The prime minister, speaking to reporters in the province of Quebec, told the opposition in Parliament that the money will only be available if the budget is passed.

If the budget fails, Harper's minority Conservative government will fall and an election will be triggered.

"We have no plans to call an election," Harper said. "I hope the budget will pass so we can get on with these major projects in Quebec and across the country."

The money will be used to co-fund projects with the provinces. Harper said this funding would help resolve what has been termed a "fiscal imbalance," referring to a belief that Ottawa takes in too much money in relation to how much it spends or transfers to the provinces.

Canada's emissions of greenhouse gases, widely blamed for global warming, are 35 percent above the levels it has agreed to hit by 2012 under the Kyoto Protocol.

Harper reiterated on Monday that it would be impossible to meet that 2012 target but said: "We must take the measures that we can do to reduce emissions."