Canada’s 2024 Federal Budget, tabled by Deputy Prime Minister Chrystia Freeland predominantly focused on addressing public concerns over housing and affordability but also included a few new commitments or announcements related to the nuclear energy sector. According to the Canadian Nuclear Association (CNA), “the budget in many places reinforces the government’s clear support for nuclear by confirming a series of announced policies and financial commitments intended to support a rapid build out of nuclear over the coming decades”.
The CAD535bn ($387bn) budget describes nuclear as “one of the key tools in helping the world reach net-zero emissions by 2050” and stresses the important role of domestic Canadian nuclear technology, its robust supply chain, and medical isotopes.
CNA said the government also used the opportunity of the Federal Budget announcement to highlight recent support for the nuclear sector, including CAD3bn in export financing to Romania to support the construction of new Candu reactors, CAD50m to support new nuclear capacity at Bruce Power's existing site, and funding for SMR development and deployment through the Canada Infrastructure Bank and the Strategic Innovation Fund. The budget also notes that Canada is the first sovereign borrower to issue a green bond including nuclear, “demonstrating Canada’s commitment to being a global nuclear leader”.
On impact assessment, the budget includes provisions to reduce timelines for major projects including amendments to the impact assessment act. It sets a a target of five years or less to complete federal impact assessment and permitting processes for federally designated projects, and a target of two years or less for non-federally designated projects. In particular, it sets a three-year target for nuclear project reviews, by working with the Canadian Nuclear Safety Commission and Impact Assessment Agency of Canada to consider how the process can be better streamlined and duplications reduced between the two agencies.
The Budget also reiterated commitments related to the Investment Tax Credits (ITCs) and nuclear, also specifying that the implementation date will be 1 June 2024, and that the ITCs are available to taxable and non-taxable corporations, including corporations owned by municipalities or Indigenous communities, and pension investment corporations.
In support of North American cooperation on the clean energy transition, the budget extends for an additional year the Canada-US Energy Transformation Task Force, which is bolstering critical mineral and nuclear energy supply chain integration. It notes that Canada will continue to engage with international partners with “a view to announcing concrete measures later this spring to bolster North American nuclear fuel supply chains”. A total of CAD3.8bn is announced for Canada’s Critical Minerals Strategy, to secure Canada’s position as the world’s supplier of choice for critical minerals and the clean technologies they enable.
Other specific support for nuclear includes CAD3.1bn over 11 years, starting in 2025-26, with CD1.5bn in remaining amortisation, to Atomic Energy of Canada Limited (AECL) to support Canadian Nuclear Laboratories’ ongoing nuclear science research, environmental protection, and site remediation work.
Image: Minister of Finance of Canada, Chrystia Freeland (courtesy of CNA)
