New tax incentives for investment could increase Canada’s emissions
OTTAWA — Big greenhouse-gas emitters will be able to take advantage of new federal tax incentives Finance Minister Bill Morneau promised Wednesday even if that means more emissions, the government says.
Measures in Morneau’s fall fiscal update will allow manufacturing and processing companies to write off the full cost of buying new equipment and machinery as soon as they put the purchases to use.
The change is intended to encourage capital investment in sectors that are exposed to international competition — including oil producers and refineries, and big chemical companies.
In the very last paragraphs of the 156-page fall fiscal-update book, the government admits that these investments could increase greenhouse-gas emissions, as well as create more air, water and soil pollution.