity.