Governments have a well-established role in promoting business competitiveness while minimizing market failures wherever possible. As both environmental outcomes and innovation are subject to market failures, government policies should aim to boost business competitiveness, while also incentivizing environmentally-friendly investments and spurring innovation. The recent announcement of increasing ACCA for clean energy equipment to 100% is a promising step. Building upon this by expanding the list of eligible clean technologies, using an accelerated expansion, performance standard or hybrid approach, can help extend the positive impact throughout all sectors of the Canadian economy.

 

Read the Policy Brief: Accelerated Capital Cost Allowance