Feds launch $750 million fund for methane emission reduction in oil and gas
Canada is committed to achieving net zero by 2050 and exceeding our Paris Agreement targets by 2030. Methane is one of the most potent greenhouse gas (GHG) emissions, accounting for 43 percent of all GHGs in the oil and gas sector, which is why reducing methane emissions is a significant part of the country's climate plan.
Taking action now to reduce these emissions will help Canada achieve its goal to protect the environment while growing the economy during recovery from the COVID-19 pandemic.
Seamus O'Regan, Minister of Natural Resources, launched the $750-million Emissions Reduction Fund to reduce methane and GHG emissions. This fund provides primarily repayable funding to eligible onshore and offshore oil and gas firms to support their investments to reduce GHG emissions by adopting greener technologies and help maintain jobs in a time of economic hardship and uncertainty.
"We're taking action to reduce greenhouse gas emissions in partnership with Canada's oil and gas sector. This will maintain good jobs and make sure our companies remain globally competitive for years to come," said O'Regan.Announced by Prime Minister Justin Trudeau in April 2020, the fund provides up to $675 million to eligible onshore oil and gas companies to invest in green technologies to reduce methane emissions. The remaining $75 million is available to offshore oil and gas companies for capital investments and research, development and demonstration (RD&D) to reduce GHGs from offshore production in Newfoundland and Labrador.
Effective immediately, eligible onshore oil and gas companies can apply to thevia the Emissions Reduction Fund website. Additional details on the can also be found online. Beginning November 9, offshore oil and gas companies will be able to apply for the offshore deployment portion of the fund.
This investment will greatly benefit the environment, the oil and gas industry, and workers and communities. It will help position the sector as a leader in building a low-carbon future and a key player in the growing global clean technology market. It will also ensure Canadian oil and gas companies remain globally competitive as the world continues to move toward a clean energy future.Quick Facts
- The $750-million Emissions Reduction Fund provides financial support for onshore and offshore companies to help them adopt greener technologies and maintain jobs in the oil and gas sector to help withstand the impacts of COVID-19.
- The $675-million onshore stream will:
- help firms deploy green solutions that will reduce their immediate costs while lowering emissions; and
- support firms in their transition to a low-carbon economy allowing them to attract investments and raise their global competitiveness.
- The $75-million offshore stream has two components:
- The Offshore Deployment Program is a $42-million investment supporting capital projects designed to either reduce offshore GHGs or improve the environmental performance of offshore oil spill monitoring, detection and response activities.
- The Offshore RD&D Program is a $33-million investment supporting environmental research, development and demonstration projects that advance solutions to decarbonize Newfoundland and Labrador's offshore industry. It is being delivered in collaboration with Petroleum Research Newfoundland and Labrador.