The Canadian Government has announced a new fund that will support industrial initiatives to reduce greenhouse gas emissions and deploy renewable energy and green technologies.
The Output-Based Pricing System Proceeds Fund will use the proceeds of Canada’s carbon pollution pricing system for heavy industry – collected in Manitoba, New Brunswick, Ontario and Saskatchewan – to support low carbon technology projects in those provinces.
The Fund has two programme streams: The Decarbonisation Incentive Programme (DIP) and the Future Electricity Fund (FEF).
Around CAD$161 million (£93.5m) from the 2019 compliance period will be invested in projects that reduce industry carbon pollution.
Steven Guilbeault, Minister of Environment and Climate Change said: “A healthy environment and a healthy economy go together. The Government of Canada is reinvesting all direct proceeds from the federal carbon pollution pricing system right back to the provinces of origin, as promised.
“This new Output-Based Pricing System Proceeds Fund will cut pollution, support workers and keep us on track to reach our emission reduction goals.”