GHG Challenge Program - Industry

Q: How much funding can be received?

GHG Challenge Program - Industry Funds up to 75% of admissible expenses, capped at $50000000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the GHG Challenge Program - Industry a grant, loan, or tax credit?

GHG Challenge Program - Industry is a Grant and Funding

Q: Who are the financial supporters of the GHG Challenge Program - Industry?

GHG Challenge Program - Industry is funded by Environnement Québec (MELCC)

Q: Who is eligible for the GHG Challenge Program - Industry program?

To be eligible for the GHG Challenge Program - Industry program, you must: • Must be an industrial emitter subject to RSPEDE regulations or a voluntary participant under article 2.1 of SPEDE. • Must operate a Quebec-based mining or manufacturing facility. • Must be eligible for free allocation under RSPEDE.

Q: Who can I contact for more information about the GHG Challenge Program - Industry?

You can contact Environnement Québec (MELCC) by email at defiges@environnement.gouv.qc.ca.

Q: Where is the GHG Challenge Program - Industry available?

The GHG Challenge Program - Industry program is available the province of Quebec.

Last Update: September 26, 2025

QC, Canada

Supports major industrial projects reducing greenhouse gas emissions

At a glance

Eligible Funding

Max. $50,000,000
Up to 75% of project cost

Timeline

Closing date : October 20, 2022

Financing Type

Grant and Funding

Eligible Industries

Mining, quarrying, and oil and gas extraction
Manufacturing

Funds Providers

Environnement Québec

Program status

Closed

Overview

The GHG Challenge Program – Industry provides up to $50 million per project, covering a maximum of 75% of eligible expenses, to support major industrial initiatives that significantly reduce greenhouse gas emissions in Quebec. Eligible projects must involve large-scale GHG reduction activities in mining or manufacturing sectors and demonstrate a minimum annual reduction of 10,000 tonnes of CO2 equivalent.

Financing terms and conditions

Grant covers up to 75% of total eligible project expenses.
Maximum funding amount is capped at $50 million per project.
Total project costs must exceed $20 million, including the industry’s contribution.

Activities funded

Large-scale industrial projects aimed at significantly reducing greenhouse gas (GHG) emissions in Quebec.
Initiatives that achieve a minimum annual reduction of 10,000 tonnes of CO2 equivalent compared to a baseline scenario.
Industry-driven projects that stimulate investment in promising industrial sectors and contribute to Quebec's GHG reduction targets.
Collaborative projects involving industries and research partners to implement innovative solutions for emissions reduction.

Examples of admissible projects:

$ 45,000,000

Installing an electric arc furnace to replace coal-based melting

$ 13,350,000

Replacing industrial dryers with new ultra-efficient heat pump systems

$ 23,625,000

Switching process boilers to renewable hydrogen in pulp mill

$ 16,000,000

Building a biogas production facility for low-carbon steam generation

$ 50,000,000

Implementing carbon capture at a cement manufacturing plant

$ 18,750,000

Deploying a waste heat recovery system in aluminum smelting

Eligibility

The applicant must be an industrial emitter subject to section 2 of the RSPEDE regulation.
The applicant must operate an establishment in Quebec engaged in mining extraction or manufacturing activities.
The applicant must be eligible for free allocation under RSPEDE, or be a voluntary participant as described in article 2.1 of the SPEDE.
The project must demonstrate the potential to reduce greenhouse gas emissions in Quebec by at least 10,000 tonnes of CO2 equivalent per year over more than a decade.
The project must be carried out in one or more industrial establishments in Quebec covered by the RSPEDE and owned by the applicant, or offsite if it leads to emission reductions at those establishments.

Who is eligible?

Large industrial emitters subject to the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (RSPEDE)
Companies operating mining extraction establishments in Quebec
Companies operating manufacturing establishments in Quebec
Voluntary participants designated under section 2.1 of RSPEDE

Who is not eligible

Companies that are not classified as industrial establishments involved in mining extraction or manufacturing activities in Quebec.
Businesses that are not subject to or voluntarily participating under the RSPEDE (cap-and-trade system) regulations.

Eligible geographic areas

Establishments located in Quebec.

Selection criteria

Quality of the project and relevance of the proposed solution (20%).
Guarantees of project completion (35%).
Quality of expected results (45%).

How to apply

Verify eligibility requirements

Review the eligibility criteria, including being subject to the RSPEDE and meeting industrial activity requirements
Ensure your project aligns with the program's objectives, such as reducing GHG emissions by at least 10,000 tonnes CO2 equivalent per year
Confirm the total project cost exceeds $20 million
Verify project completion aligns with required deadlines

Prepare the project application

Gather all required information and documentation for your application
Prepare a detailed project proposal demonstrating GHG reduction potential and budget
Ensure documentation highlights the project's alignment with the RSPEDE requirements and program objectives

Submit the application

Submit the complete application and required documents by the specified deadline
Ensure submission aligns with program guidelines and deadlines

Await application evaluation

Wait for the evaluation committee to review your application
The committee assesses project quality, implementation guarantees, and expected results
Decisions are based on established selection criteria

Receive funding decision

Receive official notification of the funding decision from the program administrators
If accepted, proceed with project implementation according to approved terms

Additional information

The program is financed in part by the Electrification and Climate Change Fund (FECC).
The GHG Challenge Program – Industry is part of the 2022-2027 Implementation Plan of Quebec’s Green Economy Plan 2030.
The program promotes collaborative approaches between industries and the research sector when relevant.
A multi-ministerial committee evaluates applications.

Contacts

defiges@environnement.gouv.qc.ca

QC, Canada

Apply to this program

Frequently Asked Questions about the GHG Challenge Program - Industry Program

Here are answers to the most common questions about the GHG Challenge Program - Industry. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the GHG Challenge Program - Industry?

How much funding can be received?

What expenses are eligible under GHG Challenge Program - Industry?

Large-scale industrial projects aimed at significantly reducing greenhouse gas (GHG) emissions in Quebec. Initiatives that achieve a minimum annual reduction of 10,000 tonnes of CO2 equivalent compared to a baseline scenario. Industry-driven projects that stimulate investment in promising industrial sectors and contribute to Quebec's GHG reduction targets. Collaborative projects involving industries and research partners to implement innovative solutions for emissions reduction.