The Government of Canada today released a fiscal update that has introduced an investment tax credit of up to 30% for clean energy technologies, including small modular reactors (SMRs). The government has also indicated that it will consult on additional technologies, including large-scale nuclear. This inclusion of nuclear in this tax credit sends a clear signal that the Canadian government considers nuclear power to be “clean energy” on par with all other low-carbon technologies, including renewables.

“Including nuclear in the investment tax credit for clean energy technologies is a major step forward for the industry and great news for our climate and economy,” said John Gorman, President and CEO of the Canadian Nuclear Association. “It confirms what we at the CNA have been saying for years: that nuclear is clean energy, and must be a key part of Canada’s strategy to maintain energy security while reducing emissions on the path to net zero”

The fiscal update also includes up to $1.28 billion over six years for the Impact Assessment Agency of Canada and the Canadian Nuclear Safety Commission to increase their capacity and improve the efficiency of assessments.

The Canadian Government’s support for nuclear has increased steadily over the past year, and has included funding announcements for small modular reactors (SMRs) under the Strategic Innovation Fund, budgetary commitments for Natural Resources Canada to promote the development of SMRs, and most recently the $970 million loan from Canada Infrastructure Bank for the development of new nuclear at Darlington.

Provincial governments have also signaled strong commitment to nuclear, including the release of a Strategic Roadmap for SMRs by Ontario, New Brunswick, Saskatchewan, and Alberta; the announcement by SaskPower that it is exploring the potential to build an SMR in the 2030s; and a lifetime extension of Pickering Nuclear Generating Station, to be followed by a study into possible refurbishment.

The Canadian nuclear industry remains committed to delivering on the potential of nuclear in Canada and will continue to work closely with the federal and provincial governments to ensure that the industry is well-placed to meaningfully contribute to the country’s clean energy future.

By Energy