Ending Canadian Domestic Public Financing for Fossil Fuels

The report finds that Canadian institutions provided between CAD 7.6 billion and CAD 13.5 billion annually to the fossil fuel sector from 2020 to 2022, while providing only CAD 147 million annually for domestic renewable energy. It identifies Export Development Canada (EDC) as the primary provider of this finance and highlights a critical lack of transparency in reporting. The authors recommend a comprehensive policy that covers the entire fossil fuel life cycle, includes existing investments like the Trans Mountain Pipeline Expansion, and precludes funding for carbon capture and storage (CCS) and blue hydrogen. The report suggests redirecting these funds toward clean electricity and Indigenous-led generation to support Canada's energy transition.

• Between 2020 and 2022, Canadian institutions provided an annual average of at least CAD 7.6 billion to CAD 13.5 billion to the fossil fuel sector, whereas domestic renewable energy received only CAD 147 million annually.
• Export Development Canada (EDC) is the dominant source of domestic fossil fuel finance, accounting for 96% of the tracked funding, with significant support directed toward midstream pipeline projects such as the Trans Mountain Pipeline and Coastal Gaslink.
• There is a severe lack of transparency in Canada's public finance institutions; BDC provides no transaction-level reporting, and EDC reports values as ranges, making it impossible to precisely track domestic fossil fuel finance.
• The report argues that public financing for the decarbonization of the oil and gas industry, specifically Carbon Capture and Storage (CCS) and 'blue' hydrogen, should be precluded as these technologies are used to justify continued fossil fuel production and are incompatible with a 1.5°C pathway.
• A robust domestic policy must cover the entire life cycle of all fossil fuels (oil, natural gas, and coal) and include the divestment of existing public finance, most notably the over CAD 30 billion in loans and guarantees provided to the Trans Mountain Corporation.
• To meet 1.5°C-aligned scenarios, Canada's public clean electricity support needs to increase nearly tenfold, with recommendations including CAD 20 billion for interprovincial transmission and CAD 4.8 billion for Indigenous- and community-led generation.

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} }