Canadian authorities have included small modular reactors (SMRs) among the clean energy technologies eligible for the new investment tax credit. This was taken as a clear signal that nuclear energy is recognized as clean energy on par with all other low carbon technologies.
Deputy Prime Minister and Finance Minister Christia Freeland said the focus today is “building an economy that works for everyone… even as we face global resistance, the investments we make today will make Canada more resilient and prosperous for generations to come.” .
The federal government, in its April 2022 budget, promised to establish an investment tax credit for investments in cleantech, with a focus on zero-emission technologies, battery storage solutions, and clean hydrogen.
The government also indicates in a statement that it will hold consultations on “additional acceptable technologies (eg large-scale nuclear and large-scale hydropower)”. The authorities will announce specific details of what these technologies will be in the 2023 budget.
The investment tax credit is expected to be CAD$6.7 billion (US$5 billion) over five years starting in 2023-24.
“Including nuclear power in the Clean Energy Technology Investment Tax Credit is a major step forward for the industry and great news for our climate and economy,” said John Gorman, President and CEO of the Canadian Nuclear Association (CNA).
This confirms what we at CNA have been saying for years: nuclear power is clean energy and should be a key part of Canada’s strategy to maintain energy security while reducing emissions towards net zero.