{"id":62673,"date":"2024-03-26T10:00:55","date_gmt":"2024-03-26T17:00:55","guid":{"rendered":"https:\/\/energi.media\/?p=62673"},"modified":"2024-03-26T10:00:55","modified_gmt":"2024-03-26T17:00:55","slug":"canadas-support-for-oil-extends-beyond-financial-subsidies-panel","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/canadas-support-for-oil-extends-beyond-financial-subsidies-panel\/","title":{"rendered":"Canada\u2019s support for oil extends beyond financial subsidies: Panel"},"content":{"rendered":"<p><em>This article was published by <a href=\"https:\/\/www.theenergymix.com\/canadas-support-for-oil-extends-beyond-financial-subsidies-panel\/\" target=\"_blank\" rel=\"noopener\">The Energy Mix<\/a> on March 26, 2024.<\/em><\/p>\n<p><em><strong>By Christopher Bonasia<\/strong><\/em><\/p>\n<p>The Canadian government\u2019s enabling relationship with the oil and gas industry is holding back action to end financing for fossil fuels, say advocates, raising concerns about meeting climate goals as fossil fuel companies continue to grow.<\/p>\n<p>The reality that the oil sector is growing amid a climate crisis is \u201cthe tip of the iceberg\u201d indicating the relationship between the government and the industry, said Green Party leader Elizabeth May, who recently co-hosted a panel of experts in Ottawa to\u00a0<a href=\"https:\/\/www.tcan.ca\/events-list\/breakfast-panel-discussion-next-steps-in-ending-canadas-support-for-fossil-fuels\">discuss<\/a>\u00a0steps toward ending public finance for fossil fuels.<\/p>\n<p>Though Canada has plans\u00a0<a href=\"https:\/\/www.theenergymix.com\/canada-restricts-oil-and-gas-subsidies-leaves-open-door-for-indigenous-projects-ccs\/\">to phase out its \u201cinefficient\u201d oil and gas subsidies<\/a>, making it the first among wealthy G20 countries to take such a step, its fossil fuel sector continues to thrive and is on track to<a href=\"https:\/\/www.cbc.ca\/news\/climate\/canada-climate-fossil-fuel-production-report-1.7020988#:~:text=Canada's%20production%20set%20to%20climb&amp;text=The%20report%2C%20citing%20figures%20from,above%202022%20levels%20by%202035.\">\u00a0<\/a><a href=\"https:\/\/www.cbc.ca\/news\/climate\/canada-climate-fossil-fuel-production-report-1.7020988#:~:text=Canada's%20production%20set%20to%20climb&amp;text=The%20report%2C%20citing%20figures%20from,above%202022%20levels%20by%202035.\">keep expanding<\/a>. While emissions intensity is falling, Canada\u2019s overall emissions continue to climb, in step with its\u00a0<a href=\"https:\/\/www.theenergymix.com\/senators-probe-pace-of-energy-transition-as-official-defends-controls-on-fossil-emissions\/\">increasing oil and gas production<\/a>.<\/p>\n<p>This trend will continue unless the federal government breaks off its support for the fossil fuel industry, panelists said, and that goes beyond financing\u2014through implicit policy alignments and support beyond financial subsidies.<\/p>\n<p>The manner in which resource extraction intersects with Indigenous rights is one gauge of how the government backs industry, said panelist Eriel Tchekwie Deranger, executive director and co-founder of Indigenous Climate Action.<\/p>\n<p>Deranger said Canada has failed \u201cmassively\u201d to uphold commitments made in treaties and legislation to<a href=\"https:\/\/windspeaker.com\/news\/windspeaker-news\/grassroots-speak-out-against-tactics-governments-corporations-climate-change\">\u00a0<\/a><a href=\"https:\/\/windspeaker.com\/news\/windspeaker-news\/grassroots-speak-out-against-tactics-governments-corporations-climate-change\">consult with and get approval from<\/a>\u00a0First Nations. Instead, the government uses \u201ceconomic coercion.\u201d Indigenous communities are cornered as partners in fossil fuel projects as the government emphasizes that the projects<a href=\"https:\/\/www.theenergymix.com\/engos-first-nations-raise-the-heat-on-pipeline-decisions\/\">\u00a0<\/a><a href=\"https:\/\/www.theenergymix.com\/engos-first-nations-raise-the-heat-on-pipeline-decisions\/\">must go forward<\/a>. A community is left with only two choices: be part of it, or not. Meanwhile, essential community systems remain<a href=\"https:\/\/www.theenergymix.com\/as-canada-spends-billions-on-pipelines-first-nations-communities-still-wait-for-water\/\">\u00a0<\/a><a href=\"https:\/\/www.theenergymix.com\/as-canada-spends-billions-on-pipelines-first-nations-communities-still-wait-for-water\/\">underfunded<\/a>\u00a0as investments continue to flow to oil and gas.<\/p>\n<p>And instead of listening and hearing warnings to<a href=\"https:\/\/www.anishinabek.ca\/2021\/05\/06\/anishinabek-nation-leadership-supports-shut-down-of-line-5-pipeline\/\">\u00a0<\/a><a href=\"https:\/\/www.anishinabek.ca\/2021\/05\/06\/anishinabek-nation-leadership-supports-shut-down-of-line-5-pipeline\/\">stop pipelines<\/a>, the government and industry are \u201cinviting\u201d First Nations to be partners in developing fossil fuels, Deranger added.<\/p>\n<p>In effect, the government gives \u201csocial licence\u201d to oil and gas companies to continue, a different form of subsidy than plain money, she added.