| The Climate Action Network and the Pembina Institute are criticizing the federal government for committing to the Kyoto Protocol while at the same time providing billions of dollars in subsidies to the oil and gas sector, which produces the highest greenhouse gas emissions of any industry.
The Pembina Institute, an Alberta-based environmental policy think-tank, released a report this week stating that the Canadian government provided $8.3 billion in tax concessions and direct investment to the oil and gas industry between 1996 and 2002. In 2002, the federal government provided $1.2 billion in subsidies to oil sands projects alone. The report was commissioned by the Climate Action Network (CAN).
The report also criticizes the Alberta government for not tracking tax concessions, research and development grants, and direct investment in oil and gas.
"Informative public debate requires public knowledge of the level of government support provided through tax breaks, reduced royalties and support for research and development on an annual basis," states the report.
The Kyoto Protocol, which becomes law on February 6, requires Canada to reduce greenhouse gas emissions to six per cent below 1990 levels between 2008 and 2012. Meanwhile, greenhouse gas emissions from the oil and gas industry, which currently accounts for 20 per cent of Canada’s total emissions, are continuing to rise.
The report calls on federal and provincial governments to eliminate subsidies to the oil and gas sector completely so that fiscal policy will be linked with environmental objectives. The Pembina Institute also recommends redirecting subsidies into environmentally friendly energy sources such as wind power "until such time as they have gained substantial market share and are able to compete with conventional technologies," and moving towards a "polluter pays" principle where "those that cause environmental harm are required to incur the associated costs."
John Bennett, executive director of CAN, says it makes no sense to be giving subsidies to the most greenhouse-gas intensive industry.
"We have an industry that is making lots of money, expanding rapidly and creating huge problems for us in terms of air pollution and climate change," says Bennett. "We’re continuing to pour our taxpayer dollars into (an industry) that doesn’t see any need to protect the planet."
David Trimble, spokesperson for the federal Department of Finance, says the government has recently made some changes to create more consistent tax treatment between non-renewable (such as oil and gas) and renewable energy sectors. And he says the government has also committed $3.7 billion to address climate change, and created an $800 million fund to support environmental technologies.
"We’re not favouring one sector over another," says Trimble. |
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