On Monday, February 14th, 2022 the Minister of Environment and Climate Change, the Honourable Steven Guilbeault, launched the Output-Based Pricing System Proceeds Fund, a new program to support industrial initiatives that reduce greenhouse gas (GHG) emissions and deploy clean technology and green energy. The program 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. Approximately $161 million from the 2019 compliance period will go towards projects that reduce carbon pollution.

To mark the launch of the new program, Minister Guilbeault and Viviane Lapointe, Member of Parliament for Sudbury, participated in virtual tours of Vale Mining’s operations in Sudbury Ontario, and NOVA Chemicals, to see first-hand their latest initiatives to reduce operating emissions.

The Output-Based Pricing System Proceeds Fund has two program streams: The Decarbonization Incentive Program: The Decarbonization Incentive Program (DIP) is a merit-based program to support clean technology projects that will help decarbonize industrial sectors over the long term and reduce GHG emissions. The amount of funding available through the DIP for each province varies depending on the carbon pricing proceeds collected from facilities in each respective province where the federal OBPS currently applies or applied in the past. The DIP is currently accepting applications for project funding to return OBPS proceeds collected in the 2019 compliance period.

The Future Electricity Fund: The Future Electricity Fund (FEF) will support clean electricity projects and/or programs. Proceeds collected from electricity generating facilities covered by the OBPS (such as utilities) will be returned through funding agreements with governments of jurisdictions where the federal carbon pollution pricing system currently applies or applied in the past.

“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.”

– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

“Since the 1970’s, Sudbury has seen an environmental revival, as a result of our vital industries rising to the challenges and incentives that come with forward-thinking government policy, regulation and investment. Sudbury and Canada are recognized global leaders in responsible and sustainable mining. The world needs more Canada, and we will continue to bring this expertise to the world.”

– Viviane Lapointe, Member of Parliament for Sudbury