Canada will introduce tax write-offs for all-electric off-road vehicles and other automotive equipment in an effort to reduce carbon emissions in the country’s mining sector.
Making a surprise appearance at the annual Prospectors and Developers Association of Canada mining conference in Toronto, Canadian prime minister Justin Trudeau told miners “protecting the environment” would attract investment and be good for the economy.
Canada is similar to Australia in that its economy leans heavily on the resources sector, and also in that debate over how to address climate change has divided politicians on what must be done.
“Of course we can only create a better stronger economy for everyone if we are fighting climate change at the same time,” Trudeau was reported as saying by the Financial Post.
“We know that, Canadians know that — we just haven’t reached that point of consensus … about the best way to do it.”
Trudeau wants a national policy framework to guide a reduction of emissions, a call that was echoed by Alberta opposition leader Rachel Notley after Teck Resources abandoned its Frontier oil-sands mining project in northern Alberta in February citing uncertainty on climate change legislation and taxes, as reported by the Edmonton City News.
Speaking at the conference, Trudeau said that Canada’s reliance on the resources sector meant that the right approach was necessary to deal with the challenges of climate change.
“For a country like Canada, where the national economy was built on the natural resources sector, there’s a big transformation ahead, to be sure,” he said, adding, “We just need to transform our approach to meet the challenging future.”
Canada already has a full tax write-off for electric vehicle (EV) purchases by businesses that do not make use of a cash EV rebate at the time of purchase.
Now, off-road vehicles and automotive equipment will be added to list.
It is estimated that the addition of electric mining vehicles and related equipment to the federal incentive will cost $CA62 million ($A71 million) over the next five years.
Bridie Schmidt is lead reporter for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018, and has a keen interest in the role that zero-emissions transport has to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is co-organiser of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model 3 and has it available for hire on evee.com.au.