Newfoundland and Labrador Regional Energy and Resource Table Collaboration Framework on the Path to Net Zero Released

The Government of Canada and the Government of Newfoundland and Labrador have developed a Collaboration Framework to accelerate the province’s path to net-zero emissions by 2050. This work has included collaboration with Indigenous groups as well as input from industry and other stakeholders.

The Collaboration Framework outlines four opportunity areas identified by Newfoundland and Labrador and the federal government in collaboration with Indigenous partners that have the potential to contribute significantly to building or expanding Newfoundland and Labrador’s competitive advantage in a low-carbon economy. Below are the four opportunity areas and some of the actions the two levels of government will pursue to seize the good jobs and prosperity of a net-zero future:

o   Critical Minerals

• Explore geoscience potential and exploration assistance;
• Advance priority research, development and innovation;
• Assess and support value chain opportunities from extraction, processing and manufacturing;
• Support strategic infrastructure development; and
• Identify and address challenges that may limit Indigenous participation in critical minerals prospecting and exploration.

o   Wind and Hydrogen

• Enable foundations for competitiveness through mapping of renewable energy resources and supporting infrastructure;
• Identify knowledge, regulatory and funding gaps and barriers, and foster engagement to support onshore wind development;
• Promote joint management of offshore renewable energy resources;
• Develop the clean hydrogen economy and the hydrogen value chain; and
• Become a clean energy centre of excellence supported by Newfoundland and Labrador’s vast renewable energy resources, including onshore and offshore wind and clean hydrogen.

o   Electrification

• Maximize use of surplus renewable energy, especially outside of peak-demand periods;
• Accelerate adoption of light-, medium- and heavy-duty electric vehicles;
• Advance conversion of space heating from oil heat to high-efficiency electric heating focusing on residential, manufacturing and small and medium-sized enterprises and associated conservation and demand management opportunities.
• Advance port and marine electrification; and
• Advance electrification of mines and heavy industry.

o   Carbon Capture, Utilization and Storage (CCUS)

• Advance the development of a provincial carbon capture and storage vision; and,
• Address existing barriers and gaps to enable and incentivize the development and deployment of CCUS.

To support the advancement of Newfoundland and Labrador’s opportunity areas together with Indigenous partners, the Collaboration Framework is accompanied by the following $2.5 million in federal investments:

• $1.43 million through the Indigenous Natural Resource Partnerships Program to support partnerships between the Miawpukek First Nation and industry for wind and hydrogen developments.
• $658,500 to the Nunatsiavut Government for the Youth Energy Training Initiative to empower Inuit youth to steer sustainable energy transitions in their communities.
• $215,000 through the Indigenous Forestry Initiative to the NunatuKavut Community Council (NCC) for an Indigenous pilot project to reduce reliance on diesel for NCC communities, and $100,000 to advance Indigenous-led forestry initiatives in Labrador.
• $125,000 for Compusult Limited to work with Indigenous groups to establish and advance geospatial technologies in remote areas that have limited IT communications.

In addition to these investments, the federal and provincial governments have previously provided the following funding to support the transition to a net-zero future:

• $9.8 million from the Atlantic Canada Opportunities Agency and NL Department of Industry, Energy and Technology to help deliver two critical mineral initiatives focused on geoscience and exploration activities. $4.6 million of this total was provided by the Government of Newfoundland and Labrador as well as an additional almost $1 million to the Geological Survey of Newfoundland and Labrador to support public geoscience targeting Labrador.
• $805,000 through the Zero-Emission Vehicle Infrastructure Program to support the installation of up to 113 EV chargers. As well, through Budget 2023, Newfoundland and Labrador invested $3 million to support the transition to EVs.
• $157 million through the Oil to Electric Incentive Program to implement new fuel-switching and energy-efficiency incentive programs. Building on this, in February 2024 the federal and provincial governments announced a $24 million agreement through the Low Carbon Economy Fund to boost the Newfoundland and Labrador Oil to Electric Incentive Program.

The provincial government has previously provided the following funding to support the transition to a low-carbon economy:

• $4.3 million in its Critical Minerals Plan targeted toward public geoscience and exploration to assist investment in critical mineral development.
• $100 million through the Green Transition Fund to provide support for businesses, organizations, post-secondary institutions and industry associations to assist with the province’s transition to a green economy.
• $6 million for a CCUS Innovation Challenge

The federal government has previously provided the following funding to support the transition to a low-carbon economy:

• $1.25 million to Tacora Resources Inc. for manganese mineral processing.
• $150,000 to econext to promote greater awareness of clean fuels and clean fuels technologies.
• $86.8 million to Braya Renewable fuels refinery, through the Strategic Innovation Fund and Clean Fuels Fund, to convert to a renewable diesel and sustainable aviation fuel production facility.
• $27.1 million to TechNL for its Strengthening the NL Workforce: A Technology Training and Upskilling Ecosystem project.
• $128 million credit facility loan agreement to World Energy GH2 for a wind-to-hydrogen megaproject and Canada's first commercial green hydrogen-ammonia facility.
• $18.1 million to Rio Tinto’s Iron Ore Company of Canada (IOC) through the Low Carbon Economy Fund to support the decarbonization of iron ore processing in Labrador West.

Other federal programs that could be accessed support implementation of the Collaboration Framework include:

• $79.2 million under the Critical Minerals Geoscience and Data Initiative to enhance the quality and availability of data and digital technologies to support geoscience and mapping in Canada.
• $1.5 billion through the Strategic Innovation Fund to accelerate investments in critical minerals projects across Canada.
• $1.5 billion through the Critical Minerals Infrastructure Fund for energy and transportation projects to unlock priority mineral deposits across Canada.
• Canada Infrastructure Bank Critical Minerals Investments to facilitate the construction of enabling and supporting infrastructure across the country.
• Budget 2023 is providing funding to create new investments in science-based activities to help capitalize on Canada's offshore wind potential.
• $319 million for research, development and demonstrations to advance the commercial viability of carbon capture, utilization and storage (CCUS) technologies in Canada.

These investments build on prior federal tax and policy measures to help expand Newfoundland and Labrador’s competitive advantage in a low-carbon economy:

• 30 percent Critical Mineral Exploration Tax Credit to enable the exploration of critical minerals and support specified exploration.
• Investment Tax Credit for Clean Technology Manufacturing aimed at spurring the expansion of mining and processing of critical minerals.
• Introduction of Bill C-49 to amend the Atlantic Accord Acts to Regulate Offshore Wind Energy Projects in Newfoundland and Labrador and Nova Scotia.
• Clean Hydrogen Investment Tax Credit for projects which meet the carbon intensity-dependent credit values between 15 percent and 40 percent of eligible capital expenses.
• 15 percent refundable tax credit for eligible investments in non-emitting electricity generation systems.
• More information about the Regional Energy and Resource Tables and the Newfoundland and Labrador Regional Energy and Resource Table Framework for Collaboration on the Path to Net Zero is available on the NRCan website.