Economic Update: Ottawa betting on green skills and technologies
Ottawa is investing $250 million over five years in green and sustainable economy training programs.
An important part of the economic statement presented Thursday by Chrystia Freeland is devoted to measures aimed at enabling Canadian workers to prepare for the transition to a carbon neutral economy and the development of clean energy and technologies.
Some $250 million over five years will be spent on three programs:
- The Training Center for Sustainable Jobs aims to help 15,000 workers upgrade their skills or retrain. It will bring together trade unions, employers and training institutions to forecast future skills requirements and develop curricula in specific sectors, including the durable battery industry and construction and low-carbon renovations;
- The Union Training and Innovation Program will support apprenticeship training in skilled trades, with a focus on green skills. It is expected that 20,000 apprentices and journeypersons will benefit;
- The Sustainable Jobs Secretariat will provide the most up-to-date information on federal programs, funding and services across all departments.
Economic Statement also proposes $60 million over three years, starting in 2023-2024, to create a new rapid response fund for workers.
To help young people, especially those from marginalized communities, acquire the skills needed to find and keep good jobs, the federal government plans to provide $802.1 million over three years to the Youth Employment and Skills Strategy. This amount is broken down as follows:
- $301.4 million over two years, starting in 2023-2024, for comprehensive supports and work placements targeting youth struggling to find a job;
- $400.5 million over two years, starting in 2023-2024, to Canada Summer Jobs to support 70,000 summer internships each year;
< li>$100.2 million over three years, starting in 2022-23, to continue to support work placements for First Nations youth.
“We will continue to invest to ensure that Canadians have the skills they need to land good-paying jobs, and we will continue to bring more to Canada those skilled workers our growing economy needs in a changing world. »
— Chrystia Freeland, Deputy Premier and Minister of Finance
Federal Minister of Immigration , Sean Fraser, announced a significant increase in the number of immigrants admitted to Canada.
The federal government recently announced that it is raising its immigration targets to welcome 465,000 newcomers in 2023, 485,000 in 2024 and 500,000 in 2025.
To support processing applications and resettlement of new permanent residents, Ottawa will increase the amounts allocated to the process: $1.6 billion over six years and $315 million per year thereafter in new funding.
In addition, to reduce application backlogs and expedite file processing, the government has committed to providing an additional $50 million in 2022-23 to Immigration, Refugees and Citizenship Canada.
The government will also spend $26.3 million over five years, starting in 2023-24, to crack down on trucking companies that fail to classify drivers as employees, effectively locking them out access to rights under the Canada Labor Code, such as paid sick leave.
To encourage carbon neutrality, the government is introducing an investment tax credit of up to 30%, focusing on zero-emission technologies, battery storage solutions and hydrogen clean.
The technologies targeted are power generation systems, stationary power storage systems operated without fossil fuels, low-carbon heating equipment, zero-emission industrial vehicles and related charging and refueling equipment. .
This investment tax credit is projected to cost $6.7 billion over five years, starting in 2023-24.
“With significant investment tax credits in clean technology and clean hydrogen, it will be more attractive for businesses in Canada to invest in technology and produce the energy that will help fuel an economy. carbon neutral world.
—Chrystia Freeland, Deputy Prime Minister and Minister of Finance
As expected, the economic statement introduces a new 2% tax on buyouts. corporate actions. The objective is to encourage companies to invest in their activities in the country. Details of this new tax will be announced in Budget 2023, and the tax would come into effect on January 1, 2024.
This measure is estimated to bring in $2.1 billion on five years, starting in the 2023-2024 fiscal year.
In the economic statement, the federal government also details the concrete form that several measures already announced in the last budget will take, such as such as the Clean Hydrogen Investment Tax Credit and the Canada Growth Fund, which aims to attract billions of dollars in private investment to the country.