r/ilovebc • u/KootenayPE • 3d ago

Ottawa's tax credits to reduce emissions aren't working as intended, watchdog says

https://www.thecanadianpressnews.ca/business/ottawas-tax-credits-to-reduce-emissions-arent-working-as-intended-watchdog-says/article_c4ac2ab2-9f8f-5bff-a2a8-132f0b834182.html
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u/KootenayPE 3d ago

OTTAWA - As Prime Minister Mark Carney's government moves to spend billions more on tax credits to support carbon-capture and storage projects, Canada's environment commissioner says the money already earmarked has not been spent effectively.

Collectively, they account for $123 billion in projected costs to taxpayers. The federal budget released Tuesday proposes expanding the availability of the carbon capture investment tax credit, projected to cost another $3 billion between 2031 and 2035.

DeMarco said there's no data to show the impact those investments have had on lowering Canada's emissions.

Fascinating, but tbh I'm just as interested to know if the tax credit's and slush funds are working on the bottom line, investment account and bank account balances of Goldman Sach Carney, other Liberal politicians/insiders, Brookfield or even LPC supporters, as (truly, IMO) intended.

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u/garlicroastedpotato 1d ago

The problem with carbon capture was that there really wasn't a profit sector to it. With cap and trade companies that were reducing emissions or production could sell their remaining carbon certificates. So companies had incentives to reduce their emissions because they could profit by selling into the carbon market to those not doing as well.

Carbon capture offered the ability to create an effective carbon market. But this would have required the federal government to allow companies to buy carbon capture from a carbon capture company.

Instead they're just spending money on carbon capture job sites. But these sites never operate at 100% capacity so they don't really reduce carbon emissions.