Canada commits to historic investments in clean electricity and fresh water in Budget 2023, but leaves loopholes for fossil fuels

The International Institute for Sustainable Development (IISD) evaluates Canada's 2023 federal budget, noting significant investments in clean energy, freshwater protection, and climate adaptation, while warning that continued financial support for fossil fuels and carbon capture and storage (CCS) may undermine net-zero goals.

• The 2023 federal budget includes substantial funding for environmental initiatives, including nearly CAD 800 million for freshwater protection and the confirmation of CAD 1.6 billion for the National Adaptation Strategy.
• Freshwater funding is intended to support the creation of the Canada Water Agency, which will be based in Winnipeg, MB, and to aid the restoration of Lake Winnipeg, the Great Lakes, and other national freshwater bodies.
• To compete with the United States' Inflation Reduction Act, Canada has introduced new clean energy investment tax credits (ITCs) and allocated CAD 3 billion in direct spending for clean electricity.
• The IISD identifies loopholes that allow for continued fossil fuel support, specifically citing CAD 520 million for the CCS investment tax credit and the eligibility of abated natural gas under the clean electricity ITC.
• The budget fails to announce a phase-out of existing tax subsidies for fossil fuels, which the IISD suggests could conflict with Canada's commitment to end inefficient fossil fuel subsidies within the year.

APA

International Institute for Sustainable Development (2023). Canada commits to historic investments in clean electricity and fresh water in Budget 2023, but leaves loopholes for fossil fuels. https://www.iisd.org/articles/statement/canada-budget-2023

Chicago

International Institute for Sustainable Development. Canada commits to historic investments in clean electricity and fresh water in Budget 2023, but leaves loopholes for fossil fuels. 2023. https://www.iisd.org/articles/statement/canada-budget-2023.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Canada commits to historic investments in clean electricity and fresh water in Budget 2023, but leaves loopholes for fossil fuels |date=28 March 2023 |url=https://www.iisd.org/articles/statement/canada-budget-2023 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2023canada, author = {{International Institute for Sustainable Development}}, title = {{Canada commits to historic investments in clean electricity and fresh water in Budget 2023, but leaves loopholes for fossil fuels}}, publisher = {International Institute for Sustainable Development}, year = {2023}, month = mar, url = {https://www.iisd.org/articles/statement/canada-budget-2023}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }