Output-Based Pricing System Proceeds Fund

The Output-Based Pricing System (OBPS) Proceeds Fund is an Environment and Climate Change Canada (ECCC) program funded from the proceeds of the federal Output-Based Pricing System. The Government of Canada has committed to return proceeds collected from the OBPS to the jurisdictions of origin. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. Proceeds collected in other backstop jurisdictions (current or past) will be returned through the two program streams of the OBPS Proceeds Fund.

Decarbonization Incentive Program

The Decarbonization Incentive Program (DIP) stream is a merit-based program that incentivizes the long-term decarbonization of Canada’s industrial sectors by supporting clean technology projects to reduce greenhouse gas emissions. Proceeds collected from most OBPS facilities will be returned via DIP to backstop jurisdictions.

DIP is currently accepting applications. For more information on how to apply, see program details.

Future Electricity Fund

The Future Electricity Fund (FEF) stream is designed to support clean electricity projects and/or programs. Proceeds collected from OBPS covered electricity generating facilities (i.e. utilities) are expected to be returned through funding agreements with governments of backstop jurisdictions. An open call for project proposals is not anticipated under FEF.

Funding Available

Approximately $161.1 million collected from the federal OBPS for the 2019 compliance period, as well as approximately $230.9 million collected for the 2020 compliance period, will be returned through ECCC programs. The following tables show the estimated funding available in each backstop jurisdiction based on proceeds collected for 2019 and 2020 (totals may not sum due to rounding).

Decarbonization Incentive Program - Proceeds for 2019 and 2020
Province Estimated Funding Available (in millions) for 2019 Estimated Funding Available (in millions) for 2020
Manitoba $5.3 $7.0
New Brunswick $0.9 $1.1
Ontario $68.3 $97.3
Saskatchewan $6.9 $6.4
Future Electricity Fund - Proceeds for 2019 and 2020
Province Estimated Funding Available (in millions) for 2019 Estimated Funding Available (in millions) for 2020
Manitoba $0.3 $0.2
New Brunswick $5.9 $14.2
Ontario $17.0 $19.9
Saskatchewan $56.3 $84.9

Proceeds collected and reported for any given compliance year are subject to change and may be adjusted to allow for the correction of reporting errors under the OBPS (if any).

News Releases
Date Title
2022-02-14 Canada launches new fund to reinvest proceeds from carbon pollution pricing system and reduce industrial greenhouse gas emissions
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