Ending Canadian Domestic Public Financing for Fossil Fuels

This report by the International Institute for Sustainable Development (IISD) argues that Canada must end its domestic public financing for fossil fuels to align with the Paris Agreement and its own climate commitments. It highlights a significant disparity between the billions provided to the fossil fuel sector and the relatively small amounts allocated to domestic renewable energy, while providing a detailed framework for a comprehensive phase-out policy.

• Between 2020 and 2022, Canadian crown corporations provided an annual average of at least CAD 7.6 billion to CAD 13.5 billion to the fossil fuel sector, while domestic renewable energy received an annual average of only CAD 147 million.
• Export Development Canada (EDC) is the primary provider of domestic public finance for fossil fuels, accounting for 96% of such finance. Major transactions include at least CAD 18.3 billion for the Trans Mountain Pipeline project via the Canada Account and nearly CAD 500 million for the Coastal Gaslink pipeline project.
• Current reporting by Canadian public finance institutions (PFIs) lacks transparency, making it difficult to track the exact scale of domestic support. BDC provides no transaction-level reporting, and EDC provides values as ranges rather than precise amounts, leaving up to CAD 6 billion annually untrackable between 2020 and 2022.
• The report recommends that Canada's domestic public finance policy cover the entire life cycle of all fossil fuels (oil, natural gas, and coal), including exploration, extraction, transport, and decommissioning, as well as associated infrastructure like roads and ports.
• The authors argue that public financing for the decarbonization of the oil and gas industry, specifically Carbon Capture and Storage (CCS) and 'blue' hydrogen, should be precluded. They state that CCS is used to justify continued production and that the industry should bear its own decarbonization costs under the polluter pays principle.
• To support the energy transition, the report suggests redirecting public finance toward renewable energy and clean electricity. It notes that Canada's public clean electricity support needs to increase nearly tenfold to align with a 1.5°C scenario.

APA

Geddes, A., Cameron, L., & O’Manique, C. (2024). Ending Canadian Domestic Public Financing for Fossil Fuels. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-06/ending-canadian-public-financing-fossil-fuels.pdf

Chicago

Geddes, Anna, Laura Cameron, and Claire O’Manique. Ending Canadian Domestic Public Financing for Fossil Fuels. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-06/ending-canadian-public-financing-fossil-fuels.pdf.

Wikipedia

{{cite report |last1=Geddes |first1=Anna |last2=Cameron |first2=Laura |last3=O’Manique |first3=Claire |title=Ending Canadian Domestic Public Financing for Fossil Fuels |publisher=International Institute for Sustainable Development |date=June 2024 |url=https://www.iisd.org/system/files/2024-06/ending-canadian-public-financing-fossil-fuels.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{geddes2024ending, author = {Geddes, Anna and Cameron, Laura and O’Manique, Claire}, title = {{Ending Canadian Domestic Public Financing for Fossil Fuels}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jun, url = {https://www.iisd.org/system/files/2024-06/ending-canadian-public-financing-fossil-fuels.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }