The federal government is considering restricting billions of dollars in tax credits and grants for electricity projects to provinces that commit to the 2035 target for an emissions-free electricity grid.
The federal budget already made clear the restriction would be in place for the new refundable 15 per cent clean electricity investment tax credit, which is for investments in non-emitting electricity production, storage and interprovincial transmission.
The option could be the latest political grenade in the federal-provincial relationship when it comes to environmental matters. For the other four — Alberta, Saskatchewan, Nova Scotia and New Brunswick — coal and natural gas still supply between 30 per cent and 85 per cent of their power. That makes a clean grid by 2035 a much steeper challenge — so much so that Alberta and Saskatchewan have simply said they can't do it.
Both provinces have said they are instead targeting a non-emitting grid by 2050. That's the year Canada is also aiming to be net-zero emissions, which means any greenhouse gas emissions that are still produced are captured by nature or technology. "You know, my style is not to have big fights," he said. "I actually like to listen to what people and provinces have to say and to try to figure out a pathway through which we can accomplish the goals that we all want to achieve."
Wilkinson commended Alberta for doing what he said was the most of any province to expand its solar power production. The province is also well ahead of schedule on retiring or converting its coal-fired electricity generators, he noted. The last one will be converted before the end of this year.
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