Industrial EPPSOntario Launches Emissions Performance Program to Support Industrial
Emissions Reduction

Financial support for large emitters to advance on their Green House Gas (GHG) goals

On June 27, the Ministry of the Environment, Conservation and Parks (MECP) launched the Emissions Performance Program (EPP). This initiative allows large emitters to apply for funding to support greenhouse gas (GHG) reduction projects at eligible industrial facilities. The EPP utilizes proceeds from the Emissions Performance Standards (EPS) Program, specifically revenue collected from the purchase of compliance instruments, known as Excess Emissions Units (EEUs), by EPS participants to satisfy their 2022 EPS program obligations. Learn more about the EPS Program from our earlier blog post. 

Eligibility Criteria

The EPP is open to Emissions Performance Standards participants whose primary industrial activity is not electricity generation. Eligible facilities must meet the following eligibility criteria:

  • Registered in the EPS Program
  • Purchased Excess Emissions Units
  • Do not generate electricity as their primary industrial activity

Funding Allocation

Eligible applicants will receive a funding amount notionally equivalent to the amount they paid for EEUs. The Ministry has already notified eligible industrial facilities via email, providing details on their ‘notional allocation amount,’ which represents the maximum funding they can receive. There are no restrictions around stacking and cost sharing, and applicants are allowed to pool their individual notional allocations for a joint project. 

Program Details

The EPP will fund two types of projects:

  • Capital Projects: Investments in infrastructure or equipment that lead to GHG reductions.
  • Study-Based Projects: Research and feasibility studies aimed at identifying new GHG reduction opportunities.

Application Process and Requirements

To access EPP funds, interested applicants must submit a project proposal through the Transfer Payment Ontario (TPON) portal. Organizations with a TPON account can find all necessary program materials there, including the application form, GHG workbook, budget and workplan workbook, and supplementary materials to assist in putting together a project proposal. Projects must demonstrate that they achieve either 0.15 Mt in annual GHG reductions or 0.5 Mt cumulative GHG reductions by 2030. Additionally, applications must identify potential risks (operational and technical) and measures to mitigate these risks.

Application Review

There is no deadline for submission. Applications will be reviewed quarterly, with the closing dates being the last business days in July, October, January, and April. The review process will evaluate the methodology, assumptions, and calculations used to estimate GHG emissions reductions. 

Selected applicants will then enter into a Transfer Payment Agreement (TPA) with the provincial government to receive their funds.

Eligible Project Activities

Examples of project activities that are eligible for funding include (but are not limited to):

  • Stationary Equipment Retrofits: Enhancing energy efficiency and enabling fuel switching
  • Mobile Equipment Retrofits: Improving energy efficiency and fuel utilization
  • Building Envelope Upgrades: Including insulation, windows, and doors
  • Heat Recovery: Capturing and reusing waste heat
  • Industrial Process Changes: Implementing more efficient industrial processes
  • Carbon Capture and Storage: Capturing and storing carbon emissions
  • Clean Electricity and Low-Carbon Fuel Production: Producing clean electricity and low-carbon fuels for internal use

Blackstone Can Help You

Navigating the Emissions Performance Program (EPP) application process can be complex. Our team has the expertise and understanding of the policy to help you successfully apply for funding. We can support you with:

  • Navigating the Application Process: Guidance through the application process to ensure all requirements are met.
  • Project Proposal Development: Assisting in putting together comprehensive project proposals that meet program criteria.
  • Feasibility Studies: Conducting detailed studies to assess the viability and impact of potential projects.

Our extensive experience and in-depth understanding of climate policy and funding mechanisms enable us to provide valuable support in achieving your GHG reduction goals.

Contact us today to learn how we can help your organization take full advantage of the Emissions Performance Program (EPP).