https://www.cbc.ca/news/business/environmental-defence-subsidies-oilpatch-1.5026643
[links and video in online article]
Alberta government subsidies increasing for fossil fuel industry: report
This week alone the government announced billions of dollars in oilpatch
support
Kyle Bakx · CBC News · Posted: Feb 21, 2019 4:00 AM ET
The Alberta government's subsidies to the fossil fuel sector are
increasing and surpassed $2 billion in the last fiscal year, according
to a report released this morning by Environmental Defence and the
International Institute for Sustainable Development.
Premier Rachel Notley has invested in helping oilpatch companies reduce
their greenhouse gas emission intensity and help fund the construction
of new petrochemical facilities and bitumen upgrader facilities, to name
a few of the subsidies listed in the report.
Just this week, Notley announced a $3.7-billion deal to lease 4,400 oil
tank cars to boost rail exports from the province and $80 million in
royalty credits for Nauticol Energy's $2-billion methanol plant near
Grande Prairie.
The report finds over the last three fiscal years, the government has
subsidized the fossil fuel industry by $1.6 billion a year on average.
"We know that there are lots of different programs between royalty
credits and tax incentives and different research opportunities for oil
and gas companies in Alberta to receive funds from the government," said
Joshua Buck, with Environmental Defence, in an interview.
"That's a lot of money at a time when our province is running a deficit
and there's lots of things that we could use scarce resources for."
The authors of the report say some of the subsidies make sense, such as
phasing out coal-fired power plants and reducing methane emissions.
"Anything that helps to transition away from a carbon intensive economy
to a low carbon economy, we do support," said Buck. "But a lot of the
subsidies that are being given out are not helping to reduce emissions."
Just about every industry receives some level of subsidies or government
support, but environmental groups say subsidies for the fossil fuel
sector will make it harder for Canada to reduce greenhouse gas emissions
and meet its climate change targets.
Over the last four years, Notley has introduced several environmental
policies such as a carbon tax and a cap on oilsands emissions. She has
also supported the development of several utility-scale solar and wind
projects throughout the province.
Oil production in Alberta is increasing every year, however the industry
has struggled since the oil price crash in late-2014.
The Canadian Association of Petroleum Producers did not comment on the
report, but supplied previous commentary it has made on the topic. The
industry group has stated, "In Canada, all businesses can deduct certain
expenses and the oil and natural gas industry is no different. Tax
measures of the oil and natural gas industry are not subsidies."
In the past, the group has also said "Fossil fuel consumption subsidies
are not prevalent, and in fact, the consumption of fossil fuels are
heavily taxed which discourages consumption, the opposite of a subsidy."
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