The government’s plan to plant two billion trees by 2031, which was initially announced during the 2019 election campaign, is being abandoned as part of the upcoming budget, according to insiders. Instead, the government is committed to fulfilling contracts for one billion trees. This decision marks another shift in climate policy under Prime Minister Mark Carney’s leadership, following the discontinuation of the consumer carbon tax and the delay of the electric-vehicle sales mandate.
The tree-planting initiative, championed by former Prime Minister Justin Trudeau, had allocated $3.2 billion over a decade for the program. However, uncommitted funds will now be redirected elsewhere as the government has struggled to meet its annual planting targets in recent years. Despite planting over 228 million trees to date, there remains a significant gap of more than 1.7 billion trees to reach the original target by 2030-31.
Carney has indicated a focus on reducing government spending and achieving budgetary balance in day-to-day expenditures within three years. Efforts are underway to streamline program delivery, adjust programs, and modernize operations as part of the expenditure review.
While the upcoming budget is expected to include budget cuts, Carney has acknowledged that the deficit will be higher than in the previous fiscal update. The government aims to implement changes to the tax structure to foster competition and growth, including modifications to the tax credit for capital expenses.
The budget will also introduce a “climate competitiveness strategy” as part of the broader economic vision outlined by Carney, emphasizing the need for resilience and competitiveness in a rapidly changing global landscape.
Insiders, speaking on condition of anonymity, revealed these details about the budget, as they were not authorized to disclose the information publicly.