Canada has become the second-most favorable place to invest in green energy projects after Prime Minister Justin Trudeau’s government rolled out a tax credit in last month’s budget, according to Rystad Energy.
(Bloomberg) — Canada has become the second-most favorable place to invest in green energy projects after Prime Minister Justin Trudeau’s government rolled out a tax credit in last month’s budget, according to Rystad Energy.
The renewable energy investment tax credit raises the value of some projects more than 50% over their lifetime, placing Canada behind only the US in support offered for renewable energy, according to the research firm.
The offering of a 30% tax write off for renewable technology deployed before 2034 pushes the country ahead of six others, including Turkey, Portugal, Vietnam, the United Kingdom, Sweden and Germany in the support offered for green energy, Rystad said in a report on Tuesday.
Read More: Staggering Boom in Renewables Seen in US by 2030, BNEF Says
Under the program, 250-megawatt clean-power projects built in Canada will have a life cycle net present value of $202 million after tax versus $131 million before the tax credit was announced, Rystad said.
Canada’s federal budget contained almost C$83 billion ($61 billion) over the next decade in investment tax credits directed toward clean manufacturing, electricity generation and carbon capture. The subsidies, along with increased health spending, are poised to swell the country’s deficit but were touted as necessary to achieve the country’s goal of net zero emissions by 2050.
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