The Liberal Party, headed by Justin Trudeau, has promised that it will enact several initiatives to address the issue of climate change – including one that will be of particular interest to insurers.
Trudeau was recently in Delta, BC to discuss the party’s second climate change action plan. He promised that if he was re-elected, he would introduce a new program that would not only help protect homes from severe weather, but also make them more energy efficient.
The initial climate change action plan of the Liberal Party promises the following:
- The creation of a low-cost national flood insurance program to help homeowners in high-risk flood zones – particularly those who lack adequate coverage.
- Work with provinces and territories to complete flood maps; the party plans to offer a $150 million investment toward that goal.
- Develop a national action plan to aid homeowners at highest risk of repeat flooding, with relocation being eyed as a solution.
- Designing an Employment Insurance Disaster Assistance Benefit with the help of stakeholders.
The Liberals have also proposed a plan to provide homeowners and landlords with an interest-free loan of up to $40,000 for eligible green-friendly and weather resilient renovations. These renovations include high efficiency doors or windows, rooftop solar panels, basement flood-proofing and/or insulation.
CBC News reported that the loan would be paid back over 10 years, either through a Canadian Mortgage and Housing Corporation insured mortgage, a bank loan, or in partnership with a utility company via savings on monthly bills. Those who take out the loan could also receive a cash incentive of about $250 to $750, based on how much energy waste they reduce.
Canadians who purchase new homes that are certified to be emissions-free would also be given a Net Zero Homes Grant of up to $5,000.
In addition, the Liberal Party’s program would offer a free energy audit to participating homes and properties.
The Liberal Party noted that the gross cost of the measures would be about $370 million in 2020-21, later increasing to $432 million in 2023-24.
CBC News reported that the Liberals have not released any independent costing analysis of their campaign promises from the Parliamentary Budget Officer, which the Conservatives and the NDP have.