Canada Aims to Catch the US With Deficit-Swelling Green Bet (1)

Canada is ramping up efforts to become a leader in the green energy transition, unveiling almost C$83 billion ($61 billion) in investment tax credits over the next decade, including tens of billions aimed at building a clean electricity grid.

The measures, along with increased health spending, will swell the country’s deficit at a time of heightened economic risks. Prime Minister Justin Trudeau’s government is making the case that the cost is unavoidable if Canada hopes not only to live up to its climate promises, but to profit from the world’s transition away from fossil fuels to cleaner power.

“We are ...