The province is looking to fix two problems at the same time – increase oil production and reduce carbon pollution.
The government announced Tuesday that Alberta’s industry leaders are getting $1.4 billion to help fix these problems, create more jobs, and diversify the economy.
“These investments will ensure we continue to be the energy and innovation leader the world needs as it transitions to a low-carbon economy,” said Margaret McCuaig-Boyd, Minister of Energy, in a release.
“When investors are looking for new and better ways to produce energy, we want them to look to Alberta.”
Oilsands companies will be given $440 million of the funds to help them increase production and reduce emissions. The province says they will start by allocating $40 million in 2019-20, doubling it to $80 million per year until 2025.
Around $225 million will also be given to research projects focused on commercialization and investment in new technologies that reduce emissions – with $80 million being handed out through grants.
Another $240 million will go towards industrial energy-efficiency projects and $63 million in grants for bioenergy projects, including biodiesel, ethanol, and biomass-based electricity generation.
The last $400 million is going towards helping companies invest.
“Together with these investments, we will create the next generation of made-in-Alberta technology to help our energy industry attract investment, create more good jobs and reduce emissions,” added Deron Bilous, Minister of Economic Development and Trade, in the release.
The funds are coming through the Climate Leadership Plan which focuses on giving funds to industry received through their carbon tax levy.