The federal government’s price on carbon is funding a new program to mitigate climate change, delivering almost $218 million in its first year of operation, 2019-20.
Part of the Pan-Canadian Framework on Clean Growth and Climate Change, the Climate Action Incentive Fund (CAIF) is a new Environment and Climate Change Canada program, available in Saskatchewan, Manitoba, Ontario, and New Brunswick, where provinces have not committed to their own carbon pollution pricing systems. Eligible recipients would benefit from funding for projects to decrease energy usage, save money, and reduce carbon pollution.
The program consists of three funding streams to support projects and measures undertaken by small- and medium-sized enterprises (SMEs), municipalities, universities, schools, hospitals (MUSH), and not-for-profit organizations. Details of the programs include:
- The Climate Action Incentive Fund (CAIF) SME Project stream provides support to small- and medium-sized enterprises (SMEs) for retrofit projects in sectors such as building, transportation, industry, waste, agriculture, and more. Eligible recipients are small-sized incorporated enterprises of 1-99 employees, and medium-sized incorporated enterprises of 100-499 employees. Eligible rebates are up to 25 per cent of project’s total eligible costs, no less than $20,000 and no more than $250,000 per project and per recipient. A $250,000 funding cap will apply to the group of applicant franchisees who operate under the same franchise trade name in each eligible province.
- The Climate Action Incentive Fund (CAIF) MUSH Retrofit stream provides funding to municipalities, universities/colleges, schools, and hospitals to help them make energy efficiency improvements and retrofits to reduce energy use, costs, and carbon pollution.
- The Rebate Stream provides support to small- and medium-sized enterprises and not-for-profit organizations in the purchase of ENERGY STAR certified equipment, such as commercial kitchen appliances, water heaters, etc.
Here’s what the eligible provinces got:
- Ontario: SME project stream, $72 million; rebate stream, $35 million; MUSH stream (schools), $41 million … for a total of $148 million
- Saskatchewan: SME project stream, $21 million; rebate stream, $10 million; MUSH stream (schools), $12 million … for a total of $43 million
- Manitoba: SME project stream, $9 million; rebate stream, $4 million; MUSH stream (schools),$5 million … for a total of $18 million
- New Brunswick: SME project stream, $4 million; rebate stream, $2 million; MUSH stream (schools), $2 million … for a total of $8 million.
“In communities across Canada, small- and medium-sized businesses are proving that taking action on climate change is good for business. To build on their leadership and ensure more small-and medium-sized businesses have the means to take action, we are helping business owners invest in new equipment and retrofits to be more energy efficient, cut pollution, and save money,” Catherine McKenna, Minister of Environment and Climate Change, is quoted saying.
Quick facts:
- Small- and medium-sized businesses in various sectors in Ontario, New Brunswick, Manitoba, and Saskatchewan could apply to the fund starting July 17, 2019. The application period will be open until funding is exhausted or for a maximum of 90 days
- Proposals will be selected on a first-come, first-served basis, and regional considerations and prioritization for the most impacted small-and medium sized businesses will be taken into account
- Applicants can consult the applicant guide to prepare their poposal and submit it through the online application tool. Applicants will be notified of the decision after approximately 25 business days upon receipt of their application
- Businesses in Ontario, New Brunswick, Manitoba, and Saskatchewan could be eligible to receive funding of up to 25 percent of eligible costs for energy-efficient retrofits and other projects to improve energy efficiency, reduce their energy use, and save money—to a maximum of $250,000 per applicant per eligible province. The minimum amount of federal funding per application is $20,000
- Under the Climate Action Incentive Fund, small-and medium-sized businesses are defined as businesses with fewer than 500 employees
- The Government of Canada implemented changes to accelerated capital costs that allow businesses to immediately write off the full cost of machinery and equipment used for the manufacturing and processing of goods or immediately write off the full cost of specified clean-energy equipment. Investments eligible for Climate Action Incentive Fund may also be eligible for the accelerated capital cost allowance
- The government will soon launch a new call for proposals for smaler projects from small businesses across the country, under the Low Carbon Economy Fund Partnerships Approximately $10 million will be available to help those businesses make investments to improve energy efficiency, reduce pollution, and save money