Canada is still backing the fossil fuel industry with billions, report finds

A new report says the federal government is providing billions of dollars in financial support for the fossil fuel industry, despitemeasures announced last year to limit certain types of subsidies for the oil and gas industry.

The analysis, released today by the advocacy group Environmental Defence, estimated that Ottawa offered up at least $18.6 billion in support of the fossil fuel and petrochemical industries in 2023.

That tally includes:

• $8 billion in loan guarantees for the Trans Mountain pipeline.
• $7.4 billion in public financing through the Crown corporation Export Development Canada.
• $1.3 billion for carbon capture and storage projects.

Climate activists have for years been calling on Canada to scale back its support of the fossil fuel industry and instead prioritize cleaner, renewable forms of energy.

«This is kind of the litmus test of whether the government is actually taking serious action,» said Julia Levin, an associate director at Environmental Defence who prepared the report.

«It's failing that litmus test by continuing to give federal subsidies.»

Environmental Defence's numbers are down only slightly from last year, when it calculated $20.2 billion in financial support — even though Environment Minister Steven Guilbeaulteliminated «inefficient» fossil fuel subsidies in July.

Environment and Climate Change Canada did not immediately return a request for comment Wednesday.

'All these other tentacles'

The framework regarding inefficient subsidies was meant to phase out funding for oil and gas, withsome exceptions, such as for projects that reduce greenhouse gas emissions, support clean energy or capture carbon and store it underground.

«We're eliminating subsidies to produce fossil fuels in Canada, unless those