Low Carbon Economy Fund
The Low Carbon Economy Fund: An important part of the Pan-Canadian Framework on Clean Growth and Climate Change
To respond to international commitments, such as the Paris Agreement, and to take action on climate change, the Pan-Canadian Framework on Clean Growth and Climate Change was adopted by Canadian First Ministers on December 9, 2016. The Framework reaffirmed the importance of collaboration between the Government of Canada and provinces and territories to address climate change. While Saskatchewan has yet to adopt the Framework, the Government of Canada is working closely with the provinces and is hopeful they will adopt the Framework.
About the Low Carbon Economy Fund
The Government of Canada’s $2 billion Low Carbon Economy Fund is an important part of the Pan-Canadian Framework on Clean Growth and Climate Change. It will support its implementation by leveraging investments in projects that will generate clean growth and reduce greenhouse gas emissions towards meeting or exceeding commitments under the Paris Agreement. The Low Carbon Economy Fund will provide funding over the next five years and will create jobs for Canadians for years to come. It will also deliver clean, sustained growth, support innovation, and reduce energy bills.
The $2 billion Low Carbon Economy Fund will be split into two parts:
- The Low Carbon Economy Leadership Fund is being launched today and will provide $1.4 billion to provinces and territories that have adopted the Pan-Canadian Framework on Clean Growth and Climate Change to help them deliver on leadership commitments to reduce greenhouse gas emissions, including those they outlined in this Framework.
This funding recognizes the key role provinces and territories play in implementing the Framework, addressing climate change and will support their efforts to reduce emissions, innovate, save money, and create jobs and healthier communities. Provinces will be eligible for funding of a base amount of $30 million plus funding based on population.
Over the summer of 2017, the Government of Canada will engage provinces and territories on their proposed projects under the Low Carbon Economy Leadership Fund. 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.
- The remainder of the funding of the Low Carbon Economy Fund will be available for the Low Carbon Economy Challenge and for implementation of the Framework. The Low Carbon Economy Challenge will be launched in the fall of 2017 to support ambitious projects that can be submitted by all provinces and territories, as well as municipalities, Indigenous governments and organizations, businesses and both not-for-profit and for-profit organizations. Funded projects will leverage Canadian ingenuity across the country to reduce emissions and generate clean growth in support of the Pan-Canadian Framework on Clean Growth and Climate Change.
Further details on the Low Carbon Economy Challenge will be announced in the fall.
Combined, the two parts of the Low Carbon Economy Fund will support projects that reduce greenhouse gas emissions, create jobs and save money, for example:
- make our homes and buildings more efficient;
- help companies innovate and access technologies to reduce their emissions and grow sustainably; and,
- help the forest and agriculture sectors to enhance stored carbon in forests and soils.
All proponents will need to ensure that the emissions reductions achieved through their projects:
- are material;
- are incremental to existing actions;
- are contributing towards Canada’s 2030 emissions reduction target; and
- are as cost effective as possible.
For all projects, proponents can partner with other eligible entities (municipalities, Indigenous governments and organizations, businesses, not-for-profit and for-profit organizations) and flow funding to them to undertake projects, upon approval by the Federal Government.
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