The Media Room

2009/61 (a)

Backgrounder

Government of Canada Takes Action
to Support Canadian Pulp and Paper Producers

The new Pulp and Paper Green Transformation Program will lay the groundwork for a greener, more sustainable future for Canada’s pulp and paper sector by supporting innovation and investments in energy efficiency and renewable energy production technologies. It will allow mills in Canada to further reduce their greenhouse gas emissions while helping to position them as leaders in the production of renewable energy from forest biomass. 

Pulp and Paper Green Transformation Program

The Pulp and Paper Green Transformation Program will help pulp and paper companies located in Canada make investments that improve the energy efficiency and environmental performance of their facilities by providing a $0.16 per litre credit for black liquor produced by their mills between January 1, 2009, and December 31, 2009.

The program is capped at $1 billion, and payments to Canadian industry will not exceed this total.  Moreover, the funds must be spent over a three-year period on capital expenditures in pulp and paper mills that will improve energy efficiency and environmental performance.

A critical element of green transformation refers to the production of heat, power and fuels from renewable sources such as forest biomass. Black liquor is a biomass by-product of the chemical pulping process that has long been used by pulp producers to generate energy for their mills. Projects such as upgrades to cogeneration units, improvements to the energy efficiency of recovery boilers, more energy-efficient pulp and paper machinery and machinery to produce ethanol from forest biomass are examples of capital expenditures that may qualify under the Pulp and Paper Green Transformation Program. This initiative will help the pulp and paper sector further reduce its environmental footprint while moving closer to becoming a net source of green power.

The program will improve environmental performance for Canadian pulp and paper mills.

In addition to its ongoing support of Canada’s forest industry, the Harper Government is providing $170 million over two years under Canada’s Economic Action Plan to help companies develop new products and processes and take action on new market opportunities internationally. The $1-billion Community Adjustment Fund and the $1-billion Community Development Trust are helping to mitigate the short-term impacts of economic restructuring in communities hard hit by the recession. To minimizing 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 assist employers and employees avoid temporary layoffs while their industry recovers.

Media may contact:

Jocelyne Turner

Press Secretary

Office of the Minister

Natural Resources Canada

Ottawa

613-996-2007

or

Stéphanie Desforges

Senior Special Assistant, Communications

Office of the Honourable Denis Lebel

Canada Economic Development

514-496-1282

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.