U.S. President Donald Trump signed a massive tax cut and spending package, the "One Big Beautiful Bill Act," which includes measures that could significantly impact Canada's environmental and energy policies. The bill scraps clean energy tax credits from the Inflation Reduction Act, potentially leading to job losses in construction and hindering the North American auto industry's shift to EVs. This move diverges from Canada's clean energy push and could make it harder for Canada to achieve its climate goals, though it may present opportunities for Canada to attract certain investments.
How Trump’s ‘big, beautiful bill’ impacts Canada and the clean energy push
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TL;DR: Key points with love ❤️U.S. President Donald Trump signed a massive tax cut and spending package, the "One Big Beautiful Bill Act," which includes measures that could significantly impact Canada's environmental and energy policies. The bill scraps clean energy tax credits from the Inflation Reduction Act, potentially leading to job losses in construction and hindering the North American auto industry's shift to EVs. This move diverges from Canada's clean energy push and could make it harder for Canada to achieve its climate goals, though it may present opportunities for Canada to attract certain investments.
Trending- 1 2025-07-04 (Friday): U.S. President Donald Trump signed the "One Big Beautiful Bill Act" into law.
- 2 Late June 2025: North America’s Building Trades Unions warned about the legislation.
- 3 Tuesday (implied July 1, 2025): U.S. Senate passed the final version of the bill.
- 4 Thursday (implied July 3, 2025): Bill's final passage.
- 5 This year (2025): Clean energy tax credits under Inflation Reduction Act will end.
- 6 Within a year of law coming into force: Projects beginning construction still eligible for full credit.
- 7 End of 2027: Projects must be fully operational to retain incentives.
- 8 After start of 2028: Roughly 28 gigawatts of planned wind and solar projects unlikely to qualify for credit.
- 9 After Sept. 30, 2025: EV tax credits will disappear.
- 10 2030: Biden's target for half of all new U.S. vehicles to be electric.
- 11 Next year (2026): Canada's EV sales mandate requires 20% of new light-duty vehicles to be zero-emission.
- 12 2035: Canada's EV sales mandate target rises to 100%.
- 13 This week (implied early July 2025): Canadian automakers met with Prime Minister Mark Carney.
- Over a million lost construction jobs (estimated 1.75 million)
- North American auto industry pushed away from EVs
- Interruption of climate policy momentum
- Cancellation of wind and solar projects
- Increased cost and political resistance for Canadian climate policies
- Potential for Canada to attract U.S. investments (AI companies)
- Potential for Canada to waive counter-tariffs
- Increased difficulty for Canada to meet greenhouse gas emission reduction goals
What: U.S. President Donald Trump signed the "One Big Beautiful Bill Act," a tax cut and spending package that eliminates clean energy tax credits and EV incentives, impacting environmental and energy policies in the U.S. and Canada.
When: Signed into law on Friday (implied July 4, 2025, given article date), with some changes taking effect this year (e.g., tax credits ending) and others by end of 2027 (project operational deadline).
Where: United States (U.S. coasts for oil leases, national impact), Canada (impact on policies, auto industry, investments), North America (auto industry, shared climate goals).
Why: Republicans argue the bill will "unleash American energy" by supporting oil, coal, and gas production and mining.
How: The bill cuts billions in clean energy spending, scraps tax credits for home solar, heat pumps, battery storage, and electric vehicles, and expands oil leases and tax incentives for fossil fuel producers.