Canadian fossil fuel producers receive more public financial support than those in any other developed country, new analysis shows.
And compared to subsidies for oil, gas and coal, renewables receive less government support in Canada than in any other G20 country, according to the latest figures from Oil Change International.
“They’re really going in the wrong direction,” said Bronwen Tucker, who helped prepare the report for the group, which has been tracking public funding for fossil fuels since 2012.
The report, which includes 2019 and 2020, sums up loans, loan guarantees, grants, equity purchases and insurance coverage provided to fossil fuel producers by governments, government agencies and development banks. government-owned multinationals.
Worldwide, this amounted to nearly $ 78 billion last year, down from the 2015-2017 average of $ 111 billion.
The report acknowledges that not all countries are equally transparent, with information from countries like China and Saudi Arabia more difficult to obtain.
But he found Canada topped the list for grants, providing an average of nearly $ 14 billion a year between 2018 and 2020. Japan, Korea and China came close behind.
It’s no surprise, Ms Tucker said.
“Canada has always been in the top four. He’s always been up there. “
The report also reveals that Canadian renewable energy has received about $ 1 billion in public funding, far less than in other countries.
On average, the report finds that G20 countries have provided around 2.5 times more support for fossil fuels than renewables. In Canada, the ratio is 14.5.
“This juxtaposition really struck me,” said Julia Levin of Environmental Defense, who received and approved the report. “We just spent so much on the sectors of the past rather than preparing for the future. “
Less support by 2023?
The federal government and Export Development Canada – the agency through which most of the funding goes – have made commitments to cut funding for fossil fuels.
During the recent election campaign, the Liberals said they would eliminate fossil fuel subsidies by 2023.
It’s a step forward, Ms. Levin said. “This is the first time we’ve seen the government say, ‘Hey, we’ve got to do something about public funding.’ “
Export Development Canada is committed to reducing support for the six most carbon-intensive sectors by 40% by 2023 from 2018 levels and will set “sustainable financing targets” by July 2022.
“The Company will consider ways to extend its targets to all the sectors it finances,” she says on its website.
For Ms. Levi, those promises were insufficient. “They are not up to what has to happen. Any climate policy that allows a public institution to continue supporting the oil and gas sector is not enough. “
On the menu of COP26
The Oil Change report comes as world leaders prepare to meet for COP26 in Glasgow, Scotland to discuss global progress on climate change and what needs to happen next. Public finances for oil, gas and coal should be on the agenda.
The UK, noted Ms. Levin, has already pledged to end such measures.
“They announced they would look into the issue in December 2020, and by March 2021 they had a policy in place. It doesn’t need to take 10 years like in Canada. “
Ms Tucker said a coalition of 15 countries and institutions should commit in Glasgow to ending public funding for fossil fuels.
“It is not certain that Canada is joining us,” she said.