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Canada pledges industry to tackle U.S. inflation bill

Ismail Shakil

OTTAWA (Reuters) – Canada must step up its efforts to help industry scale up clean tech after the U.S. in August to accelerate a green transition there with massive investment incentives, the finance minister said on Wednesday. .

“This is far-reaching legislation that has a lot of different implications for Canada,” Finance Minister Chrystia Freeland told reporters in Windsor, Ontario, where she earlier met with the Auto parts makers talked.

She said Canada needs to “respond” to some of the “factors” of the IRA. “We’re working on it. You’ll see some of that in the economic statement in the fall and you’ll see further action in the spring budget.”

Freeland said she would soon Announcing the date for the annual Autumn Economic Statement (FES), when the government updates its economic forecasts and sometimes adjusts its spending plans. Analysts told Reuters last week that Canada should avoid implementing new stimulus measures in the FES.

Canadian companies seeking to build carbon capture facilities and manufacturers looking to attract new electric vehicle (EV) or battery plants have expressed concern that the IRA could give the United States an unfair advantage .

Governments in Europe and Asia have lodged complaints about some of the bills affecting their industries.

On Wednesday, the Biden administration announced another big push for its green transition, saying it would provide $2.8 billion in grants to encourage U.S. production of minerals in electric vehicles or batteries.

Freeland has repeatedly welcomed the introduction of the IRA as it puts the US on the path to a green transition without penalising Canada and offering new The Electric Vehicle Consumer Tax Credit as originally announced. Instead, “North American” automakers are eligible for tax credits.

A comprehensive IRA has also raised requirements for sourcing key minerals used to make batteries with FTA allies such as Canada, which is abundant but still needs to scale up production and processing.



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