Canadian Biomass • Summer 2025 • Editorial

When the federal government introduced several new Clean Economy Investment Tax Credits (ITCs) in the 2022 Fall Economic Statement, those active in the clean energy sector had reason to get excited. These credits ranged between 15 to 30 per cent for capital invested in eligible assets.

Things got even more interesting during the 2023 Fall Economic Statement, when a proposal was brought forward to include equipment that utilized waste biomass. This proposal was then reiterated in Budget 2024 with draft legislation released in August 2024 that would expand eligibility to include equipment that produces electricity, heat, or both from waste biomass. Unfortunately, the final implementation was indefinitely delayed after prorogation of Parliament in January 2025 and continues to be delayed to this day.

While this frustrating news might cause some players in the biomass space to be repeatedly banging their heads against their sustainably produced desks, one company has had enough of the delays and has taken action. In May 2025, Domtar submitted an e-petition to call on the Government of Canada to support a biomass investment tax credit in the 2025 Fall Economic Statement.

As Domtar’s senior director of public affairs Chris Stoicheff eloquently stated, “It is imperative that government act to pass the draft legislation for biomass ITCs in the 2025 Fall Economic Statement to realize the full and complementary benefits for Canada of economic growth in the forestry sector, including decarbonization, rural economic development, and wildfire risk reduction.”

Kudos to Domtar for standing up for this important initiative! I’ve personally signed the e-petition, and hope that enough signatures are collected to make government take notice and act to help support those active in the biomass sector.

As Stoicheff mentioned in our correspondence, including biomass energy ITCs in this year’s fall federal budget will help the Government of Canada:

• Encourage growth in Canada’s forestry sector by incentivizing capital investment in an innovative and sustainable energy source;

• Support rural and remote communities by creating jobs and economic opportunities;

• Displace emissions-intensive energy sources with a low carbon form of energy; and more.

To locate and sign the petition, go to: www.ourcommons.ca/petitions/en/Petition/ Search and enter “e-6530” into the search engine. The petition will be closed for signatures on August 27, 2025.

Help let our governments know how important the biomass sector is for the future of forestry jobs in Canada!