The Government of 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 help build a low‑carbon world.

The federal government recently announced funding of up to $11 million from industrial pollution pricing proceeds for Glencore Canada Corporation to replace diesel-powered machinery with battery electric-powered equipment at the Craig Mine Onaping Depth Project in Ontario. The fully implemented project will result in a reduction of over 5,500 tonnes of greenhouse gas emissions in 2030.

“Every sector of Canada’s economy needs to contribute to the climate fight by reducing carbon emissions. It is the right thing to do for our health, the health of our planet, and the health of Canada’s economy. Through the Decarbonization Incentive Program, we are empowering Canadian corporations to lead the way in fighting climate change,” said Steven Guilbeault, Minister of Environment and Climate Change. “This investment in Glencore Canada Corporation’s project to cut pollution demonstrates the Government of Canada’s commitment to fostering innovative climate solutions and collaborating with Canada’s industrial sectors as we build a low-carbon world.”

When using diesel-powered machinery in a mine, fresh air must be provided to the workplace by a ventilation system to ensure pollutants from diesel combustion do not build up to harmful levels, and to cool the workplace. This project will reduce greenhouse gas emissions and heat generation caused by the diesel-powered equipment, providing workers and surrounding communities with a safer, cleaner, and healthier environment.

“We are grateful to be recognized for merits and awarded Decarbonization Incentive Program funding from the federal government,” said Peter Xavier, vice president of Glencore’s Sudbury Integrated Nickel Operations. “This significant funding will help accelerate the adoption of green battery electric vehicle technology at our Craig Mine Onaping Depth Project, which is currently under construction. Transitioning to electric mining vehicles reduces greenhouse gas emissions from mining machinery and mine ventilation and supports not only Glencore’s climate change goals and targets, but also municipal, provincial, and federal climate change plans.”

The Decarbonization Incentive Program is comprised of proceeds collected from all industrial sectors, other than the electricity sector, that are covered by the federal Output-Based Pricing System Proceeds Fund. These proceeds are being returned to support clean technology projects through funding agreements with industrial facilities that are (or were) subject to the OBPS.

For further information, visit: OBPS Proceeds Fund: Decarbonization Incentive Program

Featured image: Aerial shot of the Kidd Operations site. Credit: Glencore Canada Corporation.

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