Today, the Government of Canada highlighted how Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience, is a plan to finish the fight against COVID-19, create jobs, and ensure a robust economic recovery that brings all Canadians along.

“Budget 2021 is about meeting the urgent needs of today and about building for the long term. It is a budget focused on middle-class Canadians and on pulling more Canadians up into the middle class. It is a plan that embraces this moment of global transformation to a green, clean economy. Fighting climate change, including by reaching net-zero, will be a cornerstone of the Government of Canada’s plan to rebuild the economy, create middle class jobs, and ensure Canadian industry stays competitive on the world stage.”

Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland

• Budget 2021’s proposed investments will create good jobs, help businesses grow, and support a resilient and inclusive recovery. Key proposed measures to create a healthy environment include:

  • Providing $4.4 billion on a cash basis to Canada Mortgage and Housing Corporation (CMHC) to help homeowners complete deep home retrofits through interest-free loans worth up to $40,000. The program would be available by summer 2021.
  • Providing $5 billion to the Net Zero Accelerator.
  • Working closely with the United States to strengthen alignment on transportation and methane emissions.
  • Enhancing Canada’s supply of critical minerals to secure our energy security and make sure Canada is a critical supplier of the materials needed for batteries for electric vehicles, renewable energy storage, and net-zero industrial transformation.
  • Introducing an investment tax credit for capital invested in carbon capture, utilization, and storage (CCUS) projects, with the goal of reducing emissions by at least 15 megatonnes of CO₂ annually. 
  • Reducing—by 50 per cent—the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies. The reductions would go into effect on January 1, 2022, and would be gradually phased out starting January 1, 2029 and eliminated by January 1, 2032.
  • Providing $2.3 billion, with $100.5 million in remaining amortization, to Environment and Climate Change Canada, Parks Canada, and the Department of Fisheries and Oceans to conserve up to 1 million square kilometers more land and inland waters and protect priority species at risk, to achieve Canada’s 25 per cent protected area by 2025 target, including through national wildlife areas, and Indigenous Protected and Conserved Areas.
  • Providing $200 million to Infrastructure Canada to establish a Natural Infrastructure Fund to support natural and hybrid infrastructure projects. This would help to improve well-being, mitigate the impacts of climate change, and prevent costly natural events.
  • Providing $976.8 million, with $80 million in remaining amortization, to help Canada reach its 25 per cent by 2025 target to protect the health of our oceans, commercial fishing stocks, and Canadians’ quality of life, especially in coastal communities.
  • Providing $647.1, with $98.9 million in remaining amortization to Fisheries and Oceans Canada to stabilize and conserve wild Pacific salmon populations, including through investment in research, new hatchery facilities, and habitat restoration.
  • Providing $1.4 billion to Infrastructure Canada to top up the Disaster Mitigation and Adaptation Fund, to support projects such as wildfire mitigation activities, rehabilitation of storm water systems, and restoration of wetlands and shorelines.
  • Investing $11.7 million through Infrastructure Canada to renew the Standards to Support Resilience in Infrastructure Program, so that the Standards Council of Canada can continue updating standards and guidance in priority areas, such as flood mapping and building in the North.
  • Providing $63.8 million to Natural Resources Canada, Environment and Climate Change Canada, and Public Safety Canada to work with provinces and territories to complete flood maps for higher-risk areas.
  • Providing $17.4 million to Environment and Climate Change Canada to support work with the provinces, territories, Indigenous peoples, and key stakeholders on the scope of the new Canada Water Agency’s mandate, including identifying opportunities to build and support more resilient water and irrigation infrastructure. 

• Since 2015, Canada has invested roughly $60 billion toward climate action and clean growth. In 2020, the government announced an additional investment of $15 billion for Canada’s strengthened climate plan, along with nearly $15 billion for public transit in February 2021. 

Related products

• Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience
• Budget 2021: Address by the Deputy Prime Minister and Minister of Finance
• A Healthy Environment for a Healthy Economy

Associated links

• Fall Economic Statement 2020: Supporting Canadians and Fighting COVID-19
• Canada’s COVID-19 Economic Response Plan
• Young Canadians
• A Canada-wide Early Learning and Child Care Plan
• Supporting Women
• Low-wage Workers
• Support for Small Business
• Job Creation
• Building an Innovation Economy of the Future
• Strong Indigenous Communities
• Supporting Tourism, Hospitality, Arts and Culture
• Housing

Media may contact:

Katherine Cuplinskas
Press Secretary
Deputy Prime Minister's Office
Katherine.Cuplinskas@dpmo-cvpm.gc.ca

Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000

General enquiries

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