2021 A.D.E. SINCE TIME BEGAN : CAVEAT : FORWARD THINKING STATEMENT : CAVEAT : IN TRUTH WE TRUST 2021 A.D.E.
Canada leads G20 in financing fossil fuels, lags in renewables funding,
report says
Canadian fossil fuel producers receive more public financial support than any in the developed world, according to a new analysis.
And compared to subsidies for oil,
gas and coal, renewable energy gets less government help in Canada than in any
other G20 country, say the latest figures from Oil Change International.
"They're very much going in the
wrong direction," said Bronwen Tucker, who helped prepare the report for
the group, which has been tracking public finance of fossil fuels since
2012.
The report, which includes 2019 and 2020,
adds up loans, loan guarantees, grants, share purchases and insurance coverage
provided to fossil fuel producers by governments, government agencies and
government-owned multinational development banks.
Around the world, that added up to
almost $78 billion last year — down from the 2015-17 average of $111 billion.
The report acknowledges that not all
countries are equally transparent, with information from countries such as
China and Saudi Arabia harder to come by.
But it found Canada topped the
subsidies list, providing an average of almost $14 billion a year between 2018
and 2020. Japan, Korea and China came in close behind.
No surprise, Tucker said.
"Canada's been consistently in
the top four. They've always been up there."
At the same time, the report finds
Canadian renewable energy received about $1 billion in public financial support
— far less than in other countries.
On average, the report finds G20
countries provided about 2.5 times more support for fossil fuels than
renewables. In Canada, the ratio is 14.5.
"That juxtaposition really stood
out to me," said Julia Levin of Environmental Defence, which has received
and endorsed the report. "We have just spent so much on the sectors of the
past rather than preparing for the future."
Both the federal government and
Export Development Canada — the agency through which most of the financing
flows — have pledged to reduce fossil fuel finance.
During the recent campaign, the Liberals said they would eliminate
fossil fuel subsidies by 2023.
That's progress, said Levin.
"This is the first time we've
seen the government say, 'Hey, we have to do something about public
financing.'"
Export Development Canada says by
2023, it will reduce support to the six most carbon-intensive sectors by 40 per
cent below 2018 levels and set "sustainable finance targets" by July
2022.
"The organization will also be
considering how to broaden targets to cover all sectors it supports," it
says on its website.
Levin said those promises are
inadequate.
"They fall short of what needs
to happen. Any climate policy that allows a public institution to continue
giving support to the oil and gas sector isn't enough."
Federal New Democrat Leader Jagmeet
Singh said the report shows the Liberal government isn't moving fast enough.
"It’s never been clearer that
this government needs to eliminate all fossil fuel subsidies,” he said in a
release. "To beat this climate crisis, we need bold action to reduce
emissions by 50 per cent instead of the Liberals' less ambitious targets."
The Oil Change report comes as world
leaders prepare to meet in Glasgow, Scotland, to discuss global progress on
climate change and what needs to happen next. Public finance of oil, gas and
coal is expected to be on the agenda.
The U.K., Levin said, has already
pledged to end such measures.
"They announced they'd be
looking into it on December 2020, and by March 2021 they had a policy in place.
It doesn't have to take 10 years like it's been taking Canada."
Tucker said a coalition of 15
countries and institutions are expected in Glasgow to commit to ending public
finance of fossil fuels.
"It is uncertain whether Canada
will join," she said.
This report by The Canadian Press was
first published Oct. 27, 2021.
— Follow Bob Weber on Twitter at
@row1960
Bob Weber, The Canadian Press
