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Output-Based Pricing System Proceeds Fund: Decarbonization Incentive Program


access up to $10 million in total project funding from the program.


The Decarbonization Incentive Program (DIP) is a merit-based program funded by proceeds collected from the Output-Based Pricing System (OBPS). DIP’s objectives are to incentivize long-term decarbonization of Canada’s industrial sectors and support Canada’s greenhouse gas (GHG) emissions reduction goals.

Eligible Applicants

The program will support single or multi-year projects to accelerate the deployment of commercially available and/or proven low-carbon technologies and processes that will further reduce GHG emissions within the following eligible provinces:

  • Manitoba
  • Saskatchewan
  • Ontario
  • New Brunswick

To be considered for funding under the program, applicants must:

  • be legal entities incorporated or registered in Canada
  • operate or have a controlling ownership stake in an eligible facility covered under the federal OBPS, located in one of the eligible provinces
  • demonstrate they have the authority over the facility or asset to undertake the project

Eligible Expenses

Eligible Projects:

To be considered for funding under the program, the project must occur at an eligible facility and result in GHG emissions reductions. To be eligible, these GHG emissions reductions must be:

  • material in the year 2030 and measurable over the lifetime of the project
  • affecting sources of GHG emissions either within the facility’s direct control and/or from acquired sources of energy such as electricity or purchased heat/steam; and
  • incremental to GHG emissions reductions obtained by other required actions, such as regulatory requirements or business-as-usual maintenance and repairs

Projects will also be screened for other eligibility requirements in the application. Please refer to the Applicant Guide for full details on all eligibility criteria.

Deadline Date

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