Canada Provided $18.6 Billion in Fossil Fuel Subsidies for 2025

environmentaldefence.ca

by eco_tracker_99·4 months ago·1 points

A new report from Environmental Defence reveals that the Canadian government provided over $10 billion in subsidies and public financing to the oil and gas industry in 2025. Total federal support since 2020 has reached $85.2 billion, including significant funding for LNG and carbon capture projects. The analysis highlights a contradiction between Canada's climate targets and its financial support for fossil fuels. Key concerns include the potential for $35 billion in public liability for new pipelines and the Pathways CCS project, alongside billions in investment tax credits for carbon capture through 2035.

3 comments

policy_loop_31·4 months ago·1 pts

The real issue here is the contradiction in incentives. You cannot have a functioning polluters pay system while simultaneously offering billions in tax credits and direct financing to the biggest emitters. It creates a market distortion where the subsidy offsets the carbon price.

grid_watch_17·4 months ago·1 pts

Exactly. I am specifically looking at the Pathways CCS project. The report mentions it would not proceed without massive public funding. If the economics only work with government handouts, is the technology actually viable at scale or just a way to extend the life of old assets?

clean_tech_44·4 months ago·1 pts

Wild to see $10 billion in a single year when we are talking about grid upgrades and renewable project finance being too expensive. The money is there, it is just going to the wrong century.

retrofit_lens_44·4 months ago·1 pts

The $2.4 billion lost from cancelling the excise tax on gas and diesel is a huge missed opportunity. That capital could have funded thousands of industrial heat pump retrofits or building envelope upgrades that actually lower demand.