New Low Carbon Economy Fund Announced
OTTAWA, June 15, 2017 /CNW/ – Today, the Minister of Environment and Climate Change, Catherine McKenna, announced a $2 billion Low Carbon Economy Fund.
Projects that will be considered under the Fund will reduce emissions, create jobs and save Canadians and companies money by making 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 an important part of the Pan-Canadian Framework on Clean Growth on Climate Change.
The Framework reaffirmed the importance of collaboration between the Government of Canada and provinces and territories in addressing climate change, and the Fund will help provinces and territories build on the leadership they have shown to date and deliver on their commitment to reduce climate-changing emissions.
Over the next five years, the Fund will support projects from provinces and territories, municipalities, Indigenous governments, businesses, and other organizations that provide innovative solutions to reduce greenhouse gas emissions and pollution, encourage innovation, and create cleaner and healthier communities.
The Low Carbon Economy Fund has two parts:
1- Low Carbon Economy Leadership Fund
An envelope of $1.4 billion will be available to support the leadership commitments from provinces and territories that they outlined in the Pan-Canadian Framework on Clean Growth and Climate Change.
With this funding provinces and territories that have adopted the Framework will build on the leadership they have shown to date and deliver on their commitment to reduce greenhouse gas emissions, ultimately leading to cleaner and healthier communities.
Over the summer of 2017, the Government of Canada will engage provinces and territories on their proposed projects. After project approval, bilateral funding agreements will be put in place with provinces and territories so that projects can begin in the fall and winter.
After project approval, bilateral funding agreements will be put in place with provinces and territories so that projects can begin in the fall and winter.
2- Low Carbon Economy Challenge
The remainder of funds will be available for the implementation of the Pan-Canadian Framework and for projects submitted by provinces and territories, municipalities, Indigenous governments and organisations, businesses and both not-for-profit and for-profit organizations.
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. Further details will be available at that time.
The Low Carbon Economy Leadership Fund and the Low Carbon Economy Challenge will reduce emissions through targeted projects such as:
- Rebates for installing high-performance equipment and incentives to retrofit homes and commercial buildings;
- Projects improving energy efficiency for industries, supporting changes in their processes and helping them switch to lower carbon fuels; and,
- Programs for reforestation enhanced forest management and utilizing dead wood after forest fires or insect infestations.