GATINEAU, QC, March 21, 2025 /CNW/ – The Government of Canada is taking bold action to strengthen communities by addressing the impacts of climate change. Industrial carbon pricing is a foundational element of Canada’s plan to protect the environment and build a strong, competitive, and sovereign 21st-century Canadian economy.

Today, the Honourable Terry Duguid, Minister of Environment and Climate Change, announced investments of nearly $150 million from Canada’s Output-Based Pricing System (OBPS) Proceeds Fund in 38 Decarbonization Incentive Program (DIP) projects in the four provinces where the federal OBPS applied in 2019 to current. This funding will help Canadian companies and organizations deploy cutting-edge clean technologies which cut pollution, enhance energy efficiency, create jobs, and strengthen Canada’s economic footing.

Today’s investments will support a range of initiatives, such as replacing expensive oil- and gas-fired boilers with more efficient electric ones, producing cleaner and stronger Canadian fibreglass, deploying advanced carbon-management technologies, and enhancing the durability of galvanized steel sheets, all of which help drive down costs for Canadian manufacturers and consumers across the supply chain. Projects funded by the Proceeds Fund will also help unlock new opportunities and markets for made-in-Canada clean technology and innovation, strengthening the Canadian economy while reducing an estimated 544,100 tonnes of greenhouse gas pollution in the year 2030.

The federal government recognizes the leadership role that industries and workers play in driving solutions to build a more competitive economy and protect the environment. Through partnerships with workers, industries, experts, enterprises, and Indigenous leaders, industrial carbon pricing supports projects that fight climate change and strengthen our economic security.

Quotes

“Canada has everything it takes to be a leader in the low-carbon economy of the 21st century. At a time when we must strategically diversify our trade relationships, industrial carbon pricing is a key driver in protecting the international competitiveness of Canadian industries, enabling access to new export markets, creating good-paying jobs, and ensuring that major industrial polluters pay their fair share in clean technology investments across Canada. These investments are a win-win-win for Canadian workers, industries, and the environment. Fundamentally, industrial carbon pricing makes Canada stronger and more competitive in a changing world.”
– The Honourable Terry Duguid, Minister of Environment and Climate Change

“Today, Canada is making significant investments that will not only strengthen our economy at a critical time but will also help protect our environment for future generations. Through the Output-Based Pricing System Proceeds Fund, this federal government is empowering Canadian companies to innovate, adopt cutting-edge technologies, improve their competitiveness and productivity, and reduce pollution. By supporting projects that drive efficiency and lower pollution, we are unlocking new economic opportunities, creating jobs, and positioning Canada as a global leader in the economy of today and tomorrow.”
– The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources

“Canada is on track for a more competitive, resilient, and sustainable future. These investments will not only fuel innovation among Canadian cleantech companies but will also create made-in-Canada opportunities that drive growth and reduce greenhouse gas emissions. By working in tandem with key sectors to deploy industrial carbon pricing, we are seizing the opportunity for Canada to lead the global transition to a low-carbon economy, strengthening our country today and in the future.”
– The Honourable Anita Anand, Minister of Innovation, Science and Industry

“The University of Toronto is the world’s most sustainable university and is a global leader in transforming its infrastructure and operations to reduce carbon emissions. The Decarbonizing Incentive Program supports the modernization of the university’s district energy system, ensuring that the energy that powers advanced research is clean and sustainable for decades to come.”
– Ron Saporta, Chief Operating Officer, University of Toronto

“Funded in part through the Decarbonization Incentive Program, a new heat plant currently in the planning stages at Roseburg Forest Product’s Pembroke facility would reduce greenhouse gas emissions by switching from natural gas to forest biomass to fuel manufacturing of our high-quality, medium-density fibreboard (MDF) and engineered wood products. Environment and Climate Change Canada’s focus on supporting clean, sustainable growth through the OBPS Decarbonization Incentive Program aligns with Roseburg’s longstanding commitment to innovative manufacturing and responsible forestry, and we’re grateful for the support.”
– Alexandre Ouellette, Senior Director of Manufacturing, Roseburg Forest Products

Quick facts

Proceeds from industrial carbon pricing are driving innovative, job-creating Canadian technology projects across regions and sectors. To date, the Decarbonization Incentive Program has supported total investments of over $874 million in 53 clean energy projects.
Canada’s emissions are now the lowest they have been in 27 years, excluding the pandemic years, and significantly lower than pre-pandemic levels. Between 2005 and 2023, the emissions intensity of Canada’s economy was cut by 34%.
All proceeds collected under the federal OBPS are returned to the jurisdiction of origin. Proceeds collected in jurisdictions where the federal system has been applied are being returned through the two program streams of the OBPS Proceeds Fund. The jurisdictions where the federal OBPS has applied previously, or continues to apply, are:
- Manitoba (federal OBPS continues to be in effect and proceeds continue to be collected)
- New Brunswick (federal OBPS was in effect and proceeds were collected until December 31, 2020)
- Ontario (federal OBPS was in effect and proceeds were collected until December 31, 2021)
- Saskatchewan (federal OBPS was in effect and proceeds were collected until December 31, 2023)
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 innovative, clean technology projects across Canada back to their jurisdictions of origin. This funding enables eligible facilities to achieve greater energy efficiency, adopt sustainable solutions, and reduce pollution.