Emissions Reduction Advancement Program

A compliance option under the Clean Fuel Regulations

Introduction

The Emissions Reduction Advancement Program (ERAP) is a new industry funded, federally managed program to support projects that will reduce greenhouse gas (GHG) emissions in Canada.

The ERAP is an alternate compliance option under the Clean Fuel Regulations. Fuel suppliers subject to the Regulations can satisfy up to 10% of their annual reduction requirement under the Regulations. The timeline for the achievement of reductions is prescribed in the Clean Fuel Regulations and is based on the date that the contribution is made by a fuel supplier. Contributions made in 2024 or 2025 must fund projects that will achieve emissions reductions by 2030, while contributions made after 2025 must fund projects that will achieve emissions reductions within five years.

Learn more about the different compliance options under the Clean Fuel Regulations and see the list of registered emission reduction funding programs that are eligible to receive contributions from fuel suppliers.

Available funding

Funding available to support emissions reduction projects will be determined by the value of contributions made by fuel suppliers.

The total value of contributions received by the ERAP with respect to the first compliance year (calendar year 2023) may not be known until November 30, 2024.

Eligibility

The ERAP is expected to fund a wide range of project types from across the economy. To be eligible for future funding, projects must at minimum:

Detailed information on eligibility will be available in advance of any public calls for proposals. Projects to be assessed and selected may be coordinated with other ECCC funding programs with emissions reduction objectives, such as the Low Carbon Economy Fund.

Timelines

Fuel suppliers may contribute to the ERAP starting on January 1, 2024.

Depending on the ERAP contributions received, funds to emissions reduction projects are expected to be allocated beginning in 2025.

More details will be available later in 2024.

Related links

Contact

If you are a fuel supplier and would like to receive instructions for making an ERAP contribution, or if you have any questions, please contact the program advisors at

ERAP-PARE@ec.gc.ca.

Please include:

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