The provincial government in Alberta, Canada, said it set aside more than $1 billion for carbon storage and storage facilities for oil sands projects.

Provincial Energy Minister Diana McQueen said two projects tied to the oil sands sector would be able to store more than 2.7 million tons of carbon dioxide each year.

"With [these projects], we are showing the world we take the responsible development of our resources seriously and we're becoming a world leader in CCS technology," she said in a statement Thursday.

Alberta holds some of the largest oil deposits in the world at its Athabasca deposit, located in the east of the province.

The heavier grade of crude oil found there is seen as a threat to the environment because it's carbon-intensive to produce.

When he took office last month, Canadian Natural Resources Minister Greg Rickford said Canada's economic future depends on responsible resource development.

The two CCS projects -- the Alberta Carbon Trunk Line and Quest Projects -- are scheduled to start up in 2015. The provincial government said the facilities will reduce the greenhouse gas emissions associated with oil sands development by storing the harmful gases more than a mile underground.