#FossilFuelSubsidies #CCS #Canada #EnvironmentalDefence
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Key points from the analysis:
The 2023 total includes $8 billion in loan guarantees for the TransMountain expansion pipeline, $7.3 billion in public financing through crown corporation Export Development Canada, and over $1.3 billion for carbon capture and storage projects.
Over the last four years, the federal government’s total financial support to the oil and gas industry was at least $65 billion. That level of support could have fully funded every major wind and solar project in Canada from 2019-2021 twelve times over. It is ten times what the government has invested in climate change adaptation since 2015. Around half of that, $35 billion, is enough to double transit ridership across the country over the next 12 years.
The climate pollution created by oil and gas companies has massive costs, including health costs, property damage from extreme weather events, and decreased agricultural productivity due to changing weather patterns. In 2023, the cost to society of the pollution from oil and gas companies operating in Canada was an estimated $52 billion.
The uptake of EVs and renewable energy is set to decrease the consumption of fossil fuels this decade. Oil and gas companies are increasingly looking to petrochemicals (chemicals made from oil and gas, which are then used to make other derivatives such as plastics) to preserve their business and profits. As a result, there are more and more petrochemical projects in Canada seeking subsidies. For example, NOVA Chemicals Corporation, a Canadian petrochemical company, secured a $300 million loan from Export Development Canada, one of the crown corporation’s largest single transactions.
Rather than subsidizing the oil and gas industry, the Government of Canada should be taxing their excessive profits. Oil and gas extraction companies in Canada made $270 billion in total revenue and $63 billion in profits in 2022 (the most recent year available). Putting in place a tax on the massive profits of oil and gas companies could bring in billions of dollars.
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In fact, subsidies for carbon capture are likely to increase significantly in 2024. The Government of Canada is finalizing a carbon capture investment tax credit as well as a hydrogen investment tax credit. Recent analysis from the Parliamentary Budget Analysis estimates that these two tax credits will collectively provide over $11 billion to carbon capture and hydrogen projects by 2028."
As the climate crisis escalates, the Canadian government keeps pouring billions into fossil fuels. Despite promises, new analysis exposes how $18.6 B in taxpayer dollars continue to fuel #pollution, not the solution.
#cdnpoli #FossilFuels
More here https://lnkd.in/gSwJJ2dq
Agree - fossil fuels power our lives, but shouldn't leave us powerless to disasters. Let's explore carbon pricing or a green energy transition fund to help communities rebuild.