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
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.
'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.
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: 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.
opinion Don Martin: Pierre Poilievre's road to apparent victory will soon start to get rougher
Pierre Poilievre and his Conservatives appear to be on cruise control to a rendezvous with the leader's prime ministerial ambition, but in his latest column for CTVNews.ca, Don Martin questions whether the Conservative leader may be peaking too soon.
opinion Don Martin: The Trudeau lessons from Brian Mulroney's legacy start with walking away
Justin Trudeau should pay very close attention to the legacy treatment afforded former prime minister Brian Mulroney, who died on Thursday at age 84, writes columnist Don Martin.
opinion Don Martin: ArriveCan debacle may be even worse than we know from auditor's report
It's been 22 years since a former auditor general blasted the Chretien government after it 'broke just about every rule in the book' in handing out private sector contracts in the sponsorship scandal. In his column for CTVNews.ca, Don Martin says the book has been broken anew with everything that went on behind the scenes of the 'dreaded' ArriveCan app.
CTVNews.ca Top Stories
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Deaths of 4 people on Sask. farm confirmed as murder-suicide
The deaths of four people on a farm near the Saskatchewan village of Neudorf have been confirmed a murder-suicide.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Full parole granted to man convicted in notorious 'McDonald's murders' in Cape Breton
The Parole Board of Canada has granted full parole to one of three men convicted in the brutal murders of three McDonald's restaurant workers in Cape Breton more than 30 years ago.
Incident on Calgary's Reconciliation Bridge comes to safe resolution
Nearly 20 hours after a man climbed and remained perched on top of the Reconciliation Bridge in downtown Calgary, the situation came to a peaceful resolution.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
George Washington family secrets revealed by DNA from unmarked 19th century graves
Genetic analysis has shed light on a long-standing mystery surrounding the fates of U.S. President George Washington's younger brother Samuel and his kin.
'We won't forget': How some Muslims view Poilievre's stance on Israel-Hamas war
A spokesman for a regional Muslim advocacy group says Conservative Leader Pierre Poilievre's stance on the Israel-Hamas war could complicate his party's relationship with Muslim Canadians.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
Local Spotlight
Conservation officers seize 9-foot python from Chilliwack home
B.C. conservation officers recently seized a nine-foot-long Burmese python from a home in Chilliwack.
N.B. man wins $64 million from Lotto 6/49
A New Brunswicker will go to bed Thursday night much richer than he was Wednesday after collecting on a winning lottery ticket he let sit on his bedroom dresser for nearly a year.
Ontario auto-insurance changes could leave some vulnerable, says expert
The Ontario government is introducing changes to auto-insurance, but some experts say the move is ill-advised.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
A tiny critter who could: Elusive Newfoundland Marten makes improbable comeback
Newfoundland’s unique version of the Pine Marten has grown out of its threatened designation.
Ontario man loses $12K to deepfake scam involving Prime Minister Justin Trudeau
A Toronto man is out $12,000 after falling victim to a deepfake cryptocurrency scam that appeared to involve Prime Minister Justin Trudeau.
Record-setting pop tab collection for Ontario boy
It started small with a little pop tab collection to simply raise some money for charity and help someone — but it didn’t take long for word to get out that 10-year-old Jace Weber from Mildmay, Ont. was quickly building up a large supply of aluminum pop tabs.
'I was just like, holy cow!': Saskatoon dumpster divers reclaim wasted valuables
There’s a group of people in Saskatoon that proudly call themselves dumpster divers, and they’re turning the city’s trash into treasure.
Ontario to balance budget ahead of 2026 election, citing delay due to 'economic uncertainty'
Ontario is facing a larger than anticipated deficit but the Doug Ford government still plans to balance its books before the next provincial election.