OTTAWA — Canada’s Minister of Environment and Climate Change, Catherine McKenna, has announced details of a $2-billion Low Carbon Economy Fund.
In a June statement, the minister indicated projects that will be considered under the fund will be those intended to reduce emissions; make homes and buildings more efficient; help companies innovate or use technologies to reduce their emissions; and support the forest and agriculture sectors to enhance stored carbon in forests and soils.
The Low Carbon Economy Fund is part of the Pan-Canadian Framework on Clean Growth and Climate Change and has an investment horizon of five years.
The fund has two parts:
Low Carbon Economy Leadership Fund: An envelope of $1.4 billion will be available to support the commitments from provinces and territories outlined in the Pan-Canadian Framework on Clean Growth and Climate Change. Over the summer of 2017, the federal government will consult with the governments on their proposed projects. After project approval, bilateral funding agreements will be put in place so that projects can begin in the fall and winter;
Low Carbon Economy Challenge: The remainder of funds will be available for implementation of the Pan-Canadian Framework and for projects submitted by other levels of government and the private sector. Projects that best reduce GHG emissions and generate clean growth will be considered for funding. The Low Carbon Economy Challenge will be formally launched in the fall of 2017.
The ministry says the two streams of funding will include rebates for installing high performance equipment and incentives to retrofit homes and commercial buildings and projects improving energy efficiency for industries, helping them switch to lower carbon fuels, among other project categories.
Canada’s target as part of the Pan-Canadian Framework on Clean Growth and Climate Change is to reduce emissions to 30 per cent below 2005 levels by 2030.