$78 million to help the oil and gas sector grow and reduce its greenhouse gas emissions.$300 million to help with decarbonization projects.$500 million in loans to the Coastal GasLink Pipeline.$12 billion in loans and financial support for the TransMountain pipeline.There's no agreed upon definition in Canada of what a fossil fuel subsidy includes - which is why determining how much the government doles out remains a source of heated debate.Įnvironmental Defence recently calculated that the federal government provided more than $20 billion in loans and financial support to oil and gas companies in 2022. (Jason Franson/The Canadian Press) What exactly is a fossil fuel subsidy? The five largest companies in Canada's oilsands made about $35 billion in profits in 2022. In a statement, a spokesperson for Environment and Climate Change Canada said the details of the policy will be provided at the time of the announcement and noted that it "has already made progress on phasing out tax measures that are inefficient subsidies." They want bold action to tackle the climate crisis," said Laurel Collins, the party's environment and climate change critic. "Canadians are increasingly concerned about the devastating impacts of wildfires, flooding and extreme weather events on their communities, their homes and their livelihoods. The NDP also issued a statement last week calling on Guilbeault to eliminate subsidies. While non-binding, the federal government must table a response to the report - and advocates are hopeful it will put additional pressure on them to act. The report included 21 recommendations, the first of which was for the government to "continue taking steps to eliminate subsidies and applicable public financing" by the end of the year, while at the same time giving "careful attention to and mitigation of any potential social and economic impacts."Īnother recommendation was to ensure that any existing subsidy "facilitates the transition toward a low-carbon future" and is consistent with the country's climate goals. The parliamentary committee on environment released a report last week laying out recommendations for the phase out of subsidies and public financing. The long-anticipated policy comes as the oil and gas industry racks up record profits. The Liberals later committed to a 2025 target and, in the last election campaign, moved that up to 2023. "If it's weak, it sets an incredibly dangerous precedent."ĬBC Explains How much are taxpayers really subsidizing Canada's fossil fuel industry? It kind of cements a bit of climate leadership for Canada," she said in an interview. "If it's a strong assessment framework, it sets a great precedent. Julia Levin, associate director of national climate for the advocacy group Environmental Defence, said Canada has an opportunity to become a global leader in reducing fossil fuel subsidies if it's done right. Now, the federal government is preparing to release a new policy that will put an end to "inefficient fossil fuel subsidies," a commitment Canada made more than a decade ago.Ī spokesperson for Environment Minister Steven Guilbeault said the new policy will be released in July.īut the strength of that commitment, environmental groups say, will hinge on how exactly the terms "inefficient" and "subsidy" are defined. Canada has for years forked over billions of dollars in subsidies to oil and gas companies - an approach that critics say flies in the face of the country's climate goals, and impinges on efforts to turn toward renewable energy sources.
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