Environment and Climate Change Canada – Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program

Description:

ECC’s Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program (DIP) provides incentives to Canada’s industrial sectors’ single or multi-year projects accelerating the deployment of commercially available and/or proven low-carbon technologies and processes that will further reduce GHG emissions.

Comments on Funding:

Funding is a contribution of up to $500,000, respecting the cost-share limits:

  1. for private for-profit organizations: up to 30% of total eligible expenditures of the project;
  2. for universities and hospitals or any other public sector body or board, and for not-for-profit organizations: up to 40% of total eligible expenditures of the project;
  3. the maximum level of assistance from all governmental sources of funding (including federal, provincial/territorial, and municipal) is 75% of the total expenditures of the project.

Eligibility:

Applicants must:

  • be legal entities incorporated or registered in Canada:
    a) private for-profit organizations;
    b) universities and hospitals;
    c) public sectors;
    d) not-for-profit organizations.
  • operate or have a controlling ownership stake in an eligible facility covered under the federal OBPS, located in one of the eligible backstop provinces:
    a) Manitoba
    b) Saskatchewan
    c) Ontario
    d) New Brunswick
  • demonstrate* they have the authority over the facility or asset to undertake the project; and
  • not generate electricity as their primary activity.

*Applicants will be required to provide proof of ownership or a declaration of written authority showing that the applicant has permission from the owner to undertake the project.

Applications Steps:

Documentation Needed:

In support of the application, applicants must provide ECCC with:

  1. details on the jobs created as a result of their proposed project from project start to completion;
  2. two types of job estimates for the project:
    a) Project implementation jobs; and
    b) Annual change in jobs.

Other Things to Note:

ECC’s Decarbonization Incentive Program (DIP) is a merit-based program funded by proceeds collected from the Output-Based Pricing System (OBPS).

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