Environment and Climate Change Canada
Canada’s Carbon Pricing Funds $150M in Clean Tech
On March 21, 2025, Environment and Climate Change Canada announced that nearly $150 million from the Output-Based Pricing System (OBPS) Proceeds Fund is being used to benefit 38 projects from the Decarbonization Incentive Program (DIP). These projects focus on supporting the development of clean technology and green energy to help reduce greenhouse gas (GHG) emissions.
Funding through the OBPS Proceeds Fund comes from the federal Output-Based Pricing System. The program returns money collected from heavy industry in the provinces where the federal OBPS applies. Following its launch in February 2022, the OBPS Proceeds Fund has seen two intakes under its DIP funding stream targeting support for projects at OBPS-regulated facilities. Other proceeds are directed toward strengthening Canada’s grids, the backbone of Canada’s economic future, through the Future Electricity Fund.
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 emissions reductions projects, helping eligible facilities to achieve greater energy efficiency, adopt sustainable solutions, and reduce their emissions to help build a low-carbon world.
Note: In the following table, the federal OBPS applied or applies in Ontario from 2019 to 2022; in Saskatchewan from 2019 to 2023; and in Manitoba from 2019 to current. The Government of Canada has confirmed proceeds collection amounts up to 2023; 2024 amounts will be confirmed in 2026.
https://www.canada.ca/en/environment-climate-change/news/2025/03/canadas-industrial-carbon-pricing-system-delivers-nearly-150-million-in-new-support-for-dozens-of-innovative-canadian-clean-technology-projects-acr.html