Mobilizing private finance for clean growth: International policy lessons for Canada

The document analyzes four international policy mechanisms—US hydrogen tax credits, Norway's carbon capture and storage in the North Sea, the UK's Contracts for Difference for renewable electricity, and Australia's Green Bank—to derive strategic lessons for Canada's clean energy transition. It evaluates the strengths, limitations, and applicable lessons of each approach, focusing on reducing financial risk, leveraging comparative advantages, and ensuring cost-efficiency in public spending.

• The U.S. Inflation Reduction Act's hydrogen tax credits are designed to stimulate private investment and lower prices for clean hydrogen, though they rely on finite public budgets and technical cost projections. Lessons for Canada include integrating carbon pricing into policy design and prioritizing the entire hydrogen ecosystem.
• Norway's longshore carbon capture and storage project in the North Sea addresses infrastructure barriers and offers solutions to neighboring countries, though its success depends on evolving climate policies. The document suggests Canada should target cost-effective projects and facilitate carbon capture across various heavy industries beyond oil and gas.
• The U.K.'s Contracts for Difference (CfD) policy for renewable electricity provides price certainty and limits windfall profits through a two-way payment system, but it is noted as being regressive for lower-income households. Recommended lessons for Canada include using this structure for mature technologies and requiring multiple bidders in auctions to ensure competition.
• Australia's Green Bank has successfully crowded-in private sector investment and generated positive returns and emissions reductions, despite lacking metrics for equity or climate justice. The document advises Canada to establish a clear umbrella mandate and prioritize the development of institutional expertise.

APA

Canadian Climate Institute (n.d.). Mobilizing private finance for clean growth: International policy lessons for Canada. https://climateinstitute.ca/wp-content/uploads/2023/02/Summary-table-private-finance-clean-growth.pdf

Chicago

Canadian Climate Institute. Mobilizing private finance for clean growth: International policy lessons for Canada. n.d. https://climateinstitute.ca/wp-content/uploads/2023/02/Summary-table-private-finance-clean-growth.pdf.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Mobilizing private finance for clean growth: International policy lessons for Canada |url=https://climateinstitute.ca/wp-content/uploads/2023/02/Summary-table-private-finance-clean-growth.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitutendmobilizing, author = {{Canadian Climate Institute}}, title = {{Mobilizing private finance for clean growth: International policy lessons for Canada}}, institution = {Canadian Climate Institute}, url = {https://climateinstitute.ca/wp-content/uploads/2023/02/Summary-table-private-finance-clean-growth.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }