The Green Economy Action Fund

2.Spending:
Buildings: Inject $2.5 billion over the next 5 years into direct investments supporting the retrofit and re-commissioning of Canada’s homes and buildings. Puts thousands of people back to work, lowers energy bills, and frees up income just like a tax cut.

ecoENERGY expansion with specific set-asides for Northern and remote communities. ($2.8 Billion over 5 years)

Transit: Rehabilitate existing public transit infrastructure ($7.6 billion total over 5 years); Expand service capacity to meet growing demand ($9.8 billion total over 5 years)

3.Revenue from Cap & Trade:
Prepare cap-and-trade regulations under the Canadian Environmental Protection Act for publication in draft no later than April 30, 2009. The regulations should enter into force on January 1, 2010 along with measures to protect (i) low-income Canadians from cost increases and (ii) those industries vulnerable to competitiveness impacts until trading partners are integrated into a comparable program.

President-elect Obama has committed to a cap-and-trade system in which 100% of the permits are auctioned. Auctioning is consistent with the “polluter pays” principle and provides an advantage to firms that have taken early action to cut emissions, and auctioning 100% of permits makes the system very simple and quick to implement.