The government in Canada has launched a C$750m ($562.16m) fund to help oil and gas companies to reduce methane and other greenhouse gas (GHG) emissions.

The country is committed to achieving net-zero emissions by 2050 and also to surpass its Paris Agreement targets by 2030.

According to Natural Resources Canada, methane is among the ‘most potent’ GHG emissions. It is responsible for 43% of all GHGs in the oil and gas sector in Canada.

The fund, called ‘Emissions Reduction Fund’, will mainly offer repayable funding ‘to eligible onshore and offshore oil and gas companies’ for backing their investments in greener technologies to cut down greenhouse gas emissions.

It will allocate funding of approximately C$675m ($505.95m) to eligible onshore oil and gas companies to help them invest in ‘green technologies’ for reducing GHG emissions.

The remaining C$75m ($56.22m) will be dedicated to reducing emissions from oil and gas production (O&G) in the waters of the Newfoundland and Labrador province.

Canada Natural Resources Minister Seamus O’Regan said: “We’re taking action to reduce greenhouse gas emissions in partnership with Canada’s oil and gas sector. This will maintain good jobs and make sure our companies remain globally competitive for years to come.”

The Government of Canada committed C$320m ($238.6m) to support the struggling offshore oil industry.

In Canada, Newfoundland and Labrador is the third-largest oil-producing province. The province produced approximately 5% of the country’s crude in 2018.

The economy of the province is dependent on oil, fishery and tourism.