Environment Minister Catherine McKenna unveiled details earlier this month of the Trudeau government’s promised $2-billion Low Carbon Economy Fund, to be spent in two streams over the next five years.
The first is a $600-million Low Carbon Economy Challenge for industry and public sector projects, to be launched this fall and doled out on a merit-based, project-by-project basis.
Municipalities, provinces, territories, indigenous governments and organizations, businesses and not-for-profit organizations can all apply for funds, which will be prioritized for projects that provide the biggest emissions reductions for the lowest cost.
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.
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 organizations, 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.
SOURCE Environment and Climate Change Canada
More details here.