Budget 2025: Progress on Investment Certainty and Exports, but Greater Focus Needed on Domestic Nuclear Buildout

The 2025 federal budget outlines a broad plan to strengthen Canada’s economy, attract clean-energy investment, and modernize the country’s regulatory landscape. The Canadian Nuclear Association (CNA) welcomes measures that bring long-awaited clarity for investors, signal a commitment to streamlining approvals, and reaffirm nuclear energy’s growing contribution to Canada’s clean-growth strategy.

The government has confirmed what the industry has been requesting: retroactive implementation of the 30% Clean Technology Investment Tax Credit. This decision gives project proponents the confidence they need to move forward. While this credit primarily applies to small modular and advanced nuclear projects, it establishes a framework for how clean-energy investment can be encouraged across the wider nuclear supply chain. CNA continues working with government to ensure comparable clarity for large nuclear facilities through the forthcoming Clean Electricity ITC.

The government has also underscored its intention to simplify project reviews and reduce duplication.  It was noted that between 2006 and 2021, federal regulatory requirements increased by 37 percent, contributing to a 9 percent decline in business investment, according to Statistics Canada.  During this same time, the nuclear sector has seen an increase of over 80 percent in regulatory requirements. The budget’s focus on modernizing oversight and continued examination of a “one project, one review” model,  will help accelerate clean-energy deployment.

Internationally, new allocations of $4.2 million over three years beginning in 2027-28 and $1.4 million annually thereafter will strengthen Natural Resources Canada’s ability to promote nuclear exports and strategic partnerships, with particular emphasis on fast-growing Asian markets. These resources complement the creation of a Strategic Exports Office at Global Affairs Canada and a $2 billion concessional trade-finance envelope to encourage investment in Canadian expertise abroad.

The budget also dedicates $75 million over three years to expand the Union Training and Innovation Program, supporting apprenticeship pathways that will sustain the highly skilled workforce required for Canada’s clean-energy transition.

While Budget 2025 marks clear progress on investment certainty and international collaboration, it stops short of setting an ambition for new domestic nuclear buildout and supply-chain growth. A robust home-market program remains essential to ensuring Canadian companies can export from a strong domestic base. Greater alignment on permitting, financing, and workforce planning will be key to maintaining Canada’s leadership in nuclear innovation.

“Canada’s nuclear sector welcomes the clarity on investment tax credits and the government’s commitment to reducing regulatory burden,” said George Christidis, President and CEO of the Canadian Nuclear Association. “The next step is to ensure that new nuclear buildout at home keeps pace with international demand, creating skilled jobs, strengthening supply chains, and positioning Canada as a partner of choice in the global clean-energy transition.”

CNA looks forward to continued collaboration with federal partners to ensure that Canada’s policy and regulatory frameworks fully support new nuclear development. A coordinated domestic approach – one that links climate action, economic growth, and energy security,  will allow Canada to realize the full potential of its nuclear opportunity.