OTTAWA, ON (April 7th, 2022) — Adam Auer, President and CEO of the Cement Association of Canada (CAC), made the following statement in response to the 2022 Federal Budget:
“We welcome the measures put forward in today’s budget to support the growth and sustainability of Canada’s economy. Maintaining economic growth and competitiveness throughout the transition to a global low-carbon economy is important to the success of Canada’s cement and concrete industry.
“We are pleased to see the announcement of an Investment Tax Credit to support carbon capture, utilization and storage (CCUS). This technology is vital for our industry to reach net-zero concrete. The creation of this tax credit will not only help make CCUS technology more cost competitive, but it will also contribute to real emissions reductions from our sector.
“It is equally important to increase demand for the low-carbon products our industry produces, which is why we are also pleased to see support for a Canada Green Buildings Strategy that will support building code reform, accelerate the adoption of performance-based national building codes, and promote the use of lower carbon construction materials. When low carbon cement and concrete are integrated into how Canada spends its infrastructure dollars – including on affordable housing solutions – our industry makes a meaningful contribution to climate change mitigation and resilience, while enhancing our country’s economy and supporting skilled high paying jobs in communities across the country.”
- Budget 2022 provides for:
- The establishment of the Canada Growth Fund to attract substantial private sector investment to support reducing emissions and contributing to achieving Canada’s climate goals.
- A refundable investment tax credit for businesses that incur eligible CCUS expenses, starting in 2022. From 2022 through 2030, the investment tax credit rates would be set at: 60 per cent for investment in equipment to capture CO2 in direct air capture projects; 50 per cent for investment in equipment to capture CO2 in all other CCUS projects; and 37.5 per cent for investment in equipment for transportation, storage and use.
- $150 million over five years for greener construction in buildings.
- $10 billion to create a Housing Affordability Plan including $4 billion in a new Housing Accelerator Fund to build 100,000 new homes in urban areas by 2025, and $2.7 billion for low-cost and co-op housing.
- The Emissions Reduction Plan projects a reduction of 25 megatonnes of GHG emissions from all heavy industry between 2019 and 2030. It brings predictability and commits to a strategy in supporting the deployment of carbon capture, utilization, and storage (CCUS). It provides additional investments for the Net Zero Accelerator Initiative.
- Canada’s cement and concrete industry has engaged in a partnership with Industry, Science and Economic Development Canada (ISED) to achieve net-zero concrete by 2050. This partnership has the potential to reduce over 15 megatonnes of GHGs cumulatively by 2030, and ongoing reductions of over 4 megatonnes annually.
- The Global Cement and Concrete Association (GCCA) released its Net-Zero Global Roadmap in October 2021. Set to be released in 2022, Canada’s cement and industry roadmap to net-zero concrete will be unique to Canada’s economy and policy environment – while aligning with its international peers. It will aim at reducing C02 emissions by up to 40% by 2030 and deliver net-zero concrete by 2050.
The Cement Association of Canada is the voice of Canada’s cement industry, representing five vertically integrated cement companies that provide a reliable local supply of cement to help build Canadian communities and critical infrastructure. The cement and concrete industry contributes approximately 158,000 direct and indirect jobs across the country, and $76 billion dollars in direct, indirect, and induced economic impact into the Canadian economy.
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