A bulk of the funding will be used for helping onshore firms in adapting green technologies to reduce emissions of methane
The Canadian government has launched a CAD750m ($562.16m) fund to help oil and gas companies to reduce methane and other greenhouse gas (GHG) emissions.
Canada has set itself a goal of achieving net zero by 2050 and also to surpass its Paris Agreement targets by 2030.
According to Natural Resources Canada, methane is among the most potent GHG emissions. The gas is responsible for 43% of all GHGs in the oil and gas sector, said the federal department.
The Emissions Reduction Fund will mainly offer repayable funding to eligible onshore and offshore oil and gas companies for backing their investments in greener technologies to cut down GHG emissions and in maintaining jobs.
Details of Canada’s Emissions Reduction Fund
It will allocate a funding of up to CAD675m ($505.95m) to eligible onshore oil and gas firms to help them invest in green technologies for reducing methane emissions.
The remaining CAD75m ($56.22m) will be specifically used for reducing GHGs from oil and gas production in the waters of the Newfoundland and Labrador province.
The funding will support offshore oil and gas companies in their capital investments and research, development and demonstration (RD&D) of using greener technologies.
The offshore stream funding has two components, which include the CAD42m ($31.48m) offshore deployment programme and a CAD33m ($24.74m) offshore RD&D programme.
Natural Resources Canada said that the offshore deployment programme will support capital projects aimed at reducing offshore GHGs or enhancing the environmental performance of offshore oil spill monitoring, detection, and response activities.
On the other hand, the offshore RD&D programme will support environmental research, development, and pilot projects that advance solutions for decarbonising the offshore industry in Newfoundland and Labrador.
The programme is being taken up by Natural Resources Canada in partnership with Petroleum Research Newfoundland and Labrador.
Canada Natural Resources Minister Seamus O’Regan said: “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.”