Our Take on Canada’s Budget 2025

This week on the podcast, Jackie and Peter share their insights on Canada’s 2025 federal budget, released last week and expected to pass on November 17. They also briefly introduce the topic of COP30, which started the day they recorded, and Bill Gates’ recent memo on climate.  

They discuss several aspects of the budget, including the size of the deficit and debt, government plans to reduce day-to-day operating expenses, and several tax measures—notably, new Productivity Super Deduction and the updated accelerated capital cost depreciation rules for LNG, which are supportive, but still less generous than the Productivity Super Reduction. 

They also examine the introduction of new investment tax credits (ITCs) for clean energy. These incentives were largely anticipated, having been announced in the previous budget but never enacted. 

A major focus is the proposed Canada Climate Competitiveness Strategy, which aims to strengthen industrial carbon pricing while preventing carbon leakage. Jackie and Peter explore related policy commitments, including maintaining methane-reduction regulations and the Clean Electricity Regulation, along with signals of possible flexibility around the removal of the oil and gas emissions cap. However, they note that such flexibility may depend on the deployment at scale of carbon capture and storage, which remains uncertain.

Content referenced in this podcast includes: 

• Canada Budget 2025 
• Bill Gates Memo “Three tough truths about climate”  (October 2025) 
• The Hub.ca article by Trevor Tombe “There’s a big gap between rhetoric and reality” (November 2025) 

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