Canada gives $3.3bn subsidies to fossil fuel producers despite climate pledge
Government subsidy to gas and oil companies undermine Trudeau’s plan to put national price on carbon dioxide by 2018, environmental report warned
Tuesday 15 November 2016 19.06 GMT
Canada’s attempt to act on climate change is being undermined by $3.3bn in government subsidies flowing to oil and gas producers in the country a year, a new report has warned.
The prime minister, Justin Trudeau, has vowed to place a national price on carbon dioxide emissions by 2018. Last week, Trudeau said he would not be deterred by the election as US president of Donald Trump, who has called climate change a “hoax”, and would forge ahead with the plan to “show leadership that quite frankly the entire world is looking for”.
But a study by four major Canadian environmental groups has shown that carbon pricing risks being undermined by billions of dollars in subsidies to fossil fuel interests, from both federal and provincial governments.
The $3.3bn annual subsidy, made up of extraction incentives and research and development, amounts to paying polluters $19 for each tonne of carbon dioxide they emit, according to the green groups. This would conflict, they say, with the planned carbon price, which will ramp up to $50 a tonne by 2022.