The prime minister wants to build a stronger and faster clean economy. What’s holding it back?

Canada has a rare and powerful opportunity to dramatically scale up its clean industrial economy, create high-quality jobs, and attract global investment into markets where we already hold a competitive edge. 

As it happens, the tools we need to succeed already exist through the federal Clean Economy Investment Tax Credits, often referred to as ITCs.  

In Quebec, StormFisher Varennes is poised to convert captured carbon and clean electricity into e‑methanol, which is a fuel that global maritime and aviation markets are actively demanding. This single project would generate more than $700-million in GDP during construction and more than $1.1-billion over its first decade.  

In short, we are on the verge of unlocking a new industry in this country—one that both bolsters domestic energy resilience and opens new export possibilities. 

But across Canada, projects like this are not moving forward as quickly as they should. This isn’t due to a lack of capital or ambition. It’s because the policy framework is not fully aligned with how these projects are built.  

This misalignment is measurable. Billions of dollars in federal allocations for clean hydrogen tax credits are currently expected to go unused, reflecting stalled or delayed investment.  

Letting these dollars go unspent results in real economic loss. 

As Prime Minister Mark Carney has said, we are operating in a fundamentally different world than we were just a few years ago. Supply chains are being reshaped. Energy security and economic sovereignty are now core policy objectives.  

This is why the ITCs need to be updated to “meet the moment.” 

They were originally designed to ensure Canada could remain competitive with the United States. Today, they must do more: they must build Canada’s industrial capacity, strengthen domestic supply chains, and position Canada as a global supplier of clean energy and fuels. 

In that sense, the ITCs are the embodiment of a simple but powerful idea: no one can build Canada’s economy for us. 

 In order to succeed, the Clean Hydrogen ITC framework requires targeted, practical updates. This can be done without introducing new costs to government. 

First, a global hydrogen economy will largely take shape through derivatives such as e‑methanol and sustainable aviation fuel. Yet, these pathways are not fully recognized under the current Clean Hydrogen ITC, despite clear and growing market demand.  

Second, it must fully leverage this country’s clean electricity advantage. The Clean Hydrogen ITC currently sets credit levels based on each province's average grid carbon intensity, which unfairly penalizes provinces like Quebec, British Columbia, and Manitoba that already run on some of the cleanest and most affordable electricity in the world. Updating this policy to acknowledge our existing clean power advantage in these provinces would unlock significant clean fuels investment and create thousands of jobs. 

Finally, at the end of the day, we need to ensure that dollars allocated within the ITC framework translate into projects, jobs, and exports. These practical changes will ensure that the existing budget is used, rather than letting it sit on the shelf. 

In the weeks ahead, federal officials will assess a wide range of proposals to optimize the ITCs. As they do, the objective should be clear: align policy with reality, unlock investment that is ready to move, and leverage Canadian competitive advantages to build a strong, sustainable economy for everyone. 

Jud Whiteside is the CEO of StormFisher, which develops, owns, and operates commercial-scale e-fuel production facilities.

The Hill Times