No profits, more losses, and more carbon: Stand.earth reacts to Parliamentary Budget Office update on Trans Mountain pipeline
June 22, 2022
The Parliamentary Budget Office shared an update today on the mounting costs for the Trans Mountain Pipeline expansion project, illuminating what most people already knew – it’s a money pit.
Unceded Coast Salish Territories (VANCOUVER, BC) — The Parliamentary Budget Office shared an update today on the mounting costs for the Trans Mountain Pipeline expansion project, illuminating what most people already knew – it’s a money pit.
“Justin Trudeau and Chrystia Freeland have thrown away billions of dollars of Canadian’s money on a pipeline that was doomed to fail since the day they bought it,” said Sven Biggs, Canadian Oil and Gas Program Director for Stand.earth. “If the Liberals had invested the same funding in renewable energy, we could have doubled the amount of clean energy generated in Canada. Instead we are going to be saddled with an unprofitable, climate wrecking, pipeline.”
The pipeline project is currently less than halfway built, years behind schedule, and needed a $10 billion loan guarantee from the Federal Government to cover growing construction costs that now top $21 billion. Today’s report from the Parliamentary Budget Office confirms the findings of previous analysis from Institute for Energy Economics and Financial Analysis (IEEFA) that predicted that taxpayers will have to continue to pour money into the project if it is to be completed.
“Unfortunately this is a no win situation for Canadians. What is clear is that we must stop using public money to prop up the fossil fuel industry, said Biggs. “It’s time to diversify our economy and focus on creating a cleaner, more sustainable model of economic growth. One that gets us off the volatile boom and bust cycle of oil and gas and is focused on a sound future.”
In addition to the ballooning costs of this pipeline project, the UN Secretary General recently referred to any investment in new fossil fuels infrastructure as “moral and economic madness.” If Canada moves forward with projects like Trans Mountain, or the recently approved Bay du Nord project, the country is well on a path of further entrenching its dependence on fossil fuels while accelerating the climate crisis.