CANADA’S NET ZERO INDUSTRIAL STRATEGY

Canadian manufacturers are committed to creating a clean and healthy environment for all. We believe that Canadian industry can and should produce goods in the most environmentally friendly manner and to the highest global standards, where supportive policies are essential enablers. For decades, Canadian Manufacturers & Exporters (CME) and our members have worked with governments to improve and create common standards through effective environmental regulations and supportive programs.

SUMMARY OF RECOMMENDATIONS

SUPPORTING CARBON EMISSIONS REDUCTION AND INVESTMENT AND COMMERCIALIZATION OF CLEAN TECHNOLOGIES

• Introduce a broad-based, direct, investment tax credit to encourage investment in new technologies by all sizes of manufacturers and all emissions profiles.
• Increase the Net Zero Accelerator Fund for large emission reduction projects to at least $5 billion per year until 2030.
• Create a corporate climate reinvestment fund based on the amount of carbon taxes paid by an individual company.
• Proceed with the proposal to introduce an investment tax credit for CCUS this year, thus leveling the playing field vis-à-vis the US.
• Broaden the scope of the proposed Tax Reduction for Zero-Emission Technology Manufacturing to include low emission technologies and other zero-emissions technologies.
• Proceed with the proposal to introduce a tax credit for investments in clean technology, aligned with industry feedback.
• Modernize government procurement to include local economic, societal, and environmental benefits.

SUPPORTING THE DEVELOPMENT OF AN SME NET ZERO STRATEGY

• Introduce a net zero educational awareness campaign.
• Support SME net zero operational assessments and the development of strategic business plans.
• Connect SMEs to existing government supports.
• Introduce a $100 million annual direct investment support program.
• Support the creation of a standardized SME net zero certification system.

IMPROVING CANADA’S BUSINESS ENVIRONMENT AND ECONOMIC COMPETITIVENESS

• Ensure that regulations take into account non-partisan economic impact analyses with regulatory changes only being made following full consultation with industry.
• Ensure that regulations are outcomes-based so that they specify the desired result, rather than prescribing processes and actions.
• Ensure that federal and provincial government climate policies and regulations are aligned and harmonized.
• Maintain a stable supply of cost-effective energy, including low-carbon energy sources, until carbon-free energy sources are reliably available and cost competitive.
• Significantly expand the availability of clean energy supply.
• Support the development, use, and commercialization of alternative clean energy technologies.
• Support industrial transportation fleet modernization and the shift to renewable fuels.
• Implement an effective border carbon adjustment (BCA) mechanism that is globally competitive, aligned with the United States, and WTO-compliant.