Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program

Introduction

The Decarbonization Incentive Program (DIP) is a merit-based program funded by proceeds collected from the Output-Based Pricing System (OBPS). DIP’s objectives are to incentivize long-term decarbonization of Canada’s industrial sectors and support Canada’s greenhouse gas (GHG) emissions reduction goals. The program will support single or multi-year projects to accelerate the deployment of commercially available and/or proven low-carbon technologies and processes that will further reduce GHG emissions within the following eligible provinces:

• Manitoba
• Ontario
• New Brunswick

Application period

As part of the second intake, applications will be accepted from August 8, 2023 at 9:00 am (ET) to October 6, 2023 at 5:00 pm (ET). Applicants will be notified of their application results within 120 business days of the closure intake date.

Available funding

Applicants may only access the funds that are available in the province where their facilities are located.

Please visit Output-Based Pricing System Proceeds Fund for information on the current amount of funds that have been allocated to respective eligible provinces.

Who can apply?

To be considered for funding under the program, applicants must:

• be legal entities incorporated or registered in Canada
• operate or have a controlling ownership stake in an eligible facility covered under the federal OBPS, located in one of the eligible provinces
• demonstrate they have the authority over the facility or asset to undertake the project

What OBPS facilities are eligible?

Projects must occur at eligible covered facilities. Eligible facilities are those that:

• are located within an eligible province
• are or were a covered facility under Part 2 of the Greenhouse Gas Pollution Pricing Act, and
• do not generate electricity as their primary activity

What projects are eligible?

To be considered for funding under the program, the project must occur at an eligible facility and result in GHG emissions reductions. To be eligible, these GHG emissions reductions must be:

• material in the year 2030 and measurable over the lifetime of the project
• affecting sources of GHG emissions either within the facility’s direct control and/or from acquired sources of energy such as electricity or purchased heat/steam
• incremental to GHG emissions reductions obtained by other required actions, such as regulatory requirements or business-as-usual maintenance and repairs

Projects will also be screened for other eligibility requirements in the application. Please refer to the self-screening tool and the Applicant Guide for full details on all eligibility criteria.

How to apply

Applications will be accepted online from August 8, 2023 9:00 am (ET) to October 6, 2023 5:00 pm (ET) through Environment and Climate Change Canada’s (ECCC) Program Information Management System (PIMS), accessible through the Single Window Information Management (SWIM) system login. For instructions on how to create a SWIM profile and navigate the system, please visit Reporting through Single Window: Environment and Climate Change Canada.

Full details on the application process are available in the Applicant Guide and the Application Form Walkthrough.

Note that the GHG Workbook, GHG Estimation Guide for Projects and Work Breakdown Structure (WBS) and Budget Workbook have been updated since the last intake (DIP 1.0 intake). Applicants must download the most recent version of these documents for the DIP 2.0 intake from the Templates and Guidance section of the Application Form in PIMS.

Contact us

Applicants can contact the program by emailing fonds-stfr.obps-fund@ec.gc.ca with any questions about the program or the application process.

Applicants are also encouraged to review the what you need to know page for additional guidance.

Webinars for eligible DIP applicants will be held to provide additional information and to answer questions. Eligible DIP applicants will be informed of webinar session dates.