Federal Canada Growth Fund Commit $7 Billion for Carbon-Price Contract Guarantees
The widely anticipated Federal Liberal’s announcement on the Canada Growth Fund is a catalyst to global low carbon initiatives and clean growth projects and the announcement is made with perfect timing in advance of COP28.
As a pioneer in carbon capture, Delta believes the most notable outcomes of the announcement are:
De-risking investments and creating predictability on long term returns;
Acceleration of the adoption of low carbon technologies;
Supporting carbon credit markets;
Aligning with net emission targets;
Attracting investment into the space;
Positioning Canada as a world leader in low carbon energy production, and allowing Canada to compete with the US clean energy bill; and
Supporting Canadian job market.
The Canada Growth Fund, launched in 2023, by the Federal Government is a $15 Billion dollar arm’s length public investment entity designed to invest in cutting-edge Canadian firms and technology. The program is intended to grow Canadian businesses and to create good Canadian jobs.
The 2023 Fall Economic Statement, announced on November 21, 2023, indicated that the Canada Growth Fund will be the principal federal entity issuing carbon contract for difference allocating up to $7 Billion of the fund in capital to issue all forms of contracts for difference and offtake agreements. Carbon contracts for difference is a financial tool designed to guarantee the future price of carbon and provide predictability to businesses in order to de-risk important emission-reducing projects. They also intend to support the development of robust carbon credit markets.
Mr. Jeff Allison, President of Delta commented: “Delta is excited about the opportunities that the Canadian Growth Fund may bring to the projects the Corporation is currently designing or involved in. The industry has been frustrated by the log jam of stalled emission reduction projects, and this commitment from the Federal Government to provide support may be the answer to reinvigorate these projects.”
To access the 2023 Fall Economic Statement click here: https://www.budget.canada.ca/fes-eea/2023/report-rapport/FES-EEA-2023-en.pdf
Delta CleanTech Inc. is a 19-year ESG-driven, recognized global technology leader in CO2 Capture, Decarbonization of Energy, Solvent & Glycol Reclamation, Blue Hydrogen Production, and Carbon Credit Aggregation and Management. Delta continues to provide solutions to clients all over the world in sequestering, capturing, and reducing CO2 and through its affiliate, Carbon RX, is originating, validating, digitizing, and streaming Carbon Credits.
For more information contact:
Jeff Allison, President
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