To help navigate the impacts of the COVID-19 pandemic and the economic challenges facing Alberta, ERA is making up to $10 million available in the next quarter to speed up cash flow and support the liquidity of our active projects. ERA is temporarily adjusting our payment holdback policy to a lower percentage held until project completion. This response helps reduce red tape and gets committed investments to companies more quickly.
“Alberta is facing unprecedented uncertainty and disruption due to the COVID-19 pandemic, the decline in global oil prices, and the instability of financial markets and economies around the world. We are working closely with our portfolio of companies to identify and implement a range of options to address urgent needs, while also moving forward with opportunities and solutions for longer term economic recovery and global competitiveness.”
Steve MacDonald, CEO, Emissions Reduction Alberta (ERA)
ERA funding is distributed on a milestone-by-milestone basis, covering costs already incurred by a project. ERA holds a standard per cent of payment at each of these stages until the project is completed and a final outcomes report is shared publicly for the broader benefit of Alberta.
By adjusting this holdback, up to $10 million will be distributed in the next quarter to entrepreneurs and organizations who are working hard on technologies that reduce greenhouse gas emissions and improve economic competitiveness. This will help 74 previously approved projects access amounts owed to them to address immediate cash constraints. The remaining holdback will be made available upon project completion and report publication. ERA Project Advisors will be in contact with proponents to discuss details of this initiative.
ERA will work alongside other funders to ensure that there will be no unintended consequences of any extraordinary one-time payments made to proponents in response to the COVID-19 crisis. ERA will not reduce any funding amounts committed by them as a result of these stimulus responses.
For more information contact:
Emissions Reduction Alberta
ABOUT EMISSIONS REDUCTION ALBERTA (ERA):
For 10 years, ERA has been investing the revenues from the carbon price paid by large final emitters to accelerate the development and adoption of innovative clean technology solutions. Since we were established in 2009, we have committed $557 million toward 161 projects worth over $4.3 billion that are helping to reduce GHGs, create competitive industries and are leading to new business opportunities in Alberta and beyond. These projects are estimated to deliver cumulative GHG reductions of 41.3 million tonnes by 2030.