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Environmental Benefits for Canadians

Of the SD Tech Fund’s total value of $550M, an amount of $350M is to be allocated to climate

change and clean air and $200M is to be allocated to clean soil and clean water.

Of the $350M, the allocation ratio is targeted at 80% to climate change and 20% to clean air.

SDTC is on track to meet the above requirement. To date, SDTC has approved $358M in funding to projects that

address climate change and clean air where:

• 80.2% has been allocated to projects that primarily address climate change; and

• 19.8% has been allocated to projects that primarily address clean air.

Since 2006, SDTC has allocated $105M to projects that primarily address water and soil environmental benefts.

While targeting the above SDTC also encourages projects that have multiple environmental benefts.

SDTC Environmental Bene ts - Proportion of Projects with each Bene t

0 10 20 30 40 50 60 70 80 90 100

More than one bene t

Percent

CleanWater or Soil

Clean Air

Climate Change 90%

80%

63%

89%

GHG Reduction

Estimated total annual GHG reduction in 2015, attributable to all 183 projects funded by SDTC since inception is projected

to be between 7 and 17 Megatonnes. Tese fgures include adjustments for the uncertainty of projections by applying a dis-

counting factor to individual projects of between 80% and 93.5%. 2

2 GHG emission reduction projections are inherently forward-looking statements. They involve risks and uncertainties that could cause actual results to differ materially from those contemplated. SDTC believes it has a reasonable basis for making such forward-looking statements by:

• Requiring every applicant to estimate future GHG emission reductions using a prescribed methodology based on accepted ISO and IPCC practices.

• Reviewing the reasonableness of projected GHG emissions reductions reported by applicants and, as new information is reported, adjusting projections and excluding projects on hold. • Applying a discount rate of between 80% and 93.5% to account for the technology GHG intensity performance and the likelihood to meet sales projections. SDTC cautions that undue reliance should not be placed on forward-looking statements.

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