The Low Carbon Economy Leadership Fund: what it means for Ontario


April 4, 2018

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The Low Carbon Economy Fund (LCEF) is an important part of the Pan-Canadian Framework on Clean Growth and Climate Change.

The LCEF is designed to leverage investments in projects that will generate clean growth and reduce greenhouse gas emissions in Canada’s buildings, industry, forestry and agriculture sectors.

There are two parts to the Low Carbon Economy Fund:

  1. The Low Carbon Economy Leadership Fund provides $1.4 billion to provinces and territories that have adopted the Pan-Canadian Framework on Clean Growth and Climate Change, to deliver on their commitments to reduce carbon pollution and contribute to meeting Canada’s 2030 climate target.

    The funding recognizes the key role provinces and territories play in implementing the Pan-Canadian Framework, to address climate change and support their efforts to reduce emissions, innovate, save money, and create jobs and healthier communities.

    Provinces and territories are allocated $30 million in base funding, plus additional per capita funding to support projects including:
    • energy efficiency measures for buildings;
    • energy efficiency, fuel switching, and process changes in the industrial sector; and
    • enhancing the amount of carbon stored in forests and agricultural land.
  2. Over $500 million will be available through the Low Carbon Economy Challenge. The Challenge will support ambitious projects that can be submitted by all provinces and territories, municipalities, Indigenous communities and organizations, businesses and not-for-profit organizations. Projects will leverage Canadian innovation across the country to reduce emissions and generate clean growth.

    All applicants must ensure their projects would achieve emissions reductions that are:
    • material (measurable and verifiable)
    • incremental to existing or planned actions;
    • contribute to achieving Canada’s 2030 emissions reduction target; and
    • as cost effective as possible.

The Challenge was launched on March 14 and is accepting applications.

Projects in Ontario

Under the Leadership Fund, each province and territory has identified priority projects that offer cost-effective ways to reduce emissions given their unique circumstances.

In Ontario, almost $420 million will be invested to support Ontario’s Climate Change Action Plan and help Ontarians contribute to fighting climate change. Together, the Governments of Canada and Ontario will support projects such as renovating buildings, retrofitting houses to improve energy efficiency and help people save money on electricity, or helping farmers reduce emissions and costs associated from their operations.

Current Status of Leadership Fund Proposals

Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Québec, Newfoundland and Labrador, and the Northwest Territories have already submitted formal proposals for consideration under the Leadership Fund. The Government of Canada is collaborating with other provinces and territories to identify additional priority projects for funding through the Leadership Fund.

Manitoba recently signed on to the Pan-Canadian Framework on Clean Growth and Climate Change and will be eligible to submit proposals for funding that contribute to clean growth and reduce greenhouse gas emissions.

Additional Leadership Fund proposals are being reviewed for decision in early 2018.

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