The government’s plan to plant two billion trees by 2031, a key initiative announced during the 2019 election campaign, is being abandoned as part of the upcoming budget, sources familiar with the matter revealed. Currently, the government is committed to fulfilling contracts to plant one billion trees, as per a source. This decision marks another shift in climate policies under Prime Minister Mark Carney, who had previously discontinued the consumer carbon tax and delayed the electric vehicle sales mandate.
The tree-planting program, which initially received $3.2 billion over a decade, will see unallocated funding redirected to other areas due to challenges in meeting annual planting targets. With over 228 million trees planted to date, there remains a shortfall of over 1.7 billion to achieve the target by 2030-31, according to Natural Resources Canada.
Carney’s administration is focusing on streamlining government spending, aiming to achieve budget balance for day-to-day expenses within three years. While some cuts are expected, the deficit in the upcoming budget is anticipated to surpass the previous fiscal update. The budget will introduce tax structure adjustments to enhance competition and growth, particularly affecting the tax credit for business capital expenses.
In a recent address, Carney emphasized the need for sacrifices and time to transform the economy amid global challenges. The budget aims to strengthen the economy and promote competitiveness in an increasingly dynamic and competitive environment. Specific details of the budget changes were not disclosed by the sources, who were not authorized to publicly discuss the budget’s contents.