<\/p>\n<p>Similarly, oil and gas companies benefit from a \u201cculture of enablement\u201d arising from \u201ca world view that the industry can continue in its present form,\u201d said panelist David Wheeler, an expert in sustainable business practice.<\/p>\n<p>He said the fossil fuel industry has adopted a mindset where a 2\u00b0C to 3\u00b0C rise in average global temperatures a foregone conclusion, and oil companies will be able to continue producing and delivering profits to shareholders.<\/p>\n<p>So far, he told participants, Canada\u2019s actions to phase out fossil fuels have been poor, despite the \u201cgood intentions\u201d of many government leaders. Continual investments in fossil fuel infrastructure through Export Development Canada (EDC) are proof of this, said Wheeler, who was a member of EDC\u2019s corporate social responsibility advisory council between 2015 and 2021.<\/p>\n<p>Wheeler said EDC is being used to\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/business\/commentary\/article-trudeau-fossil-fuel-subsidies\/\">channel funding<\/a>\u00a0to domestic fossil fuel projects like the Trans Mountain pipeline expansion (TMX), which is<a href=\"https:\/\/www.theenergymix.com\/canadians-want-oil-companies-to-pay-for-tmx-survey-finds\/\">\u00a0<\/a><a href=\"https:\/\/www.theenergymix.com\/canadians-want-oil-companies-to-pay-for-tmx-survey-finds\/\">costing taxpayers billions<\/a>\u00a0of dollars. The project\u2019s price tag\u00a0<a href=\"https:\/\/www.theenergymix.com\/trans-mountain-price-tag-jumps-to-34m-as-market-prospects-dim\/\">ballooned<\/a>\u00a0to $34 billion earlier this month, and the Crown-owned Trans Mountain Corporation\u00a0<a href=\"https:\/\/www.canada.ca\/en\/environment-climate-change\/news\/2019\/06\/greenhouse-gas-emissions-from-the-trans-mountain-project.html\">predicts<\/a>\u00a0it will \u201cgenerate about 400,000 tonnes of greenhouse gas emissions annually.\u201d<\/p>\n<p>Continuing to use EDC to fund domestic fossil fuel projects leaves open a \u201ca gaping hole\u201d in the government\u2019s climate action that is at best a \u201csystematic drag on national climate policy commitments\u201d, or at worst enables \u201cwholly unaccountable political decision-making by the Government of Canada,\u201d Wheeler said.<\/p>\n<p>And this \u201cgaping<a href=\"https:\/\/www.iisd.org\/articles\/insight\/ending-canada-support-fossil-fuels\">\u00a0<\/a><a href=\"https:\/\/www.iisd.org\/articles\/insight\/ending-canada-support-fossil-fuels\">hole<\/a>\u201d is having real world, domestic impacts, he added. No fewer than 18 new transactions were processed in this way between June 2018 and February 2024, 11 of them for TMX.<\/p>\n<p>Economist Renaud Gignac, senior advisor at Investors for Paris Compliance, elaborated on how federal support for fossil fuels is entrenched in spending policies. In many ways, the cost of supporting fossil fuels is indirectly placed on communities, through \u201cimposed externalities\u201d like clean-up costs and public health impacts. Gignac said there is also substantial funding from public subsidies, but data gaps make it hard to track the full amount.<\/p>\n<p>Gignac said the federal government\u2019s guidelines on ending \u201cinefficient\u201d fossil fuel subsidies do not apply to provinces and territories, leaving room for those governments to resist reining in the sector. The industry also benefits from sub-national politicians pushing back against the\u00a0<a href=\"https:\/\/www.theenergymix.com\/carbon-tax-fight-needs-grown-up-conversation-on-climate-emergency\/\">federal carbon pricing scheme<\/a>, which already has<a href=\"https:\/\/climateinstitute.ca\/reports\/the-state-of-carbon-pricing-in-canada\/\">\u00a0<\/a><a href=\"https:\/\/climateinstitute.ca\/reports\/the-state-of-carbon-pricing-in-canada\/\">favourable terms<\/a>\u00a0and<a href=\"https:\/\/climatechoices.ca\/wp-content\/uploads\/2021\/06\/State-of-carbon-pricing-report-English-FINAL.pdf\">\u00a0<\/a><a href=\"https:\/\/climatechoices.ca\/wp-content\/uploads\/2021\/06\/State-of-carbon-pricing-report-English-FINAL.pdf\">exemptions for large emitters<\/a>\u00a0<em>[pdf]<\/em>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>This article was published by The Energy Mix on March 26, 2024. By Christopher Bonasia The Canadian government\u2019s enabling relationship with the oil and gas industry is holding back action to end financing for fossil <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/news\/canadas-support-for-oil-extends-beyond-financial-subsidies-panel\/\" title=\"Canada\u2019s support for oil extends beyond financial subsidies: Panel\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":62675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[13,109,80,14,2408,1740,16,1276],"class_list":{"0":"post-62673","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-canada","9":"tag-climate-change","10":"tag-environment","11":"tag-featured","12":"tag-indigenous-peoples","13":"tag-money","14":"tag-oil-and-gas","15":"tag-politics"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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