Canada starts emissions reduction fund from Volkswagen fine

Canada has started a fund on Thursday to invest in community-based projects to reduce emissions, with the bulk of the money coming from a fine that Volkswagen AG paid for breaking the country’s diesel emissions regulations.

The C$206 million ($157 million) fund is part of the country’s new Climate Action and Awareness Fund which seeks to increase climate science research by empowering youth and communities.

“The new Climate Action and Awareness Fund will create jobs for Canadians in science and technology, academia, and at the grassroots community level,” said Johnathan Wilkinson, minister of environment and climate change.

In January, a judge in Canada authorized a C$196.5 million fine against Volkswagen after the German automaker pleaded guilty to dozens of counts of diesel emissions violations. The fine was by far the largest environmental penalty in the history of Canada.

The minister also announced a C$50 million investment during three years towards a number of priorities such as supporting more research to bring down Canada’s emission to net-zero.