Wilkinson says aid program to cut methane emissions will be reconsidered
Natural Resources Minister Jonathan Wilkinson said Friday a pandemic aid program to help oil and gas companies cut their methane emissions will be revisited now that the industry is back on its feet.
But he said the government is not going to consider aid programs that help the fossil fuel sector cut their emissions to be the “inefficient fossil fuel subsidies” the government has promised to eliminate by the end of 2023.
The Onshore Emissions Reduction Fund is under an unflattering spotlight this week after an audit found it to be poorly designed and not good value for money.
Environment Commissioner Jerry DeMarco's report released Thursday criticized the program for poor design, overstating the emissions cuts it could achieve, and possibly double-counting emissions that would have been cut without this fund. He also said the program was helping some companies increase their production without accounting for the increase in emissions that would bring.
With only about one-fifth of the program's $675-million total already awarded, and the third round of applications not closing until January, DeMarco said there is still time to fix the multiple ways this program is failing.
In Ottawa Friday Wilkinson said the program was conceived 20 months ago to help oil and gas companies stay afloat at a time when oil prices had tanked.
“What I would say, and I agree with the commissioner on this is, we're not in the same situation now,” Wilkinson said.
“The economic crisis for the oil sector has passed and now it's time to actually look at whether this program should continue in its current form.”
In the first weeks of the pandemic, oil prices in Canada took a double whammy hit of plummeting demand as the world came to a stand still, and a production war between Russia and Saudi Arabia that caused a glut in oil supplies.
At certain points the benchmark price for Alberta oil was less than zero. But prices have rebounded, now sitting somewhere north of US$50 a barrel.
Julia Levin, a senior program manager for climate and energy at Environmental Defence, said the crisis period for the industry was very short-lived, and the projects to cut methane are required work under new federal methane regulations that are in the midst of being implemented.
“There is no evidence that public dollars were needed to help these so-called struggling companies take on spending that they should be doing on their own,” she said.
DeMarco said it's not clear how many of the projects would have gone ahead without the ERF funding since companies were already required to do the work to meet the new methane regulations. As such he said it's not clear how many additional emissions cuts this program has achieved.
Wilkinson however said that 4.6 million tonnes of emissions were already avoided strictly as a result of the program. Therefore he said it does not qualify as the kind of fossil fuel subsidy the government has promised to eliminate by the end of 2023.
However DeMarco's audit found 27 of the first 40 projects funded also included in the application a claim that the companies would be increasing their production as a result of the program, largely because the technology it was funding to cut emissions meant they could produce more oil and gas and still meet the new methane regulations.
Wilkinson said the government only sees as problematic financial aid to fossil fuel companies that incentivizes “the exploration and the production of fossil fuels.”
“Let me be clear, though,” he added. “What (fossil fuel subsidy) does not mean is investments that the government may make alongside energy sector partners to reduce emissions. So things like carbon cap and sequestration are not inefficient fossil fuel subsidies.”
This report by The Canadian Press was first published Nov. 26, 2021.
IN DEPTH
'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.
Trudeau, key election players to testify at foreign interference hearings. What you need to know
The public hearings portion of the federal inquiry into foreign interference in Canadian elections and democratic institutions are picking back up this week. Here's what you need to know.
Who is supporting, opposing new online harms bill?
Now that Prime Minister Justin Trudeau's sweeping online harms legislation is before Parliament, allowing key stakeholders, major platforms, and Canadians with direct personal experience with abuse to dig in and see what's being proposed, reaction is streaming in. CTVNews.ca has rounded up reaction, and here's how Bill C-63 is going over.
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.
TREND LINE What Nanos' tracking tells us about Canadians' mood, party preference heading into 2024
Heading into a new year, Canadians aren't feeling overly optimistic about the direction the country is heading, with the number of voters indicating negative views about the federal government's performance at the highest in a decade, national tracking from Nanos Research shows.
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
BREAKING Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Grandparent scam suspects had ties to Italian organized crime, Ontario police allege
A group of suspects that allegedly defrauded seniors across Ontario and other parts of Canada using a so-called emergency grandparent scam appear to have ties to 'Italian traditional organized crime,' according to an investigator involved in the OPP-led probe.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn’t over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball’s highest scorer Caitlin Clark’s first news conference as an Indiana Fever player.
Trend Line Anger, pessimism towards federal government reach six-year high: Nanos survey
Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.
BREAKING B.C.'s short-term rental regulations include $10K daily penalties for Airbnb, other platforms
Short-term rental platforms that violate B.C.'s pending regulations can face administrative penalties of up to $10,000 per day, officials announced Thursday.
Closing arguments heard in trial for Sask. dad accused of abducting daughter
Closing arguments were heard Thursday morning in the case of Michael Gordon Jackson, the Saskatchewan man accused of abducting his daughter in 2021 to keep her from getting a COVID-19 vaccine.
Cat found on Toronto Pearson airport runway 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Local Spotlight
Cat found on Toronto Pearson airport runway 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly on a mission: N.S. student collecting books about women in sport for school library
Molly Knight, a grade four student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Marmot in the city: New resident of North Vancouver's Lower Lonsdale a 'rock star rodent'
When Les Robertson was walking home from the gym in North Vancouver's Lower Lonsdale neighbourhood three weeks ago, he did a double take. Standing near a burrow it had dug in a vacant lot near East 1st Street and St. Georges Avenue was a yellow-bellied marmot.
Relocated seal returns to Greater Victoria after 'astonishing' 204-kilometre trek
A moulting seal who was relocated after drawing daily crowds of onlookers in Greater Victoria has made a surprise return, after what officials described as an 'astonishing' six-day journey.
Ottawa barber shop steps away from Parliament Hill marks 100 years in business
Just steps from Parliament Hill is a barber shop that for the last 100 years has catered to everyone from prime ministers to tourists.
'It was a special game': Edmonton pinball player celebrates high score and shout out from game designer
A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.
'How much time do we have?': 'Contamination' in Prairie groundwater identified
A compound used to treat sour gas that's been linked to fertility issues in cattle has been found throughout groundwater in the Prairies, according to a new study.
'Why not do it together?': Lifelong friends take part in 'brosectomy' in Vancouver
While many people choose to keep their medical appointments private, four longtime friends decided to undergo vasectomies as a group in B.C.'s Lower Mainland.