Assessment of Fossil Fuel Subsidies in Canada
A case study of the Trans Mountain Pipeline
This report evaluates a potential fossil fuel subsidy provided to the Canadian oil industry through the Government of Canada's expansion and continued operation of the Trans Mountain Pipeline (TMP) using the government's new fossil fuel subsidies assessment framework as the basis for analysis.
-
Despite its own policy to phase out fossil fuel subsidies, Canada continues to subsidize oil transportation through the Trans Mountain Pipeline, up to CAD 18.8 billion over the project's lifespan.
-
Canada has already invested CAD 37.5 billion in the Trans Mountain Pipeline. With pipeline tolls too low to cover the project costs, that investment won't be paid back, and taxpayers will be on the hook.
This report evaluates a potential fossil fuel subsidy provided to the Canadian oil industry through the Government of Canada's expansion and continued operation of the Trans Mountain Pipeline (TMP), using the government's new fossil fuel subsidies assessment framework as the basis for analysis. The analysis finds a potential subsidy to the oil industry in the range of CAD 8.7 billion to CAD 18.8 billion due to tolls that are below the cost of operating the pipeline.
You might also be interested in
Pipelines or Progress: Government support for oil and gas pipelines in Canada
Oil and gas pipelines in Canada have received over CAD 23 billion in government support since 2018.
Ending Canada’s Support for Fossil Fuels
Canada has committed to ending subsidies and public financing for fossil fuels at home and abroad and has taken some important steps along the path. Our experts set out the journey so far, and how it can improve.
Ending Canadian Domestic Public Financing for Fossil Fuels
This report examines the scope of public financing for the fossil fuel sector in Canada and makes recommendations for Canada's forthcoming policy to eliminate this financing.
Public Financial Support for Renewable Power Generation and Integration in the G20 Countries
G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year.