The Canada Investment Summit, which concluded on Sept. 15, outlined the federal government’s plan to catalyze $1 trillion in investment in Canada over the next five years.

The event brought together global investors managing more than $100 trillion in assets who have already committed nearly $500 billion in new investment to Canada.

In his keynote address, Prime Minister Mark Carney announced several major policy measures: a new productivity mega deduction for business investment, a streamlined permission process for new projects, a formal asset-recycling policy and plans to seek private investment for Canada’s four largest airports.

Investors attending the summit were also presented with a pitch book featuring 167 potential projects across sectors including energy, mining, infrastructure, manufacturing and technology.

These announcements signal a change in Canada’s economic strategy: using public policy to attract private capital at a much larger scale and across more sectors.

Incentivizing private investment

The first group of announcements focuses on reducing barriers to investment, including the cost of capital investment, regulatory uncertainty and the challenge of identifying viable projects.

The most significant is the new Productivity Mega Deduction, which allows businesses to write off most new capital investments immediately, effectively lowering the marginal tax rate on new investment from 13 per cent to 6.4 per cent.

The government estimates the measure could increase economic output by $22 billion annually and raise long-term employment by up to 80,000 jobs. However, it is also........

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