Projects eligible for payment from consigned funds

Three types of projects are eligible for payment from the funds determined and reserved for an emitter.

1 - A study of the technical and economic potential of greenhouse gas emission reduction (TEP)

To be eligible, a study of the TEP must:

• Aim to conduct or update a study of the technical and economic potential of greenhouse gas (GHG) emission reduction in each facility of an emitter eligible to consigned funds;
• Identify and estimate all the GHG emission reduction potential projects in light of existing technologies in each of the facilities and their implementation costs.

If the emitter plans to use the consigned funds to fund technological innovation projects, the study must also evaluate the GHG emission reduction potential projects that rely on emerging technologies over a 10-year period.

The GHG emission reduction potential must be evaluated for each of the following categories:

• improved energy efficiency,
• energy substitution,
• a reduction of fixed process and other emissions.

Learn how to apply for a TEP study project eligible for the consigned funds.

2- A GHG emission reduction project

To be eligible, the reduction project must have been identified in a compliant study of the TEP produced or updated not later than five years prior to the submission of the project.

The project must:

• target a GHG emission reduction in relation to the baseline scenario,
• be carried out in one of the emitter’s establishments or outside the site if the project reduces the GHG emissions of the covered facility,
• involve a return-on-investment period of more than one year.

If the project calls for an energy substitution with supplementary operating cost, the alternate source of energy must be:

• renewable electricity,
• green hydrogen (only when electrification is impossible),
• first-generation renewable natural gas,
• residual biomass sourced in Québec,
• bioenergy produced by pyrolysis using residual forest biomass.

Energy substitution without supplementary operating cost is also eligible provided that the alternative energy is a fossil fuel that emits less GHG than in the reference scenario.

Learn how to apply for a GHG emission reduction project to be eligible to consigned funds.

3 - A technological innovation project in the realm of GHG emission reduction

To be eligible, the technological innovation project in the field of GHG emission reduction must have been identified in a compliant study of the TEP produced or updated not later than five years prior to the submission of the project.

The project must:

• target a technological innovation with a technology readiness level between 4 and 8 or the field testing of a GHG emission reduction technology that is not used in the facilities subject to the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances or is used only marginally,
• have a GHG emission reduction potential in Québec on the site of a covered facility subject to the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances,
• be carried out in Québec.

Learn how to apply for technological innovation project in the field of GHG emission reduction to be eligible for consigned funds.