Output-Based Pricing System Proceeds Fund
The Output-Based Pricing System (OBPS) Proceeds Fund is a program administered by Environment and Climate Change Canada (ECCC). It is funded by proceeds collected from the federal Output-Based Pricing System. It assists Canada in returning carbon pollution pricing proceeds to their jurisdictions of origin.
The OBPS Proceeds Fund has two program streams. These streams return proceeds from jurisdictions where the federal OBPS has been applied and not requested. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer.
Decarbonization Incentive Program
The Decarbonization Incentive Program (DIP), stream is a merit-based program. The program returns proceeds collected from certain federal OBPS-covered facilities. It encourages the long-term decarbonization of Canada's industrial sectors. It does so by supporting clean technology projects to reduce greenhouse gas emissions.
The DIP ran intakes between February 2022 and October 2023. These intakes resulted in over 80 project applications. No further intakes are expected. Any uncommitted proceeds will be returned through the Future Electricity Fund.
Future Electricity Fund
The Future Electricity Fund (FEF) stream supports clean electricity projects and/or programs. The program returns proceeds collected from federal OBPS-covered electricity-generating facilities (i.e. utilities). The contribution agreements are between ECCC and the governments of eligible jurisdictions (or other designated third parties).
OBPS Proceeds Amounts
The table below shows the estimated amount of proceeds collected under the federal OBPS from 2019 to 2022. It also shows the funds allocated to projects with signed contribution agreements under DIP and FEF by jurisdiction.
Estimated proceeds collected per jurisdiction are subject to change. We continue to accept provincial project proposals under FEF. We are also continuing to work with DIP applicants to complete contribution agreements.
| Province | Estimated OBPS Proceeds Collectedb (in millions) | Number of Signed Contribution Agreements | Value of Signed Contribution Agreements (in millions) |
|---|---|---|---|
| Manitoba | $32.3 | 3 | $3.6 |
| New Brunswick | $25.9 | 1 | $20.1 |
| Ontario | $312.8 | 19 | $89.3 |
| Saskatchewan | $540.0 | 10 | $497.8 |
Note: Amounts are subject to change as projects and contribution agreements evolve under both DIP and FEF.
News Releases
- Pollution pricing at work: re-investing $2.2 million into new low-carbon cement in Ontario - 2024-07-15
- Canada cuts carbon pollution with funding for Glencore Canada Corporation project - 2024-05-10
- Helping New Brunswickers reduce energy costs, cut pollution - 2024-03-11
- Government of Canada supporting Ontario universities with funding to reduce pollution to achieve environmental success - 2023-07-13
- Canada sparks progress on clean electricity with federal funding in Saskatchewan - 2023-05-12
- Canada launches new fund to reinvest proceeds from carbon pollution pricing system and reduce industrial greenhouse gas emissions - 2022-02-14
Page details
- Date modified: