Trudeau to Lean on Carbon Capture in Green-Subsidy Race With US

Finance Minister Chrystia Freeland plans to expand Canada’s investment subsidies for the oil and hydrogen sectors and allocate C$2 billion ($1.5 billion) to a fund for cutting emissions from heavy industry.

The money is part of a plan by one of the world’s largest oil producers to accelerate the growth of clean technology. Freeland’s budget, to be unveiled Tuesday in Ottawa, will include a mix of tax credits and cash incentives for business, according to people familiar with the document who spoke on condition of anonymity.

Unlike the US, Canada’s tax credits will apply only to capital expenses, not operating ...