The Canadian Government is providing up to $750 million CAD to create a new Emissions Reduction Fund to support workers and reduce emissions in Canada's oil and gas sector, with a focus on methane. This funding will assist firms that are preparing to make changes to comply with provincial requirements or federal methane regulations.
This funding will be available over two years starting in 2020-2022. Eligible conventional and offshore oil and gas companies will be able to apply to the new repayable contribution program beginning November 2020.
The fund will provide financial support for oil and gas companies to adopt greener technologies and to help maintain jobs in the sector. Of the $750 million, the program will offer up to $675 million to the onshore upstream and midstream oil and gas sector to lower or eliminate routine venting of methane rich natural gas from conventional, tight and shale oil and gas operations. The remaining amount, up to $75 million, is for investments in emissions reduction and research and development in the offshore sector.
Contributions for projects that lower emissions will be repayable, while contributions for projects that eliminate routine venting are eligible for a partially repayable contribution. The program may provide recipients with up to 75% of total eligible supported project costs.