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💵💚 Government of Canada Supporting Ontario Universities With Funding to Reduce Pollution to Achieve Environmental Success

Thursday, 27 July 2023 06:13.PM

Canada's pollution pricing system creates incentives for industries to reduce their greenhouse gas emissions; drives innovation and sustainable business practices; and fosters a cleaner, more environmentally responsible future.

Through the Decarbonization Incentive Program, the Government of Canada returns a portion of the proceeds collected from the federal pollution price on large industrial emitters to support clean technology projects. This funding will enable eligible facilities to achieve greater energy efficiency, adopt sustainable solutions, and reduce their emissions to support the transition to a low-carbon world.

On JUly 19, 2023, the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario, announced on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change, an investment of approximately $9 million from pollution pricing proceeds in three Ontario universities through the Decarbonization Incentive Program. McMaster University, York University, and Western University will use this funding to undertake critical infrastructure improvements that directly tackle carbon emissions across their campuses. Together, these projects will cut over 35,000 tonnes of emissions in 2030.

McMaster University will receive $2,087,600 to reduce its natural gas usage for campus heating through the installation of electric boilers. Similarly, Western University will receive $4,745,000 for a four-year project to replace natural gas boilers with electric steam boilers. York University will receive $2,080,000 to upgrade its energy management system to make its heating and cooling more energy efficient.

By investing pollution pricing proceeds in these forward-thinking institutions, the Government of Canada is supporting their efforts to transition to lower-cost, renewable energy sources. Ultimately, this will benefit Canadians and communities across the nation, as cleaner air and reduced emissions contribute to improved health and well-being for all citizens.

The Government of Canada remains committed to addressing climate change and recognizes the vital role that academic institutions play in driving meaningful solutions through environmental leadership. Through partnerships and projects like these ones, the Government of Canada can accelerate collective efforts to build a sustainable and prosperous future for all Canadians.

"By returning pollution pricing proceeds to these three universities for emission reduction projects, we are empowering Canadian institutions to lead the way in fighting climate change. This strategic investment demonstrates the Government of Canada's commitment to fostering innovative solutions and collaborating with Canada's industrial sectors as we transition to a low-carbon world. Together, we can make a significant impact and create a cleaner, healthier, and more prosperous Canada."
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

Quick facts

• The Decarbonization Incentive Program consists of proceeds collected from all industrial sectors, other than the electricity sector, that are covered by the federal Output-Based Pricing System (OBPS). These proceeds are being returned to support clean technology projects through funding agreements with industrial facilities that are (or were) subject to the OBPS.
• The OBPS is a regulatory trading system for large industrial facilities under Canada's carbon pollution pricing system. It gives large industrial facilities a price incentive to reduce their greenhouse gas emissions and spur innovation.
• Emissions limits are set for each facility subject to the OBPS. Facilities that emit above their limit have to pay for their excess emissions. Those that emit less than their limit are issued surplus credits they can sell or save to use later. This creates a financial incentive for less efficient facilities to reduce their emissions, and for strong performers to continue to improve.
• The OBPS helps to maintain competitiveness for industries by protecting against the risk of industrial facilities moving from one jurisdiction to another to avoid paying a price on carbon pollution (known as "carbon leakage").
• 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 federal OBPS can opt for a direct transfer of proceeds collected. Proceeds collected in non-voluntary jurisdictions, thus far from Manitoba, New Brunswick, Ontario, and Saskatchewan, will be returned through the two program streams of the OBPS Proceeds Fund.

SOURCE: Environment and Climate Change Canada

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