Thank you for giving me the opportunity to be here today, Mr. Chair.
I also thank the members for your public service, including as part of your efforts on this committee.
My name is Jesse Fleming. I am the director general of the Programs Directorate in the Climate Change Branch of Environment and Climate Change Canada. My team and I are responsible for administering grant and contribution programming related to driving greenhouse gas emission reductions.
In that context, I would like to highlight two programs that may be of interest to this committee and for which natural resource industry stakeholders are potentially eligible for federal assistance.
The first program I'll highlight is the low-carbon economy fund, or LCEF, which was funded up to $2 billion as part of budget 2017. The low-carbon economy fund supports projects that help to reduce Canada's greenhouse gas emissions, generate clean growth, build resilient communities and create good jobs for Canadians. These projects are critical as Canada continues to build a sustainable net-zero emissions economy by 2050.
As announced in Canada's 2030 emissions reduction plan and budget 2022, the Government of Canada committed to expanding the low-carbon economy fund by investing an additional $2.2 billion over seven years, starting in 2022-23. The low-carbon economy fund invests in a wide range of recipients, including provinces and territories, businesses, municipalities, not-for-profits, and indigenous communities and organizations. Successful applicants leverage ingenuity across the country to reduce emissions in support of Canada's climate plans.
The second program I'd like to highlight is called the output-based pricing system, or OBPS, proceeds fund, which is funded from the proceeds of the federal output-based pricing system. The Government of Canada has committed to return proceeds collected from the output-based pricing system to the jurisdictions of origin as part of carbon pollution pricing efforts. Provinces and territories that have voluntarily adopted the output-based pricing system can opt for a direct transfer of proceeds collected.
Proceeds collected in other backstop jurisdictions, current or past, will be returned through two program streams. The decarbonization incentive program is a merit-based stream that incentivizes the long-term decarbonization of Canada's industrial sectors by supporting clean technology projects to reduce greenhouse gas emissions. Proceeds collected from most facilities regulated by the federal output-based pricing system will be returned via this stream. The second stream is called the future electricity fund, and it's designed to support clean electricity projects and/or programs. Proceeds collected from the output-based pricing system-covered electricity-generating facilities—utilities generally speaking—are expected to be returned through funding agreements with governments or third parties in relevant jurisdictions.
I'll end it there in the interest of leaving as much time as possible for questions and discussion.
Thank you again for the opportunity to be here today.