Subsidizing Climate Change: How BC gives billions to corporate polluters
A new report shows that Premier John Horgan’s British Columbia government has become one of the most generous subsidizers of oil and gas in Canada.
The report, released by Stand.earth, reveals that BC is now second only to Alberta in providing subsidies to the fossil fuel industry.
In just two years, the NDP government has doubled fossil fuel subsidies to $1 billion. The biggest source of this generosity is the deep-well royalty credit. At $350 million annually, BC has incurred $2.6 billion in outstanding royalty credits from natural gas producers, a liability that reduces public revenues for future generations.
Fossil fuel subsidies are a huge barrier to climate action and transitioning our economy away from fossil fuels. They make it almost impossible for BC to meet its 2050 carbon emission targets. Emissions from sky-rocketing liquid natural gas production alone would exceed BC’s target by 160 per cent.
The BC government needs to immediately cancel the deep-well royalty credit and embrace the federal government’s plan to eliminate fossil fuel subsidies by 2025. This will free up hundreds of millions of dollars annually to invest in the province’s economic recovery from the COVID pandemic, meeting its emissions reduction targets and transitioning to a clean energy economy.