SMEs operating in sectors such as building, transportation, industry, waste, and agriculture, within Saskatchewan, Manitoba, Ontario, or New Brunswick may be eligible to receive a rebate to cover up to 25% of eligible project costs for a maximum of $250,000 through The Climate Action Incentive Fund (CAIF) SME Project Stream to support retrofit projects that reduce energy usage, costs/ greenhouse gas (GHG) emissions.
On April 1, 2019, the federal fuel charge came into effect in the provinces of Saskatchewan, Manitoba, Ontario and New Brunswick under the Greenhouse Gas Pollution Pricing Act, which aims to reduce greenhouse gas emissions, support clean growth, and incentivize the reduction of energy use through conservation and efficiency measures. According to the Department of Finance, the fuel charge rates are based on global warming potential/ emission factors used by Environment and Climate Change Canada, and reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019, rising by $10 per tonne annually to $50 per tonne in 2022.
The Government of Canada has committed to return most of the direct proceeds from the fuel charge to individuals and families in those provinces through Climate Action Incentive payments. The remainder of proceeds will be distributed to SMEs, organizations in the MUSH sector (municipalities, universities, colleges, schools, and hospitals), and NFPs (not-for-profit organizations) through programming such as CAIF.
Eligible applicants are incorporated small- or medium-sized enterprises (with less than 500 employees), operating in at least one of these provinces: Saskatchewan, Manitoba, Ontario, and New Brunswick, and requesting between $20,000 and $250,000.
Eligible proposed project must be implemented after the approval-in-principle notification sent by Environment and Climate Change Canada (ECCC) and no later than March 31, 2021. The proposed project must also help your enterprise reduce energy use, costs, and/or GHG emissions associated with its operations, lead to long term cost savings, and will not cause increased GHG emissions from its operations.
Eligible CAIF SME Project Stream categories include (but are not limited to) the following activities:
- Agricultural retrofits
- Building retrofits
- Electricity, energy or fuel production
- Industrial process improvements
- Transportation retrofits
The application intake period for the CAIF SME Project Stream will open for 90 days starting on July 17, 2019, or until funding is exhausted.
If you would like more information on the CAIF SME project Stream or other government funding sources that can help your company innovate and grow, contact us today for a free consultation.