Budget 2001
Improving our Environment

December 10, 2001

Protecting the environment is not a luxury. It is something we must do. Clean air and water are essential to our quality of life. Our green spaces and diverse habitats and species are part of the heritage we must leave for future generations.

Budget 2001 addresses this priority with new spending and tax measures that will help communities improve the environment, give new incentives for renewable energy and energy efficiency, and promote sustainable woodlot management.

Municipal Funds

Last year, our government launched the Green Municipal Enabling Fund and the Green Municipal Investment Fund. These funds, which are administered by the Federation of Canadian Municipalities, have been highly effective in stimulating community-based feasibility work and investments in more than 100 projects that improve the environment.

Budget 2001 doubles the budget of these funds, at a cost of $25 million for the Municipal Enabling Fund and of $100 million for the Green Municipal Investment Fund.

These funds, in addition to the new Strategic Infrastructure Fund and the existing infrastructure fund, will help protect our natural heritage for our children.

Incentive for Clean Energy and Energy Efficiency

Renewable energy and reducing energy consumption are essential components of our government’s strategy to address climate change and improve air quality.

Budget 2001 supports this objective by investing $260 million in a 15-year program that will offer a production incentive for electricity produced from qualifying wind energy project.

The incentive will be available for the first 10 years of production and will help to provide a long-term stable revenue source. This will encourage investments in wind energy projects around Canada.

Budget 2001 also invests $5 million a year to broaden eligibility for the income tax incentives that apply to renewable energy and certain energy efficiency projects.

Promoting Sustainable Woodlot Management

Budget 2001 sets aside $10 million a year to eliminate a provision related to the intergenerational tax-deferred rollover for farm property that sometimes led to the premature harvest of woodlots. This will ensure better management of the resource.