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Prime Minister Stephen Harper and Quebec Premier Jean Charest have announced that Canada's government intends to provide Quebec with C$349.9 million as part of a new Canada ecoTrust to support provincial projects that will result in reductions of greenhouse gas emissions.

According to the government officials, the Canada ecoTrust will be established using part of the anticipated 2006-2007 budgetary surplus. The resources for the initiative will consist of C$1.5 billion of new funding on a national basis, which will be contained in the upcoming budget and be part of the actions taken on the fiscal imbalance.

The Canada ecoTrust is intended to support projects identified in or building upon Quebec's 2006-2012 action plan for climate change. The funding supports a program to develop renewable energy sources in rural regions and technological research. As a result of this federal funding, the government anticipates 13.8 million tons of carbon dioxide will be reduced.

Canada ecoTrust will be available as soon as Parliament approves the budget, Harper and Charest add.

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