A recent article by Climate Insider discussed the benefits and long-term impacts of the federal government’s new investment tax credits on the Canadian cleantech sector. These credits are designed to encourage pro-environmental behavior change and scale the adoption of clean technology.
The targeted areas for these credits include Clean Technology, Clean Technology Manufacturing, Carbon Capture, Utilization, and Storage (CCUS), and Clean Hydrogen. The article argues that these initiatives are pivotal in Canada’s strategy to achieve net-zero emissions by 2050.
Eavor was recognized as one of the Canadian entities contributing to the country’s efforts to improve energy efficiency. Having the capacity to be both baseload and dispatchable, Eavor-Loop™ technology offers reliable power that can deliver electrons to the grid whenever it’s needed, which can reduce reliance on fossil fuels. Moreoever, achieving net-zero with sustainable energy solutions have great potential to enhance Canada’s global competitiveness.
Canadian cleantech startups stand to benefit significantly from these tax incentives. For example, eligible Clean Technology projects will be offered a refundable tax credit of up to 30 percent of their capital costs. The article states that experts are highlighting these measures as critical for Canada to overcome historical challenges in scaling cleantech ventures.
By reducing financial barriers and encouraging investment across renewable energy sectors, these tax credits could position Canada to lead globally in sustainable innovation. Adopting a comprehensive strategy and fostering cross-sector collaboration could enable Canada to set a new benchmark for environmental responsibility while driving economic growth through technological innovation.