WINNIPEG—Manitoba has agreed to a deal with Ottawa that could see the province receive up to $67 million to reduce carbon emissions.
After more than a year of resisting Manitoba has joined the Pan-Canadian Framework on Clean Growth and Climate Change.
The money would come from the Low Carbon Economy Fund, which is to be used for projects that make buildings more energy efficient, and store or capture carbon during agricultural processes.
In October, Manitoba proposed a carbon tax that falls short of Ottawa’s 2022 target of $50 per tonne of carbon.
The Manitoba plan sets a carbon price of $25 per tonne, meaning it will only comply with escalating federal benchmarks for the first 2.5 years.
The two governments say Manitoba’s decision to sign on to the agreement is a strong step forward, but Ottawa says it will be monitoring compliance.
“I’m thrilled to have Manitoba join Canada’s clean growth and climate change plan,” federal Environment Minister Catherine McKenna said in a release.
“It is great to see Manitoba’s commitment to climate action, including pricing pollution.”
Manitoba Sustainable Development Minister Rochelle Squires said joining the agreement will ensure the province gets a fair share of the federal cash.
“It does not require Manitoba to adopt or agree to a federal carbon price schedule,” she said.
The deadline for joining the agreement is next Wednesday.