Seamus O’Regan, Minister of Natural Resources, recently launched the $750-million Emissions Reduction Fund to reduce methane and greenhouse gas (GHG) emissions.
“We’re taking action to reduce greenhouse gas emissions in partnership with Canada’s oil and gas sector,” said O’Regan. “This will maintain good jobs and make sure our companies remain globally competitive for years to come.”
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 through the pandemic recovery.
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.
This investment is expected to 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.
Methane is one of the most potent greenhouse gas (GHG) emissions, accounting for 43 per cent of all GHGs in the oil and gas sector, which is why reducing methane emissions is a significant part of the government’s climate plan and pandemic recovery plan.
Effective immediately, eligible onshore oil and gas companies can apply to the onshore stream via the Emissions Reduction Fund website. Additional details on the offshore streams 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.
— Natural Resources (@NRCan) November 1, 2020