The mechanism gives investors in CCS certainty about their future revenue by setting a minimum price for their carbon credits.
Oil companies in the country's highest-emitting sector are counting on CCS to help dramatically cut emissions while continuing to pump oil and gas.
Carbon credits represent reduced or avoided carbon emissions, and companies use them to mitigate greenhouse gases they generate.
The government has told Pathways that the Growth Fund may not be equipped to handle some projects, said the Pathways representative who asked not to be named.
Canada set up the Growth Fund last year, which is run through the Public Sector Pension Investment Board, a federal Crown corporation.
Persons:
Suncor, Todd Korol, Justin Trudeau, Jessica Eritou, Adam Auer, Steve Scherer, Denny Thomas, Josie Kao
Organizations:
Rights, Pathways Alliance, Reuters, Finance Ministry, U.S, Alliance CCS, Canadian Natural Resources, Suncor Energy, Cenovus Energy, ConocoPhillips, MEG Energy, Public Sector Pension Investment Board, Crown, Cement Association of Canada, Thomson
Locations:
Fort McMurray , Alberta, Canada, U.S, ConocoPhillips Canada