Cabot Canada has been producing carbon black in Sarnia, Ontario, for 72 years, relying on energy-intensive processes that incur costs under Canada’s industrial carbon pricing rules. This week, the company received a $5.6 million federal grant to install equipment aimed at significantly reducing its carbon emissions.
The funding originates from a program financed by industrial carbon pricing proceeds. Initially managed federally, Ontario transitioned to its own system in 2022. Cabot Canada plans to use the funds to implement technology that repurposes heat energy from its operations, reducing natural gas consumption.
Alongside Cabot, the federal government announced grants for several industrial projects, including $662,000 for McCain Foods in Manitoba and $25 million for Redpath Sugar in Toronto. However, the future of industrial carbon pricing is uncertain, as Conservative Leader Pierre Poilievre has pledged to repeal the federal system, raising concerns among climate policy experts and businesses.
Currently, the federal government administers the program in Manitoba, PEI, Nunavut, and Yukon, while other provinces manage their own versions in compliance with federal standards. The policy incentivizes companies to lower emissions by rewarding those that stay under carbon intensity thresholds while imposing costs on excessive emitters.
With more than $57 billion in emissions-reduction projects tied to the system, uncertainty looms for businesses investing in clean technology. Experts warn that policy changes could impact investor confidence, potentially shifting investments to provinces with more stable carbon pricing frameworks.
Despite the political debate, companies like Cabot Canada see value in the system, as it enables them to reinvest in green technologies. The company continues to seek additional funding for projects, including electrifying its vehicle fleet, demonstrating how industrial carbon pricing can drive sustainable innovation.
Source: Swifteradio.com
