Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how Budget 2024: Fairness for Every Generation is taking further action to protect our environment today and for the next generation. Fighting climate change ensures every generation has a fair chance to build a good middle class life. The costs of inaction today would be borne chiefly by younger Canadians-and we will not leave them behind.
Fighting climate change protects communities, the economy, and Canadians from the costs of climate inaction. By 2050, the health costs of climate change, if left unmitigated, could reach $87 billion per year and Canada's GDP could see losses as high as $101 billion per year, according to third-party modelling. The costs of not taking climate action are too high to pass on to the next generation. That's why our government is taking action.
Climate action is good for the economy. Our $93 billion suite of major economic investment tax credits are already creating good-paying jobs across the country-in clean energy, in clean technology, and in clean manufacturing-to attract investment that helps workers get ahead and keep Canada on track to reach net-zero by 2050.
- Budget 2024 delivers the 30 per cent Clean Technology Manufacturing investment tax credit and the up to 40 per cent Clean Hydrogen investment tax credit, to attract billions in private investment and create thousands of good-paying jobs.
Climate action requires protecting communities from the intensifying effects of climate change. Last year, Canadians faced the worst wildfire season on record, with over 15 million hectares burned-seven times the annual average. As the wildfires made worse by climate change increasingly threaten Canadians and our communities, our government is taking action.
- Budget 2024 doubles the Volunteer Firefighter and Search and Rescue Volunteers Tax Credits, from $3,000 to $6,000, in recognition of the essential roles and sacrifices of these volunteers to keep Canadians safe.
- Budget 2024 builds wildfire fighting capacity and enhances training with $800,000 to partner with the International Association of Fire Fighters.
Beyond wildfires, climate change is causing more frequent extreme weather, particularly floods, storm surges, and more powerful hurricanes. Communities need to know when extreme weather is coming to keep Canadians safe, and Canadians need and deserve the security of knowing their home is protected from natural disasters. The government is protecting communities and keeping Canadians safe.
- Budget 2024 provides $15 million to advance a low-cost flood insurance program. By next year, the Canada Mortgage and Housing Corporation will establish a national flood insurance program, to be developed in partnership with provinces, territories, and the insurance industry.
- Budget 2024 protects communities from floods and storm surges, with $6.9 million over five years, and $1.4 million ongoing, to strengthen the Meteorological Service of Canada's extreme weather early warning system. This builds on the recently completed upgrade of 33 state-of-the-art radar stations across Canada.
As climate change causes colder winters and hotter summers, Canadians need help to lower their home energy bills. Investments in clean energy production are expected to reduce household energy spending by 12 per cent-about $1,200-by 2050, but many homes could be made more energy efficient to make these savings even greater. That's why the government is helping cover the cost of home retrofits to lower the cost of home heating and cooling for low-to-median income Canadians.
- Budget 2024 launches a $903.5 million Canada Green Buildings Strategy to combat the twin challenges of energy affordability and climate change, including by supporting energy efficient retrofits that will lower home energy bills for renters and homeowners.
Since 2015, the federal government has taken bold action to make up for decades of insufficient action to fight climate change. Policies implemented since 2015 have put Canada on track-for the first time in history-to exceed its interim climate target in 2026 of a 20 per cent reduction in emissions relative to 2005 levels. This progress is underpinned by carbon pricing, which according to the Canadian Climate Institute's modelling, could account for as much as 62 per cent of emissions reductions out of eight major federal policies, post-2025.
Building safer, healthier communities means being good stewards of the environment and fighting climate change today. From expanding parks to keeping the air, water, and soil clean, our government knows that protecting the environment allows us to pass on the Canada we know and love, one of beautiful landscapes, clean air, and healthy ecosystems, all while creating the next generation of good-paying jobs.
