(Adds comment from executive, tax advisor)
By David Ljunggren and Alastair Sharp
OTTAWA/TORONTO, March 22 (Reuters) - Canada will invest in
green technology projects and introduce tax breaks to boost
energy efficiency, Finance Minister Bill Morneau said on
Tuesday, but the initiative appeared to be less ambitious than
some companies had hoped for.
The Liberals of Prime Minister Justin Trudeau took power
last November promising to combat global warming by cutting
emissions of greenhouse gases and providing money for advanced
research to help the transition to a low-carbon economy.
"Some believe we must choose between a strong economy and a
clean environment. They are simply wrong," Morneau told the
House of Commons as he presented his first budget since the
Liberals took power last November.
Ottawa will invest more than C$1 billion ($766 million) over
four years to support clean technology in the forestry,
fisheries, mining, energy and agriculture sectors, he said,
adding that more precise details would be released later this
year.
"We were hoping for some significant support for innovation
and for new technologies and that has not materialized in the
budget we have seen so far," said Phil Ross, a partner at tax
firm Grant Thornton.
Canadian companies working on energy-efficient innovations
said before the budget they were looking for tax breaks and
other incentives, including loan guarantees to support proven
technologies.
"I believe that they're going to be very disappointed with
it," Ross added.
The budget - which made no mention of loan guarantees -
include tax breaks such as accelerated capital cost allowance
rates for electric vehicle charging and electrical energy
storage.
Ottawa will also provide C$62.5 million over two years to
support the deployment of alternative fuels. This
includes charging stations for electric vehicles.
"The renewed commitment to low carbon economies is a great
signal," said Darryl Wolanski, co-founder and head of business
development at Inventys, a carbon capture and storage company.
"It's critical though that these funding promises transfer
directly to the hands of the technology companies to develop and
deploy clean technologies," he said.
Morneau said Ottawa would spend over C$130 million over five
years to support clean technology research and development.
This includes an extra C$50 million over four years for
Sustainable Development Technology Canada, a government-funded
foundation that backs green technology companies. Some industry
players had wanted to see a much higher contribution.
(Editing by Alistair Bell)