nuclear-news

Analysis of Canada’s Budget 2024 provisions related to nuclear.

Budget 2024 proposes to provide $3.1 billion over 11 years, starting in 2025-26, with $1.5 billion in remaining amortization, to Atomic Energy of Canada Limited to support Canadian Nuclear Laboratories’ ongoing nuclear science research, environmental protection, and site remediation work.

 16 Apr 2024, Susan O’Donnell

There’s no new money announcements for nuclear reactor development such as more money in the Strategic Innovation Fund, a bit of good news.

Overall, a ton of references to nuclear stuff, it’s all over this budget.

The big money announcement, which is not a surprise if you’re following goings-on at Chalk River, is $3.1 billion over 11 years “to Atomic Energy of Canada Limited to support Canadian Nuclear Laboratories’ ongoing nuclear science research, environmental protection, and site remediation work.” see highlight in red below. I have no idea if this is the amount CNL asked for or more or less than that amount. I assume this is new money in addition to the $1.2B or so AECL already gets every year just to run the place.

There’s this one under Indigenous initiatives that could potentially mean funding for nuclear development, but it’s not enough to do anything much with: $36 million, over three years, starting in 2024-25, to renew support for the Strategic Partnerships Initiatives’ Clean Energy program to promote Indigenous participation in clean growth opportunities.

The other money stuff, refundable tax credits for new equipment, means a company needs to spend money to get the credit, which is not what the industry is looking for.

Unrelated to funding but of definite interest is the three-year target for nuclear project reviews and to avoid duplication between the CNSC and IAAC. I wasn’t aware there was duplication so if anyone has insight on the potential impact of this, please share.

Related is broad text for the revised IAA including “measures that include increasing flexibility in substitution of assessments to allow for collaboration and avoid interjurisdictional duplication” which I don’t like the sound of, maybe someone can offer insight.

There’s a long section on the “Canada-US Energy Transformation Task Force” which includes a worrying reference to that pre-written media release at COP 28 to triple nuclear energy, calling it an initiative between “government and like-minded partners” – I say this is worrying because I suspect there’s a battle royale going on as to whether this media stunt at the COP in Dubai by the nuclear industry is an official government commitment. Last time I looked, it wasn’t on the website of Environment and Climate Change Canada which is responsible for COP commitments. But it’s in the budget, so maybe that’s supposed to make it official.

Then there’s a nothing-statement about maintaining a robust Arctic presence, referring to Russia as “today’s most hostile nuclear power” which I guess it is from Canada’s perspective although most of the world’s countries would likely name a different candidate for that honour. Why this is concerning is the reference by PM Trudeau just a week or so ago about needing nuclear submarines to maintain Arctic sovereignty. A file to watch for sure.

So, in summary, a LOT of nuclear references in the budget which is interesting and unsettling but the only big money is for Canadian Nuclear Laboratories, that private company run by Atkins-Réalis/SNC Lavalin and two U.S. companies involved in nuclear weapons development.

So, that’s where our country is at, at this point in history.

Budget 2024 Fairness for every generation   https://budget.canada.ca/2024/home-accueil-en.html

Page numbers refer to the pdf page.

Page 29:

Extending for an additional year collaboration with our largest trading partner through the Canada-U.S. Energy Transformation Task Force, which is bolstering critical mineral and nuclear energy supply chain integration.

Page 200:

A 15 per cent refundable tax credit rate for eligible investments in new equipment or refurbishments related to: Low-emitting electricity generation systems using energy from wind, solar, water, geothermal, waste biomass, nuclear, or natural gas with carbon capture and storage.

Page 206:

Set a three-year target for nuclear project reviews, by working with the Canadian Nuclear Safety Commission and Impact Assessment Agency of Canada, and consider how the process can be better streamlined and duplications reduced between the two agencies. 

To advance the principle of “one project, one review”, Budget 2024 proposes to: Amend the Impact Assessment Act to respond to the October 2023 Supreme Court of Canada decision that ruled that elements of the Act are unconstitutional. The proposed amendments will ensure the Act is constitutionally sound, facilitating efficient project reviews while advancing Canada’s clean growth and protecting the environment. An amended Act will provide certainty for businesses and investors through measures that include increasing flexibility in substitution of
assessments to allow for collaboration and avoid interjurisdictional duplication, clarifying when joint federal-provincial review panels are possible, and allowing for earlier Agency screening decisions as to whether a full impact assessment is required after the Planning phase. The amended Act will remain consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act;

Page 208

Advancing Nuclear Energy, Nuclear Research, and Environmental Remediation
Non-emitting, nuclear energy is one of the key tools in helping the world reach net-zero emissions by 2050. Canada stands out as one of the few countries to have developed and deployed its own nuclear technology, the CANDU. And the robust Canadian supply chains built around CANDU not only generate highskilled jobs and foster research and development but also play a role in creating affordable and clean electricity. Canada’s nuclear sector also produces medical isotopes essential for radiation therapy and diagnosing heart disease.

