The Canadian and Ontario governments, in contrast, are suspected to have provided matching one-time contributions of $500 million to assist attract the $5 billion plant to Windsor, though neither has officially confirmed the figure. Ongoing tax incentives based on battery production are non-existent north of the border.
Canadian Finance Minister Chrystia Freeland has vowed to reply to the IRA within the upcoming 2023 budget, but has laid out no specific plans for keeping Canada competitive with its neighbour to the south.
Following a gathering with provincial finance ministers Feb. 3, Freeland called on the provinces that can profit probably the most from clean energy investments to “chip in and work with the federal government” to counter the IRA.
“Very specific investment decisions are being made about very specific projects,” she told reporters in Toronto.
“Those shall be good for the entire country. They shall be particularly good for the provinces where those investments are based.”
COUNTERING IRA ‘A TEAM EFFORT’
Freeland didn’t expand on what level of investment the federal government is searching for from provinces that might land latest projects, but said countering the IRA must be a “team effort.”
Ford, alternatively, said Ontario is already playing its part.
“In the event that they deal with the IRA, we’re taking good care of other ends.”
Together with upfront financial assistance for automakers and battery cell makers retooling plants or establishing latest manufacturing operations within the province, Ford said Ontario helps investors with operational expenses equivalent to energy costs that the federal government shouldn’t be involved in.
At the identical time, Ford acknowledged Ontario is seeing opportunities “straight away, and that door doesn’t all the time stay open.”
“Hopefully they’re going to have a chat with President Biden when he comes up here,” Ford said, pointing to federal leadership in Ottawa.
The U.S. president is scheduled to go to Canada in March.
Freeland, nevertheless, has said there isn’t any possibility of concessions from the USA.
“It’s nothing about Canada negotiating with Washington. That is the law; Congress has passed it, and it’s created a latest situation for Canada.”
Freeland recommitted Feb 3. to responding to the commercial incentives within the IRA within the federal budget this spring. Finance Canada has not specified a date for when it is going to table its 2023 economic agenda.