Canadian Federal Budget Supports Industry’s Competitive Future Canadian Federal Budget Supports Industry’s Competitive Future.

Adam Auer, president and CEO of the Cement Association of Canada, made the following statement in response to Canada’s Federal 2023 Budget:

“Canada is within striking distance of closing the gap between the incentives offered in the U.S. Inflation Reduction Act and the EU Green Deal Industrial Plan. Once the measures announced in Budget 2023 are finalized, we are confident that Canada will lead in building clean technologies for a sustainable future.

“Concrete is the most widely used building material in the world. It has supported human progress for millennia and is essential for building the future. Homes and communities need concrete. It’s necessary for roads, bridges and buildings, manufacturing, energy generation, resource industries, food production and many other sectors and activities that sustain our quality of life. It is also a local material that creates great-paying jobs in every corner of the country.

“As the second most consumed material on the planet after water, it’s no surprise that concrete comes with a sizable carbon footprint. Manufacturing cement, the critical ingredient that holds concrete together is responsible for about 1.5% Canada’s carbon emissions, and 7% globally. The imperative is clear – globally our industry must decarbonize to compete, and Canada is no exception.

“With close to 60% of our emissions resulting from the immutable chemistry of making cement, deep investment in innovative and expensive technologies, like carbon capture, utilization and storage (CCUS) are both vital and unavoidable. With Budget 2023, the Government of Canada clearly affirmed their understanding of the final role this technology plays in our industry’s efforts to reach net-zero by releasing a final design of the Investment Tax Credit for CCUS.

“We were also pleased to see references to carbon contracts for difference (CCfD). Canada’s bridges, like many industries in Canada, are part of large multi-nationals, and divisions must compete within their companies for projects. Investing in net-zero projects requires predictability. The certainty that carbon contracts for difference can provide is the difference between attracting investment, building projects, and creating clean jobs – or – conceding the opportunity to our competitors. Done right, this new tool will attract investment in net-zero projects in Canada.

“This combined with investments in clean electricity, infrastructure, and future fuels including hydrogen and biofuels, our industry is positioned to continue to capitalize on our leadership in reducing our emissions. We look forward to continuing to work with the Government of Canada, the Canada Growth Fund and Public Sector Pension Investment Board on this important policy,” concluded Auer.