Canada emerging as preferred jurisdiction for green mining investment 

DBRS Morningstar, the global credit ratings business, has published a new report noting that global mining companies are increasingly embracing Canada as a preferred jurisdiction for investing in innovative technologies needed to reach net-zero greenhouse gas (GHG) emissions targets. 

Most of the investments have been made at existing operations, which offer incremental opportunities for GHG reductions as older equipment and technologies are replaced. 

Low-carbon investments in new projects provide the impetus for lifelong net-zero operation. And according to DBRS Morningstar, this commitment has become part of the social licence for obtaining community consent and regulatory approvals. 

There are at least four compelling reasons to invest in Canadian minerals.  

1. This country has an abundance of clean hydro power generation. Hydro power provides about 60% of the electric power across Canada, and in Quebec, that portion is 94%.  

2. There are advanced R&D centres in the country that focus on mining and processing industries. Individual companies support them, and they frequently enter into partnerships with other corporations, academic institutions, and governments. 

3. Canada enjoys an extensive resource base of most of the 31 minerals deemed to be “critical” for driving economic growth of the green economy. They have the potential to spur growth in Canadian domestic manufacturing. 

4. Our labour force is highly skilled and experienced. Their expertise in mining, processing, and executive leadership is sought worldwide. 

The federal government’s 2023 budget also contained a range of new tax incentives for sustainable investing in Canada. The incentives include refundable tax credits for clean technology, electricity, manufacturing, and hydrogen investments.  

Canada is also developing a new taxonomy for green investments. DBRS Morningstar notes that the proposed Canadian taxonomy will augment existing initiatives such as sustainability-linked bonds and ESG overlays on credit arrangements. The proposed Canadian taxonomy is tailored to provide a Canadian filter for evaluating investments in Canada, particularly with respect to Indigenous involvement. 

Learn more on www.DBRSMorningstar.com.