Pollution pricing at work: re-investing $2.2 million into new low-carbon cement in Ontario

ST. MARYS, ON, July 15, 2024 /CNW/ - Building fairness for every generation means taking real action to address the growing risk that climate change is having on the lives of Canadians while building a stronger, more sustainable economy of the future. Canada's industrial pollution pricing system holds big polluters accountable to pay their fair share, while it helps Canada attract new major projects that are creating good‑paying jobs and build a clean economy.

Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, announced the re-investment of up to $2.2 million of recycled industrial pollution pricing revenues to fund a major new emissions reduction project at St Marys Cement in St. Marys, Ontario.

With this funding, St Marys Cement Inc. (Canada), which is part of the Votorantim Cimentos group, is installing new speciality cement kiln infrastructure that uses lower-carbon fuels, including discarded plastics, to replace up to 30 percent of the high-carbon fuels required for the manufacturing process. The innovative technology will cut over 39,900 tonnes of greenhouse gas emissions in 2030, the equivalent of taking over 9,400 gas-powered cars off the road for a year. As members of Canada's Net Zero Challenge, St Marys Cement is implementing their plan to transition their facilities and operations to achieve net-zero emissions by 2050.

This is just one of many projects funded through the industrial pricing system in Ontario and the revenue-return program called the Decarbonization Incentive Program (DIP), which re-invests revenues taken from heavy industry through the price on pollution and puts it toward eligible facilities for energy efficiency and emission-cutting projects. So far, the industrial pollution pricing program DIP has agreements in place to reinvest nearly $74.3 million into 18 emissions reduction projects in Ontario, resulting in 274 thousand tonnes of greenhouse gas emissions reduced in 2030—with many more projects to come. This return of proceeds is mobilizing Canada's heavy industry emitters to contribute funds toward these decarbonization projects, resulting in a total investment of $337 million to further build Canada's clean economy and create jobs.

Putting a price on pollution will deliver a third of the emissions reductions needed to achieve Canada's climate change goals—avoiding tens of millions of tonnes of harmful carbon pollution. It fights pollution at the lowest cost to the economy and creates new markets and opportunities for clean technology and innovation in Canada.

Quotes

"Pollution pricing works. We are holding heavy industry accountable for their pollution, re-investing those revenues into projects that create good jobs and cut pollution. The re-investment of up to $2.2 million of industrial pollution pricing revenues to St Marys Cement is just one example of how we have a plan that is building a cleaner, more sustainable future for all generations. This project not only benefits the community of St. Marys, Ontario, but helps build a more sustainable future for many generations of Canadians to come."

– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

"At Votorantim Cimentos, we are determined to be part of the solution to reduce the planet's greenhouse gas emissions by supporting the circular economy, as well as by investing in new technologies and innovation and pursuing a renewable energy matrix. St Marys Cement, part of the Votorantim Cimentos group, is committed to ambitious science-based target initiative goals, including net-zero concrete by 2050. In 2023, Votorantim Cimentos reduced CO2 emissions by 15 percent, compared to 2010, achieving 556 kg of CO2 per tonne of cementitious material. With the help of Environment and Climate Change Canada funding through the Decarbonization Incentive Program for our Low-Carbon Alternative Fuel project at the St Marys Cement plant, we will reduce our CO2 emissions further. We appreciate Minister Guilbeault's support and look forward to continued collaboration with Canada's Ministry of Environment and Climate Change to reach net-zero concrete."

– Jorge Wagner, CEO, Votorantim Cimentos North America

Quick facts

• Canada's industrial pollution pricing system, called the Output-Based Pricing System, imposes an emissions performance standard for each heavy industrial sector, in which companies whose emissions exceed the standard must pay, while those who perform well earn credits to sell. This gives companies an incentive to cut pollution and supports clean innovation.
• Canada's approach to carbon pollution pricing lets provinces and territories put their own industrial pricing systems in place, as long as they meet national minimum stringency standards. Most provinces manage their own industrial carbon pricing systems.
• Proceeds collected in jurisdictions where the federal Output-Based Pricing system applies or applied, such as Manitoba, New Brunswick, Ontario, and Saskatchewan, are being returned through the Output-Based Pricing System Decarbonization Incentive Fund and the Future Electricity Fund.
• As a result of the Output-Based Pricing System, approximately $716.7 million from industrial pollution pricing proceeds are being re-invested through the Output-Based Pricing System programs, in approved projects that will grow Canada's clean economy. It is expected that amount will grow as more projects are approved over the coming months.
• The Net-Zero Challenge encourages businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050. Since August 2022, over 200 businesses across the country have joined the challenge.

Associated links

• Canada Cuts Carbon Pollution with Funding for Glencore Canada Corporation Project
• Net-Zero Challenge
• Output-Based Pricing System

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SOURCE Environment and Climate Change Canada

Contacts: Kaitlin Power, Senior Press Secretary and Communications Advisor, Office of the Minister of Environment and Climate Change, 819-230-1557, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]