Government of Canada Announces $1 Billion to Support Environmental Improvements for Pulp and Paper Industry

June 23, 2009

Ottawa, JUNE 23rd - Canadian Pulp and Paper producers who invest in improved energy efficiency and environmental performance may qualify for funding from a new, $1-billion Pulp and Paper Green Transformation Program, Minister of Natural Resources Lisa Raitt announced last week.

“Providing support for the pulp and paper industry is an important piece of our Government’s economic renewal efforts,” said Fort-McMurray – Athabasca MP, Brian Jean, “The ongoing success of this vital industry is important to Canadians, and this funding will provide the foundation for increased efficiency and environmental performance.”

The Green Transformation Program intends to provide funding of $0.16 per litre of black liquor, up to a maximum program total of $1 billion. Black liquor is a liquid by-product of the chemical pulping process used to generate renewable heat and power. Eligible companies participating in the Green Transformation Program will be required to invest these funds over the next three years in capital expenditures that make improvements to energy efficiency or environmental performance on any pulp and paper mill in Canada, including mechanical mills.

“This new funding will help ensure that Canada has a pulp and paper sector that is both commercially and environmentally sustainable for years to come,” said Minister Raitt. “By making a smart investment today, we are laying the ground work for a greener, more secure future for the pulp and paper sector and the people who work in it.” 

In addition to its ongoing support of Canada’s forest sector, the Government of Canada is providing $170 million over two years under Canada’s Economic Action Plan to help companies develop new products and processes and capitalize on new market opportunities internationally.

To minimize the financial impact of the downturn on workers and the communities they live in, the Government is providing $200 million to extend work-sharing agreements over the next two years to a maximum of 52 weeks. This funding will help employers and employees avoid temporary layoffs while their industry recovers.