Decisions expected in the coming days in Ottawa could have a profound impact on the Peace region, following the Liberal government’s presentation of its 2025 federal budget.
The budget has not yet been adopted, but moved a step closer after Prime Minister Mark Carney’s minority Liberal government joined with the official Opposition Conservatives to block an amendment by the Bloc Québécois.
This year’s budget is focused on protecting Canada’s sovereignty, with $12 billion earmarked for the defence sector and for shielding key industries from tariffs.
On a larger scale, the government is “(bringing) down costs for Canadians,” according to the report.
“The recently unveiled federal budget 2025, titled ‘Building Canada Strong,’ introduces a complex set of measures that will have a distinct and significant impact on the business and economy of the Peace region,” according to Vince van Wieringen, the president of the Fort St John and District Chamber of Commerce.
“Our region’s cornerstone industry faces a dual impact,” he said, referring to oil and gas.
The federal government is extending the Carbon Capture, Utilization, and Storage investment tax credit for five additional years, which is positive according to the chamber’s president.
His concern is related to the industrial carbon price. The budget said a cost increase is necessary to encourage climate change cautious countries to shop Canadian for energy.
“The significant increase in the industrial carbon price to $170 per tonne by 2030 will undoubtedly raise operational costs for our producers,” wrote van Wieringen. “This, combined with the ongoing regulatory uncertainty surrounding the conditional elimination of the oil and gas emissions cap, creates a challenging environment for long-term investment and planning.”
A plan for post-2030 will be decided after engagement with other levels of government. The goal is to target net-zero carbon price trajectory by 2050.
“Setting a long-term trajectory will allow businesses to make investment decisions with confidence now and into the future,” explained the budget.
This industrial carbon price is also expected to impact agriculture, forestry, and small businesses in the Peace. The chamber’s president said “cascading effects” of the $170 per tonne price tag will increase costs for all sectors.
On the bright side, he said agriculture and forestry will see “much needed support.” They are expected to receive enhanced programs, increased limits on payment or loan programs, and funding for diversification to combat the American president’s ever-changing tariffs.
