The Canadian Biogas Association posts “Insights” articles on a regular basis to contextualize important new information and announcements through the lens of Canada’s biogas opportunity. Check out other Insight articles.


Budget 2022: What it means for Biogas & RNG

April 20 2022

Budget 2022 covers a lot of ground with focuses on making life more affordable, investing in economic development, and investing in the clean economy. On April 7th, 2022, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, tabled her second federal budget, Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable. Here are five key areas that are relevant for biogas & RNG:

  1. Agricultural Clean Technology (ACT) Fund gets big increase. This was proposed in the 2021 Liberal election platform, and the CBA referenced it in this Insights article and in our post-election letter to Minister Bibeau, Agriculture and Agri-Food Canada. The bump is from $165M to $330 million over six years – a major increase – up from $65 million in 2018. The latest ACT program had a $20 million carve-out for fuel switching and the CBA will be calling for an equal or bigger carve-out that biogas can take advantage of.
  2. Low Carbon Economy Fund makes a comeback! In 2018-2019 the Low Carbon Economy Fund was a generous program run by Environment and Climate Change Canada supporting all manner of projects that reduce emissions. Budget 2022 commits $2.2 billion over seven years starting in 2022-23. Details will come later, and we expect openings for municipal projects in particular.
  3. Investment tax credits. Following up on an election platform commitment, Budget 2022 commits to establishing an investment tax credit of up to 30 per cent. The only detail on eligibility is “net-zero technologies, battery storage solutions, and clean hydrogen”. The CBA will stay plugged in on the final design to include biogas & RNG-related tech.
  4. Re-financed Smart Renewables and Electrification Pathways Program. This program, offered by Natural Resources Canada is being extended at a lower level of investment – $600 million over seven years. It covers capital costs with biogas-to-electricity likely continuing to be eligible.
  5. Potential support from Canada Infrastructure Bank (CIB). CIB has been assigned a “broadened role” to invest in private sector-led projects, including in “clean fuel production”. These tend to be less generous programs but could still provide additional access to capital for biogas & RNG projects where needed.

With a focus on the clean economy, CBA sees great potential to support the growing biogas & RNG industry in Budget 2022. We will continue to communicate with government to ensure eligibility and streamlined access for biogas & RNG projects and technologies under these budget announcements.