Canada to stop directly financing fossil fuel projects abroad, with narrow exceptions
With weeks until an end-of-year deadline it agreed to last year, Canada has announced that it will end new direct subsidies for fossil fuel investments and projects abroad — including those owned by Canadian companies.
The policy released Thursday afternoon applies to the extraction, production, transportation, refining and marketing of crude oil, natural gas or thermal coal, as well as power generation projects that do not use technologies such as carbon capture to significantly reduce emissions.
The rules, which take effect Jan. 1, will apply to direct funding from federal departments, agencies and Crown corporations.
Advocates had feared that Canada would opt for a narrower definition of "international" that would nonetheless allow support for Canadian companies abroad, which climate-change organization Environmental Defence estimates makes up about 78 per cent of Canada's international support for such projects.
But the policy defines "international" as "operations outside of Canada's jurisdiction in the fossil fuel energy sector regardless of owner domicile." This means that the federal government is barring itself from funding even fossil fuel projects wholly owned by Canadian companies.
"It's a very strong policy," said Julia Levin, Environmental Defence's national climate program manager. "It's very encouraging that the government has obviously listened to the experts and come up with a broad definition."
Ottawa is making the move weeks shy of a deadline it committed to, along with 38 other countries, in November 2021 at an international climate summit in Glasgow.
Out of high-income signatories, the United Kingdom, France, Finland, Sweden and European Investment Bank have already delivered policies hailed by international advocacy groups as meeting the high bar of the Glasgow statement. While the United States government has introduced policies to address the statement, it has released few details about how those policies are being implemented.
Levin said that Canada is showing leadership. "We're joining the group of first movers who are aligning international public spending with the climate commitments," she said.
Advocacy groups praised the policy, with organizations including the International Institute for Sustainable Development, the Center for International Environmental Law, Climate Action Network, Amnesty International Canada and others calling it an important step forward.
"Oil and gas is usually the elephant in the room in Canadian climate policy," Claire O'Manique, a public finance analyst at Oil Change International, said in a statement. "Today's guidance is a notable break from this norm."
The policy is not without loopholes. An international project could be supported for reasons of national security or humanitarian and emergency response, and a government could decide to take a broad definition of either.
But even under such circumstances, the project would need to abide by criteria including compliance with the goals of the Paris Agreement and proof that it will not "delay or diminish the transition to renewables." It would also have to be coherent with the goal to keep global temperature levels no higher than 1.5 C above pre-industrial levels.
A narrow carveout for natural gas power generation includes the additional criteria that there be no viable renewable alternative to the project and that it is replacing a higher-emitting fuel source.
The government defines the criteria around these exceptions as "strict," and Levin agreed that they are robust. "If these conditions are implemented with rigour and integrity, it really rules out any future fossil financing for natural gas," she said.
Thursday's announcement does not cover domestic projects and, Natural Resources Canada said in a statement, does not "pre-determine the government of Canada's future domestic framework on fossil-fuel subsidies."
The department says Ottawa intends to eliminate "inefficient" domestic fossil fuel subsidies and additional "significant" subsidies domestically by next year, but details are few and far between.
"I was hoping with the release of this policy, they would outline the next steps. I was disappointed that that wasn’t there," Levin said. "Projects in Canada are just as destructive as projects abroad. But this policy sets us up well for a strong domestic financing policy and I look forward to seeing the next steps in the immediate future."
Reacting to the policy Thursday evening, the federal NDP noted that the elimination of international public financing for fossil fuel projects was part of its confidence-and-supply agreement with the Liberals, in which the party agreed to support the minority government in key votes until 2025.
"This wouldn't have happened if the NDP weren't at the table pushing for a better climate plan for Canadians. But the Liberals are still giving Canadians’ money to the ultra-rich CEOs who run massive, profitable oil and gas companies in Canada," environment critic Laurel Collins said in a statement.
Collins said the policy is "too little, too late" and is calling on Ottawa to end all fossil fuel subsidies, period, including at home.
This report by The Canadian Press was first published Dec. 8, 2022.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
Canada Post cracks down on Nunavut loophole to get free Amazon Prime shipping
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
'It was violent': Police tear down U of A pro-Palestinian encampment Saturday morning
Multiple people at the protest camp torn down at the University of Alberta campus Saturday say police's actions against protesters were "violent" and "disproportionate."
Trucker's body found in trailer in Newfoundland after failed police search in Ontario
Ontario Provincial Police are facing tough questions about their search for a missing Newfoundland trucker whose rig was found two weeks ago in Ontario, then sent back to Newfoundland, where his body was found Monday in the trailer.
An apartment block collapses in a Russian border city after heavy shelling, injuring over a dozen
An apartment block partially collapsed in the Russian border city of Belgorod on Sunday, leaving at least 19 injured. Officials blamed Ukrainian shelling and said there were also likely deaths.
German men with the strongest fingers compete in Bavaria's 'Fingerhakeln' wrestling championship
Despite the threat of dislocated fingers and strained muscles, over 150 Bavarian men came together Sunday to compete in Germany’s unique national championship of “Fingerhakeln,” or finger wrestling.
Millions of Canadians have been exposed to potentially toxic chemicals, and they're not going anywhere
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
Michael Cohen: A challenging star witness in Donald Trump's hush money trial
He once said he would take a bullet for Donald Trump. Now Michael Cohen is prosecutors' biggest piece of legal ammunition in the former president's hush money trial.
Feds 'committed to doing more,' but minister offers no timeline for Canadian Disability Benefit boost
Amid significant criticism from advocates, Diversity, Inclusion and Persons with Disabilities Minister Kamal Khera is defending her government's long-promised, newly unveiled Canada Disability Benefit, calling the funds an "initial step," but without laying out a timeline for future expansion of the program.
Local Spotlight
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
Toronto-area dessert shop featured by Keith Lee forced to move after zoning complaint
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
'Oh Crap!' New exhibit at Canada Science and Technology Museum explores human waste
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'
Regina police hope new biometric monitoring system will save lives in detention facility
The Regina Police Service says it is the first in Saskatchewan and possibly Canada to implement new technology in its detention facility that will offer real-time monitoring of detainees’ vital health metrics.
Her SUV was stolen in Montreal. A Good Samaritan on Facebook helped her get it back
Just as she had feared, a restaurant owner from eastern Quebec who visited Montreal had her SUV stolen, but says it was all thanks to the kindness of strangers on the internet — not the police — that she got it back.
Vancouver and Edmonton's mayors bet on who will win Round 2 of the playoffs. Here's what's at stake
The stakes have been set for a bet between Vancouver and Edmonton's mayors on who will win Round 2 of the Stanley Cup playoffs.
'No other life taken': Mother leads ATV helmet drive to honour daughter's legacy
A grieving mother is hosting a helmet drive in the hopes of protecting children on Manitoba First Nations from a similar tragedy that killed her daughter.