Page 209

Canada is a Global Nuclear Energy Leader

**a list of funding provided to nuclear projects to over the last few years, we know them all, including SMRs, nothing new here:

Small Modular Reactors (SMRs):
*The Canada Infrastructure Bank announced a $970 million investment to support Ontario Power Generation in building the first grid-scale SMR among G7 nations at Darlington.
*The Strategic Innovation Fund has committed $94.7 million to accelerate the development of three different next generation SMR designs.
*The government announced $74 million in funding to support SaskPower’s SMR development.
*The government announced $120.6 million to enable the deployment of SMRs through various activities such as building regulatory capacity.

Page 209-210

Canadian Nuclear Laboratories conducts nuclear science research that helps advance clean energy and medical technologies, as well as environmental remediation and waste management of historic nuclear sites. This work is overseen by Atomic Energy of Canada Limited, a Crown corporation responsible for enabling nuclear science and technology and ensuring environmental protection at nuclear sites.

Budget 2024 proposes to provide $3.1 billion over 11 years, starting in 2025-26, with $1.5 billion in remaining amortization, to Atomic Energy of Canada Limited to support Canadian Nuclear Laboratories’ ongoing nuclear science research, environmental protection, and site remediation work.

Page 210-211

Canada-U.S. Energy Transformation Task Force

On March 24, 2023, the Canada-U.S. Energy Transformation Task Force was launched by Prime Minister Trudeau and President Biden, as a one-year joint initiative to support our collective energy security and economic growth as we transition to a clean energy future. Canada is pleased to announce the renewal of the Energy Transformation Task Force for an additional year.
Since its creation, the Energy Transformation Task Force has driven significant progress towards more secure and resilient Canada-U.S. supply chains for critical minerals, nuclear fuels, and green steel and aluminum.

Canada is a global leader in the supply of responsibly sourced critical minerals. The government is investing $3.8 billion through the Canadian Critical Minerals Strategy to further develop Canadian value chains for critical minerals needed for our green and digital economy, including the new Critical Mineral Exploration Tax Credit. The Strategy will be further enabled by enhancements to the Clean Technology Manufacturing investment tax credit, and Canada’s new Electric Vehicle Supply Chain investment tax credit. Canada is building on our strong partnership with the U.S. on critical minerals, underpinned by the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration. Under the Energy Transformation Task Force, we have redoubled efforts to address issues of mutual concern such as bolstering supply security for critical minerals. Our government will continue to work in close collaboration with industry partners and our allies to support cross-border priority critical mineral projects that advance our shared interests.

Nuclear energy will play a key role in achieving net-zero greenhouse gas emissions. Canada is a Tier-1 nuclear nation with over 70 years of technological leadership, including our own national reactor technology, and a strong domestic supply chain that includes the world’s largest deposit of high-grade natural uranium. Our government is taking action to support the growth of nuclear energy, including through the Clean Electricity investment tax credit, the Clean Technology Manufacturing investment tax credit, the Strategic Innovation Fund, the Canada Infrastructure Bank, and an updated Green Bond Framework that includes certain nuclear expenditures.

At COP28, the government and likeminded partners reaffirmed their commitment to triple nuclear energy capacity and promote public-private investment to strengthen supply chains and reduce reliance on non-allied countries for nuclear fuel needed for advanced and conventional nuclear energy. Through the Energy Transformation Task Force, Canada will continue to
engage industry and international partners with a view to announcing concrete measures later this spring to bolster North American nuclear fuel supply chains. Canadian steel and aluminum—among the greenest in the world—are important pillars of integrated North American manufacturing supply chains and key products to support the net-zero transition. We have invested
significantly to further decarbonize our steel and aluminum sectors and to maintain their competitiveness in the green economy. As well, earlier this year, our government announced actions to increase the transparency of steel import data that will help provide more details on the origins of imported steel and align our practice with the U.S. We will continue to collaborate with the U.S. to promote common approaches for trade in low emissions green steel and aluminum goods.

Canada will continue to advance its work in partnership with the U.S., to reduce our shared exposure to production and supply chains controlled by nonlikeminded countries, including by attracting investment in EV supply chains, solar, and more.

page 301 – not specifically nuclear but could be used for it

Boosting Indigenous Economic Opportunity
Economic reconciliation is critical to Indigenous self-determination. Building on previous investments, including support for the development of an Economic Reconciliation Framework and a National Benefits-Sharing Framework, Budget 2024 proposes to provide:

$36 million, over three years, starting in 2024-25, to renew support for the Strategic Partnerships Initiatives’ Clean Energy program to promote Indigenous participation in clean growth opportunities.

Page 322

Maintaining a Robust Arctic Presence
The Canadian Arctic is warming four times faster than the world average, as a result of climate change. It is also where we share a border with today’s most hostile nuclear power—Russia. The shared imperatives of researching climate change where its impacts are most severe, and maintaining an ongoing presence in the Arctic enable Canada to advance this important scientific work and assert our sovereignty.

Page 416

Green Bond Program
To support the growth of the sustainable finance market in Canada, in March 2022 the government launched the federal green bond program. On February 27, 2024, the Government of Canada successfully issued a 10-year, $4 billion green bond — Canada’s second green bond and the first under the updated Green Bond Framework, which includes certain nuclear energy
expenditures. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, demonstrating Canada’s commitment to being a global nuclear leader.

April 19, 2024 - Posted by Christina Macpherson | Canada, politics