In Depth
Federal Budget 2008
Environmental funds target nuclear power, carbon storage, greener cars
February 26, 2008
CBC News
There is $800 million for the auto, nuclear and coal-fired power industries listed under environmental initiatives in the budget, but very little to boost alternative energy.
The federal government is setting aside $250 million for environmental initiatives in 2007-08, $358 million in 2008-09 and $61 million in 2009-10.
Most of the money will go toward developing technologies that will reduce emissions from traditional industries and power sources.
The biggest amounts are:
- $300 million to support nuclear energy.
- $250 million for projects to capture and store carbon dioxide and stop it from being released into the atmosphere.
- $250 million over five years for the development of more fuel-efficient vehicles.
In his budget speech, Finance Minister Jim Flaherty highlighted the auto money as having two goals.
"This will help preserve the environment," he said. "It will also help preserve and create high-quality jobs."
Included in the carbon storage funding is $240 million toward a Saskatchewan project to capture greenhouse gases produced during coal-fired electricity generation and $5 million toward research into potential carbon storage in Nova Scotia.
Flaherty said the government still plans to reduce greenhouse gas emissions by 60 or 70 per cent by 2050. To that end, it will spend $66 million over the next two years to set a price for carbon and set up a carbon trading system.
Flaherty also listed public transit as one of the "keys to achieving a cleaner and healthier environment," but committed to set aside only "up to" $500 million to improve public transit. He said the funds would be dedicated to specific projects, mainly in Vancouver, Montreal and Peterborough, Ont.
The budget gives only a few nods to alternative energy:
- $10 million for research on biofuels emissions.
- GST/HST relief for land leased for wind- or solar-power generation equipment, similar to the tax relief given for land leased to exploit resources such as minerals, forestry, water or fish.
To boost enforcement of environmental laws, the budget sets aside $21 million over two years. Another $12 million specifically targets law enforcement within national parks.
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