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


April 5, 2018

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The Low Carbon Economy Fund is an important part of the Pan-Canadian Framework on Clean Growth and Climate Change. The Low Carbon Economy Fund is designed to leverage investments in projects that will generate clean growth and reduce greenhouse gas emissions, in Canada’s building, 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 reducing carbon pollution and to 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 it supports their efforts to reduce emissions, encourage innovation, 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
  • enhancement of carbon storage 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 will achieve emission reductions that are:

  • material (measurable and verifiable)
  • incremental to existing or planned actions;
  • in line with achieving Canada’s 2030 emissions reduction target; and
  • as cost effective as possible.

The Challenge was launched on March 14, 2018, and it is currently accepting expressions of interest.

Projects in Alberta

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 Alberta, almost $150 million will be invested to support the province’s climate objectives. Alberta’s funded projects will help Albertans, including farmers and ranchers, adopt energy efficiency and save money. Alberta will also work with Indigenous communities to install renewable-energy solutions, and it will invest in restoring forests affected by wildfires.

Current status of Leadership Fund proposals

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

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

Additional Leadership Fund proposals are being reviewed in 2018.

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