The Government of Canada plans to allocate billions of dollars in tax credits and subsidies for electricity projects only to provinces that commit to achieving the 2035 goal of having a "net-zero emissions grid."

Moreover, the federal budget has already indicated a new refundable tax credit of 15% for investments that do not emit pollutants in sectors such as the generation, storage, and transmission of electricity between provinces.

There are also many other new investment tax credits for hydrogen production, clean technologies, and carbon capture and storage systems, worth tens of billions over the next 12 years.

Additionally, there is at least $3 billion allocated to support renewable electricity projects and technology upgrades to make the grid more efficient.

A new document published on August 8 by the Ministers of Energy, Jonathan Wilkinson, and Environment, Steven Guilbeault, leaves the door open for provinces to commit to meeting the 2035 deadline if they want pollution-free electricity grids.

For his part, Minister Wilkinson confirmed that inquiries are ongoing about tax credits for investment. He added: "We want to listen to people and ask ourselves whether we will impose restrictions or conditions."

Regarding the goal of achieving clean energy production by 2035, Minister Guilbeault is expected to publish the first draft of those rules this week. In particular, these rules should outline a timeline for closing natural gas power plants or installing carbon capture systems.

Committing to a carbon-free energy grid is an easy decision for six provinces, which do not have to replace much of the energy they already produce. However, for the other four provinces—Alberta, Saskatchewan, Nova Scotia, and New Brunswick—coal and natural gas still provide between 30% and 85% of the electricity they consume.

In the same context, Scott Moe, the Premier of Saskatchewan, stated in May: "We will not pursue the impossible when it comes to electricity generation in our province. We will not risk leaving our homes, schools, hospitals, and businesses in the cold and dark due to the ideological whims of others."

The provinces of Saskatchewan and Alberta aim to establish a zero-emissions electricity grid by 2050.