About The Submission:
Environmental Defence has significant concerns with the proposed draft legislation. Fossil hydrogen projects should be ineligible to receive the tax credit.
As proposed, the Investment Tax Credit would likely be used to subsidize fossil hydrogen projects. Subsidizing fossil hydrogen further locks Canada into a fossil-based economy. Public spending on fossil hydrogen constitutes a fossil fuel subsidy, therefore violating the Government of Canada’s own rules.
Hydrogen produced from fossil fuels – including pathways that use carbon capture and storage (CCS) to reduce GHG emissions – should not be eligible for support.
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