In a fiscal update on 3 November the federal government introduced an investment tax credit of up to 30% for clean energy technologies, including small modular reactors.
The government also indicated that it will consult on additional technologies, including large-scale nuclear.
“Including nuclear in the investment tax credit for clean energy technologies is a major step forward for the industry and great news for our climate and economy,” John Gorman, the Canadian Nuclear Association’s president and chief executive officer said.
“It confirms what we at the CNA have been saying for years: that nuclear is clean energy, and must be a key part of Canada’s strategy to maintain energy security while reducing emissions on the path to net zero”
Credit Means Nuclear Industry Can ‘Make Investments’
Mr Gorman said by granting nuclear power access to these tax benefits, the government is explicitly stating that nuclear is clean energy and a key pillar of Canada’s energy transition. “This commitment by the government will enable the nuclear industry to make investments, reduce emissions, create high-paying jobs, and strengthen our world-class nuclear supply chain,” he said.
The fiscal update also includes up to CAD1.28bn (USD95m, €95m) over six years for environmental agency the Impact Assessment Agency of Canada and the nuclear regulator, the Canadian Nuclear Safety Commission, to increase their capacity and improve the efficiency of assessments.
The CNA said the Canadian government’s support for nuclear has increased steadily over the past year and has included funding announcements for SMRs, budgetary commitments for Natural Resources Canada to promote the development of SMRs, and most recently the CAD970m loan from Canada Infrastructure Bank for the development of new nuclear at the Darlington site in Ontario.
Provincial governments have also signalled strong commitment to nuclear, including the release of a roadmap for SMRs by Ontario, New Brunswick, Saskatchewan, and Alberta; the announcement by SaskPower that it is exploring the potential to build an SMR in the 2030s; and a lifetime extension of Pickering nuclear power station, to be followed by a study into possible refurbishment.
