Canada Leads G20 in Fossil Fuel Funding, But Lags in Renewable Energy Funding, Report Says |


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.

No surprise, Tucker said.

“Canada has always been in the top four. They’ve always been up there.

At the same time, the report reveals that Canadian renewable energy has received around $ 1 billion in public financial assistance, 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.”

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 progress, 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 says it will reduce support for the six most carbon-intensive sectors by 40% by 2023 from 2018 levels and set “sustainable finance targets” by July 2022.

“The organization will also consider how to broaden the targets to cover all the sectors it supports,” she says on her website.

Levin said 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.

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 finances for oil, gas and coal should be on the agenda.

The UK, Levin said, has already pledged to end such measures.

“They announced that they would be looking at this in December 2020, and by March 2021, they had a policy in place. It doesn’t have to take 10 years like it does Canada.

Tucker said a coalition of 15 countries and institutions should commit in Glasgow to ending fossil fuel public finances.

“It is not certain that Canada is joining us,” she said.

This report by The Canadian Press was first published on October 27, 2021.

– Follow Bob Weber on Twitter at @ row1960

Bob Weber, The Canadian Press


About Author

Comments are closed.