ENVI Committee Report

Dissenting Report of the New Democratic Party of Canada

New Democrats would like to thank all the witnesses who appeared before the Standing Committee on the Environment and Sustainable Development and those who submitted written briefs during the Committee’s study of the government’s commitments to accelerate Canada’s G20 commitment to eliminate fossil fuel subsidies from 2025 to 2023, as well as to develop a plan to phase out public financing of the fossil fuel sector, including by federal Crown corporations.

While we support some of the recommendations in the report, we differ on some of the conclusions and are concerned that important perspectives and recommendations have not been addressed.

The committee heard from witnesses that all subsidies, public financing, and other fiscal supports, including tax measures, to the fossil fuel sector should be considered inefficient fossil fuel subsidies and that so-called emissions reduction subsidies to oil and gas companies to reduce their own pollution contribute more to increased production and rising corporate profits than they do to the reduction of carbon emissions. The committee also heard significant concerns about the government’s intention to subsidize carbon capture and storage technology through tax credits available to oil and gas companies for a technology that has not yet been proven to work at the scale required, is most often used to increase production, and is one of the most expensive and least effective ways to reduce emissions. Witnesses also emphasized that renewable energy receives only a fraction of the financial support handed out to the oil and gas sector, despite the need to rapidly scale up this technology to meet our climate targets and build a sustainable economy for Canadians.

Recommendations submitted by the New Democratic Party:

Recommendation 1

That the Government of Canada eliminate all subsidies, public financing, and other fiscal supports provided to the oil and gas sector before the end of 2023, including financial support provided through Export Development Canada and the Carbon Capture Tax Credit, and redirect those funds towards a just, renewable energy transition and supports for workers and communities.

Recommendation 2

That the Government of Canada introduce legislation that would ban any future fossil fuel subsidies.

Recommendation 3

That the Government of Canada attach strict conditions to all funding programs to ensure government spending is aligned with Canada’s obligations under the Paris Agreement and the creation of good-paying sustainable jobs for workers.