NDP MP Taylor Bachrach asked if Canada needed “a concerted strategy around the zero emission vehicle and battery supply chains” given incentives offered in the act for the production of batteries for electric vehicles.
Michael Bernstein of Canadians for Clean Prosperity said the IRA provides a degree of ‘certainty’ for investing in green energy projects in the United States that the Canadian setting currently does not offer.“So when you’re thinking about whether you should make this investment, that number goes in the spreadsheet with 100 per cent confidence – or at least 98 per cent confidence,” said Bernstein.
Rachel Samson, vice-president of research for the Institute for Research and Public Policy, said carbon pricing on its own ‘does not provide sufficient incentive’ for large-scale capital investments.
“I’m not sure the carbon price was ever going to address some of the challenges … particularly when we’re talking about really big expensive capital investments,” she said. “The carbon price on its own does not provide sufficient incentive to make those large investments, particularly when there’s huge market risk and there isn’t there isn’t a global carbon price.”
“One of the challenges with a good industrial policy and subsidies is, if you don’t also have appropriate speed on the regulatory front, the subsidies don’t help you very much or the tax policy doesn’t help you very much,” she said. “So there’s going to have to be a look now at regulatory efficiency, without sacrificing, in any way, safety.”