Steve Scherer

OTTAWA, Reuters – Canada will allocate C$15 billion (or $12 billion) for a Growth Fund over the next five years to encourage private investment in green technology, a top government source stated on Wednesday. This was just a day ahead of this year’s budget presentation.

Source said that the money will be drawn from the existing fiscal framework and the government will look to attract C$3 in private investment for each C$1 of public financing.

The ministry of finance declined to comment. Chrystia Freiland, Finance Minister, will present the budget for 2022 at 4 pm. ET (2000 GMT), on Thursday

The source stated that this is all about getting international capital into Canada. It was also because the transition from a net-zero emission economy will “require huge technological shifts, investments, and new industries.”

According to a source who wasn’t authorized to speak publicly, the fund will draw from funds that have been set aside previously. However, it will take several months for the mandate to become operational and to establish its rules.

The fund will not be run by government employees, but will instead be administered by independent investment professionals. However, a ministry will have to hold the fund accountable for its actions, the source claimed without giving further details.

Justin Trudeau, Prime Minister of Canada’s Liberal Government wants to make use of the fund for projects that would not have been possible without government support. According to a source, it will be available for private international and domestic investors.

Reuters reports that Canada has included a vital minerals strategy into its budget. Separate investments of C$2billion or more will be made.

The source stated that the Growth Fund could be used, for example, to help develop critical minerals mines in remote areas of the country. This would not be possible to build on their own.

Trudeau’s government already has pledged to increase defense spending following Russia’s invasion in Ukraine. The source stated that there will be “responsible investment” in defense. However, he did not elaborate.

($1 = 1.2549 Canadian dollars)